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June 29, 1984

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

Have agreed as follows:

The Contracting Parties shall promote development of trade and economic relations between them within the framework of rules, laws and regulations effective in their respective countries.

The Contracting Parties shall grant each other most-favoured nation treatment as far as these are applicable to both Contracting Parties, in all matters relating to:

a) Customs duties and charges of any kind including the method of levying such duties and charges and charges 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;

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

d) The issuance of import and export licenses;

e) Transfer of foreign exchange payments; and

f) The regulation on the circulation and distribution of merchandise.

Merchant cargo-tearing vessels of either Contracting Party shall be granted most-favoured-nation treatment in respect of entry into, stay in and departure from the ports of the other Party as well as in the use of the facilities therein, in accordance with the laws, rules and regulations in force in the said other Party.

The provisions of the preceding paragraph shall not be applied to maritime activities legally reserved by each Contracting Party for its organizations or enterprises including fishing, coastal trade and inland shipping.

The provisions of Article 2 and 3 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 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 Party grants or may grant to facilitate frontier/border traffic; and

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.

The Contracting Parties agree to collaborate for the establishment of closer cooperation in the field of maritime transport of goods generated by a reciprocal foreign trade and for the conclusion of such agreements as would be advisable for the development of shipping between both countries.

The Contracting Parties commit themselves to make major efforts and take all the necessary measures to promote and increase trade relations between the two countries.

In the implementation of this objective, both Parties shall endeavor that Philippine purchases of Argentine merchandise and the Argentine purchases of Philippine merchandise be oriented in increasing proportion toward semi-manufactured and manufactured products without prejudice to the traditional exchange.

Both Contracting Parties shall promote the exchange of commercial representatives and delegations, encourage technological exchange of an economic nature and expedite the participation in exhibits of organizations of the other Party and other activities aimed at the promotion of commerce in the territory, in accordance with respective legal regulations and customs practices.

The exemption from customs duties and other charges on articles and samples intended for fairs and exhibitions, as well as their sale and disposition, shall be subject to the laws, rules and regulations of the country where such fairs and exhibitions are held.

All payments between the Republic of the Philippines and the Republic of Argentina shall be made in freely convertible currency in accordance with existing laws and rules related to the currency regulation of the respective country.

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

a) necessary to protect public health, morals, order or security;

b) necessary to protect plants and animals against diseases; and

c) necessary for the protection of natural inheritance of artistic, historic and archeological value.

The Contracting Parties shall consult each other at the request of either of them on all matters of mutual interest, as well as on the necessary measures aiming at the expansion of mutual cooperation and trade relations concerning relations concerning the implementation of the present Agreement.

In the implementation of this Article, each meeting held at the request of either Party shall he carried out at a place mutually agreed upon.

The Contracting Parties may at any time request the review of the present Agreement.

ARTICLE 12

The provisions of this Agreement shall apply even after its termination to contracts concluded during the period of the validity of this Agreement but not fully completed on the day of the termination of this Agreement.

ARTICLE 13

The Present Agreement shall enter into force on the date of the exchange of instruments of ratification. It shall remain in force for one year and shall continue in force thereafter unless terminated by either Party through a three month prior written notice.

ARTICLE 14 

At anytime the Agreement is in force either Party may propose in writing amendments thereto and to which the other Party will reply within 120 days upon receipt of such notice.

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

DONE and signed in the City of Manila, this 29^th day of June 1984, in three original texts in Filipino, Spanish and English, all texts being equally authentic. In the event of there being a difference in meaning between, the Pilipino the Spanish text, the English text shall prevail.