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May 21, 1988

Spain and the Republic of the Philippines, hereinafter referred to as the Contracting Parties,

Aware of the special and close historical ties existing between the two Contracting Parties and their people,

Desiring to develop to the widest extent possible the economic and industrial relations between them, based on equality and mutual benefit,

Recognizing the long-term benefits to be derived from closer cooperation in economic and industrial fields,

Have agreed as follows:

ARTICLE I

The Contracting Parties shall continue to develop and promote economic and industrial cooperation between the two Countries, and for this purpose shall facilitate insofar as may be possible such cooperation between the competent government agencies and private enterprises of Spain and the Philippines, in conformity with the laws and regulation of each Country.

ARTICLE II

The Contracting Parties shall determine, in accordance with the stated development priorities and thrusts of both Countries, the sectors that they may consider most appropriate for broadening and deepening such cooperation, and shall facilitate cooperation between the competent Spanish and Philippine government agencies and private enterprises.

ARTICLE III

The cooperation under this Agreement may be in the following fields:

- The design and building of new industrial facilities, as well as the enlarging and technical transformation of already existing enterprises.

- Joint investment to produce capital as well as consumer goods.

- Joint trade promotion activities such as exchange of relevant market and trade information, participation in trade fairs, organization of trade missions and establishment of private trade associations.

- Licensing agreements for limited use of licenses, patents, designs and production processes, as well as technical information exchanges,

- Cooperation in the drawing up and carrying out of industrial and development projects in third countries, including supplies of machinery, equipment and services.

- Other fields of cooperation that may be mutually agreed upon.

ARTICLE IV

Each Contracting Party shall extend to investments in its territory treatment no less favorable than that granted to nationals and companies of any third state. However, this shall not oblige the Contracting Parties to extend to the nationals or companies of the other the benefit of any treatment, preference or privilege arising from its membership in any exis ting ox future cus toms union, free trade area, common market or regional economic organizations.

ARTICLE V

The Contracting Parties shall encourage the signing of arrangements and contracts between the government agencies and private enterprises of the two Countries.

ARTICLE VI

Acknowledging the importance of financing for the subsequent development of economic relations, the Contracting Parties shall support the granting of favourable financial treatment, pursuant to the laws and regulations of each Country, with a view to implementing cooperation projects under this Agreement.

ARTICLE VII

The Contracting Parties shall reciprocally inform each other In an appropriate manner regarding possible cooperation projects and their Implementation.

Each Contracting Party pledges not to convey to a third party or person, without the preliminary written approval of the other Contracting Party, confidential Information regarding economic and Indus trial cooperation undertaken by virtue of the present Agreement.

ARTICLE VIII

The Contracting Parties shall support and facilitate the organization and holding of any functions such as exhibitions, symposia and technical meetings, to promote economic and industrial cooperation between the two Countries.

ARTICLE IX

A Joint Commission, composed of high level government officials to be designated by the Contracting Parties, shall meet periodically and alternately in the territories of the two Contracting Parties, in order to facilitate communication and expedite the implementation of projects/activities resulting from this Agreement.

Representatives of companies, economic or financial groups and enterprises interested may, subject to the mutual approval of the Contracting Parties , collaborate in the work of the Joint Commission.

ARTICLE X

This Agreement shall enter into force on the day the Contracting Parties inform each other of its approval in accordance with existing internal requirements of each of the parties.

This Agreement, shall be valid for a period of five years from its entry into force and shall thereafter automatically continue to be in force for periods of 5 years each unless terminated by either Contracting Party by not less than 6 months written notice through diplomatic channels

The provisions of this Agreement shall apply even after its termination to all contracts entered into during the period of validity of this Agreement but not fully completed at the time of its termination.

Done at Manila at the twenty first of May 1988

In two original copies, one In Spanish and the other In English, both texts being equally authentic.