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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)266 final
Brussels.27May1981
■Proposalfora
COUNCILREGULATION (EEC)
.
ontheconclusionoftheAgreementforCommercial
andEconomicCooperation betweentheEuropeanEco­
nomicCommunity andIndia
(submittedtotheCouncilbytheCommission )

EXPLANATORY MEMORANDUM
B/decisionof22April1980,theCouncilauthorisedtheCommissionto
opennegotiations withIndia,withaviewtotheconclusionofanagreement
forcommercial andeconomiccooperation toreplacethe1974^Commercial
Cooperation AgreementbetweentheEuropeanEconomicCommunity andIndia.
Inaccordance withthatCouncildecision,andinaccordance withtheArticle
113Committee,' theCommission conductednegotiations withIndiabetweenJune
1980andApril1981.TheEnglishtextofthenegotiated Agreement hasbeen
initialled on14Aprils1981bytheHeadsoftheDelegations aftertheyhad
notedthatitcorrectly -represented theresultsofthenegotiations .
/ . .
Onthisoccasion,the;negotiator oftheCommisstonreadoutthefollowing
declarationtotheIndiandelegation'withaviewtoovercoming apossible
Frenchreserve:»
"TheCommission andtheCouncildeclarethattheirinterpretation of
Article6,firstalineaoftheAgreementisthatitdoesnotprovide
fortheintervention oftheEuropeanBankofinvestments,whereasit'
does,notconfinetheintervention offinancialinstitutions onlyto>
;institutions ofprivatenature."
BesidesthetextoftheAgreementforCommercial andEconomicCooperation,v
bothsidesnegotiatedthetextofaProtocolconcerning Commercial and
EconomicCooperation betweenthe'EuropeanCoalandSteelCommunityand
India.'■" J :7
OncetheAgreementissignedtheCommissionwilladoptadecisibnconcluding
theProtocolonbehalfoftheECSC./ .1 ''^'■*
TheEnglishversionofthenegotiatedtextshas,alreadybeenplacedatthe
disposaloftheMemberStates'representatives in£heArticle113Committee.
TheCommissionconsidersthatthetextoftheAgreementisacceptabletothe
k-■ ■ '.. ..
Community.ItthereforerecommendsthattheCouncilinitiatetheprocedures
forsigningandconcludingtheAgreementforCommercial andEconomicCooperat
•withIndia.
/'.4 %
• .•• ,"
Withaviewto^heconclusion andimplementation oftheAgreement,the
CommissionherewithtransmittotheCouncilaproposalforaregulation con­
cludingtheAgreement andtheAnnexesthereto.'

Proposal for a
COUNCIL REGULATION (EEC )
ontheconclusion oftheAgreement forCommercial and
Economic Co-operation between theEuropean Economic Community
and India .
THE COUNCIL OFTHE ,EUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
and inparticular Articles 113and235thereof ,
Having regard totheproposal from theCommission ,
Having regard totheopinion oftheEuropean Parliament ,(1)
Whereas theconclusion bytheEuropean Economic Community uftheAgreement
forConmercial and Economic Co-operation between the European Economic Community
and India appears necessary for theattainment ofthe ends ofthe
Community inthesphere of.external economic relations ^whereas itappears
that certain forms ofeconomic co-operation provided forbythe Agreement exceed
thepowers ofaction provided for intheTreaty ,and inparticular those speci­
fied inthe field ofthe common commercial policy ,
HAS ADOPTED THIS REGULATION :
Article 1
The Agreement forCommercial and Economic Cooperation between theEuropean
Economic Community andIndia ishereby approved onbehalf ofthe Community .
Thetext oftheAgreement isannexed tothis Regulation .
(1)

Article 2
PursuanttoArticle15oftheAgreement,thePresidentoftheCouncil
shallgivenotification thattheprocedures necessaryforthe'entryinto
forceoftheAgreement havebeencompleted onthepartoftheEuropean
EconomicCommunity C1).
Article 3
TheCommunityshallberepresented ontheJointCommission referred
toinArticles10and11oftheAgreementbytheCommission,assistedby
representatives oftheMemberStates.
Article 4
ThisRegulationshallenterintoforceonthe-dayfollowingitspublication
inth^OfficialJournaloftheEuropeanCommunities . ^
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.ThisRégulation
intheOfficiai
DoneatBrussels,
♦
.<.
!
FortheCounciI
thePresident
«4.
(1)thedateofentryintoforceoftheAgreementwillbepublishedinthe
OfficialJournaloftheEuropeanCommunities bytheGeneralSecretariat
oftheCouncil.

AGREEMENT FORCOMMERCIAL ANDECONOMIC COOPERATION
betweentheEuropeanEconomicCommunity andIndia
)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
oftheonepart,
THEGOVERNMENT OFINDIA, "
S
oftheotherpart, •
HAVINGREGARDtothefriendlyrelations andhistoriclinksbetweenIndia
andtheMemberStatesoftheCommunity andtothefoundations forcooperation
f
laidbytheAgreement betweenIndiaandtheCommunitysignedon17December,
1973anc^whichcameintooperation on1April,1974;
NOTINGwithsatisfaction theprogressachievedduringtheoperationofthe
saidAgreementinthedevelopment ofcommercial andeconomicrelations
betweenIndiaandtheCommunity;
{
BELIEVINGthatthetimeisopportunetogiveanewimpetustothemutual
relationship betweenIndiaontheonehand,andtheCommunity ontheother;
MINDFULthatthemoredynamicrelationship whichboththeEuropeanCommunity
andIndiadesirecallsforclosercooperation acrossthewholerangeof
commercial andeconomicendeavourtothefullextentoftheirgrowingcapacity
tomeeteachother'srequirements onthebasisofcomparative advantage,
mutualbenefitandconsistent withtheirdevelopmental needs;
PERSUADEDthatsuchcooperation shouldberealisedinanevolutionary and
pragmaticfashion,astheirpoliciesdevelop;
REAFFIRMING theirdetermination toexpandmutualtrade,andrecognising that
tradeisnotanendinitselfbutameansofachievingwidereconomicand
socialobjectives,andasanimportantinstrumentforfurtheringinternational
economiccooperation ;

DESIROUSofmakingtheircontribution toanewphaseofinternational
economiccooperation commensurate withtheirrespective human,intellectual
andmaterialresources; '
.EMPHASISINGtheir.commoncommitmenttothepromotionofinternational
economicrelationsfoundedonfreedom;equality,justiceandprogress;
HAVEdecidedtoconclude-aCommercialandEconomicCooperationAgreement
betweenIndiaontheonepart,andtheEuropeanEconomicCommunity,onthe
other,andtothisendhavedesignatedastheirplenipotentiaries :
whohaveagreedasfollows: <
_ .Article 1
•V. · }
TheContractingPartiesaredeterminedtoconsolidate,deepenanddiversify
theircommercialexchangesonthebasisofcomparativeadvantageandmutual
benefit,withaviewtoincreasingasrrtuchaspossiblemutualtradeandits
rateofgrowth..
Article 2
TheContractingPartiesshall,intheircommercialrelations,accordeach
othermost-favoured-nationtreatmentinconformitywiththeprovisionsof
theGeneralAgreementonTariffsandTrade.
Article3
TheContractingPartiesshallgranteachotherthehighestdegreeofliberalisation
ofimportsandexportswhichtheygenerallyapplytothirdcountriesandunder­
taketodiscusswaysandmeansofprovidingmaximumfacilitiescompatiblewith
theirrespectivepoliciesandobligations,withregardto.productsofinterest
toeitherParty. .t-:

Article 4
Inaccordance withtheirrespectivepoliciesandobjectives,andwiththe
need,recognised bybothParties,topromotenewrelationsofdynamiccomplement­
arity,basedoncomparative advantage andmutualbenefit,intheindustrialfield
betweenIndiaandtheEuropeanEconomicCommunity,theContracting Parties
t
undertaketopromotethedevelopment anddiversification oftheircommer­
cialexchangestothehighestpossiblelevel.Tothisend,theyshall,in
particular,takethefollowingsteps: * .1
a)maintainconsultation andcooperation inthesolutionofinternational
commercial andeconomicproblemswhicheitherPartymayconsiderof
interest; '
b)usetheirbestendeavourstomaintainandstrengthen anopenand
equitableinternational tradingsystemandrespecttheirobligations '
undertheGeneralAgreement onTariffsandTrade;
■J
c)intensifyexchangeofavailableinformation regardingtheirrespective
marketsandindustries,andtheirchangingtrendsandpolicieswith*
aviewtoidentifyingpossibilities forincreasedproduction and
improvedmarketingprospectsinordertoattainoptimaloverall ,
economicgrowth;
d)promotevisitsbypersons,groupsanddelegations fromtrade,economic
andindustrialcirclestofacilitateindustrial andtechnical exchanges
andcontactsconnectedwithtrade,fostertheorganisation offairsand
exhibitions bybothsides,andtheappropriate provisionofservices
includingpublicityforthedevelopment oftradeinitemsofspecial
interesttoeitherParty;
e)supporttheinstitutions whichhavebeenormaybesetupbythemto
enhancecontactsandcooperation betweentheircommercialorganisations ;
f)bringtogethereconomicoperatorsofbothsidestobetteridentify
sectorsandproductsinwhichtheproduction andexportsofeachshould
bedeveloped,andsupportmarketdevelopment programmes,basedon
suchidentification ;
g)promotestudiesforthefulfilmentoftheobjective^ofthisArticle.
.1■ ' '
V-a"
1

Article 5
IntheLightoftheirrespectivepoliciesandeconomicobjectives,the
Contracting Partiesshallfostereconomiccooperation inallfieldsof
mutualinterestinordertocontribute tothedevelopmeat oftheir
respective economies/toraiselivingstandards,andtomeettheir
developmental needs.TothisendtheContracting Partiesagreetotake
thefollowingsteps:
a)promoteindustrial cooperation andtransferoftechnology through
concertedmeasuresatCommunity andnational -levelsofbothParties'
forcreatingfavourableconditionsforsuchcooperation,onalong-\
termbasisthroughafullerutilisation -ofeachother'smaterial,
manpowerandtechnological resources,onthebasisofcomparative V
advantage andmutualbenefit;
b)promoteandfacilitate increased andmutuallybeneficial investment,
consistent withtherelevantlawsandpolicies;
c)supportinstitutions whichhavebeenormaybesetupbythemto
enhancecontactsandcooperation betweentheireconomicorganisations ;
d)facilitate exchangesofinformation onallsubjectswhichmayhavea.
,bearingupontheprospectsforcooperation in"theeconomicfield;
e)encouragetechnological andscientific cooperation includingjoint
programmesofresearchanddevelopment,forexampleinthefieldsof'
energysources;energyconservation ,energyrelatedtechnology,.
protection andimprovement oftheenvironment .
'•Article6 \
TheCommunitywilltakeallpossiblemeasurestointensifyitssupport,
withintheframework ofitsprogrammes infavourofnon-associated
developingcountries,forIndia'sdevelopment programmes,throughdirect
concessional transfersaswellasthroughinstitutional andothersources
offinanceinaccordancewiththerulesandpoliciesof.suchinstitutions .
ThePartiesshallencourage andfacilitate thepromotionofcooperation
betweenfinancialinstitutions ofthetworegions. A-- \
•v V-N.-.

Article 7
TheContracting Partiesshallholdfriendlyconsultations onanyproblems
thatmayariseintheachievement oftheaforesaidobjectives andshall
exchangeinformation andseektoobtainmutuallysatisfactory solutions
totheseproblems.AttherequestofeitheroftheParties,consultations
shallbeheldassoonaspossible,onanyproblemsadverselyaffecting
bilateral commercial andeconomicrelations,andanyrepresentation on
suchproblemsmadebyeitherPartyshallbeexaminedinapositivemanner.
/ .
Article 8
TheContracting Partiesrecognisethatcooperation betweenoperators and
organisations concernedinthefieldofexportto,andeconomicrelations
withthirdcountries,especially developing countries,' wi11betotheir,
mutualbenefit.Accordingly ,theyundertaketopromotesuchcooperation
andtocreatefavourable conditionsforfurtheringit.
Article9
Withoutprejudicetotherelevantprovisions oftheTreatiesestablishing
theCommunities,thepresentAgreement andanyactiontakenthereunder
shallinnowayaffectthepowersoftheMemberStatesofthetommunity
toundertakebilateralactivities withIndiaandtoconclude,where
appropriate,neweconomiccooperation agreementswithIndia.
V-)

Article 10
*• \
TheContracting Parties agree tosetupaJoint Commission whose tasks shall
/ •
betoensure theproper functioning ofthis Agreement ,todevise practical
measures forachieving itsgoals ,andtodiscuss andpursue effectively ,in
thelight ofitsprinciples andobjectives ,allmatters which mayarise in
thecourse ofitsimplemenation .Itshall beincumbent upon theJoint
Commission toexamine anydifficulties likely tohinde'r thedevelopment and
diversification ofcommercial andeconomic cooperation between the Con­
tracting Parties andtorecommend ,practical measures foraction bythe Con-'
tracting Parties ;while making such recommendations ,theJoint Commission -
shall have dueregard tothedevelopment plans ofIndia andtotheprogress
ofeconomic ,industrial ,social ,environmental andscientific policies of -
both Parties aswell astheir level ofeconomic development .
TheJoint Commission shall ,inparticular ,b6required : ^
a)toseek ways andmeans ofencouraging thedevelopment ofeconomic and
,commercial cooperation between India ontheonepart ,and theEuropean •
Economic Community ontheother ,inaccordance with theprovisions of-
this Agreement ; ,.• -" '
b)tostudy anddevise ways andmeans ofovercoming trade barriers ,tariff
andnon-tariff ,inthevarious sectors oftrade ; ,
c).to examine and recommend ways andmeans for theprogressive adaptation
•ofthetrade pattern .andmarketing structures oftheContracting Parties
with aview topromoting theevolution oftheir commercial andeconomic
relations inaccordance wi^h their complementary possibilities aswell as
the long-term objectives oftheeconomies oftheContracting Parties ,so
astoavoid imbalances andmaladjustments ;
d)tomake recommendations onthe use ofCommunity funds available for the
implementation oftheobjectives ofthepresent Agreement .Inrespect of
such funds asmay beput atthedisposal oftheJoint Commission bythe
Contracting Parties inajointly agreed manner and inaccordance with
their respective criteria ,todiecide expenditure onrelevant studies and
activities ; •- -
. • ' V
e)to -examine possibilities ofandmake recommendations foranefficient and
coherent utilisation ofallavailable instruments ,besides most-favoured -
nation tariffs andgeneralized preferences ,topromote trade initems of
interest toboth Parties . . - '

Article 11
The'JointCommission shallbecomposedofrepresentatives ofbothsides,
atanappropriately highlevel.TheJointCommissionshallmeetasoften
asnecessary andatleastonceayearatanagreedtimeandplace;
periodicallyitshallreviewthe*implementation ofthisAgreement and
laydownguidelinesforfutureaction.TheJointCommissionshallmeet
alternately inBrusselsandMew.Delhi.
f
Extraordinary meetingsmaybeconvenedbycommonagreementattherequest
ofeitherContracting Party.IfnecessarytheJointCommission maysetup
specialised sub-commissions toassistitintheperformance ofitstasks.
Therepresentatives oftheContracting PartiesintheJointCommission
willtransmittheagreedrecommendations totheirrespectiveauthorities,
forconsideration andactiontobetakenasspeedilyandeffectively aspossible
IntheeventoftheJointCommission beingunabletoadoptarecommendation on
amatterconsidered byeitherContracting Partytobeurgentorimportant,
itshallsubmittheviewofthetwo(sidestotherespectiveauthorities i/i
ordertoarriveatamutuallysatisfactory solution.
TheJointCommissionshalladoptitsownrulesofprocedure andprogramme
ofWOFk.
Artide12
TheContracting PartiesagreethatitshallalsobethetaskoftheJoint
Commission toensuretheproperfunctioning ofthesectoralagreements concluded
orwhichmaybeconcludedbetweenIndiaandtheEuropeanEconomicCommunity on
jute,coirandcottontextilesandcottageindustrygoods(handicrafts and
» *
handlooms)andthat,tothisend,itshallexercisetheresponsibilities
entrustedtotheJointCommissions setupundertheseagreements .
Article13
TheAnnexesformanintegralpartofthisAgreement.

iArticle14
ThisAgreementshallapplytotheterritories inwhichtheTreaty
establishing theEuropeanEconomicCommunityisappliedandunder
theconditionslaiddowninthesaidTreatyontheonehandandto
theterritoryofIndia-ontheotherhand.
'1
Article 15 .
ν
ThisAgreementshallenterintoforceonthefirstdayofthemonth
followingthedateonwhichtheContracting Partieshavenotifiedeach
otherofthecompletion ofth®procedures necessaryforthispurpose.
Itisconcludedforaperiodoffiveyears.Itshallbeautomatically
extendedfromyeartoyearifneitherContracting Partydenounces.it
sixmonthsbeforethedateofexpiry.IfbothContracting Parties
agree,amendments tothisAgreement may,however,beintroduced atany
timetotakeaccountofemergingsituations andevolvingpolicies.
'\ 4
Article16.
\ ' ' *
ThisAgreementisdrawnup.intwocopiesintheDanish,Dutch,English,
French,German,Greek,ItalianandHindilanguages,eachofthesetexts
beingequallyauthentic.• ..

M-
ANNEX I
i.
Declaration oftheEuropean Economic Community concerning tariff adjustments
The Community confirms that theGeneralized Scheme afPreferences (GSP )
wasautonomously put into force by'theEuropean Economic Community on
1July 1971 onthebasis ofResolution 21 (II)ofthe second United
Nations Conference onTrade and Development held in1968 .The Community
isprepared ,,inthe course ofitsendeavours toimprove thesystem of
Generalized Preferences ,totake into account the interests ofIndia in
theextension and strengthening ofitstrade relations with theCommunity .
TheCommunity isalso prepared toexamine inthe Joint Commission'the
possibilities for further tariff adjustments topromote thedevelopment
oftrade between India and the Community .
TheCommunity understands that India will also beprepared todiscuss in
theJoint Commission theCommunity 'sproposals ,ifany,with regard to
tariff adjustments byIndia bearing onthedevelopment oftrade between
theContracting Parties ,taking into consideration India 'sdevelopment
needs .

ANNEX II
Declaration oftheGovernment ofIndia concerning tariff adjustments
Indiaunderstands thattheCommunity isprepared ,inthecourse ofits
endeavours toimprove thesystem ofGeneralised Preferences ,totake »
intoaccount theinterests ofIndia intheextension andstrengthening
ofitstraderelations withtheCommunity .Inthisconnection ,India
willidentify forconsideration bytheCommunity theareas inwhich the
Community 'sGeneralised Scheme ofPreferences canbeimproved /more
especially inthecontext oftheprovisions oftheJoint Declaration
ofIntent . ' '
>Indiafurther understands thattheCommunity isalsoprepared toexamine
intheJoint Commission thepossibilities forfurther ^tariff adjustments
■ιtopromote thedevelopment oftrade between India andtheCommunity .
Inthisconnection Indiawillnotify totheCommunity thelistofthe
products inrespect ofwhichtotaltariff suspension isdesired ,for
examination bytheJoint Commission .
* >
Indiawill^also be.prepared todiscuss intheJoint Commission the .
Community 'sproposals ,ifany,withregard totariff adjustments by
Indiabearing onthedevelopment oftrade between theContracting
Parties ,taking injtoconsideration India'sdevelopment needs.

Declaration ofthe European Economic Community
\
Inthe course ofthenegotiations ofthe Commercial and Economic
Cooperation Agreement between the Community and India ,the Indian
side presented alist ofproducts forwhich abinding atzero of
the rate ofduty inthe Common Customs Tariff ofthe European
Economic Community was requested . .■
Atpresent these products which are covered bythe Indo-EEC J^ite «
and Coir Agreements enter the Community atzero rates ofduty under
the Generalized Scheme ofPreferences (GSP).
5706 *Yarn ofjute orofother textile bast fibres ofheading
• 'No5703
5710 A+BWoven fabrics ofjute orofother textile bast fibres of
\
heading No5703
Coir mats andmatting ,and tufted carpets -carpeting and
/
rugs
6203 AII Sacks and bags ,ofakind used for thepacking ofgoods ,
other than used
The Community confirms that theabove mentioned products are all covered
atzero-duty inthe Generalized Scheme ofPreferences which was autono­
mously put into force bytheEuropean Economic Community on 1July 1971
onthe basis ofresolution 21 (II)ofthe second United Nations Conference
onTrade andDevelopment held in1968 ,and that itisnot its intention
towithdraw them from GSP inthe foreseeable future .
The Community isprepared ,inthe course ofitsendeavours toimprove the
system ofGeneralized Preferences ,totake into account the interests of
India intheextension andstrengthening ofitstrade .relations with the
Community .5706
5710 A+B
5802 AI
6203 >AII

Α}·
PROTOCOL
i '
concerning Commercial andEconomicCooperation betweenthe
EuropeanCoalandSteelCommunity andIndia
-THECOMMISSION OFTHEEUROPEANCOMMUNITIES,ONBEHALFOF'
THEEUROPEAN COALANDSTEELCOMMUNITY,AND
THEGOVERNMENT OFTHEKINGDOM OF.BELGIUM
THEGOVERNMENT OFTHEKINGDOM OFDENMARK
THEGOVERNMENT OFTHEFEDERALREPUBLIC OF.GERMANY
THEGOVERNMENT OFTHEFRENCHREPUBLIC
THEGOVERNMENT OFTHEHELLENICREPUBLIC ,' -.
THEGOVERNMENT OFIRELAND ~
THEGOVERNMENT OFTHEITALIANREPUBLIC
THEGOVERNMENT OFTHEGRANDDUCHYOFLUXEMBOURG
THEGOVERNMENT OFTHEKINGDOM OFTHENETHERLANDS
THEGOVERNMENT OFTHEUNITEDKINGDOM OFGREATBRITAIN ANDNORTHERN IRELAND -
oftheonepart,and
THEGOVERNMENT OFINDIA
.oftheotherpart,
' *■» ' •
HAVEAGREEDASFOLLOWS:
Article 1 '
TheProvisionsofArticles 1to5oftheAgreementforCommercial and
EconomicCooperation betweentheEuropeanEconomicCommunity andIndia"
signedin1 on ' shallalsoapply
inthematterscoveredbytheTreatyestablishing theEuropeanCoaland
SteelCommunity.
Article 2
ThisProtocolshallapplytotheterritories towhichtheTreatyestablishing
theEuropeanCoalandSteelCommunityapplies,ontheconditionslaiddown
inthatTreaty,andtotheterritoryofIndia. .
./.

/
2
Artide 3
ThisProtocol shall enter intoforce onthefirst d?yofthemonth
following thedateonwhich theContracting Parties notify eachother
ofthecompletion oftheprocedures necessary forthispurpose .It
shall cease toapplyiftheAgreement referred toinArticlel is
denounced .
ThisProtocol isdrawn upintwocopies intheDanish,Dutch,English ,
French,German,Greek,Hindi andItalian languages ,eachtextbeing
equally authentic . .Articte4
V.V