Dacca, 5 July 1973
The Government of the Republic of INDIA
The Government of the People's Republic of BANGLADESH;
DESIROUS of strengthening economic relations between the two countries on the basis of equality and mutual benefit
RECOGNISING that the common people of both countries should be the beneficiaries of close cooperation between the two Governments
in the fields of trade and development;
AWARE that this objective can best be secured by organising trade between the two countries on a State-to-State basis as far as possible;
HAVE AGREED as follows :
The two Governments recognising the need and requirement of each other in the context of their developing economies undertake to
explore all possibilities for expansion and promotion of trade between the two countries on the basis of mutual advantage.
The two Governments agree to take appropriate measures in accordance with the evolving international commercial policy for the benefit
of developing countries in so far as such measures are consistent with their individual present and future development, financial
and trade needs.
The two Governments agree that expansion of their mutual trade exchanges would make an important contribution towards their development.
To this end, they agree to take appropriate measures through negotiations with a view to augmenting and diversifying their mutual
trade specially in respect of specific products currently or potentially of export interest to them.
The two Governments agree to evolve a system of a balanced Trade and Payments Arrangement for a specific period and for specified
commodities, as may be mutually agreed upon.
Imports and exports of commodities and goods produced or manufactured in India or Bangladesh, as the case may be which are not included
in the balanced Trade and Payments Arrangement and in the case of commodities and goods included in that Arrangement, imports and
export in excess of the values specified therein, shall be permitted in accordance with the import, export and foreign exchange laws,
regulations and procedures in force in either country from time to time.
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 provisions of Article VI shall not prevent the grant or continuance of :
(a) privileges which are or may be granted by either of the two Governments in order to facilitate frontier trade;
(b) advantages and privileges which are or may be granted by either of the two Governments to any of their respective neighbouring
(c) advantages resulting from a customs union, a free trade area or similar arrangements which either of the two Governments has concluded
or may conclude in the future;
(d) advantages or preferences accorded under any scheme for expansion of trade and economic cooperation among developing countries,
which is open for participation by all developing countries and to which either of the two Governments is or may become a party.
The two Governments agree to make mutually beneficial arrangements for the use of their water-ways, railways and roadways for commerce
between the two countries and for passage of goods between two places in one country through the territory of the other.
Each Government will grant merchant vessels of the other country while entering, putting off and lying at its posts the most favoured
nation treatment accorded by their respective laws, rules and regulations to the vessels under the flag of any third country.
Both the Governments agree, on the basis of shippers’ preference, to utilise to the maximum extent possible, the vessels owned/chartered
by shipping organisations of the two countries concerned for shipping cargoes imported or exported under this Agreement at competitive
The two Governments agree to cooperate effectively with each other to prevent infringement and circumvention of the laws, rules and
regulations of either country in regard to matters relating to foreign exchange and foreign trade.
The two Governments agree to accord subject to their respective laws and regulations, reasonable facilities for the holding of trade
fairs and exhibitions and visits of business and trade delegations sponsored by the Government concerned.
In order to facilitate the implementation of this Agreement, the two Governments shall consult each other as and when necessary and
shall review the working of the Agreement, at intervals of six months.
This Agreement shall come into force on the twenty eighth September 1973. It shall remain in force for a period of three years.
It shall continue in force for a further period thereafter by mutual consent subject to such modifications as may be agreed upon.
DONE in Dacca on the fifth July 1973, in two original copies, in the English Language, both texts being equally authentic.
Professor D.P. CHATTOPADHYAYA
Minister of Commerce Minister for Commerce & Foreign Trade
Government of India
Government of the People's Republic of