AGREEMENT OF TRADE AND COMMERCE BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE UNION OF BURMA
New Delhi, 5 September 1956
The Government of the Republic of India and the Government of the Union of Burma, being desirous of strengthening the friendship traditionally
existing between them and of promoting closer economic and commercial relations between their countries, have agreed as follows
The two Governments shall, within the framework of their laws and regulations in force from time to time, afford necessary facilities
for the import/export of commodities mentioned in the attached schedules 'A' and 'B'. Article II The two Governments shall provide
reasonable facilities for import into and export from either country of commodities not specifically mentioned in the attached schedules
'A' and 'B'.
Each Government shall give full consideration to suggestions that may be made from time to time by the other Government for facilitating
the export of commodities which are in short supply in one country and which have been traditionally imported from the other country.
Each Government shall give, subject to prices and quality being competitive full consideration to suggestions that may be made from
time to time by the other Government with a view to the development and expansion of commerce and the diversification and balancing
of trade between the two countries.
The two Governments recognise the needs and requirements of each other for foreign exchange in the context of their developing economies
and agree to take such steps as may be necessary to achieve as near a balance in their trade as may be practicably possible.
Each Government shall accord to the commerce of the country of the other Government treatment no less favourable than that accorded
to the commerce of any third country.
The two Governments agree to explore ways and means and to take necessary steps for the most convenient and economical transportation
of commodities between the two countries.
The two Governments will use their best endeavours to promote the development and interest of shipping of both countries and in particular,
shall accord to the ships sailing under the flag of either country, while entering, staying or leaving the ports of the other country,
all facilities consistent with their respective laws, rules and regulations.
This Agreement takes effect from the date on which it is signed and will remain in force for a period of 5 years, subject to such
modification as may be agreed upon between the two Governments at the beginning of each calendar year. DONE at New Delhi, on the
fifth day of September 1956 in two original copies in the English language, both of which are authentic.
(Sd.) K.B. LALL,
For the Government of the Republic of India.
(Sd.) AUNG SOE,
For the Government of the Union of Burma.
COMMODITIES FOR EXPORT FROM INDIA TO BURMA
Textiles: Cotton and Woollen such as: Cotton, raw and waste. Wool, raw and waste. Cotton and woollen piecegoods. Cotton clothes and
saris. Hosiery and knitted garments, woollen, cotton and rayon. Silk, art silk and rayon fabrics. Cotton twist and yarn. Other cotton,
woollen and silk manufacures. Jute manufactures.
Food: Tea, coffee, spices including pepper. Fish, dried and salted. Fish prawns, dried. Provisions and oilman stores. Tapioca and
its products. Fruits - fresh, dried, preserved, bottled and canned. Cashewnuts
Agricultural products: Hydrogenated oils, i.e. "Vanaspati" or vegetable ghee. Vegetable oils and oilseeds. Essential Oils.
Tobacco, raw and unmanufactured.
Chemical products and soaps: Chemicals and chemical preparations. Pharmaceuticals. Drugs and medicines Napthalene. Antibiotics. Sera
and Vaccines. Alkaloids and Opium and its derivatives. Soap, toilet and household. Toilet requisites and perfumery. Paints, pigments
Engineering goods: Printing machinery. Diesel engines. Pumps driven by diesel engines and electric motors. Sewing machines. Bicycles
and their parts. Textile machinery such as carding machinery and weaving looms. Machine tools.
Hand tools and small tools. Small river crafts. Sugar cane crushing machinery. Rice, flour and oil crushing machinery. Ball bearings.
Agricultural implements. Automobiles and their parts. Gliders.
Electricgoods: Electrical appliances and accessories such as conduit pipes, switches, bells, holders, cut-outs etc. Electrodes. Electric
bulbs and tubes. Generators, portable and fixed. Radio receivers. Electric fans and their parts. Batteries (dry and wet). Electric
torch lights. Electric motors. Telephone apparatus. Ebonite sheets, rods and tubes. Cables and wires.
Household and building requirements: Utensils, including stainless steelware. Cooking ranges, heaters, electric irons, toasters, kettles,
etc. Household electrical fittings and fixtures. Roofing tiles. Bricks. Carpets and durries. Linoleum. Sanitaryware. G.1 Pipes and
fittings. Manhole covers and plates. Hurricane lanterns. Kerosene stoves. Incandescent oil presmire lamps. Safes, strong boxes and
room fittings. Crockery.
Hardware: Locks and padlocks. Cutlery Bolts, nuts, screws and hinges. Steel fumiture and hospital appliances, etc. Weighing machines.
Surgical and medical instnunents
Scientific instruments ofall types. Rubber manufactures: Tyres and tubes.
Other rubber manufactures. Leather manufactures: Boots, shoes and belts. Other leather manufactures. Artificial leather goods.
Handicrafts and cottage industry products: Stationery and Paper. Miscellaneous: Coir and coir products. Dyeing and tanning substances.
Lac and shellac. Myrobalan and myrobalan extracts. Glassware including tableware, glass bottles and bangles. Synthetic stones. Books
and printed matter. Postage stamps. Refined mineral oil. Sports goods. Mica. Firebricks and fireclay.
COMMODITIES FOR EXPORT FROM THE UNION OF BURMA TO INDIA
Beaus and pulses. Maize.
Raw cotton. Teak.
Non-durable hardwoods. Stick lac. Cutch.
Tungoil. Rubber. Tin ore.
Zinc concentrates. Pig lead and ore. Copper matte.
Handicrafts and cottage industry products.
Precious stones, semi-precious stones and synthetic stones.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES
New Delhi, the 5th September, 1956
Dear U. AUNG SOE,
In the course of our discussions which resulted in conclusion of the Trade Agreement which was signed today, we discussed the measures
that need to be taken to develop trade and commerce between our two countries.
2. In this connection, you will recall that India has agreed to buy 2 million tons of rice spread over a period of 5 years. As for
Burma, I would like to invite your attention to the following paragraph occurring in the letter from Mr. MA. Raschid, the then Minister
of Trade Development and Labour to Shri Ajit Prasad Jain, our Minister for Food and Agriculture : "I would like to assure you
that the Government of the Union of Burma will take from time to time such steps as may be necessary to achieve as near a balance
in trade between the two countries as may be possible and trust that such balance will be achieved over the period of the Agreement."
3. We have discussed the possibility of using State Trading Organisations on both sides to develop trade between the two countries
to a higher level. It will, it has been agreed, be the endeavour of the two Governments to make use of these organisations to conclude
specific contracts and to facilitate contacts between State Trading Organisations and individual firms on either side.
4. I should be grateful if you would kindly confirm that the above correctly sets out the understanding reached between us.
(Sd.) K.B. LALL.
H.E. SITHU U. AUNG SOE, Ambassador for the Union of Burma in India, New Delhi.
New Delhi, the 5th September, 1956
Dear Mr. LALL,
I have the honour to acknowledge the receipt of your note of the 5th September 1956, which is in the following terms (Not printed)
2. 1 have the honour to confirm the above understanding. Please accept the assurance of my highest consideration.
(Sd.) AUNG SOE,
Ambassador for the Union of Burma in India.
Mr. K.B. LALL,
Joint Secretary to the Government of India,
Ministry of Commerce and Consumer Industries, New Delhi. MODIFICATION OF SCHEDULES (1958)
PROTOCOL TO THE AGREEMENT OF TRADE AND COMMERCE BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE UNION OF
BURMA, RANGOON, 25 SEPTEMBER 1958.
In pursuance of Article V of the Agreement of Trade and Commerce between the Government of the Republic of India and the Government
of the Union of Burma, read with the letters exchanged between them, dated the 5th day of September, 1956, the two Governments hereby
agree : 1. To facilitate and permit the import from the Union of Burma into India and from India into the Union of Burma of the commodities
listed in Schedules A-1 and A-2, attached hereto, upto the values mentioned therein.
2. To facilitate and authorise the procurement from the Union of Burma into India and from India into the Union of Burma of commodities
listed in Schedules B-1 and B-2, attached hereto within the overall ceilings specified therein.
3. That all payments in respect of the sale and purchase of the commodities listed in the said Schedules A-1, A-2 and B-1 and
B-2 between the Republic of India and the Union of Burma shall be made in Indian Rupees. For the exclusive purposes of facilitating
such payments, the State Commercial Bank of the Union of Burma, Rangoon, shall open two separate clearing accounts in Indian Rupees,
called India-Burma Trade Development Account A (hereinafter referred to as Account A) and India-Burma Trade Development Account B
(hereinafter referred to as Account B) with the State Bank of India, New Delhi. Payments to be made by residents of India to residents
of the Union of Burma will be effected by crediting the amounts of such payments to the said Accounts. Payments to be made by residents
of the Union of Burma to residents of India will be effected by debiting the amounts of such payments to the said accounts. Payments
in respect of the sale and purchase of the commodities listed in the said Schedules A-1 and A-2 will be made through Account A, while
payments in respect of the sale and purchase of the commodities listed in the said Schedules B-1 and B-2 will be made through Account
4. That the outstanding amount, if any, in Account A, at the termination of this agreement shall be settled only by increased import/export,
as the case may be of commodities listed in the said Schedules A-1 and A-2.
5. That Account B will be a balancing account with a swing limit of Rs. 30 lakhs on either side. When the outstanding amount in Account
B exceeds the said swing limit, the country running an import surplus may suspend imports temporarily while the country running an
import deficit will take steps to expedite procurement so that the outstanding amount is kept within the swing limit. The two Governments
shall compare the credits and debits at their six monthly review meetings and will devise such measures as may be agreed upon to
rectify persisting imbalance in favour of one or the other party. In case these measures fail to produce the desired effect within
the ensuing period of six months, the two Governments agree to liquidate the excess over the swing limit by payment in Pound Sterling.
The amount outstanding at the termination of this agreement will be settled by purchase/sale of the commodities listed in the said
Schedules B-1 and B-2 within a period of six months thereafter. The balance, if any, at the end of the said extended period of six
months will be settled in Pound Sterling.
6. That all transactions in commodities listed in the said Schedules A-1, A-2 and B-1, B-2 will, for the purpose of Account A and
Account B, be valued either on F.O.B., C.&F. or C.I.F. basis, depending on the terms of contracts executed.
7. That technical details for the operation of Account A and Account B shall be settled between the State Commercial Bank of Union
of Burma, Rangoon, and the State Bank of India, New Delhi.
8. That in order to facilitate the implementation of this agreement the two Governments shall review the working of this agreement
every six months, viz. towards the end of March and September every year.
9. That this agreement will be deemed to be a Protocol to the Agreement of Trade and Commerce concluded between the Government of
the Republic of India and the Government of the Union of Burma on the 5th day of September 1956, and will remain in force to the
duration thereof. THIS PROTOCOL is signed in Rangoon on the 25th day of September, 1958 in two original copies in the English language,
both of which are authentic.
Sd/- LALJI MEHROTRA,
On behalf of the Government of the Republic of India.
Sd/- B. SAN,
On behalf of the Government of the Union of Burma.
IMPORTS INTO INDIA FROM BURMA
| || ||
- (In Rs. lakhs)
(Proposed yearly imports)
- Beans, Pulses and Maize
- Precious stones, Semi-precious stones, cut and polished
- Teak scantlings.
| || |
EXPORT FROM INDIA TO BURMA
| || ||
- (In Rs. lakhs)
- (Proposed yearly imports
- Canned and bottled provisions
- Pigments, paints and varnishes
- Toilet requisites (Tooth pastes, Hair oil, etc.) (Licensed items only)
- Sewing machines and parts
- Portable electrical tools and appliances; electric lighting, fittings and fixtures, electric goods,
- Bicycles and parts
- Boots and shoes
- Bidi leaves
- Sports goods
| || |
IMPORTS INTO INDIA FROM BURMA UP TO A CEILING OF RS. 3 CRORES PER YEAR
| || || (In Rs.
| 1. || Teak squares and scantlings || |
| 2. || Hardwood sleepers || |
EXPORTS FROM INDIA TO BURMA UP TO A CEILING OF RS. 3 CRORES PER YEAR
2. Building materials.
3. Army and police boots.
4. Army and police uniforms.
5. Web equipment.
6. Pullovers, jerseys.
10. Rayon piecegoods.
12. Telephone and telegraph equipment.
13. Umbrella cloth.
14. Furnishing fabrics.
15. Railway wagons.
16. Elephants, milch and draught cattle and goats.
17. Motor vehicles
18. Agricultural machinery and implements.