4 November 1971
The Government of India
The Government of the Republic of Peru,
REAFFIRMING the traditional ties of friendship existing between their peoples,
ACTUATED by the common desire to develop and strengthen the commercial and co-operative relations between the two countries in a
spirit of reciprocity and mutual benefit,
HAVE agreed as follows :
The Contracting Parties shall ensure the maximum facilities and most favoured nation treatment to increase trade between both countries
in accordance with their respective laws and regulations on the subject.
The Contracting Parties agree to grant to each other the maximum facilities possible for the import into their respective territories
of the natural and manufactured products originating in the territory of the other Party, and for the export of their own products
to the territory of the other Party.
The maximum facilities referred to in Article II will be applied in all matters relating to customs duties and taxes, internal taxation
and any other taxes on the transformation, circulation and consumption of imported goods. It will also be to administrative proceedings,
rights of any Kind, appraisement systems of grant of treatment, concessions or payments of foreign exchange regulation of traffic
transportation and distributions.
The provisions of Article II and III shall not apply
(a) to the advantages and facilities resulting from a custom union or a free trade area which any of the Contracting Parties has
joined or may join;
(b) to the advantages and facilities that the Republic of Peru grants or may be grants in the future to its bordering countries as
well as those which are being granted or may be granted in the future to a country or a group of countries as a result of regional
and sub-regional economic arrangements;
(c) to the advantages and facilities accorded by India to certain countries until the e date of this Agreement;
(d) to the advantages and facilities that India grants or may grant in the future to an adjoining country for the importation in
its territory of agricultural and industrial commodities as well as for the exportation of agricultural and industrial products originating
in the territories of the Parties in favour of those which are being granted or may be granted in the future to a country or group
of countries as a result of regional or subregional economic arrangements ; and
(e) to the advantages and facilities that one of the Contracting Parties grants or may grant in the future by virtue of multilateral
economic arrangements designed to liberalise conditions of international commerce.
The exceptions provided for in this Article shall be governed by the obligations undertaken by either Contracting Party under the
General Agreement on Tariffs and Trade (GATT) to which both India and Peru are parties.
The Contracting Parties will not take any discriminatory measures which result in an increase in the prices of goods traded between
The trade between the two countries shall be governed by the respective import-export and foreign exchange regulation of the Contracting
All payment between the Contracting Parties will be made in freely convertible currency.
The conclusion of commercial contracts drawn up in accordance with the disposition of this Agreement shall not involve the responsibility
of either Government or of other persons physical or juridical, except when they are parties to such contracts.
In accordance with the legislation of the Contracting Parties, the citizens and juridical persons of each party will enjoy on the
territory of the other, same treatment with regard to the protection of their persons and their goods in the exercise of their commercial
activities which they carry out either directly or through intermediary of authorised representatives, which is given to laws and
regulations of the two countries to the citizens and juridical persons of any other country.
Subjects to laws and regulations in force in both countries the merchant ships belonging to either of the two Contracting Parties
shall enjoy the maximum facilities in respect of free entry into the ports open to foreign trade, use of port facilities, loading
and unloading dues and taxes. In general they will receive a treatment in no way less favourable than the treatment accorded to ship
of any other foreign country except that any concessions accorded to ships engaged in the internal coastal trade of either Party
shall not be available under this Article to the other Party.
With regard to maritime Transportation, the Contracting Parties will grant to each other the maximum facilities and will promote agreements
between their Merchant Marine for the establishment of services between their ports, with the objective of 50 percent of cargoes
being carried by the respective national carriers.
So as to promote the growth of the commercial exchanges under the protection of the present Agreement, the Contracting Parties agree
to exchange annually informative lists of goods in which they are specially interested with the object that both Parties may give
suitable publicity to this in their respective territories.
In the same way, the Contracting Parties will periodically hold consultations and study all the suggestions for the harmonious development,
diversification and expansion of the two countries.
This Agreement will enter into force on the date of exchange of Instruments of Ratification which shall take place in the City of
The present Agreement will enter into force for a period of three years. In case neither Government has given to the other Government
at least ninety (90) days notice of its intention to terminate the Agreement before the expiry of the aforesaid three year period,
it shall continue in force for successive periods of one year at a time. The Government of either Contracting Party may give to the
other at least ninety (90) days before the expiration of the aforesaid periods notice of intention to terminate the Agreement.
IN TESTIMONY WHEREOF THE Minister of Foreign Trade of India, Shri Lalit Narayan Mishra and the Minister of External Relations Of
Peru, Lt. General Edgardo Mercado Jarrin, have signed the present Agreement in four (4) original copies, two (2) in Spanish and two
in English. (A version in Hindi will be authenticated subsequently in New Delhi by the Ministry Of Foreign Trade of India and the
Embassy of Peru). All the text being equally authentic and valid.
Done in Lima on the Fourth day of the month of November 1971.
LALIT NARAYAN MISHRA
EDGARDO MERCADO JARRIN
FOR AND ON BEHALF OF THE
FOR THE ON BEHALF OF THE
GOVERNMENT OF INDIA.
GOVERNMENT OF PERU.