The Nepali market is dominated by Chinese goods. Businessmen estimate that Chinese goods may become more expensive in the Nepali market after various materials including clothes brought in for the festival are stopped at the border crossings.
KATHMANDU, August 12: China, which is Nepal's second largest trade partner, has closed the two main border crossings with Nepal unannounced. Foreign Minister Narayan Khadka who returned from a visit to China on August 11 claimed that diplomatic relations between the two countries had improved, but China closed the border points. The Chinese side has not given any official information about the closure of the border points to the Nepali government.
Due to the spread of the COVID-19 infection in Tibet, which shares borders with Nepal, the transportation of goods through the Tatopani and Rasuwagadhi crossings has been banned. These are the two main ports for importing goods from China. Narad Gautam, head of Tatopani Customs Office, said that after the Chinese side sealed the Tatopani border point, vehicles have been stopped since Wednesday.
“China has stopped sending vehicles citing the reason of COVID-19 transmission," said Gautam, "It is not certain when it will be opened." The Chinese side has closed the border without giving any information. Every day 8-10 cargo trucks used to bring goods through the Tatopani border point. Traders are in trouble after China suddenly stopped sending goods without any notice.
Utilize reopened Nepal-China border points for mutual benefits
Bharat Karki, general secretary of the Himalayan Cross-Border Chamber of Commerce, said that after the closure of the border, clothes imported for the festival season in Nepal were stopped on the way. "The clothes and other materials imported for Teej were stopped there," said Karki. Traders have demanded that even if there is a risk of COVID-19 transmission, they should be able to import goods abiding by the safety protocols.
The Nepali market is dominated by Chinese goods. Businessmen estimate that Chinese goods may become more expensive in the Nepali market after various materials including clothes brought in for the festival are stopped at the border crossings. Businessmen had also prepared to bring clothes for Dashain through this route. After the blockade, they are confused.
Navaraj Timilsina, a trader, said that the closure of two major checkpoints will definitely affect the market. "The Chinese side has always been closing the border according to their own preferences," he said, "The market will be affected as the transportation of goods has been halted on the eve of the festival." Government officials say that the Chinese side is showing irresponsibility toward the problems of Nepali traders.
"If the arrival of goods from India had stopped, sloganeering would have started against India," said an official of the Ministry of Industry, Commerce and Supplies. "Even when China closes the major border points without informing Nepal, no one says a word. Even in the past, China unilaterally opened and closed the border with Nepal whenever it wanted. This time, too, China closed it without giving any information." In the last fiscal year 2021/22, goods worth Rs 200 billion were imported from China.
Customs officials say that due to the increase in the COVID-19 infection in Tibet, the goods-carrying vehicles have not arrived from Lhasa to Khasa. According to the government officials, there was unconfirmed information that the checkpoint was closed for a week in the first phase after the rise of COVID-19. During the COVID-19 period, the border was closed in the same way. Even though the checkpoint was operational after the outbreak of COVID-19, only a few cargo trucks were allowed to enter Nepal. Before COVID-19, 200 to 250 trucks were importing goods daily; but in recent times, barely 25-30 vehicles were entering through this route.
Goods imported from Tatopani and Kerung arrive within 20-22 days. It takes about 40-42 days for the goods to reach Nepal in a container from Kolkata, India. Traders want to bring goods from these transit points as it takes half the time to import goods via Tatopani and Kerung. But the Chinese side has been blocking the border from time to time, citing various reasons.
Since the cost of shipping is a bit high when goods are brought through India, traders used to import goods through Kerung and Tatopani channels. Export of goods from Nepal to China has also stopped after the closure of both major border crossings. Goods worth Rs 808.7 million were exported from Nepal to China last fiscal year.
