TRADE AGREEMENT BETWEEN INDIA AND BANGLADESH
The Government of the Republic of India and the Government of the People’s
Republic of Bangladesh,
Being conscious of the urge of their two peoples to enlarge areas of mutual
Desirous of expanding trade and strengthening economic relations between the two
countries on the basis of equality and mutual benefit;
Have agreed as follows:
The two Governments recognizing the need and requirement of each other in the
context of their developing economies undertake to explore all possibilities,
including economic and technical cooperation, for promotion, facilitation,
expansion and diversification of trade between the two countries on the basis of
equality and mutual benefit.
The two Governments agree to take appropriate measures in accordance with the
evolving international trading system for mutual benefit of developing countries
and least developed countries in so far as such measures are consistent with
their individual, present and future development, financial and trade
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 and special measures during periodic reviews taking
into account the asymmetries between the two countries with a view to augmenting
and diversifying their mutual trade specially in respect of specific products as
may be agreed upon.
All payments and charges in connection with trade between the two countries
shall continue to be effected in freely convertible currencies in accordance
with the foreign exchange regulations in force in each country from time to
Imports and exports of commodities and goods produced or manufactured in India
or Bangladesh, as the case may be, 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 taking into account
asymmetries between the two countries.
Each Government shall accord to the commerce of the country of the other
Government, treatment no less than that accorded to the commerce of any third
The provisions of Article VI shall not prevent the grant or continuance of:-
- Privileges which are or may be granted by either of the two Governments in
order to facilitate frontier trade by separate agreement(s);
- Advantages and privileges which are or may be granted by either of the
respective neighbouring countries;
- Advantages resulting from any customs union, a free trade area or similar
arrangements which either of the two Governments has concluded or may conclude
in the future.
- 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 waterways, roadways and railways for commerce between the two countries
for passage of goods between two places in one country through the territory of
Each Government will grant merchant vessels of the other country while entering,
putting off and lying at its ports 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 shipper’s preference, to utilize to
the maximum extent possible, the vessels owned/chartered by shipping
organizations of the two countries concerned for shipping cargoes imported or
exported under this Agreement at competitive freight rates.
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
In order to facilitate the implementation of this Agreement, the two Governments
shall consult each other at least once in a year or earlier as and when
necessary, and shall review the working of the Agreement with special attention
to the asymmetries between the two countries.
This amended Agreement shall come into force on the 1st April, 2006. It shall
remain in force for a period of three years. It may be extended by a further
period of three years by mutual consent subject to such modifications as may be
Done in New Delhi, on the 21st March, 2006, in two original copies, each in
Hindi, Bangla and English, all the texts being equally authentic. In case of
difference, the English text shall prevail.
|| (M. Saifur Rahman)
|Minister of Commerce and Industry
|| Minister for Finance & Planning
|Government of the Republic of India
|| Government of People’s
||Republic of Bangladesh|