ANNEXURE-I

The Government of India and the Government of the Republic of Korea,

Being desirous of promoting the friendly relations existing between the two countries and their peoples,

Recognizing the benefits to be derived by both countries from expansion of trade as well as from closer economic and technical cooperation,

Have agreed as follows:

ARTICLE I

1. The Contracting Parties shall take all appropriate measures, within the framework of their respective laws and regulations in force from time to time, to maximize trade between the two countries in particular with regard to the goods and commodities as mentioned in the Schedules "A" and "B" attached to this Agreement, The Schedules "A" and "B" shall constitute an integral part of the present Agreement.
   
   
2. The above-mentioned Schedules shall not be construed as excluding goods and commodities not enumerated therein.

ARTICLEII

Each Party shall give full consideration to suggestions that may  be made from time to time by the other Party for facilitating the import into one country of commodities which are available for export from the other, and for the development and expansion of commerce, and diversification of trade between the two countries.

ARTICLEIII

1. Each Party shall accord to the commerce of the other Party the most-favoured-nation treatment, in particular with respect to:

1. taxes, custom duties and charges of any kind imposed on or in connection with importation and exportation or imposed on the international transfer of payments for imports and exports; -
   
   
2. the method of levying such duties and charges;
   
   
3. all rules and formalities in connection with the importation and exportation;
   
   
4. the application of internal taxes or other internal charges of any kind imposed on or in connection with .imported or exported goods;
   
   
5. the application of any form of control on means of payments or regulations on the international exchange that are existing or may be established in
   the future.

2. The provision of paragraph I above shall not. however, apply to any:

1. advantages accorded by either Party to contiguous countries;
   
   
2. advantages resulting from any customs union or free trade area to which either Party is or may become a Party;
   
   
3. preferences or advantages accorded by India or the Republic of Korea to any country existing on the date of this Agreement or in so far as India is concerned in replacement of such preferences or advantages that existed prior to the 15^th August, 1947.

ARTICLE IV

The Contracting Parties, desirous of promoting economic cooperation between the two countries, shall encourage the development of mutually agreed schemes.

ARTICLE V

The Contracting Parties shall promote technical cooperation for the economic development and enhancement of the living standards of each country, and in this respect, shall facilitate the exchange of technical know-how together with the exchange of skilled personnel and technical trainees.

ARTICLE VI

The Contracting Parties agree to explore ways and means and to take necessary steps for the most convenient and economical transportation of commodities between the two countries.

ARTICLE VII

Mercantile ships of both countries, while entering staying in or leaving the ports of either country, will enjoy the most favoured facilities granted by their respective laws, rules and regulations to ships under third country's flag. , This principle shall not, however, apply to ships engaged in coastal navigation.

ARTICLE VIII

Payments under this Agreement shall be effected in U.S. dollars or Pound Sterling or in any other convertible currencies acceptable to both countries.

 ARTICLE IX

In order to facilitate the implementation of this  Agreement, the Contracting Parties shall consult each other as and when necessary and also review the working of the Agreement at least once a year.

ARTICLE X

1. The present Agreement shall come into force on the date of its signature, and remain valid for a period of two years in the first instance and shall continue to be in force from year to year unless either Party gives to the other at least 90 days' written notice of its intention to terminate the Agreement.
   
   
2. The Trade Agreement between the Government of India and the Government of the Republic of Korea effected by exchange of notes on April 29,1964, shall be superseded by this Agreement on the, date on which the present Agreement comes into force.

IN WITNESS WHERE OF the undersigned, being duly authorized by their respective Governments have signed the present Agreement.

Done in duplicate at Seoul on 12^th August, 1974, in the Hindi, Korean and English languages.

The Hindi, Korean and English texts shall be equally authentic, but in case of any divergence of interpretation, the
English text shall prevail.

SCHEDULE "A"

Commodities available for export from the Republic of Korea to India

SCHEDULE "B"

Commodities available for export from India to the Republic of Korea