| 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. |
