++++

COMMERCIAL COOPERATION AGREEMENT

BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDIA

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

OF THE ONE PART ,

THE GOVERNMENT OF THE REPUBLIC OF INDIA ,

OF THE OTHER PART ,

HAVING REGARD TO THE FRIENDLY RELATIONS AND TRADITIONAL LINKS BETWEEN INDIA AND THE MEMBER STATES OF THE COMMUNITY AND THEIR MUTUAL DESIRE TO CONSOLIDATE AND EXPAND THEIR COMMERCIAL AND ECONOMIC RELATIONS ;

INSPIRED BY THEIR COMMON WILL TO CONSOLIDATE , DEEPEN AND DIVERSIFY THEIR COMMERCIAL AND ECONOMIC RELATIONS TO THE FULL EXTENT OF THEIR GROWING CAPACITY TO MEET EACH OTHER'S REQUIREMENTS ON THE BASIS OF COMPARATIVE ADVANTAGE AND MUTUAL BENEFIT ;

CONSIDERING THAT TRADE IS NOT AN END IN ITSELF BUT A MEANS OF ACHIEVING WIDER ECONOMIC AND SOCIAL OBJECTIVES ;

VIEWING MODERN COMMERCIAL POLICY AS AN IMPORTANT INSTRUMENT FOR FURTHERING INTERNATIONAL ECONOMIC COOPERATION ;

DESIROUS OF MAKING THEIR CONTRIBUTION TO A NEW PHASE OF INTERNATIONAL ECONOMIC COOPERATION COMMENSURATE WITH THEIR RESPECTIVE HUMAN , INTELLECTUAL AND MATERIAL RESOURCES ;

BELIEVING THAT THE TIME IS OPPORTUNE TO GIVE A NEW IMPETUS TO THE MUTUAL RELATIONSHIP BETWEEN THE ENLARGED COMMUNITY AND THE REPUBLIC OF INDIA ;

AFFIRMING THEIR COMMON COMMITMENT TO THE PROMOTION OF INTERNATIONAL ECONOMIC RELATIONS FOUNDED ON FREEDOM , EQUALITY , JUSTICE AND PROGRESS ;

HAVE DECIDED TO CONCLUDE A COMMERCIAL COOPERATION AGREEMENT AND TO THIS END HAVE DESIGNATED AS THEIR PLENIPOTENTIARIES :

THE COUNCIL OF THE EUROPEAN COMMUNITIES :

MR IVAR NOERGAARD ,

MINISTER FOR EXTERNAL ECONOMIC AFFAIRS ,

PRESIDENT IN OFFICE OF THE COUNCIL OF THE EUROPEAN COMMUNITIES ;

SIR CHRISTOPHER SOAMES ,

VICE-PRESIDENT OF THE COMMISSION OF THE EUROPEAN COMMUNITIES ;

THE GOVERNMENT OF THE REPUBLIC OF INDIA :

PROFESSOR D . F . CHATTOPADHYAYA ,

MINISTER FOR COMMERCE ;

WHO , HAVING EXCHANGED THEIR FULL POWERS , FOUND IN GOOD AND DUE FORM ,

HAVE AGREED AS FOLLOWS :

ARTICLE 1

THE CONTRACTING PARTIES ARE DETERMINED TO DEVELOP THEIR COMMERCIAL EXCHANGES ON THE BASIS OF COMPARATIVE ADVANTAGE AND MUTUAL BENEFIT SO AS TO CONTRIBUTE TO THEIR ECONOMIC AND SOCIAL PROGRESS AND TO THE IMPROVEMENT OF THE BALANCE OF THEIR MUTUAL TRADE TO AS HIGH A LEVEL AS POSSIBLE .

ARTICLE 2

THE CONTRACTING PARTIES SHALL , IN THEIR COMMERCIAL RELATIONS , ACCORD EACH OTHER MOST-FAVOURED-NATION TREATMENT IN ACCORDANCE WITH THE PROVISIONS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE .

ARTICLE 3

THE CONTRACTING PARTIES SHALL GRANT EACH OTHER THE HIGHEST DEGREE OF LIBERALIZATION OF IMPORTS AND EXPORTS WHICH THEY GENERALLY APPLY TO THIRD COUNTRIES AND UNDERTAKE TO DISCUSS WAYS AND MEANS OF PROVIDING MAXIMUM FACILITIES COMPATIBLE WITH THEIR RESPECTIVE POLICIES AND OBLIGATIONS , WITH REGARD TO PRODUCTS OF INTEREST TO EITHER PARTY .

ARTICLE 4

THE CONTRACTING PARTIES UNDERTAKE TO PROMOTE THE DEVELOPMENT AND DIVERSIFICATION OF THE COMMUNITY'S IMPORTS FORM INDIA AND INDIA'S IMPORTS FROM THE COMMUNITY TO THE HIGHEST POSSIBLE LEVEL . THE CONTRACTING PARTIES SHALL TAKE ALL APPROPRIATE STEPS TO ACHIEVE THESE RESULTS , INCLUDING PARTICULAR MEASURES WHICH ARE RELEVANT TO THE PATTERN AND POTENTIAL OF THEIR COMMERCIAL EXCHANGES . FURTHER THEY AGREE TO SUPPORT THE INSTITUTIONS WHICH HAVE BEEN OR MAY BE SET UP BY THEM TO ENHANCE CONTACTS AND COOPERATION BETWEEN THEIR ECONOMIC ORGANIZATIONS .

ARTICLE 5

THE CONTRACTING PARTIES RECOGNISE THAT COOPERATION BETWEEN ORGANIZATIONS CONCERNED IN THE FIELD OF EXPORTS TO , AND IN THE FIELD OF ECONOMIC RELATIONS WITH , THIRD COUNTRIES , ESPECIALLY DEVELOPING COUNTRIES , CAN CONTRIBUTE TO THE DIVERSIFICATION OF THEIR MUTUAL CONTACTS AND TO AN EXPANSION OF INTERNATIONAL TRADE . ACCORDINGLY THEY UNDERTAKE TO EXAMINE THE POSSIBILITIES OF PROMOTING SUCH COOPERATION AND TO CREATE FAVOURABLE CONDITIONS FOR FURTHERING IT .

ARTICLE 6

THE CONTRACTING PARTIES MAY DEVELOP THEIR ECONOMIC COOPERATION , WHEN LINKED WITH TRADE , IN FIELDS OF MUTUAL INTEREST TO THE CONTRACTING PARTIES AND IN THE LIGHT OF DEVELOPMENTS IN THE ECONOMIC POLICIES OF THE COMMUNITY AND THE REPUBLIC OF INDIA .

ARTICLE 7

THERE SHALL BE SET UP A JOINT COMMISSION FOR COMMERCIAL COOPERATION COMPOSED OF REPRESENTATIVES OF THE COMMUNITY AND REPRESENTATIVES OF THE REPUBLIC OF INDIA . THE JOINT COMMISSION SHALL MEET AS OFTEN AS NECESSARY AND AT LEAST ONCE A YEAR AT AN AGREED TIME AND PLACE . EXTRAORDINARY MEETINGS MAY BE CONVENED BY COMMON AGREEMENT AT THE REQUEST OF EITHER CONTRACTING PARTY . THE JOINT COMMISSION MAY SET UP SPECIALIZED SUB-COMMISSIONS TO ASSIST IT IN THE PERFORMANCE OF ITS TASKS .

ARTICLE 8

IT SHALL BE THE TASK OF THE JOINT COMMISSION TO ENSURE THE PROPER FUNCTIONING OF THIS AGREEMENT , TO DEVISE PRACTICAL MEASURES FOR ACHIEVING ITS GOALS AND TO DISCUSS AND PURSUE EFFECTIVELY , IN THE LIGHT OF ITS PRINCIPLES AND OBJECTIVES , ALL MATTERS WHICH MAY ARISE IN THE COURSE OF ITS IMPLEMENTATION . IT SHALL BE INCUMBENT UPON IT TO EXAMINE ANY DIFFICULTIES LIKELY TO HINDER THE DEVELOPMENT AND DIVERSIFICATION OF THE COMMERCIAL EXCHANGES BETWEEN THE CONTRACTING PARTIES AND TO RECOMMEND PRACTICAL MEASURES FOR ACTION BY THE COMMUNITY AND THE REPUBLIC OF INDIA , AS APPROPRIATE .

ARTICLE 9

THE JOINT COMMISSION SHALL IN PARTICULAR BE REQUIRED :

( A ) TO SEEK WAYS AND MEANS OF ENCOURAGING THE DEVELOPMENT OF ECONOMIC AND COMMERCIAL COOPERATION BETWEEN THE COMMUNITY AND THE REPUBLIC OF INDIA , IN SO FAR AS THIS WOULD PROMOTE THE DEVELOPMENT AND DIVERSIFICATION OF TRADE AND BRING BENEFITS TO THE CONTRACTING PARTIES ;

( B ) TO STUDY AND DEVISE WAYS AND MEANS OF OVERCOMING TRADE BARRIERS AND IN PARTICULAR EXISTING NON-TARIFF AND QUASI-TARIFF BARRIERS IN THE VARIOUS SECTORS OF TRADE , TAKING INTO ACCOUNT THE RELEVANT WORK UNDERTAKEN IN THIS FIELD BY THE INTERNATIONAL ORGANIZATIONS CONCERNED ;

( C ) TO EXAMINE AND RECOMMEND WAYS AND MEANS FOR THE PROGRESSIVE ADAPTATION OF THE TRADE PATTERN AND MARKETING STRUCTURES OF THE CONTRACTING PARTIES WITH A VIEW TO PROMOTING THE EVOLUTION OF THEIR COMMERCIAL AND ECONOMIC RELATIONS IN ACCORDANCE WITH THEIR COMPLEMENTARY POSSIBILITIES , AS WELL AS THE LONG-TERM OBJECTIVES OF THE ECONOMIES OF THE CONTRACTING PARTIES , SO AS TO RECTIFY IMBALANCES AND AVOID MALADJUSTMENTS ;

( D ) TO FACILITATE EXCHANGES OF INFORMATION ON ALL SUBJECTS WHICH MAY BEAR UPON THE PROSPECTS FOR COOPERATION IN THE ECONOMIC FIELD AND THE CREATION OF FAVOURABLE CONDITIONS FOR SUCH COOPERATION ON MUTUALLY ADVANTAGEOUS BASES BETWEEN THE COMMUNITY AND THE REPUBLIC OF INDIA .

ARTICLE 10

THE CONTRACTING PARTIES AGREE THAT IT SHALL ALSO BE THE TASK OF THE JOINT COMMISSION TO ENSURE THE PROPER FUNCTIONING OF THE SECTORAL AGREEMENTS CONCLUDED OR YET TO BE CONCLUDED BETWEEN THE COMMUNITY AND THE REPUBLIC OF INDIA ON JUTE , COIR AND COTTON TEXTILES AND COTTAGE INDUSTRY GOODS ( HANDICRAFTS AND HANDLOOMS ) AND THAT , TO THIS END , IT SHALL EXERCISE THE RESPONSIBILITIES ENTRUSTED TO THE JOINT COMMISSIONS SET UP UNDER THESE AGREEMENTS .

ARTICLE 11

THE JOINT COMMISSION SHALL ADOPT ITS OWN RULES OF PROCEDURE AND PROGRAMME OF WORK .

ARTICLE 12

THE PROVISIONS OF THIS AGREEMENT SHALL BE SUBSTITUTED FOR PROVISIONS OF AGREEMENTS CONCLUDED BETWEEN MEMBER STATES OF THE COMMUNITY AND THE REPUBLIC OF INDIA TO THE EXTENT TO WHICH THE LATTER ARE EITHER INCOMPATIBLE WITH OR IDENTICAL TO THEM .

ARTICLE 13

THE ANNEXES FORM AN INTEGRAL PART OF THIS AGREEMENT .

ARTICLE 14

THIS AGREEMENT SHALL APPLY TO THE TERRITORIES WHERE THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY APPLIES , ON THE CONDITIONS ESTABLISHED IN THE SAID TREATY , AND TO THE TERRITORIES TO WHICH THE CONSTITUTION OF THE REPUBLIC OF INDIA APPLIES .

ARTICLE 15

1 . THIS AGREEMENT SHALL ENTER INTO FORCE ON THE FIRST DAY OF THE MONTH FOLLOWING THE DATE ON WHICH THE CONTRACTING PARTIES HAVE NOTIFIED EACH OTHER OF THE COMPLETION OF THE PROCEDURES NECESSARY FOR THIS PURPOSE . IT IS CONCLUDED FOR A PERIOD OF FIVE YEARS . IT SHALL BE EXTENDED FROM YEAR TO YEAR IF NEITHER CONTRACTING PARTY DENOUNCES IT SIX MONTHS BEFORE THE DATE OF EXPIRY .

2 . IF BOTH CONTRACTING PARTIES AGREE , AMENDMENTS TO THIS AGREEMENT MAY , HOWEVER , BE INTRODUCED AT ANY TIME TO TAKE ACCOUNT OF EMERGING SITUATIONS AND EVOLVING POLICIES .

ARTICLE 16

THIS AGREEMENT IS DRAWN UP IN TWO COPIES IN THE DANISH , DUTCH , ENGLISH , FRENCH , GERMAN , ITALIAN AND HINDI LANGUAGES , EACH TEXT BEING AUTHENTIC .

TIL BEKRAEFTELSE HERAF HAR UNDERTEGNEDE BEFULDMAEGTIGEDE UNDERSKREVET DENNE HANDELSAFTALE .

ZU URKUND DESSEN HABEN DIE UNTERZEICHNETEN BEVOLLMAECHTIGTEN IHRE UNTERSCHRIFTEN UNTER DIESES HANDELSABKOMMEN GESETZT .

IN WITNESS WHEREOF , THE UNDERSIGNED PLENIPOTENTIARIES HAVE AFFIXED THEIR SIGNATURES BELOW THIS TRADE AGREEMENT .

EN FOI DE QUOI , LES PLENIPOTENTIAIRES SOUSSIGNES ONT APPOSE LEURS SIGNATURES AU BAS DU PRESENT ACCORD COMMERCIAL .

IN FEDE DI CHE , I PLENIPOTENZIARI SOTTOSCRITTI HANNO APPOSTO LE LORO FIRME IN CALCE AL PRESENTE ACCORDO COMMERCIALE .

TEN BLIJKE WAARVAN DE ONDERGETEKENDE GEVOLMACHTIGDEN HUN HANDTEKENING ONDER DIT HANDELSAKKOORD HEBBEN GESTELD .

UDFAERDIGET I BRUXELLES , DEN SYTTENDE DECEMBER NITTEN HUNDREDE OG TREOGHALVFJERDS

GESCHEHEN ZU BRUESSEL AM SIEBZEHNTEN DEZEMBER NEUNZEHNHUNDERTDREIUNDSIEBZIG

DONE AT BRUSSELS ON THE SEVENTEENTH DAY OF DECEMBER IN THE YEAR ONE THOUSAND NINE HUNDRED AND SEVENTY-THREE

FAIT A BRUXELLES , LE DIX-SEPT DECEMBRE MIL NEUF CENT SOIXANTE-TREIZE

FATTO A BRUXELLES , ADDI DICIASSETTE DICEMBRE MILLENOVECENTOSETTANTATRE

GEDAAN TE BRUSSEL , DE ZEVENTIENDE DECEMBER NEGENTIENHONDERDDRIEENZEVENTIG

FOR RAADET FOR DE EUROPAEISKE FAELLESSKABER

IM NAMEN DES RATES DER EUROPAEISCHEN GEMEINSCHAFTEN

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

POUR LE CONSEIL DES COMMUNAUTES EUROPEENNES

PER IL CONSIGLIO DELLE COMUNITA EUROPEE

VOOR DE RAAD DER EUROPESE GEMEENSCHAPPEN

FOR REGERINGEN FOR INDIEN

FUER DIE REGIERUNG INDIENS

FOR THE GOVERNMENT OF INDIA

POUR LE GOUVERNEMENT DE L'INDE

PER IL GOVERNO DELL'INDIA

VOOR DE REGERING VAN INDIA

ANNEX I

JOINT DECLARATION CONCERNING ARTICLE 7 OF THE AGREEMENT

1 . THE LEVEL OF REPRESENTATION FROM THE TWO SIDES IN THE JOINT COMMISSION SHALL BE AS HIGH AS APPROPRIATE , DEPENDING UPON THE IMPORTANCE OF THE AGENDA .

2 . THE REPRESENTATIVES OF THE CONTRACTING PARTIES IN THE JOINT COMMISSION WILL TRANSMIT THE AGREED RECOMMENDATIONS TO THEIR RESPECTIVE AUTHORITIES , FOR CONSIDERATION AND ACTION TO BE TAKEN AS SPEEDILY AND EFFECTIVELY AS POSSIBLE . IN THE EVENT OF THE JOINT COMMISSION BEING UNABLE TO EVOLVE A RECOMMENDATION ON A MATTER CONSIDERED BY EITHER CONTRACTING PARTY TO BE URGENT OR IMPORTANT , IT SHALL SUBMIT THE VIEW OF THE TWO SIDES TO THE RESPECTIVE AUTHORITIES FOR FURTHER CONSIDERATION .

3 . THE JOINT COMMISSION SHOULD , WHILE MAKING PROPOSALS AND RECOMMENDATIONS , HAVE DUE REGARD TO THE REPUBLIC OF INDIA'S DEVELOPMENT PLANS AND TO THE PROGRESS OF ECONOMIC , INDUSTRIAL , SOCIAL , ENVIRONMENTAL AND SCIENTIFIC POLICIES OF THE COMMUNITY AS WELL AS TO THE LEVEL OF ECONOMIC DEVELOPMENT OF THE CONTRACTING PARTIES .

4 . THE JOINT COMMISSION WOULD EXAMINE POSSIBILITIES OF AND MAKE RECOMMENDATIONS FOR AN EFFICIENT AND COHERENT UTILIZATION OF ALL AVAILABLE INSTRUMENTS , BESIDES MOST-FAVOURED-NATION TARIFFS AND GENERALIZED PREFERENCES , TO PROMOTE TRADE IN ITEMS OF INTEREST TO THE REPUBLIC OF INDIA .

5 . THE FIRST MEETING OF THE JOINT COMMISSION WOULD TAKE PLACE AS SOON AS POSSIBLE AFTER THIS AGREEMENT HAS ENTERED INTO FORCE . THE DATE , VENUE AND AGENDA WILL BE DECIDED THROUGH DIPLOMATIC CHANNELS .

ANNEX II

YOUR EXCELLENCY ,

DURING THE DISCUSSION WHICH LED TO THE CONCLUSION THIS DAY OF THE COMMERCIAL COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDIA , THE COMMUNITY DECLARED THAT IT IS PREPARED TO BIND THE TARIFF SUSPENSIONS ALREADY APPLIED AUTONOMOUSLY IN RESPECT OF THE PRODUCTS LISTED BELOW WHICH ARE OF PARTICULAR INTEREST TO INDIA . THESE CONCESSIONS SHALL REMAIN VALID UNTIL THEY ARE CONFIRMED , OR MODIFIED , UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE , WITH THE AGREEMENT OF BOTH CONTRACTING PARTIES .

LIST OF PRODUCTS CONCERNED

CCT HEADING NO*DESCRIPTION*BINDING PROPOSED % *

09.02*TEA : **

*A . IN IMMEDIATE PACKINGS OF A NET CAPACITY NOT EXCEEDING 3 KG*5*

*B . OTHER*FREE*

09.04*PEPPER OF THE GENUS " PIPER " ; PIMENTO OF THE GENUS " CAPSICUM " OR THE GENUS " PIMENTA " : **

*A . NEITHER CRUSHED NOR GROUND : **

*I . PEPPER : **

* ( A ) FOR THE INDUSTRIAL MANUFACTURE OF ESSENTIAL OILS OR RESINOIDS*FREE*

09.08*NUTMEG , MACE AND CARDAMOMS : **

*B . CRUSHED OR GROUND : **

*III . CARDAMOMS*FREE*

41.02*BOVINE CATTLE LEATHER ( INCLUDING BUFFALO LEATHER ) AND EQUINE LEATHER , EXCEPT LEATHER FALLING WITHIN HEADING NO 41.06 , 41.07 OR 41.08 : **

*A . EAST INDIA KIP , WHOLE , WHETHER OR NOT THE HEADS AND LEGS HAVE BEEN REMOVED , WEIGHING EACH NOT MORE THAN 4,5 KG NET , NOT FURTHER PREPARED THAN VEGETABLE TANNED , WHETHER OR NOT HAVING UNDERGONE FURTHER PRESERVATIVE TREATMENT WITH OIL , BUT OBVIOUSLY UNSUITABLE FOR IMMEDIATE USE IN THE MANUFACTURE OF LEATHER ARTICLES*FREE*

WE SHOULD BE GRATEFUL IF YOU WOULD KINDLY CONFIRM THE AGREEMENT OF THE GOVERNMENT OF THE REPUBLIC OF INDIA TO THE CONTENTS OF THIS LETTER .

PLEASE ACCEPT , YOUR EXCELLENCY , THE ASSURANCE OF OUR HIGHEST CONSIDERATION .

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

SIR ,

I HAVE THE HONOUR TO ACKNOWLEDGE RECEIPT OF YOUR LETTER OF TODAY , WHICH READS AS FOLLOWS :

" DURING THE DISCUSSIONS WHICH LED TO THE CONCLUSION THIS DAY OF THE COMMERCIAL COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF INDIA , THE COMMUNITY DECLARED THAT IT IS PREPARED TO BIND THE TARIFF SUSPENSIONS ALREADY APPLIED AUTONOMOUSLY IN RESPECT OF THE PRODUCTS LISTED BELOW WHICH ARE OF PARTICULAR INTEREST TO INDIA . THESE CONCESSIONS SHALL REMAIN VALID UNTIL THEY ARE CONFIRMED , OR MODIFIED , UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE , WITH THE AGREEMENT OF BOTH CONTRACTING PARTIES .

LIST OF PRODUCTS CONCERNED

CCT HEADING NO*DESCRIPTION*BINDING PROPOSED % *

09.02*TEA : **

*A . IN IMMEDIATE PACKINGS OF A NET CAPACITY NOT EXCEEDING 3 KG*5*

*B . OTHER*FREE*

09.04*PEPPER OF THE GENUS " PIPER " ; PIMENTO OF THE GENUS " CAPSICUM " OR THE GENUS " PIMENTA " : **

*A . NEITHER CRUSHED NOR GROUND : **

*I . PEPPER : **

* ( A ) FOR THE INDUSTRIAL MANUFACTURE OF ESSENTIAL OILS OR RESINOIDS*FREE*

09.08*NUTMENG , MACE AND CARDAMOMS : **

*B . CRUSHED OR GROUND : **

*III . CARDAMOMS*FREE*

41.02*BOVINE CATTLE LEATHER ( INCLUDING BUFFALO LEATHER ) AND EQUINE LEATHER , EXCEPT LEATHER FALLING WITHIN HEADING NO 41.06 , 41.07 OR 41.08 : **

*A . EAST INDIA KIP , WHOLE , WHETHER OR NOT THE HEADS AND LEGS HAVE BEEN REMOVED , WEIGHING EACH NOT MORE THAN 4,5 KG NET , NOT FURTHER PREPARED THAN VEGETABLE TANNED , WHETHER OR NOT HAVING UNDERGONE FURTHER PRESERVATIVE TREATMENT WITH OIL , BUT OBVIOUSLY UNSUITABLE FOR IMMEDIATE USE IN THE MANUFACTURE OF LEATHER ARTICLES*FREE*

WE SHOULD BE GRATEFUL IF YOU WOULD KINDLY CONFIRM THE AGREEMENT OF THE GOVERNMENT OF THE REPUBLIC OF INDIA TO THE CONTENTS OF THIS LETTER . "

I HAVE THE HONOUR TO CONFIRM THE AGREEMENT OF THE GOVERNMENT OF THE REPUBLIC OF INDIA TO THE CONTENTS OF THAT LETTER .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

FOR THE GOVERNMENT OF THE REPUBLIC OF INDIA

ANNEX III

DECLARATION OF THE EUROPEAN ECONOMIC COMMUNITY CONCERNING TARIFF ADJUSTMENTS

THE COMMUNITY CONFIRMS THAT THE GENERALIZED SCHEME OF PREFERENCES ( GSP ) WHICH WAS AUTONOMOUSLY PUT INTO FORCE BY THE EUROPEAN ECONOMIC COMMUNITY ON 1 JULY 1971 ON THE BASIS OF RESOLUTION 21 ( II ) OF THE SECOND UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT HELD IN 1968 , INCLUDES PRODUCTS FOR WHICH IN THE COURSE OF THE NEGOTIATION OF THE COMMERCIAL COOPERATION AGREEMENT , SIGNED THIS DAY , TOTAL TARIFF SUSPENSIONS WERE REQUESTED BY THE REPUBLIC OF INDIA .

THE COMMUNITY IS PREPARED , IN THE COURSE OF ITS ENDEAVOURS TO IMPROVE THE SYSTEM OF GENERALIZED PREFERENCES , TO TAKE INTO ACCOUNT THE INTERESTS OF THE REPUBLIC OF INDIA IN THE EXTENSION AND STRENGTHENING OF ITS TRADE RELATIONS WITH THE COMMUNITY .

THE COMMUNITY IS ALSO PREPARED TO EXAMINE IN THE JOINT COMMISSION THE POSSIBILITIES FOR FURTHER TARIFF ADJUSTMENTS TO PROMOTE THE DEVELOPMENT OF TRADE BETWEEN THE REPUBLIC OF INDIA AND THE COMMUNITY .

THE COMMUNITY UNDERSTANDS THAT THE REPUBLIC OF INDIA WILL ALSO BE PREPARED TO DISCUSS IN THE JOINT COMMISSION THE COMMUNITY'S PROPOSALS , IF ANY , WITH REGARD TO TARIFF ADJUSTMENTS BY THE REPUBLIC OF INDIA BEARING ON THE DEVELOPMENT OF TRADE BETWEEN THE CONTRACTING PARTIES , TAKING INTO CONSIDERATION THE REPUBLIC OF INDIA'S DEVELOPMENT NEEDS .

ANNEX IV

DECLARATION OF THE GOVERNMENT OF THE REPUBLIC OF INDIA CONCERNING TARIFF ADJUSTMENTS

THE REPUBLIC OF INDIA UNDERSTANDS THAT THE COMMUNITY IS PREPARED , IN THE COURSE OF ITS ENDEAVOURS TO IMPROVE THE SYSTEM OF GENERALIZED PREFERENCES , TO TAKE INTO ACCOUNT THE INTERESTS OF THE REPUBLIC OF INDIA IN THE EXTENSION AND STRENGTHENING OF ITS TRADE RELATIONS WITH THE COMMUNITY . IN THIS CONNECTION , THE REPUBLIC OF INDIA WILL IDENTIFY FOR CONSIDERATION BY THE COMMUNITY THE AREAS IN WHICH THE COMMUNITY'S 1974 GENERALIZED SCHEME OF PREFERENCES CAN BE IMPROVED , MORE ESPECIALLY IN THE CONTEXT OF THE PROVISIONS OF THE JOINT DECLARATION OF INTENT .

THE REPUBLIC OF INDIA FURTHER UNDERSTANDS THAT THE COMMUNITY IS ALSO PREPARED TO EXAMINE IN THE JOINT COMMISSION THE POSSIBILITIES FOR FURTHER TARIFF ADJUSTMENTS TO PROMOTE THE DEVELOPMENT OF TRADE BETWEEN THE REPUBLIC OF INDIA AND THE COMMUNITY .

IN THIS CONNECTION THE REPUBLIC OF INDIA WILL NOTIFY TO THE COMMUNITY THE LIST OF THE PRODUCTS IN RESPECTS OF WHICH TOTAL TARIFF SUSPENSION IS DESIRED , FOR EXAMINATION IN THE FIRST MEETING OF THE JOINT COMMISSION .

THE REPUBLIC OF INDIA WILL ALSO BE PREPARED TO DISCUSS IN THE JOINT COMMISSION THE COMMUNITY'S PROPOSALS , IF ANY , WITH REGARD TO TARIFF ADJUSTMENTS BY THE REPUBLIC OF INDIA BEARING ON THE DEVELOPMENT OF TRADE BETWEEN THE CONTRACTING PARTIES , TAKING INTO CONSIDERATION THE REPUBLIC OF INDIA'S DEVELOPMENT NEEDS .