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February 18, 1998

DESIRING to develop and strengthen direct trade relations between them in accordance with their development needs and objectives on equitable and mutually beneficial bases;

RECOGNIZING the benefits to be derived by both parties from such trade relations at public or private levels;

Have agreed as follows;

ARTICLE I
GENERAL PROVISION

The two Contracting Parties shall do their utmost to encourage, facilitate and increase the volume of trade between their two countries, through all means and forms of trade transactions. Both Contracting Parties agree to promote the exchange of all available goods between them in accordance with their respective legislations.

ARTICLE II
MOST-FAVOURED-NATION TREATMENT

The Contracting Parties shall grant each other most-favoured-nation treatment in accordance with provisions of the General Agreement on Tariffs and Trade, as far as these are applicable to both contracting parties, in all matters relating to:

a. Customs duties, charges and internal taxes of any kind including the method of levying such duties, charges and taxes imposed on or in connection with importation or exportation, or imposed on the transfer of payments for imports and exports;

b. Rules and formalities connected with customs clearance; and

c. The issuance of import and export licenses.

ARTICLE III
EXEMPTIONS FROM MFN

The provisions of Article II shall not apply to:

a. Special preferences or other advantages accorded by either Party resulting from its association in a regional or sub-regional arrangement, customs union, a free trade area or a common market, or measures leading to the formation of a customs union, a free trade area or a common market;

b. Tariff preferences or other advantages which either Party grants or may grant to facilitate frontier/border traffic;

c. Special tariff preferences or other advantages which either Party may grant to developing countries under any trade expansion or economic cooperation scheme of which the other Party is not a member; and

d. Advantages, facilities and preferences granted or to be granted in accordance with bilateral or regional agreements concluded or to be concluded between the Arab Republic of Egypt and Arab, African and Islamic countries.

ARTICLE IV
SAFEGUARD MEASURES

No provision of this Agreement shall be interpreted in such a manner as to prevent the adoption or enforcement by other Contracting Party of the following measures:

a. measures necessary to safeguard its balance of payment position;

b. measures necessary to protect public health, morals, order or security;

c. measures necessary to prevent injury to domestic industries or the threat thereof;

d. measures necessary to protect human, animal or plant life against diseases, pollution, or threat to life;

e. measures relating to traffic in arms, ammunitions, implements of war, or traffic in other materials carried on directly or indirectly for the purpose of supplying a military establishment; and

f. measures relating to fissionable nuclear materials, the sources thereof, or the radioactive by-products thereof except as may be required for medical purposes.

ARTICLE V
PAYMENT ARRANGEMENTS

All payments arising from trade between the two countries shall be made in freely convertible currencies, subject to foreign exchange regulations and other pertinent laws, rules, and regulations effective in the respective countries.

Payments between the two countries may also be effected through other payment arrangements subject to the laws and regulations in force in both countries.

ARTICLE VI
EXCHANGE OF COMMERCIAL REPRESENTATIVE/ PARTICIPATION IN TRADE FAIRS

In order to develop further trade between the two countries, the Contracting Parties shall encourage and facilitate the visit of commercial representatives, groups and delegations of either Party and the participation of either country in trade fairs and missions and in arranging trade exhibitions of either country in the territory of the other on terms to be agreed between their competent authorities.

The exemptions from customs duties and other similar charges on articles and items intended for trade fairs, missions and exhibitions shall be subject to the laws and regulations of the country where such fairs and exhibitions are held.

ARTICLE VII
EXCHANGE OF TRADE INFORMATION

In order to facilitate exchange of goods and payments between the two countries, and subject to the laws and regulations in force in both countries, either contracting country, upon request of the other country shall furnish, through its commercial attache and other appropriate representatives, all pertinent information for the development of trade and economic relations between the two contracting countries.

ARTICLE VIII
BUSINESS FACILITATION SERVICES FOR TRADE MATTERS

Nationals, state corporations and private organizations/companies of either country shall be afforded access to all courts of the other country, subject to the laws and regulations of such other country. Disputes relating to trade between nationals, state corporations and private organizations/companies of both contracting countries shall be referred to appropriate courts where such disputes transpired. They shall not claim or enjoy immunities from suit or execution of judgment or other liability with respect to commercial or financial transactions. They also shall not claim or enjoy immunities from taxation with respect to commercial or financial transactions.

Each Contracting Party agrees to assist in the solution of business facilitation problems and for either Party to gain access to appropriate government offices/officials in each other's country.

ARTICLE IX
SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES THROUGH AN ARBITRATION BODY

In the absence of an arbitration clause, ail disputes relating to any transaction concluded in accordance with the present Agreement, may be referred for settlement to an arbitration board by mutual approval of both parties to the contract, unless both Parties agree to settle the dispute in any other peaceful manner.

ARTICLE X
ESTABLISHMENT OF A JOINT COMMISSION/ CONSULTATIVE BODY

The Contracting Parties may establish a Governmental Joint Commission/Consultative Body composed of representatives of both parties to implement the provisions of the present Agreement, examine measures for the solution of problems or in disputes that may arise in the course of its implementation, and propose measures for expanding and diversifying trade between the two countries.

The establishment of a Governmental Joint Commission/Consultative Body shall not preclude the right of both countries to consult each other at the request of either of them on all matters of mutual interest, as well as on the necessary measures for the expansion of mutual cooperation and trade relations in view of implementing the present Agreement.

At the request of either country, a meeting of the joint Commission shall be carried out at a place mutually agreed upon not later than sixty (60) days after the date of receiving the request.

The Contracting Parties may undertake to propose a trade protocol to facilitate the importation and exportation of goods and commodities from both countries, subject to the laws and regulations of each country.

ARTICLE XI
TERMINATION OF CONTRACTS

The provisions of this Agreement shall apply until the termination of the execution of the private contracts concluded during its validity but not fully completed on the day of the termination of the Agreement.

ARTICLE XII
VALIDITY/RATIFICATION OF AGREEMENT

The present Agreement shall be subject to ratification and shall come into force from the date of the exchange of instruments of its ratification.

The present Agreement shall be valid for only one year to be automatically extended for successive terms, unless either Contracting Party notifies the other of its intention to amend or terminate it, three months prior to the expiration date of the period in course.

During the implementation of this agreement both Contracting Parties may propose in writing amendments thereto and to which the other Party will reply within 1 20 days upon receipt of such proposition.

The terms of the Agreement may be modified by mutual consent of the Contracting Parties.

Done in Manila on 18 February 1998 in two originals in English and Arabic, both texts being equally authentic. In case of discrepancy the English text shall prevail.

Entry into Force: April 10, 2006