EXCHANGE OF LETTERS REGARDING TRADE ARRANGEMENTS BETWEEN INDIA AND ITALY
Rome, 6 October 1959
Rome, the 6th October, 1959
During the course of recent discussions between the representatives of the Governments of India and Italy regarding closer economic
relations between the two countries, it has been confirmed that these relations will be regulated by the following provisions :
(1) The Governments of India and italy will give all facilities to promote trade between the two countries to treat fairly and equitably
all questions arising in this connection.
(2) The representatives of the Government of India have confirmed that within the currency groups adopted by India, there will be
no territorial discrimination and, accordingly, applications for licences for import and export of goods from and to Italy shall
be treated equally favourably with applications for import and export from and to any other country of the currency group, in which
Italy may be placed, in accordance with the import, export and foreign exchange laws and regulations in force from time to time,
saving any specific commitments in particular trade agreements and ad hoc arrangements.
(3) The representatives of the Government of Italy have confirmed that as regards imports or exports into and from Italy, India shall
enjoy the same treatment as is accorded to countries of the sterling area group in the Italian foreign trade regulations, saving
any specific commitments in particular quota trade agreements.
(4) The regulations relating to the control of imports and exports as established by the two Governments for each period will be made
known through Public Notices. It is understood that these regulations are liable to be modified from time to time.
(5) The representatives of the two Governments have agreed to give all possible facilities for publicity in their respective countries
to the commodities available for export in the other country. The lists of some of the goods available for export from Italy to India
and from India to Italy are enclosed at Schedules A and B, respectively.
(6) The lists of commodities mentioned in paragraph (5) above are without prejudice to the right of persons or firms of either country
to enter into business transactions in respect of goods and commodities not forming part of these lists, subject to and in conformity
with the import, export and foreign exchange regulations in force from time to time in either country.
(7) Pending the conclusion of a more permanent and complete agreement, meant to regulate all matters inherent to navigation, all ships
belonging to either of the two countries shall be accorded in respect of their movement in the ports of the other country, use of
the port plants, bunkering and other services as well as of duties and taxes, treatment no less favourable than that granted to ships
of any other foreign country.
The above arrangements shall not apply to any concessions made to ships engaged in the coastal trade of either country.
(8) As regards airlines, the Governments of India and Italy will use their best endeavours to promote the airlines of the two countries
for the carriage of goods and passengers, and they will give fair and equitable treatment to all questions arising in this connection.
(9) The two Governments undertake to facilitate to the extent possible mutual interchange and import of films produced in either country.
(10) All payments and settlements in relation to imports and exports between the two countries shall be made in accordance with their
respective foreign exchange laws and regulations.
(11) The representatives of the two Governments agree that transfers of salaries and wages by nationals of either country working
for a limited period in the other country would be freely allowed, after deduction of living expenses, taxes, and social assurances.
subject to exchange control permission having previously been obtained for such employment and remittances.
This is without prejudice to nationals of either country availing themselves in full of the facilities permitted under the foreign
exchange regulations in force in either country from time to time if such facilities should be more liberal.
(12) The representatives of the two Governments, taking note of the desire of both the countries for expanding trade and closer economic
and industrial cooperation, and recognising that an increase in Indian exports to Italy is important for the fulfilment of this desire,
have emphasised the need for practical measures to strengthen mutually beneficial economic cooperation between industrial enterprises,
sales organisations and banking institutions on both sides.
To this end and in order to facilitate the implementation of the ,present agreement, it has been agreed that the two Governments will
consult each other from time to time on measures for the promotion and extension of trade relations between the two countries. For
this purpose, a Commission composed of the representatives of the two Governments will meet at the request of either party at a place
and time to be mutually agreed upon. The Commission will endeavour to take such steps as may be found necessary to widen and deepen
economic relations between the two countries on a mutually beneficial basis.
(13) The terms and conditions of the letters exchanged between the representatives of the two Governments on the 14th December, 1955
are embodied in this Agreement.
(14) This Agreement will come into effect immediately and shall remain valid up to 30th June, 1960. The Agreement shall continue to
operate for another year unless either party inform the other of their intention to terminate it within three months of the above
The schedules "A" and "B" will, however, be subject to revision, if necessary, at the commencement of July, 1960.
(Sd/-) K.B. LALL,
Additional Secretary to the Government of India,
Ministry of Commerce and Industry, Leader of the Indian Government Trade Delegation.
S. E. l'Ambasciatore CASTO Cmuso, Direttore Generale degh Affari Economici, Ministero degli Affari Lsteri, ROME.
LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM ITALY DO INDIA
1. Dairy products.
2. Fruits and peels, candied.
3. Starch, farine and dextrins.
4. Seed, potatoes and spring potatoes.
5. Garlic, onions and other fresh vegetables.
6. Dried fruit.
7. Tomato conserves.
8. Canned foodstuffs (fruit pulp, pickles, etc.)
9. Macaroni, spaghetti and vermicelli.
10. Preserved foodstuffs.
11, Beverages, nonalcoholic, and mineral waters.
12. Wines, vermouth, marsala, liqueurs.
13. Forage seeds.
14. Sewing thread, cotton.
15. Cotton yarn.
16. Cotton fabrics.
17. Cotton knitted apparel.
18. Shoddy wool and wool waste.
19. Wool, raw, synthetic, in tops.
20. Hand knitting wool.
21. Woollen yarn, pure and mixed.
22. Shoddy woollen yarn.
23. Woollen hosiery and knitted apparel.
24. Woollen fabrics and manufactures.
26. Blankets, plaids, scarves and shawls.
26. Woollen carpets, floor rugs.
27. Felts for paper mills.
28. Felts for caps a7nd hats.
29. Raw silk.
30. Silk cocoons.
31. Spun silk yarn.
32. Silk and artsilk socks and stockings.
33. Silk fabrics and manufactures.
34. Artificial silk yarn.
35. Artificial silk fabrics.
36. Staple fibre.
37. Velvet and ribbons.
38. Mixed fabrics, made of any textile fibre.
39. Elastic ribbons and fabrics.
41. Snap fasteners.
42. Zip fasteners.
43. Hats and caps.
45. Corozo nut blanks for buttons.
46. Manufactures of aluminium and alloys thereof
47. Magnesium alloys and manufactures thereof.
48. Manufactures of lead, tin, zinc and alloys thereof.
49. Collapsible tubes for paints, perfumery, varnishes and the like.
50. Domestic hardware, stoves, enamelled bath tubs.
51. Builder's hardware, door locks, staircase locks, hinges, etc.
52. Other hardware, viz., panel pins, screws, ox and dog chains etc.
53. Incandescent pressure lamps.
54. Incandescent mantles.
55. Table glassware.
57. Glass articles for technical uses.
58. Other glass manufactures.
59. Domestic china and porcelainware.
60. Porcelain insulators.
61. Other porcelain, majolica and ceramic products.
62. Earthenware, pipes and sanitaryware.
63. Glazed tiles.
64. Table cutlery.
65. Railway rolling stock.
66. Railway and tramway axles, wheels and tyres.
67. Ball and roller bearings and axle boxes.
68. Other iron and steel manufactures.
69. Agricultural machinery and parts
70. Tractors and spare parts
71. Building and construction machinery and parts
72. Dyeing, bleaching and mercerizing machinery and parts thereof
73. Machinery for mines and quarries, and parts thereof
74. Tanning machinery and machinery for the leather industry, and parts thereof.
75. Machinery for flour-mills, macaroni works, bakeries, etc., and parts thereof
76. Machinery for aerated-water industry and parts thereof.
77. Machinery for confectioneries and parts thereof
78. Machinery for paper industry and parts thereof.
79. Printing machinery and parts thereof
81. Machinery for bookbinding, and parts thereof.
82. Machinery for working moulding powders, and parts thereof
83. Machinery and plant for refrigeration and cold storage and parts thereof.
84. Air-conditioning machinery and plant and parts thereof.
85. Machinery and instruments for the manufacture of electric bulbs, and parts thereof.
86. Tools and instruments for arts and crafts.
87. Woodworking machinery.
88. Textile machinery including machinery for hosiery, hatmaking, netmaking and parts thereof.
89. Textile mill stores (tubes, bobbins, shuttles, etc.).
90. Card clothing.
91. Sewing machines, domestic and industrial, and parts thereof.
92. Typewriters, adding machines and calculating machines and parts thereof.
93~ Cash registers and parts thereof
94. Presses, hydraulic, and of other types.
95. Pumps, compressors, motor-compressors, ventilators, and parts thereof.
9(;. Transformers and auto-transformers.
97. Electrical generators and motors.
99. Electric stoves, cooking ranges, refrigerators, water-heaters and parts thereof.
100. Exhaust fans.
101, Electric table fans.
102. Other electrical appliances.
103. Machine tools, including automatic machine tools.
104. Internal combustion engines for vehicles of cylinder capacity about 4,000 cu. cm.
105. Motors including piston engines.
106. Industrial furnaces.
107. Other machinery.
108. Scientific, engineering, optical instruments and apparatus.
109. Spectacles, including glare glasses and goggles.
110. Alarm clocks, watches including time indicators.
111. Meters, all sorts.
112. Apparatus and material for radiotelephony, radiotelegraphy and radio reception and broadcasting.
113. Apparatus and equipment for cinematography.
114. Photographic material (photographic papers, filins, plates, etc.)
116. Photographic cameras, including carrying cases.
116. Raw films for cinematography.
117. Italian films, exposed.
118. X-Ray tubes and valves.
119. Electric bulbs, and electrical material including carbon brushes and graphite electrodes.
120. Welding electrodes.
12 1. Auto-vehicles, and parts thereof.
122. Industrial auto-vehicles and parts therof.
123. Spare parts and accessories for auto-vehicles.
124. Motor-cycles, bicycles and parts thereof, and motor-scooters.
125. Auto attachments for bicycles.
126. Pneumatic motor tyres and tubes.
127. Giant rubber tyres and tubes, not manufactured in India.
128. Rubber tubes, pipes belting threads, and other rubber manufactures.
129. Rubber 9hoes.
130. Oil-cloth, parchments and artificial leather.
131 ' Marble and raw alabaster.
132. Marble and alabaster, wrought.
134. Sulphur, raw and refined.
135. Asbestos, raw and in sheets, unsuitable for weaving.
136. Articles made of asbestos-cement.
137. Cement otherthan Portland and plasterofPan's.
138. Articles made of cement viz., pipes, tubes, tiles, etc.
139. Refractory materials, and articles thereof.
140. Abrasive products, namely, emery carborandum, and the like, including sand and emerypaper and cloth.
141. Earth, bleaching, viz., fuller's earth, talc and similar.
142. Bleaching power.
143. Graphite crucibles.
145. Acetic acid.
146. Citric acid.
147. Tartaric acid and cream of tartar.
148. Tanning materials.
149. Tanning extracts.
15 1. Inorganic chemical products.
152. Organic chemical products.
153. Motor spirit, kerosene and other petroleum products.
154. Antibiotics and sulfa preparations.
156. Other medicinal and pharmaceutical preparations.
157. Pesticides and weedicides.
158. Perfumery, synthetic perfumes and essences.
159. Essential oils.
160. Raw cork and cork manufactures.
161. Hardboards, porous or impermeable.
162. Moulding powders, celluloid, bakelite and the like.
163. Cellulose transparent paper.
164. Cigarette paper.
165. Paper, other types and cardboards.
166. Manufactures of paper and boards.
167. Books, magazines, newspapers, printed papers and music scores and music books.
168. Stationery articles, including fountain pens and nibs.
169. Accordions and other musical instruments.
170. Gramophones and parts thereof.
171. Longplaying gramophone records.
172. Tobacco, unmanufactured.
173. Cigarettes and cigars.
175. Sporting and hunting arms and ammunition.
176. Cartridge cases filled and empty.
177. Toys, educational.
178. Fishing rods, reels and hooks.
179. Fire extinguishers and fire-fighting equipment.
180. Vulcanized fibre.
181. Umbrellas, and parts thereof.
182. Brushes, all sorts.
183. Dental goods, apparatus and appliances.
184. Steelscrews, bolts and nuts.
185. Leather belting.
LIST OF SOME OF THE GOODS AVAILABLE FOR EXPORT FROM INDIA TO ITALY
1 . Tea.
4. Spices: Turmericj Cardarnoms, ginger, pepper.
5. Cigarettes and Cigars.
6. Dried fruits including cashew kernels and walnuts.
8. Preserved fruits.
9. Fish and tinned prawns.
10. Hides and skins, raw and vegetable tanned and lamb fur skins.
11. Hydrogenated oils.
12. Bones crushed and bonegrist.
13. Sheep casings.
14. Animal hair and animal horns.
15. Vegetable oils, linseed oil, castor oil, niger seed oil, Kardiseed oil, groundmit oil and cottonseed oil.
16. Essential oils.
17. Mineral ores: manganese ore, iron ore, kyanite ore, chrome ore (other than high grade chrome ore) and bauxite.
18. Pig iron.
21. Cotton raw and cotton waste.
22. Silk waste.
23. Wool, raw.
24. Myrobalan and myrobalan extract.
26. Drugs and medicines and other pharmaceutical products, e.g., Nux Vornica, Chiratto, senna leaves, popein, morphine, etc.
26. Cotton twist and yarn.
27. Jute twist and yarn.
28. Cotton fabrics, mill made.
29. Cotton fabrics, handloom.
30. Jute Gunny Bags.
31. Jute Gunny Cloth.
32. Woollen art silk and rayon fabrics.
33. Ethyl alcohol (rectified spirit).
34. Leather footwear.
36. Coir, coir yarn and other coir manufactures.
38. Fibres and brushes and brooms.
39. Certain types of wood and timber.
40. Railway rubber components (vacuum brake hoses and rubber springs).
42. Sports goods.
43. Handicrafts including zari goods, filligree, bidri, papier machie, wood car%-ings, ivorTware and artificial jewellery.
44. Indian films, exposed.
45. Gums and Resins other than gum arabic and resin.
46. Lac and shellac.
47. Canes and rattans.
48. Shells: tortoise shells and sea shells.
49. Carding engines.
50. Glassware: other than thermos flasks.
Rome, the 6th October, 1959
Dear Mr. LALL,
I write to acknowledge receipt of your letter of today's date, which reads as follows:
I confirm that this sums up correctly the results of the discussions between the representatives of India and Italy.
Sd./- CASTO CARUSO
Ambasciatore CAsTo CARuso, Direttore Generale Affari Economici,
Ministero degli Affari Esteri.
Esq. Additional Secretary to the Government of India, Ministry of Commerce and Industry, Leader of the Indian Government Trade Delegation,
During the discussions that have taken place in Rome, on the 28th, 29th and 30th September, and the 1st and 6th October, 1959 between
an Indian and an Italian Trade Delegation for the renewal of the Trade Agreement between the two Countries, the trend of the Italo-Indian
trade has been reviewed with the following results :
(a) The two Parties have noted with concern the recent decline in Italian exports to India and Indian exports to Italy and are resolved
to take such steps as may be mutually agreed upon from time to time to reverse the declining trend.
(b) India is concerned over the serious lack of balance in the trade between the two countries and in this connection it has been
considered that the promotion of Indian exports to Italy is essential in the interest of maintenance of a high and stable level of
trade between the two countries.
(c) It has been explained that there are no quantitative restrictions on the import into Italy of goods which India is in a position
to supply and the Italian Authorities would welcome, according to the Italian regulations, any improvement of imports of Indian goods
into Italy. It has been recognised that a major obstacle to larger exports from India is the inadequacy of contacts between Indian
and Italian trade organisations and businessmen.
The two Parties have agreed to use their best endeavours to foster contacts between Italian and Indian trade and industrial firms
and organisations, and in particular, to facilitate the exchange of the information and development of fruitful cooperation between
the trade and industrial organisation and institutions of the two countries.
(d) India's large requirements of industrial plants and equipment, industrial raw and processed materials and of fertilisers for the
maintenance and development of her economy during the remaining years of the Second Plan and during the Third Plan have been noted.
It has been recognised that Italian Industrial organisations and business firms are able to participate in supplying the aforesaid
goods and materials up to the maximum extent India is in a position to find the wherewithal therefor.
(e) It has been recognised that, in the context of Italian industrial and commercial expansion there is scope for increase in Indian
sales to the Italian market. In this connection, it has been considered that it will be mutually beneficial if Italian and Indian
producers and manufacturers could explore possibilities of meeting each others' requirements on a long term basis.
Similarly, it is thought that more intimate relationship between the banking institutions and the sales organisations of the two countries
would help to overcome current difficulties.
(f) The two Parties have agreed to give favourable consideration to proposals for facilitating - in accordance with laws and regulations
in force in either country - such business arrangements as sales and industrial organisations on either side may enter into for promoting
mutual sales and purchases.
(g) It has been represented by India that Indian exporters are in a position to supply to the Italian State Monopoly qualities and
grades of tobacco comparable to those currently imported into Italy or likely to be of interest to Italian manufacturers of cigarettes
and cigars. The Italian representatives have agreed that this offer will be brought to the attention of the Italian State Monopoly
for favourable action.
(h) It has been represented by the Indian Delegation that the temporary duty levied by Italy on the import of Indian vegetable tanned
goat skins and the level of Italian taxation on tea have a restrictive effect on Indian exports of these commodities to Italy.
The representatives of the Government of Italy will bring these problems to the attention of the competent Italian authorities with
a view to solving these problems.
Rome, the 6th October, 1959.
Sd./- K.B. LALL,
Leader of the Indian Delegation.
Sd./- GIOVANNI SOPO,
Leader of the Italian Delegation.