Updated: Friday June 07, 2019/AlJumaa Shawwal 04, 1440/Sukravara Jyaistha 17, 1941, at 08:47:50 PM

TRADE AGREEMENT BETWEEN INDIA AND PAKISTAN [1949] INTSer 10

TRADE AGREEMENT BETWEEN INDIA AND PAKISTAN

Karachi, 24 June 1949

Whereas the Government of India and the Government of Pakistan are desirous of continuing arrangements regarding the supply by each country of the requirements of the other they have agreed as follows:-

Article I

The Government of India agree to permit the importation from and exportation to Pakistan and the Government of Pakistan agree to permit the exportation to and importation from India, of the commodities and goods specified in Schedules A and E at least up to the limits for each class of goods mentioned therein during the period of this Agreement on the terms and conditions of this Agreement.

Article II

With regard to such commodities and,goods specified in the said Schedules as are, or may be, subject to export or import licences, the two Governments agree to grant, upon receipt of applications duly made, export or import licences at least up to the quantitative or monetary limits specified in Schedules A and B in respect of such commodities and goods in accordance with the law of the country and regulations and administrative practices of the Government granting the hcences.

Article III

During the currency of this Agreement, the two Governments may, by mutual agreement, alter, extend or supplement the Schedules to this Agreement.

Article IV

Articles I and II of this Agreement are without prejudice to the right of traders of either country entering into business transactions in respect of goods and commodities not forming part of this Agreement subject to, and in conformity with, the laws and regulations of either country for the time being in force.

Article V

The two Governments agree to render all reasonable assistance in facilitating the export and import of goods and commodities included in Schedules 'A' and 'B' and to consult each other in respect of any matter arising from, or in connection with, the exchange of commodities and goods between the two countries during the currency of and in accordance with this Agreement.

Article VI

Neither party shall re-export to any other country any scheduled commodity obtained by either country from the other in the form in which it was imported. Change of packing does not constitute change of form for the purpose of this Article.

Article VII

Subject to seasonal considerations and delivery requirements indicated in Schedules 'A' and 'B' each country shall spread its purchases as uniformly and conveniently as possible.

Article VIII

The two Governments agree to promote the contacts between the trade interests of the two countries and undertake to give every reasonable facility for the import and export of commodities, and in particular to facilitate the use of the routes and methods of transportation which are most economical and convenient.

Article IX

This Agreement, subject to ratification by the two Governments, shall remain in force for a period of twelve months from the 1st July 1949 to the 30th June 1950, except where otherwise specified in the Schedules.

Article X

In order to implement the Agreement in a smooth and orderly way the two Governments will exchange monthly progress reports and arrange meetings every other month between representatives of the two countries.

DONE and SIGNED in duplicate in English, either copy being authentic, in Karachi on this twenty-fourth day of June 1949.

SCHEDULE A

EXPORT FROM PAKISTAN TO INDIA

Serial No.

Commodity/Goods

Quantity/value

Remarks

1.

Raw Cotton

450,000 bales

A minimum of 2.25 lakhs bales to 
be purchased by 28th February 1950 and the balance by 31st August 1950.

2.

Hides & Skins: 
Buffalo hides 
Cow hides 
Skins, goat 
Skins, sheep

---

200,000 pieces 
1,000 pieces 
800,000 pieces 
700,000 pieces

. Goat skins in equal quantity from East and West Pakistan; Sheep skins 75,000 from East Pakistan and 625,000 from West Pakistan. Free licensing by Pakistan. Open General Licence by India.

3.

Raw Jute

4,000,000 bales. 
(In terms of standard bales of 400 lbs.)

Free of licence on both sides

4.

Rape & Mustard 
seed

15,000 tons

This is balanced by the additional supply of 5,000 ton mustard oil mentioned in item 10(a) of Schedule 'B'.

5.

Rock Salt

2,000,000 Maunds

 

SCHEDULE B

EXPORT FROM INDIA TO PAKISTAN

Serial No.

Commodity/Goods

Quantity/value

Remarks

1.

Asbestos Cement sheets

2,500 tons

India will issue export licences 
immediately. The article is on 
Open General Licence forimport 
into Pakistan.

2.

Canvas

1,50,000 yards

This item is on the Open General Licence for import into Pakistan.

3.

Chemicals: 
(a) Sulphuric acid 
(b) Aluminium sulphate 
(c) Hydrochloric acid 
(d) Nitric acid 
(e) Magnesium sulphate 
(f) Ferrous sulphate

.--- 
2,000 tons

2,000 tons

270 tons

200 tons

800 tons

400 tons

On Open General Licence for import into Pakistan and export from India.

4.

Coal

2,040,000 tons at the rate of 170,000 tons per month.

The figure of 170,000 tons of coal includes 
1,000 tons of Hard Coke per month. India 
will make every effort to supply an extra 30,000 tons per month if transport can 
be arranged. Maximum possible movement 
to be by rail.

5.

Cloth: 
(a) Mill-made

.

(b) Handloom

. 
150,000

. 
Import into Pakistan is on Open General 
Liceence. Free licensing by India.

6.

Cotton yarn

 

At least 25,000 bales to be 20's and above. 
Free licensing by India for Pakistan counts 
below 20's. Quotas for counts of 20's and 
above.

7.

Hardwood

 

Malabar Jungle wood and similar varieties. 
Free licensing by India up to quota. Open 
General Licence for import by Pakistan.

8.

Jute manufactures

 

On Open General Licence both for export 
from India and import into Pakistan.

9.

Myrabolams

 

On Open General Licence both for export 
from India and import into Pakistan.

10.

Edible Oils: 
(a) Mustard Oil

30,000 tons plus 
5,000 tons

Open General Licence on both sides. 
The additional quantity of 5,000 tons 
is balanced by the supply of 15,000 tons 
of mustard and rape seed mentioned in 
item 4 of Schedule A.

 

(b) Groundnut Oil

15,000 tons

India will issue licences. Imports into 
Pakistan are on Open General Licence.

 

(c) Copra Oil

6,000 tons

Ditto

 

(d) Vanaspati

15,000 tons

Ditto

11.

Railway Stores: 
(a) Underframe fittings

(b) Fire Bricks

. 
Rs. 150,000

Rs. 100,000 

. 
Pakistan's additional requirements are:- 
Signalling and Interlocking materials 
Rs. 150,000 Underframe fittings. Rs. 150,000 
Fire Bricks Rs. 350,000 Hydraulic fittings 
Rs. 30,000 Electrodes Rs. 800,000 Split and 
Cotton pins Rs. 500,000 Wheel Type Axles. 
Rs. 500,000 Further consultation will be held 
with a view to utilising spare capacity in 
India for meeting these requirements.

12.

Paints & Varnishes

2,500 tons

Open General Licence on both sides.

13.

Linseed Oil

6,000 tons

India will issue licences. Is on Open 
General Licence for import into Pakistan.

14.

Bauxite

2,500 tons

Is on Open General Licence on both sides.

15.

Electrical Steel Sheets

500 tons

India will issue export licences. Open 
General Licence for imports into Pakistan.

16.

Sea Salt

2,000,000 Mds.

Open General Licence in India and Open General Licence for import in Pakistan 
by land and river and under licence by sea.

17.

Steel

64,000 tons

 

18.

Pig Iron

16,000 tons

Supply will be quarterly instalments of 
4,000 tons beginning from October-December 1949, and ending in July-September, 1950.

19.

Tobacco (Flue-cured)

2,000,000 lsb.

Open General Licence for export by India and import into Pakistan.

20.

Ferrosilicon

100 tons

*India will confirm later.

21.

Ferromanganese

100 tons

Ditto.*

22.

Pitching Stone and Ballast

7,500,000 cft

 

23.

Washing soap

5,000 tons

 

* Since confirmed.

Note: Cigarettes, Matches and Toilet Soap have been suggested by India. It is noted that they are on Open General Licence for export from India and import into Pakistan.

 

 


India Bilateral

Ministry of External Affairs, India

Courtesy: http://www.commonlii.org/in/other/treaties/INTSer/1949/10.html

 

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