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Santiago, 10 March 1960

The Government of India and the Government of the Republic of Chile, animated by the desire to develop and strengthen the trade between the two countries and to promote closer economic relations have agreed as follows

Article I

The Government of India and the Government of the Republic of Chile shall, subject to their respective import, export, foreign exchange and other regulations, give the maximum possible facilities for import and export of commodities of interest to either party. To this end, the two Governments shall periodically exchange lists of articles available for export from either country and give wide publicity to these lists.

Article II

The two Governments shall render all possible assistance in fostering contacts in various fields between traders and trading organizations of the two countries, resulting contracts being concluded directly between the parties concerned.

Article III

The two Governments shall enter into consultation periodically and give full consideration to suggestions that may be made for the development and expansion of commerce and the diversification and balancing of trade between the two countries.

Article IV

With respect to customs duties and charges of any kind imposed on or in connection with imports or exports or on the international transfer of payments for imports or exports and with respect to the method of levying such duties and charges and with respect to the rules and formalities in connection with imports and exports and with respect to the application of internal taxes to exported goods, any advantage, concessions, privilege or immunity granted by either party to any product originating in or destined for any other country, shall be accorded immediately and unconditionally to the like products originating in or destined for the territory of the other contracting party.

Article V

Provisions of Article IV shall not prevent either party from maintaining their respective preferential arrangements or subject to their respective obligations under the GATT, from according advantages to adjacent countries, such as Pakistan, Nepal and Burma in the case of India, and Argentina, Peru and Bolivia in the case of Chile, including facilities for frontier traffic, or from according advantages resulting from economic integration with other countries consequent upon a customs union or a free trade area to which it may belong at present or in future. Article VI With respect to all other matters affecting the commercial interchange of commodities between the two countries, the two parties will also continue to adhere to the provisions of the General Agreement on Tariffs and Trade.

Article VII

Subject to the laws of Chile in regard to ratification of agreements, this Agreement shall come into force from the Ist January, 1960 and shall remain valid up to the 31st December, 1962. It may be continued for a further period of three years thereafter subject to such modifications as may be agreed upon in this behalf. The agreement may be terminated at any time subject to six months notice being given by either party.

DoNE, and signed in duplicate in English and Spanish languages. both documents being authentic, in Santiago de Chile, on the 10th March, 1960.

For the Government of the Republic of Chile :
Sd/- German Vergara Donoso

For the Goverment of India:
Sd/- R. S. MANI



Santiago the 10th March, 1960

With reference to Article I of the Trade Agreement signed to-day, we the possibilities of further expanding the trade between our two countries and found that there was considerable scope for further development. In particular, you considered that Possibilities existed for export, amongst other things, of the commodities mentioned in Schedule 'A' from India to Chile and we believed that there was scope for expanding the export of commodities mentioned in Schedule 'B'from Chile to India. It was agreed that the two Governments would encourage and assist subject to their respective laws and regulations the firms and trading organisations on both sides to realise these possibilities and also give wide publicity to these respective countries.

2. It was also agreed that the two Governments pledge mutual assistance for the promotion of Indo-Chilean trade, and that they would consider sympathetically the difficulties and problems of the exporters in the two countries in extending the exports of the products of each country.

3. The Chilean Government considered, in particular, that there wasscope for enlarging imports of Chilean Nitrate into India and would like the Indian Government to provide facilities for much larger imports of this commodity. In deference to these views of the Chilean Government, you stated that the Government of India agreed to step up imports of Chilean Nitrate and to provide facilities for the import of 75,000 tons over a period of three years as compared to 60,000 tons in the last Agreement. You added that the Government of India was aware that the Chilean Government would like to step up even further the import of this commodity; and that the Government of India was naturally willing to endeavourr to increase the imports further up to 90,000 tons, if, in the meanwhile, increased imports from India were facilitated, and mutual co-operative arrangements were worked out between the Indian State Trading Corporation and the Chilean Nitrate Corporation for mutual exchange of goods.

4. 1 should be grateful if you would confirm that above statements are correctly sets out the understanding reached between us.

I avail myself of this opportunity assurances of my highest consideration



Santiago (Chile) March, 10, 1960

f I write to acknowledge the receipt of your Excellency's letter of to-day's date the translation of which is as follows :


I confirm that the foregoing correctly sets reached between us.

I avail myself of this out the understanding opportunity to renew to your Excellency the assurances of my highest consideration.

His Excellency, Senor D. GERMAN VERGARA DONOSO,
Ministre de Belaciones Exteriores.

Sd/- R.S. MANI. Ambassador of India to Chile.



Animals, living including wild animals, Frozen fish Fruits, dried Cashew kernels, Walnuts, Rum, Jams, chutneys and pickles Hydrogenated oils, Pepper, Cumin seeds, 11. Spices 12. Tea 13. Coffee 14. Unmanufactured tobacco.Tobacco manufactures, such as cigarettes and cigar, Mica Asbestos Soapstones Chrome ore Ilmenite, 21. Kyanite ore 22. Manganese ore 23. Magnesite 24. Shellac 25. Gums and resins 26. Goat and sheep skins, raw 27. Vegetable oils (non-essential) 28. Cashew shell oil 29. Essential oils 30. Turpentine oil, crude 31. Cotton, raw 32. Hemp, raw 33. Silk and wool waste 34. Kapok 35. Coir manufactures, such as coir yarn, coir mats, mattings and carpets 36. Palm fibre and yarn 37. Sundry timbers 38. Animal bristles and hair 39. Vegetable fibres for brushes and brooms 40. Horns 41. Crushed bones

42. Tanning substances, such as myrobalan, myrobalan extracts and catechu.

43. Chemicals 44. Glycerine, crude and pharmaceutical 45, Naphthalene 46. Paraffin wax

47. Drugs, medicines and medicinal herbs

48. Hides and skins, tanned 49. Leather and leather manufactures 50. Cotton piecegoods 51. Jute yarn and fabrics 52. Jute bags, jute wool sack and otherjute products 53. Silk fabrics 54. Art silk fabrics 55. Woollen fabrics 56. Cordage and ropes 57. Other textile products 58. Linoleum 59. Films, exposed 60. Pearls, polished G1. Precious and semi-precious stones, cut and polished including diamonds

62~ Handicrafts arid cottage industry products, such as handloom (cotton and silk), artistics silver, brass and bidri products, ivory articles, wood carvings etc.

63. Printed matters, including books and periodicak;

64. Sports goods 65. Light engineering goods, e.g. bicyles, sewing machines 66. Pig iron 67. Electric motors and pumps G8. Steel furniture 69. Storage and dry batteries

70. Hosiery, cotton, woollen and art silk.



1. Pulses 2. Barley

3. Fish and dried fruits 4. Canned foodstuffs 5. Wine 6. Sulphur 7. Chilean nitrate 8. Iodine 9. Copper 10. Lead 11. Copper manufactures and serni -manufactures 12. Pig iron 13. Steel 14. Hard and soft timbers

15. Newsprint.

India Bilateral

Ministry of External Affairs, India

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