| TRADE AGREEMENT BETWEEN INDIA AND PAKISTAN New Delhi, 22 January 1957 The Government of India and the Government of Pakistan being desirous of strengthening and developing commercial relations between
their respective countries have agreed as follows Article I The two Governments recognising the needs and requirements of each other for foreign exchange in the context of their developing economies
and having regard to the present disequilibrium in their trade and payments position undertake to explore all possibilities for expansion
of trade between the two countries on the basis of mutual advantage. Article II With regard to the commodities/goods mentioned in Schedules 'A' and 'B'attached to this Agreement, the two Governments shall facilitate
imports from and exports to each other's territories to the extent permitted by their respective laws, regulations and procedures.
Article III Imports and exports of the commodities/goods mentioned in Schedules 'A' and V shall normally take place through ordinary commercial
channels, except where either Government finds it necessary to buy or sell part or whole of the quantity/value of any item on Government
account. Article IV With respect to commodities/goods not included in Schedules 'A' and 'B' export or import shall also be permitted in accordance with
the laws, regulations and procedures in force in either country from time to time. Article V 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. Article VI The provisions of Article V shall not apply to: (a) any advantage which either country has accorded or may accord at any time during
the period of validity of this Agreement to other bordering countries in order to facilitate frontier traffic, (b) any advantages accorded in connection with a customs union or free zone of which either country may become a member, (c) preferences or advantages accorded by either country to any third country prior to the 15th August 1947 or in replacement thereof.
Article VII The two Governments recognising the need for entering into special arrangements as contemplated by Article XXIV (11) of the General
Agreement on Tariffs and Trade agree to enter into such arrangements. The commodities covered by such special arrangements and the
nature and scope thereof are set out in Schedule 'C'. Article VIII In order to meet the day-to-day requirements of the people living within a ten mile belt of the border between West Bengal, Assam
and Tripura on the one hand and East Pakistan on the other and with a view to providing facilities to these people to dispose of
their goods, border trade shall be allowed in the commodities specified in accordance with Schedule 'D' to this Agreement. Article IX In order to facilitate the implementation of this Agreement the two Governments shall consult with each other as and when necessary
and in any case review the working of the Agreement every six months. Article X Subect to the approval of the Governments of India and Pakistan this Agreement shall come into force with effect from the 1st February
1957. It shall remain in force up to the 31st January 1960, provided that after the expiry of the first year it may be terminated
by either party giving six months notice in writing to the other. The schedules attached to the Agreement will be subject to revision
by mutual consultation before the commencement of the years 1958 and 1959. DONE at New Delhi this Twenty-second day of January, 1957.
S. RANGANATHAN
For the Government of India. A M AHMED.
For the Government of Pakistan. SCHEDULE 'A' EXPORTS FROM INDIA TO PAKISTAN S.No. Commodities/goods 1. Coal. 2. Stone Boulders. S. Stones (Pakur). 4. Silpatta. 6. Fire bricks. 6. Lime and lime stone. 7. Mica.
8. Bauxite. 9. Barytes (white). 10. Pigments and dry colours. 11. Dyeing and tanning substances. 12. Chernicals, 13. Drugs and medicines,
including Ayurvedic and Unani Medicines. 14. Mill board and straw board- 15. Machinery and Mill work e.g. textile machinery, Agricultural
machinery, Sugar cane crushing machinery. Rice flour and oil crushing machinery, Printing machinery, Centrifugal pumps. 16. Workshop
equipment including hand tools and machine tools. 17. Electric instruments apparatus appliances. 18. Electric cables and wires. 19.
Fluorescent electric tubes. 20. Electric insulation material. 21. Accumulators and batteries. 22. Bicycles and spare parts. 23. Scientific
instrurnents, including laboratory glassware. 24. Glass bottles, jars and phials. 25. Iron steel bolts, nuts and screws. 26. Sanitary
ware. 27. Agarwood.28, Canes and rattans. 29. Cinema films. 30. Books, periodicals and newspapers. 31. Essential oils. 32. Sugar.
33. Tea for blending. 34. Coffee. 35. Betel leaves. 36. Biri and hukka tobacco. 37. Biri leaves. 38. Spices. 39. Fresh fruits. 40.
Catechu. 41. Potatoes. 42. Buffalo homs. 43. Conch shells. 44. Gurns and resins. 45. Synthetic stones. SCHEDULE 'B' EXPORTS FROM PAKISTAN TO INDIA S.No. - Commodities/goods 1. Raw jute. 2. Hides and skins. 3. Fish iiwluding dried fish, poultzT and eggs. 4. Betel leaves. 5. Betel
nuts. 6. Fresh and dried fruits. 7. Coriander and methi seeds. 8. Spices. 9. Honey. 10. Books and periodicals, and newspapers. 11.
Cinema films. 12. Cement. 13. Salt petre. 14. Machinetools. 15. Bicycles and spare parts. 16. Surgical instniments. 17. Sports goods.
18. Wood and timber all sorts, other than hard wood. SCHEDULE 'C'
SPECIAL ARRANGEMENTS 
 N.B.- The two Governments shall permit import/export up to at least the quantity/value specifiedabove, actual imports and exports
depending upon terms, delivery periods, specifications, etc.being mutually agreed upon between exporters and importers on either
side. | SCHEDULE 'D' PROVISIONS RELATING TO BORDER TRADE REFERRED TO IN ARTICLE VIII OF THE AGREEMENT These facilities shall apply only to the trade across the Land Customs frontiers between West Bengal, Assam and Tripura on the on
ehand and East Pakistan on the other. 2. Those facilities shall be available only to persons holding 'A' category visas. 3. As from the expiry of a period of six months from the date of entry into force of this Agreement, however, all such persons may
cross the border for this purpose onlyonce a day in each direction and only through such routes as may be authorised in this behalf.
Each Government will, after such consultation with the other as may be necessary, be free to prescribe an adequate number of such
routes having regard to the requirements of bona fide border trade. 4. The carriage of goods covered by the Schedule shall be free from import, export and exchange control restrictions as well as customs
duties and customs formalities except those required for purposes of paragraph six below. 5. The persons engaged in border trade may carry in cash a sum not exceeding Rs. 5 in Indian currency when going from India to Pakistan
and a similar amount in Pakistan currency when going from Pakistan to India. 6. Either Government may maintain such checks and such preventive measures, including the right to search, as are considered necessary
to ensure that these concessions are not exceeded or abused. ANNEXURE I. LUSHAI HILLS CHITTAGONG HILL TRACTS SECTORS II. KHASI JAINTIA AND GARO HILLS - SYLHET, MYMENSINGH SECTOR III. CACHAR-SYLHET SECTOR IV. TRIPURA EAST BENGAL SECTOR V. RANGPUR (EAST PAKISTAN) - ASSAM (BORDERING DISTRICT OF RANGPUR)/COOCH BEHAR/JALPAIGURI (WEST BENGAL) SECTOR VI. REST OF EAST PAKISTAN-REST OF WEST BENGAL LETTERS No. 1 GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES New Delhi, the 22nd January, 1957 My Dear AZIZ AHMED, During the course of discussions between our two Delegations which resulted in a fresh Trade Agreement between India and Pakistan
which was signed today, matters relating to Ziratia tenants were also discussed. It was agreed tht the question of facilities to
Ziratia tenants was connected with the prevention of smuggling and improvement of facilities for the transit of foodgrains through
East Pakistan to Tripura. As a result of these discussions, the following understanding was reached : (1) The Ziratia tenants residing
on either side of the Tripura East Pakistan border, who have land on either side of the border within a ten mile belt, shall continue
to be allowed to take across the border within a reasonable period after the harvest 40 maunds of paddy per family or the total produce
of such land cultivated by them, whichever is less. (2) The representatives of the two Governments shall meet before the end of February
1957 with a view to devising as early as possible measures to improve the facilities for the movement of foodgrains through East
Pakistan to Tripura. The steps set out in the attached enclosure, which have been suggested by the Indian Delegation will among others
be considered in this behalf. (3) As from the expiry of a period of six months after 31st January 1957, all Ziratia tenants may cross
the border with paddy only through such routes as may be authorised in this behalf. Before the expiry of this period, the representatives
of the two Governments will meet to consult with each other about the routes to be prescribed for the purpose and measures necessary
for the implementation of the provisions in (1) above without the concessions envisaged therein being abused. (4) The two Governments
shall, before the end of November 1957, enter into consultation with each other for reviewing the implementation of the arrangements
relating to Ziratia tenants and the improvements made in the transit facilities through East Pakistan into Tripura. 2. 1 shall be
grateful if you will confirm that the above correctly sets out the understanding that was reached between us. Yours sincerely, (Sd.) S. RANGANATHAN. AZIZ AHMED, Esquire, Secretary, Ministry of Commerce, Government of Pakistan. ENCLOSURE REFERRED TO IN SHRI RANGANATHAN'S LETTER TO MR. AZIZ AHMED REGARDING ZIRATIA TENANTS SUGGESTIONS FOR IMPROVEMENT OF MOVEMENT FACILITIES BETWEEN EAST PAKISTAN AND TRIPURA 1. The Liaison Officer of the Indian Railway at Shantahar may be provided with the assistance of one more Inspector who may be posted
at Akhaura. These two Officers should look after the timely transit of wagons for Tripura. 2. Clearance facilities should be provided at Kasba Railway Station. 3. A Siding from Kasba Railway Station inside Tripura territory should be provided. 4. Sidings into Tripura territory should be provided by extension from Balla and Belonia Railway Stations. 5. Demurrage for non-clearance of goods arriving by M.G. Wagons at Akhaura, Balla and Belonia should not be charged so long as the
responsibility for delay does not lie on the consignee. Particularly no demurrage should be charged on M.G. Wagons which bring only
part of goods transhipped from M.G. Wagons and not allowed to be cleared till the remaining component M.G. Wagons have arrived. 6. Certificate of short delivery should be given at points of destination in East Bengal territory in respect of goods cleared for
Tripura. 7. Railway out Agency should be provided at Agartala. No. 2. DELEGATION OF PAKISTAN New Delhi, the 22nd January, 1957 My Dear RANGANATHAN, I write to acknowledge the receipt of your letter of today's date which reads as follows :- (Not reproduced.) I confirm that the above sets out the position correctly. Yours sincerely, (Sd.) Aziz AHMED. Shri S. RANGANATHANI I.C.S., Secretary to the Government of India, Ministry of Commerce and Consumer Industries, New Delhi. No. 3. GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES New Delhi, the 22nd January, 1957 My Dear AZIZ AHMED, We have exchanged letters today regarding the concessions to Ziratia tenants. I write this letter to seek confirmation of the following
three points which arose during the discussions : (1) With reference to paragraph 1 (2) of that letter we agreed that the discussions between the representatives of the two Governments
in regard to improvement of transit facilities to Tripura through East Pakistan need not necessarily be confined to improvement in
transit facilities in relation to food-grains only. (2) With refrence to paragraph 1(4) of that letter you maintained that the fact that the transit facilities through East Pakistan
to Tripura, were in the judgment of the Government of India inadequate would not justify their withdrawing the facilities for the
Ziratia tenants. I, however, made it clear to you that it was my understanding that in the event of the improvement in the transit
facilities through East Pakistan to Tripura, not being adequate in the opinion of the Government of India, the Government of India
will be free to reconsider the entire arrangements relating to the Ziratia tenants. (3) We also agreed that these arrangements regarding Ziratia tenants set out in the correspondence referred to above, will come into
effect after ratification by our respective Governments. Yours sincerely, (Sd.) S. RANGANATHAN. Aziz AHMED, Esqr., Secretary, Ministry of Commerce, Government of Pakistan. No. 4. DELEGATION OF PAKSTAN New Delhi, the 22nd January, 1957 My Dear RANGANATHAN, I write to acknowledge the receipt of your letter of today's date which reads as follows : (Not reproduced) I confirm that the above sets out the position correctly. Yours sincerely, (Sd.) AZIZ AHMED. Shri S. RANGANATHAN, I.C.S.,
Secretary to the Government of India,
Ministry of Commerce and Consumer Industries, New Delhi. No. 5. GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND CONSUMER INDUSTRIES New Delhi, the 22nd January, 1957 My Dear AZIZ AHMED, During the course of the discussions between our two delegations which resulted in a fresh Trade Agreement between India and Pakistan,
the difficulties being experienced by the persons residing in the border areas between India and East Pakistan, resulting from the
non-issue of 'A' category visas in sufficient numbers and the present complicated procedure followed in issuing them were discussed.
It was agreed that these questions should be discussed at an early date between representatives of the two Governments, with a view
to resolving these difficulties. I should be grateful if you would kindly confirm that the foregoing correctly sets out the understanding
reached between us. Yours sincerely, (Sd.) S. RANGANATHAN. AZIZ AHMED, Esqr., Secretary, Ministry of Commerce,
Government of Pakistan, Camp: New Delhi. No. 6. DELEGATION OF PAKSTAN New Delhi, the 22nd January, 1957 My Dear RANGANATHAN, I write to acknowledge the receipt of your letter of today's date which reads as follows : (Not reproduced) I confirm that the foregoing
correctly sets out the understanding reached between us. Yours sincerely, (Sd.) AZIZ AHMED. Shri S. RANGANATHAN, I.C.S, Secretary to the Government of India,
Ministry of Commerce and Consumer Industries, New Delhi.
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