Indian Treaty Series

The Government of India and the Royal Egyptian Government, desiring to strengthen the traditional bonds of friendship which unite the two countries and further to facilitate and develop the commercial relations existing between the two countries have resolved to conclude a Trade Agreement and have appointed for this purpose their plenipotentiaries:—

The Government of India, Mr. C.C. Desai, Secretary to the Government of India, Ministry of Commerce, and

The Royal Egyptian Government, H.E. Mr. Mahmoud Zaki Bey, Under Secretary of State, Ministry of Supply,

Who, having communicated to each other their full powers, found in good and due form, have agreed as follows:—

Article 1

1. India and Egypt will grant each other complete most favoured nation treatment, that is to say, with respect to Customs duties and charges imposed on importation or exportation or imposed on the International transfer of payments for imports or exports and with respect to the method of levying such duties or charges and with respect to any regulations, formalities and charges to which customs clearing operations may be subject, any advantage, favour, privilege or immunity granted by either of the Contracting Parties to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territory of the other Contracting Party.

2. The provisions of paragraph 1 of this Article and of Article 2 shall not, however, apply to the grant or continuance of any

(a) advantages accorded by either of 'tine Contracting Parties to contiguous Countries;

(b) advantages resulting from any Customs Union or free trade area to which either of the Contracting Parties is or may become a party;

(c) preferences or advantages accorded by India to any country, existing on the date of this Agreement or in replacement of such preferences or advantages that existed prior to the 15th August, 1947; or

(d) advantages accorded by virtue of a multilateral economic agreement designed to liberalise conditions of international commerce. Article 2 Each Contracting Party shall accord to the ships of the other Contracting Party, in the matter of duties of tonnage, harbour, pilotage, light houses or other analogous duties levied in the ports of either Contracting Party, treatment no less favourable than that accorded to the ships of any other foreign country. This Article shall not apply to any concessions made to ships engaged in the coasting trade of either Contracting Party.

Article 3

The Contracting Parties also agree that if either of them establishes or maintains a state enterprise, wherever located, or grants to any enterprise or agency, formally or in effect, exclusive or special privileges, such enterprise or agency shall not, in its purchases and sales, involving either imports or exports (other than import of products purchased for Governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale) act in such a manner as will nullify or impair any benefit accruing to the other Contracting Party under any of the provisions of this Agreement.

Article 4

1. With respect to the items mentioned in Schedules A and B attached to this Agreement and which shall be taken to form an integral part of this Agreement, the Contracting Parties agree that wherever necessary according to the laws and regulations applicable in either country, import and export licences shall be granted according to the laws and regulations applicable up to the yearly quantity or value mentioned against each item, wherever applications are made in conformity with the laws and regulations applicable.

2. The yearly quantity or value of any of the items mentioned in Schedules A and B can be altered or fresh items added by mutual agreement between the two Contracting Parties.

3. Before the expiry of the initial twelve months new Schedules may be adopted by mutual agreement for the next period of one year or such other period as may be mutually agreed upon and thereafter similarly for each subsequent period of one year or otherwise as mutually agreed before the expiry of the immediately preceding period.

4. Both Governments agree to consider favourably and to permit so far as is mutually consistent with their other commitments, the import and export of goods not specifically covered by the Schedules annexed to the present Agreement.

5. The provisions of this Agreement shall not extend to prohibitions or restrictions—

(i) imposed for the protection of public health, or

(ii) imposed for the protection of plants or animals including measures for protection against disease, degeneration or extinction as well as measures taken against harmful seeds, plants or animals.

Article 5

1. This Agreement shall be subject to ratification and shall come into force from the date when ratifications are exchanged which shall be as soon as possible.

2. This Agreement shall remain in force for a period of twelve months from the date of exchange of ratifications and thereafter for further successive periods as may be mutually agreed upon before the expiry of this Agreement.

IN WITNESS WHEREOF

Mr. C.C. Desai,
Secretary to the Government of India in the Ministry of Commerce on the part of the Government of India

and H.E. Mr. Mahmoud Zaki Bey,
Under Secretary of State, Ministry of Supply, on the part of the Royal Egyptian Government

this tenth day of May i949 have signed the same in New Delhi, in duplicate, in English, both documents being equally authentic

(Sd) C. C. DESAI
For the Government of India.

(Sd.) MAHMOOD ZAKI BEY
For the Royal Egyptian Government

SCHEDULE 'A'

EXPORTS FROM EGYPT

SCHEDULE 'B'

EXPORTS FROM INDIA