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June 07, 1983

Desirous to promote and strengthen direct trade and economic relations between the two countries, in accordance with their development, needs and objectives in trade on equitable and mutually beneficial basis,

Have agreed as follows:

ARTICLE 1

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

ARTICLE 2

The Contracting Parties shall grant each other the most-favoured-nation treatment relating to:

a) custom duties and charges of any kind, including method of levying such customs and charges on imports or exports of products originating from or destined to their respective countries and the charges referring to the international transfer of funds for payment of imports or exports,

b) customs regulations and formalities,

c) all internal taxes or other internal charges of any kind imposed on or in connection with imported and exported products,

d) issuance of import and export licences, and

e) in respect of all taxes, regulations and formalities in connection with transit, each Contracting Party shall grant for the transit goods arriving from or destined to the territory of the other Contracting Party, treatment not less favourable than that granted to the goods in transit arriving from or destined to a third country.

ARTICLE 3

The provisions of the Article 2, of this Agreement shall not apply to:

a) tariff preferences or other advantages which either Contracting Party grants in order to facilitate border traffic;

b) tariff preferences or other advantages approved by each Contracting Party resulting from its membership in a customs Union or a free-trade zone or from measures aimed at the formation of a customs Union or a free-trade zone; and

c) regional arrangements concluded between the developing countries in conformity with rules applied by GATT in which the other Contracting Party is not a member.

ARTICLE 4

Exchange of commodities between the two countries shall be made in conformity with laws and regulations on imports and exports as well as on foreign exchange operations effective in their respective countries on the basis of contracts concluded between the Yugoslav and Philippine organizations and firms.

The import and export of goods listed in Schedules "A" and "B" attached to this Agreement shall be encouraged. The said Schedules may, by mutual consent, be amended or modified. The above provisions shall not preclude commercial transactions in respect of goods not listed in the said Schedules.

ARTICLE 5

All payments between the two countries shall be made in convertible currency subject to laws and regulations effective in their respective countries.

ARTICLE 6

The Contracting Parties shall allow the appointment of permanent government commercial representatives in Manila and Belgrade who will be attached to their respective diplomatic missions subject to the laws, rules and regulations of the Contracting Parties.

The Contracting Parties have agreed that the appropriate organizations of their two countries may establish their economic representative offices in conformity with their respective national legislations.

ARTICLE 7

The Contracting Parties shall facilitate the participation of their organizations and firms in trade fairs and exhibitions held in either country, subject to their respective laws and regulations.

The exemption from customs duties and other taxes of items and samples intended for fairs and exhibitions, as well as their sale and disposal shall be made in conformity with laws and regulations of the country where such fairs and exhibitions are to be held.

ARTICLE 8

The Contracting Parties have agreed that the contracts concluded between the organizations of associated labour from the Socialist Federal Republic of Yugoslavia and the legal or physical entities and firms from the Republic of the Philippines shall stipulate the ways and means for the settlement of disputes arising from such contracts and assurances for the implementation of the arbitration clause.

ARTICLE 9

The Contracting Parties shall, at the request of either, consult each other on all matters of mutual interest as well as on measures necessary to be taken in order to expand the mutual cooperation and trade relations concerning the implementation of the present Agreement.

In the implementation of this Article, each meeting held at the request of either Party shall be carried out at a place mutually agreed upon not later than 90 days after the date of receipt of the request.

ARTICLE 10

This Agreement shall be subject to the approval of the competent authorities in conformity with the legislation of the Contracting Parties and shall come into force on the date of exchange of ratification instruments.

This Agreement shall be in effect for one year and shall continue thereafter unless either Contracting Party cancels it by a written notice three months prior to its expiration. The provisions of this Agreement may be amended by mutual consent of the Contracting Parties which may be proposed in writing and to which the other Party shall reply within one hundred twenty days upon receipt of such a proposal.

The provisions of the present Agreement shall apply even after its expiration to contracts concluded in conformity with the present Agreement and which shall be realized after its expiration.

Done and signed in Belgrade on June 7, 1983, in two original copies in English language, one for each Contracting Party, both copies being equally authentic.

                         

FOR THE GOVERNMENT OF   THE REPUBLIC OF THE   PHILIPPINES	FOR THE FEDERAL EXECUTIVE COUNCIL   OF THE ASSEMBLY OF THE SOCIALIST   FEDERAL REPUBLIC OF YUGOSLAVIA
(Sgd.) ROBERTO V. ONGPIN	(Sgd.) DR. MILENKO BOJANIC
Minister of Trade and   Industry	Member of the Federal Executive   Council   Federal Secretary for Foreign Trade