Trade agreement with Romania settles payments in non-convertible rupees

Who it concerns: The agreement involves the Governments of India and Romania, specifically their ministries of commerce and foreign trade. It affects physical and juridical persons (including state-owned organizations and authorized enterprises) in both countries engaged in import/export, as well as the Reserve Bank of India and the Romanian Bank of Foreign Trade for payment settlements.

What was agreed

• Trade exchange must be maintained on a balanced basis, including deferred payments and non-commercial payments.
• Both governments grant each other Most-Favoured-Nation (MFN) treatment regarding customs duties, internal taxes, and import/export licenses.
• Specific lists of goods for export are defined in Schedule A (Romania to India) and Schedule B (India to Romania), which can be altered by mutual agreement.
• All commercial and non-commercial payments are to be made in non-convertible Indian rupees.
• The agreement encourages the use of Indian and Romanian ships for shipment at world competitive freight rates.
• The agreement is valid from 1st January 1976 to 31st December 1980.
• Goods exported under this agreement are for domestic use and shall not be re-exported to other countries.

Also in the document

• Payments are settled in non-convertible Indian rupees, with a provision that unused amounts after 12 months post-expiry must be settled by other agreed means if the agreement is not renewed.
• The agreement includes specific schedules listing goods such as oil refinery equipment, tractors, and steel products from Romania, and spices, tea, iron ore, and cotton textiles from India.
• Both governments agree to promote collaboration for joint marketing in third countries and the incorporation of each other's engineering goods into exports to third countries.