Centre moots 3rd country trade on Myanmar border

NEW DELHI, February 18: As economic and strategic factors take precedence over political consideration in the India-Myanmar relationship, the Ministry of External Affairs (MEA) has mooted the idea of allowing trading in goods of third country across the border points in the Northeastern States with Myanmar. This along with the proposal to allow cross-border movement of people, besides gearing up infrastructure facilities like setting up banking and communication facilities are being suggested to revive the dwindling border trading through the Moreh-Tamu border. Suddenly, a lot appears to be at stake in reviving border trade through the sector, the only formal border trading point so far along Northeast and Myanmar, as the governments of these two countries prepare to open other sectors for border trading. The Additional Secretary (BMS), L K Ponappa, said the MEA has suggested to the Commerce Ministry to consider allowing third country trading through the border points in the Northeast and Myanmar. The official underlined the need for the Commerce Ministry to differentiate between allowing trading in illegal goods and illegal procedure. There are goods trading of which are illegal, but what is happening in the Moreh Tamu sector is a case of illegal procedure as trading of goal, of a third country is currently not allowed by India. But that can be set right by changing the rule, she argued, revealing the suggestion is already pending a decision with the Commerce Ministry. Incidentally the Union Minister of State for Commerce Omar Abdullah arrives Yangon on Thursday leading a team of official of his ministry for talks with his counterpart. The Moreh border town has a thriving market of smuggled Chinese goods with businessmen from all over the Northeast making a beeline to the border point. But the Government of India does not earn any revenue, as trading in Chinese goods on Moreh-Tamu border is illegal. On the other side of the border, however, the story is different, as the Myanmar Government has no such hassles and businessmen are free to trade after making declaration and paying the necessary taxes. The official, however, attribute a change in policy of the Myanmar Government to allow trading only against US dollar, owing to foreign exchange crisis in the country as the main factor for the trades in this region nosediving. Although the opening of the Tamu-Kalewa-Kalemyo road has removed the infrastructure hurdles, officials at the MEA and the Indian Embassy do not foresee a change in the situation unless certain drastic changes takes place. The problems on the Indian side are aplenty and range from lack of industries to deteriorating law-and-order situation to rampant corruption as being certain major factors behind the sagging trade. They pointed out that it is economically unfeasible for an Indian businessman to trade goods that is manufactured outside the Northeast through the Moreh border. Take the instance of the case of Indian tryes and bicycles for which there is great demand in Myanmar but the manufacturers prefer to export them through Calcutta port to the country. "Then sending goods by road means that a businessman has to incur additional expenses by way of paying illegal taxes to the underground outfits, extortion money all along the way, making it a highly unviable proposition. Sources said apart from certain items like pharmaceutical products, other goods being sent across from the Indian side to the Myanmar by road are sandal wood from Karnataka-Tamil Nadu and peacock feathers, both illegal goods but in great demand in Myanmar. However, there appears to be a silver lining in the otherwise bleak scenario that could lead to an increase in movement of trading and goods across the Northeast from Myanmar. The Myanmar Government has lifted a ban on movement of teak wood by road. So far Myanmar Government allowed transportation of teak wood, which are mainly exported to India, only by sea. India is also hopeful of the Myanmar Government allowed cross-border movement of people through the Northeast to the country, as the draft agreement to the affect has been already exchanged and is expected to be finalised, official said. As of now, traders from the Northeast exporting goods through the Moreh border is allowed access to only 120 km inside Myanmar border, and businessmen from Myanmar are allowed to travel only up to Imphal in Manipur. The situation will form in favour of the Northeastern States if the government capitalises on the Myanmar Government's desire to develop its otherwise economically backward border region. The north-western part of Myanmar as well as the Northeast is equally economically backward and to avoid the growth of insurgency movement in the border areas, the Myanmarese junta has embarked on a plan to develop these areas. A task economically not possible unless the Government of India shows equal interest.