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March 26, 1968

TRADE

Agreement signed at New Delhi 26 March 1968; Schedules and Exchange of Notes; Enterered into force provisionally 25 March 1968.

The Government of the Republic of the Philippines and the Government of India (hereinafter referred to as the Contracting Parties), animated by the desire to develop and expand trade and economic relations between the two countries for their mutual benefit, have agreed as follows:

ARTICLE I

Both the Contracting Parties shall, within the framework of their respective laws and regulations in force from time to time, afford necessary facilities for the import/export of commodities mentioned in the Schedules "A" and "B" annexed hereto, which form an integral part of the Agreement.

No prohibition or restriction whether made effective through quotas, import or export licenses or other measures shall be instituted or maintained by the Government of either country on the importation of any product of the other country or on the exportation or sale for export of any product destined for the other country unless such prohibitions or restrictions are applied to all third countries.

In the allocation of foreign exchange for transactions involving the importation or exportation of goods and in the administration of foreign exchange restrictions in relation to such transactions, the Government of each country shall accord to the other country treatment no less favourable than it accords to any third country.

ARTICLE II

The Contracting Parties shall provide reasonable facilities for the import into and export from either country of commodities not specifically mentioned in Schedules "A" and "B".

ARTICLE III

Both the Contracting Parties shall, subject to their laws and regulations, encourage and facilitate the mutual exchange of goods and services for the development and expansion of commerce and diversification of trade between the two countries and, for this purpose, shall give full consideration to the suggestions that may be made from time to time by either party to that end.

ARTICLE IV

Both the Contracting Parties shall accord unconditionally to each other treatment no less favourable than that accorded to any third country with respect to:

a. customs duties and charges of any kind imposed on or in connection with the importation or exportation or imposed on the international transfer of payments for imports or exports;

b. the method of levying such duties and charges;

c. all rules and formalities in connection with importation and exportation;

d. the application of internal taxes to exported goods;

e. all laws, regulations and requirements affecting internal sale, offering for sale, purchase, distribution or use of imported goods.

This provision shall not apply to the grant or the continuance of:

a. privileges which are or may be granted by either of the Contracting Parties to facilitate frontier trade;

b. preferences, advantages, privileges or immunities accorded by either Contracting Party to any third country existing on the date of the present

Agreement or in replacement thereof;

c. any advantages or preferences accorded under a Customs Union or a free trade area of which either of the Contracting Parties is or may become a party; and

d. any advantages or preferences accorded under any scheme for expansion of trade and economic cooperation among developing countries, which are open for participation by all developing countries to which either of the Contracting Parties is or may become a party.

ARTICLE V

The Contracting Parties agree to explore ways and means and to take necessary steps for the most convenient and economical transportation of commodities between the two countries.

ARTICLE VI

Mercantile ships of both countries, while entering, staying in or leaving the ports of either country, will enjoy the most favourable facilities granted by either respective laws, rules and regulations to ships under a third country's flag. The principle shall not, however, apply to ships engaged in coastal navigations.

ARTICLE VII

Payments under these Agreements shall be effected in a convertible currency.

ARTICLE VIII

In order to facilitate the implementation of this Agreement and to expand their mutual trade and economic relations, the Contracting Parties agree to consult with each other at least once a year at a time and a place to be mutually agreed upon. To this end, the two Governments agree to designate senior officials to be charged with the responsibility of reviewing the implementation of this Agreement, and identifying the areas of cooperation between the two countries in industrial, commercial and technical fields.

ARTICLE IX

The present Agreement, which shall be subject to ratification, shall come into force provisionally from the date of signature and finally from the date on which the instruments of ratification are exchanged between the Government of India and the Government of the Republic of the Philippines and shall remain valid for a period of one year in the first instance and shall thereafter continue to be in force from year to year unless either party gives to the other at least 90 days' written notice of its intention to terminate the Agreement.

Done at New Delhi on the 26th day of March, 1968, in two originals in the English language, both texts being equally authentic.

SCHEDULE "A"

COMMODITIES AVAILABLE FOR EXPORT FROM THE PHILIPPINES

TO INDIA

1. Abaca (Manila hemp)

2. Copra

3. Commercial Veneers

4. Wood Pulp

5. Fertilizers, insecticides and other agricultural chemicals

6. Copper Concentrates

7. Fire-Refined and Electrolytic Copper

8. Zinc ores and zinc concentrates

9. Non-ferrous metal scraps

10. Raw Film

11. Filter aids

12. Rock Phosphate

13. Newsprint

14. Industrial alcohol

15. Metallic mercury

16. Raw hides and skins

17. Rayon grade pulp

SCHEDULE "B"

COMMODITIES AVAILABLE FOR EXPORT FROM INDIA TO THE PHILIPPINES

1. Rolled steel, namely, light and heavy structural and rails, bars and rods; and steel pipes and tubes

2. Railway track fittings, fasteners and accessories, electrical and mechanical signaling equipment, train lighting equipment and rolling stocks

3. Industrial plant and machinery including sugar mill machinery and textile mill spare parts and accessories; oil mill machinery and solvent extraction plants

4. Electrical fans, motors, transformers and switch gear and control gear and other electrical equipment and spare parts, components and accessories of sewing machines

5. Diesel engines, pumps (centrifugal and turbine) and air compressors

6. Machine tools and foundry moulding machines

7. Anodised aluminum and other decorative and specialized builders hardware

8. Engineering manufacturing not otherwise specified

9. Wired glass 10. Organic chemicals including Turkey-Red Oil, and chloroform and in-organic chemicals including sodium bichromate and hydrogen peroxide

11. Anti-corrosive paints and pigments and colours for the paint industry

12. Jute manufactures

13. Tanned hides and skins

14. Cigarette paper

15. Unprocessed raw materials

16. Semi-processed raw materials

17. Dyes and dyestuffs

EXCHANGE OF NOTES

I.

New Delhi, 26 March 1968

Excellency,

During the discussions leading to the signing of a Trade Agreement between our two countries today, it was agreed that the provisions of the second and third sub-paragraphs of Article I shall not be construed so as to prevent the two Governments from following policies and practices which are not inconsistent with the relevant international Conventions or Agreements of which the Government concerned is a member. The two Governments will consult with each other to resolve any difficulty that may arise in this connection.

There would also be no objection to the allocation of imports specifically to sources of aid, credit or reparations when and as required by its terms, or to countries having limited payment arrangements with cither Government.

1 shall be grateful if Your Excellency will confirm that the above represents the understanding of the two Governments.

Accept Excellency, the assurances of my highest consideration.

(Sgd.) DINESH SINGH
Minister of Commerce

His Excellency
MARCELO S. BALATBAR
Secretary of Commerce and Industry
Government of the Republic of the Philippines

II

New Delhi, 26 March 1968

Excellency,

I have the honour to acknowledge the receipt of your letter of March 26, 1968, which reads as follows:

[SEE NOTE 1]

I confirm that your letter sets out correctly the understanding reached between our two Governments.

Accept Excellency, the assurances of my highest consideration.

(Sgd.) MARCELO BALATBAT
Secretary of Commerce and Industry

His Excellency
DINESH SINGH
Minister of Commerce
Government of India
New Delhi