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June 30, 2000

The Government of the Republic of the Philippines and the Government of the United States of America, hereinafter referred to as "the Parties"; recognizing the importance of biotechnology in agricultural modernization, rural development and environmental management;

MINDFUL of the importance of biotechnology as an important research and development strategy to attain food security, enhance environmental integrity, and improve productivity;

TAKING INTO ACCOUNT that the President of the Philippines has approved on 21 January 2000 the institutionalization of a national policy to use biotechnology as a strategy to improve agricultural production, modernize Philippine agriculture and fisheries, and enhance rural development;

COGNIZANT of the fact that the United States Government under PL 480 has made available to the Philippine Government through the Department of Agriculture, funding in the form of a commodity loan of US $ 7.0 million in its Philippine peso equivalent under the Food for Peace Program, which will be used for biotechnology activities such as research and development, capacity enhancement, outreach programs, socio economic analysis and policy advocacy, and technology promotion and commercialization in order to meet the challenges and requirements of a modernized agriculture in the Philippines;

Flave agreed as follows:

ARTICLE 1
GENERAL PROVISION

The Parties undertake to cooperate in the field of the agriculture and fisheries biotechnology program within the limits of their national laws, relevant regulations and generally accepted principles of Internationa! Law.

ARTICLE 2
IMPLEMENTING AGENCIES

To ensure the smooth implementation of the Program, the Philippine Government designates the Department of Agriculture as the lead agency to supervise the execution of the Program.

The United States Government designates the United States Department of W Agriculture as the lead agency to oversee the progress of the Program.

ARTICLE 3
SCOPE OF THE PROGRAM

The techniques and tools of biotechnology shall be used in the improvement of present yields of selected crops, trees and livestock; improvement of quality of products; and bioremediation of the environment, inter alia. Specific strategies will be adopted such as: whenever possible,

1. direct transfer of available foreign technologies;

2. procurement of gene constructs if already available elsewhere through negotiated material transfer agreements or licensing with researchers/laboratories abroad;

3. development of own technologies/gene constructs when feasible; and

4. adoption of foreign technologies when feasible

The Program shall have the following components:

1. Policy Analysis and Advocacy

2. Biotechnology Industrial Development and Capacity Enhancement Program

3. Biotechnology Research and Development Program

4. Risk Analysis: Assessment, Management, and Communication

5. Biotechnology Commercialization Program

ARTICLE 4
DURATION OF THE PROGRAM

The entire Program will commence on the year 2000 and will remain in force for a period of five (5) years.

ARTICLE 5
IMPLEMENTING ARRANGEMENT

The Department of Agriculture, through its designated agencies, shall be responsible for establishing the operational guidelines in the management or coordination, implementation, monitoring and evaluation of the different components of the Program including the creation of a Project Implementation Unit to oversee the whole Program, under the direction of a Steering Committee to be chaired by the Department of Agriculture.

The Department of Agriculture will seek waivers on duties for equipment and supplies purchased with PL 480 funding for the Project.

The United States Department of Agriculture shall provide the assistance in identifying service providers and facilitating necessary arrangements in the United States for all human resources and facility development aspects of the program.

The United States Department of Agriculture shall also help assess the current strengths and weaknesses of the Philippine Agriculture and Fisheries Biotechnology Program and recommend ways to strengthen the program. Subsequent annual assessments and progress reviews will be conducted as needed.

ARTICLE 6
ADMINISTRATION OF PROGRAM FUNDS

The Philippine Government shall release to the Department of Agriculture out of the PL 480 fund the amount of US $ 7.0 million in its Philippine peso equivalent to the project described in this agreement to the following schedule:

Year	2000- $ 1 million 2001- $ 2 million 2002- $ 2 million 2003- $ 1 million 2004- $ 1 million

The Department of Agriculture, through its designated agency, shall be responsible for the administration and disbursement of funds.

Twelve (12) percent of the total amount of the grant shall be allocated for costs of administration of the program.

ARTICLE 7
INTELLECTUAL PROPERTY RIGHTS

The Parties agree that the results and other benefits arising from the collaborative program shall be shared mutually and exchanged among the Parties concerned in accordance with existing Philippine laws, rules and regulations; and, that the results of collaborative undertakings may be published in the public interest as mutually agreed upon. The publication may be joint or separate as determined in each specific area.

Intellectual property rights resulting from the implementation of this project, where intellectual properties are solely developed by researchers at Philippine institutions, shall belong to the government of the Philippines or its assignees/designees and shall be covered under pertinent laws and regulations such as but not limited to R.A. 8293 and its IRR-Magna Carta for Scientist, Engineers, Researchers and other Science and Technology Personnel in the Government; Science Act of 1958; Executive Order No. 784 of 1982; and Executive Order No. 128 of 1987.

Where intellectual properties are developed jointly with researchers from a non-stale party/foreign institutions, ownership of the intellectual property will be held jointly between the Philippine government and the government and/or foreign institution concerned.

Joint intellectual properties shall be governed by the guidelines to be set by the Parties through consultations or negotiations.

ARTICLE 8
SETTLEMENT OF DISPUTES

Any dispute between the contracting parties arising out of the interpretation or implementation of this Memorandum of Agreement shall be settled by consultations or negotiations through diplomatic channels.

ARTICLE 9
VALIDITY AND DURATION

This Memorandum of Agreement shall remain in full force and effect for its intended duration unless one party officially notifies the other, through diplomatic channels, of its desire to suspend or terminate this Memorandum of Agreement. In such a case, the Memorandum of Agreement shall remain valid until thirty (30) days after the date on which one party receives an official notification from the other party expressing the desire of the latter to suspend or terminate the validity of this Memorandum of Agreement.

ARTICLE 10
ENTRY INTO FORCE

This Memorandum of Agreement shall enter into force on the date of the latter written notification by the parties, through diplomatic channels, indicating that the domestic requirements for its entry into force have been complied with.

ARTICLE 11
AMENDMENTS

The Parties to this Agreement may, through diplomatic channels, and by mutual consent, add, modify, amend or delete any words, phrases, sentences or articles in this Agreement. All concerned should receive a copy of the proposed amendment at least thirty (30) days in advance. Amendments shall take effect in accordance with Article 9 of this Agreement.

Done this 30th day of June in the year 2000 in Quezon City, Philippines in the English language.