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December 05, 1997

The Government of the Republic of the Philippines and the Government of the Republic of Slovenia hereinafter referred to as the "Contracting Parties",

Desirous to develop and enhance long-term trade and economic cooperation based on equality and mutual benefit,

Convinced that this Agreement is an appropriate and stable foundation for substantial and harmonious development and diversification of trade and economic cooperation between the two countries,

In accordance with laws and regulations in force in both countries and international agreements accepted by them, considering the practices and standards of the international market and by taking into account the provisions of the Agreement on establishing the World Trade Organization (WTO),

Have agreed as follows:

ARTICLE I
UMBRELLA PROVISION

The Contracting Parties shall promote and develop the expansion of bilateral trade and economic relations between them within the framework of the laws and regulations effective in their respective countries.

ARTICLE II
MOST-FAVORED-NATION TREATMENT

1. The Contracting Parties shall grant each other, in accordance with provisions of the Agreement establishing the World Trade Organization (WTO) as far as applicable to both Contracting Parties, and with the respective laws and regulations of both Contracting Parties, most-favored-nation treatment for products originating from their respective territories, in all matters relating to:

a. customs duties and other charges with similar effect imposed on or in connection with exportation and importation, regarding the method of payment as well as all regulations and formalities related to exports and imports;

b. rules and formalities connected with customs clearance;

c. all internal taxes or other internal charges of any kind imposed on or in connection with imports and exports; and

d. the issuance of import and export licenses.

2. The provisions contained in the first paragraph hereof do not apply to the:

a. special preferences or other advantages accorded by either Contracting Party resulting from its association in a regional and/or sub-regional arrangement, customs union and/or a free trade area;

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

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

ARTICLE III
MERCHANT SHIPPING AND AIR TRANSPORT

1. Merchant cargo-bearing vessels and cargo-bearing airplanes including their crews shall be granted most-favored-nation treatment in respect of entry into, stay in, and departure from the harbor/airport of the other Contracting Party, in accordance with the laws, rules and regulations in force in the said other Contracting Party.

2. Merchant cargo-bearing vessels and cargo-bearing airplanes of either Contracting Party that are in distress shall be permitted to take refuge in the nearest harbor/airport of the other Contracting Party and shall receive friendly treatment, assistance and protection.

ARTICLE IV
SCOPE OF COOPERATION

The Contracting Parties shall endeavor, within the scope of their authority, to secure stable conditions for the development of trade and economic cooperation between the two countries, focusing in areas which include cooperation in economic, industrial, technical and technological domains.

ARTICLE V
SAFEGUARD MEASURES

No provision of this Agreement shall be interpreted in such a manner as to prevent each Contracting Party from adoption and/or enforcement of the following measures in accordance with provisions of the Agreement establishing the World Trade Organization (WTO): .

a. measures necessary to safeguard its balance-of-payments 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 materials or the materials from which they are derived and are considered necessary for the protection of each Contracting Party's security interests.

ARTICLE VI
PAYMENTS

All payments for goods and settling of accounts within the framework of this Agreement shall be made in freely convertible currency in compliance with laws and regulations applicable in the countries of the Contracting Parties and in accordance with prices and standard terms of the international market and banking practice, unless otherwise agreed between the parties to a commercial transaction.

ARTICLE VII
FAIRS, EXHIBITIONS AND PROMOTION ACTIONS

1. The Contracting Parties shall, following international agreements and the laws and regulations of their respective countries, render each other assistance in organizing fairs, specialized exhibitions and promotion actions.

2. The Contracting Parties agree to exempt from customs duties and other charges with similar effect, in accordance with the applicable national laws and regulations of the Contracting Parties, the imports of:

a. promotion material, free samples originating from the country of the other Contracting Party as well as articles which are obtained in the country of the other Contracting Party at competitions, exhibitions and other festivities; and

b. goods and equipment for fairs and exhibitions, which are not intended for sale.

ARTICLE VIII
EXCHANGE OF INFORMATION

The Contracting Parties shall, in order to facilitate exchange of goods and conclusion of payments between the two countries, upon request of the other Contracting Party and subject to the laws and regulations in force in both countries, furnish all pertinent information for the development of trade and economic relations between the two Contracting Parties through their commercial attaches and other appropriate representatives.

ARTICLE IX MUTUAL
SUPPLY OF GOODS

Mutual supply of goods shall be based on contracts concluded between the natural and legal persons of the Contracting Parties, in accordance with respective laws and regulations of the Contracting Parties and customary commercial practices regarding price, quality, delivery and terms of payment.

ARTICLE X
JURISDICTION AND BUSINESS FACILITATION SERVICES

1. Nationals, state corporations and private organizations/companies of either Contracting Party shall be afforded access to all courts of the other Contracting Part, subject to the laws and regulations of that other Contracting Party. Disputes relating to trade between nationals, state corporations and private organizations/companies of both Contracting Parties 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.

2. Private organizations/companies of either Contracting Party shall be permitted within the territory of the other Contracting Party to deal directly with buyers and users of their products, subject to the laws and regulations applicable in each Contracting Party.

3. The Contracting Parties agree to assist in the solution of business facilitation problems and to enable access for their nationals, state corporations and private organizations/companies to appropriate government offices/officials in each other's country.

ARTICLE XI
SETTLEMENT OF DISPUTES

1. The Contracting Parties recommend that their natural and legal persons resolve any dispute in an amicable way.

2. The Contracting Parties shall encourage the adoption of arbitration for settlement of disputes arising from commercial transactions concluded by the parties to such transactions within the framework of this Agreement.

ARTICLE XII
ESTABLISHMENT OF A JOINT COMMITTEE

1. The Contracting Parties shall, for the purpose of implementing the objectives of this Agreement establish a Joint Committee composed of the representatives of both countries.

2. The Joint Committee shall meet once a year, or when needed at the request of either of the Contracting Parries, in the country of either Contracting Parry, alternately.

3. The Joint Committee shall define its regulations for the conduct of meetings and adopt rules of procedure.

ARTICLE XIII
VALIDITY OF CONTRACTS

The provisions of this Agreement shall apply ten years after its termination to contracts entered into during the period of the validity of this Agreement but not fully completed on the day of termination of this Agreement.

ARTICLE XIV
ENTRY INTO FORCE

1. This Agreement shall enter into force on the thirtieth day after the date of receipt of the last of notes, with which the Contracting Parties notify each other that all internal legal requirements for the entry into force of this Agreement have been fulfilled.

2. This Agreement may be amended upon the mutual agreement by both Contracting Parties. Such amendments shall enter into force following the procedure under paragraph I of this Article.

3. This Agreement shall remain in force for the period of three years and shall be automatically renewed for successive periods of one year unless one of the Contracting Parties terminates it in writing through diplomatic channels by giving three months' notice before the expiration of its validity.

Done in Manila on 5 December 1997, in two originals in the English language, both texts being equally authentic.