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October 15, 1997

The Government of the Republic of the Philippines and the Government of the Union of Myanmar, hereinafter referred to as the "Contracting Parties", being desirous of developing trade relations between the two countries and of enhancing the friendly relations between the Governments and the peoples of the two countries, have reached agreement as follows:

ARTICLE 1

The two Governments will develop and strengthen in every possible way trade relations between the two countries on the principle of equality and mutual benefit. Each Government will study the proposals which the other Government may submit for consideration and abide by such decision as may be agreed upon by the two Governments for the purpose of achieving closer economic relations.

ARTICLE 2

Each Government will permit the exportation of its exportable commodities to the other and facilitate the importation of exportable commodities of the other and where export or import licensing is involved will facilitate the issue of export and import licenses in conformity with its laws, rules and regulations of each country.

ARTICLE 3

a. The Contracting Parties shall grant each other most-favored-nation treatment in all matters relating to:

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

c. Rules and formalities connected with customs clearance;

d. All internal taxes or other internal charges of any kind imposed on or in connection with the imports and exports; and

The issuance of import and export licenses.

ARTICLE 4

Each Government will grant merchant vessels of the other country while entering, putting off and lying at its ports the most-favored-nation treatment accorded by the respective laws, rules and regulations to the vessels under the flag of any third country.

ARTICLE 5
(EXEMPTIONS FROM MFN)

The provisions of Article 3 shall not apply to:

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

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

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 6
(SAFEGUARD MEASURES)

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

a. necessary to safeguard its balance of payments position;

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

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

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

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

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

g. relating to protection of national treasures of artists, historical or archeological value; and

h. relating to international commitments, development and rationalization of local industry.

ARTICLE 7

All payments in connection with commodities sold or purchased by the two countries shall be made in freely convertible currencies which are acceptable to the two Governments in accordance with foreign exchange laws and regulations in force in each country.

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 8
(EXCHANGE OF COMMERCIAL REPRESENTATIVES/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 Contracting Party to the country of the other and the participation of either country in trade fairs and missions and in arranging 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 from the country where such fairs and exhibitions are held and as may be agreed upon by the Contracting Parties.

ARTICLE 9
(EXCHANGE OF TRADE INFORMATION)

In order to facilitate exchange of goods, services, and payments between the two countries, and subject to the laws and regulations in force in both countries, either Contracting Party, 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 Parties.

ARTICLE 10
(STATE TRADING)

Exchange of goods and services between the two countries shall be carried out between authorized state corporations, organizations, and enterprises, and foreign trade corporations, organizations, and enterprises in accordance with the laws, rules and regulations in force in either country.

ARTICLE 11
(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 Parties shall be referred to appropriate courts where such disputes transpired. They shall not claim or enjoy immunities from suit or execution of judgement 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 12
(SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES THROUGH AN ARBITRATION BODY)

In the absence of an arbitration clause, all disputes relating to any transaction concluded in accordance with the present Agreement, shall be referred for settlement to an arbitration body to be mutually agreed upon by both contracting parties, unless both parties agree to settle the dispute in any other peaceful manner.

ARTICLE 13
(ESTABLISHMENT OF A JOINT COMMISSIONER/CONSULTATIVE BODY)

The Contracting Parties may establish a Governmental Joint Commission/Consultative Body composed of representatives of both Contracting 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 Contracting Party, a meeting shall be carried out at a place mutually agreed upon not later than sixty (60) days after the date of receiving the request.

ARTICLE 14

The provisions of this Agreement shall be applied after the termination of the agreement in respect of contracts not having been fulfilled as on the day of the termination of the Agreement.

ARTICLE 15

This Agreement shall enter into force 15 days after the date on which both Governments have notified each other that they have fulfilled their respective internal legal procedures and shall remain in force for an initial period of one year.

It shall be thereafter automatically extended for a period of one year at a time unless one of the Contracting Parties gives notice in writing of its intention to terminate the Agreement three months in advance.

IN WITNESS WHEREOF, the undersigned duly authorized by their respective Governments, have signed the present Agreement and have affixed thereto their seals.

DONE at Yangon on the 15th day of October 1997, in two original copies in the English language.