Trade agreement mandates 50/50 split in Afghan-India trade volume

This is a 1975 Trade Agreement between the Government of India and the Government of the Republic of Afghanistan aimed at increasing and diversifying trade and strengthening economic cooperation. The parties agreed to expand trade based on mutual advantage, with specific schedules of goods for exchange and mechanisms for payment and licensing.

The agreement involves the Government of India and the Government of the Republic of Afghanistan. It affects commercial establishments, real or legal persons authorized by their respective governments for trade, and specific sectors including agriculture (fruits, spices, oilseeds), textiles, engineering goods, electrical goods, and pharmaceuticals. The Ministry of Commerce (India) and Ministry of Commerce (Afghanistan) are the signatories.

• Trade volumes for Schedule A (Afghanistan to India) and Schedule B (India to Afghanistan) must be equal in total value.
• Schedules A and B are to be agreed upon for every calendar year and can be altered via letters exchanged between the parties.
• Goods not in Schedules A and B may be traded if permitted by local laws, with payments in freely convertible currencies.
• Banking arrangements for payments will be concluded between the Afghanistan Bank and the State Bank of India.
• Goods must be of Indian or Afghan origin and for consumption in the respective countries; re-export to third countries is prohibited.
• Fifty percent of the trade volume must be carried by Afghan real or legal persons and fifty percent by Indian real or legal persons.
• The agreement requires annual reviews in India and Kabul alternately to set a rate of trade growth based on the 1974-75 trade period.
• The agreement is valid for three years from the date of exchange of notes confirming approval, extendable by mutual agreement.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document