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March 11, 1995

The First Philippines-Iran Joint Commission Meeting (JCM) was held in Tehran, Islamic Republic of Iran on Esfand 20, 1373 (March 11, 1995).

The Philippines Delegation was led by the Honorable Secretary Rizalino B. Navarro of the Department of Trade and Industry of the Republic of the Philippines. The Iranian Delegation was led by the Honorable Minister Yahya Ale-Eshagh of the Ministry of Commerce, of the Islamic Republic of Iran.

The Technical Committees met and identified the areas of cooperation through elaborate discussions and the recommendations were presented to the full session of the Joint Commission led by the Heads of the two delegations. The leaders of both sides expressed and confirmed their satisfaction at the evergrowing relationship between their two countries, and expressed the hope that under the auspices of the Iran-Philippines Joint Commission further development and expansion of ties would take place between the two countries. The First Joint Commission Meeting is taking place at a time when considerable changes have taken place around the world. The bilateral cooperation on economic, trade and

technical fields between the two countries can be expanded at an enhanced scale on the mutual advantageous basis for the benefits of the two countries. Both sides emphasized that the scopes for economic and cultural cooperation between the two countries are vast and promising, which should be tapped for the advancement and betterment of the people of two countries. The two countries should make maximum use of the elements of comparative costs and complementarity in their economy.

To this end, both sides decided to consider the recommendations of the three committees:

a. Committee on Trade, Bank and Oil;

b. Committee on Industry, Mining, Energy and Agriculture; and

c. Committee on Culture, Science and Technology.

The outcome of the deliberations of the three committees are summarized as follows:

TRADE, BANK AND OIL

The two sides reviewed the volume of trade between the two countries and were of firm conviction that there exist considerable trade potentials which could be explored for the betterment of the two countries.

In order to promote, expand and diversify trade between the two countries, and to achieve a relatively balanced trade both shall endeavour to make use of all existing trade mechanism such as exchange of trade missions, conferences and seminars.

Both sides agreed to participate in international and specialized trade fairs that will be organized in the two countries.

The Iranian side expressed keen interest in holding a specialized trade fair in Manila in the year 1995. The Philippine side welcomed the interest of holding such a fair and wherever possible agreed to provide all necessary facilities to make this fair successful.

The two sides agreed to encourage the Chambers of Commerce and Industry of the two countries to cooperate closely to disseminate and exchange trade data on regional and international arena.

The Iranian side agreed to allow Philippine goods and commodities to be transitted through Iranian territory to Commonwealth of Independent States (CIS).

In order to allow the regular flow of goods between the two countries, both sides concluded and signed a trade agreement during the First Joint Commission Meeting in Tehran.

The Iranian side expressed its willingness to repair and overhaul its shipping fleets in the Philippine dry docks provided the terms and conditions are internationally competitive. The Philippine side agreed to quote the most competitive rates and terms if the tender is issued by the Islamic Republic of Iran. Both parties sought active participation in the carriage of cargoes between the two countries.

The Iranian side is interested to expand and develop its cooperation with the Philippines on several fields including the recruitment of experienced Philippine personnel in Iranian shipping fleets. Furthermore, both sides agreed to explore measures by which recruitment and employment of Filipino seafarers on board Iranian vessels can be expanded through continuous dialogues on matters concerning recruitment and termination of employment. It was also I agreed that communications between the Philippine government through the Philippine Overseas Employment Administration (POEA)and its Iranian counterpart shall be maintained.

Both sides took note of the Draft Merchant Shipping Agreement Between the Philippines and the Islamic Republic of Iran which was submitted for consideration of the Philippine side. The Philippine side agreed to submit a counterdraft in the future.

Both sides agreed to look into the possibilities of concluding tax agreement that will reduce duties on freight levied on each other' s flag vessels. Both sides also agreed to look into the possibility of extending preferential port tarriffs on each other's flag vessels calling on their ports.

Both sides expressed their satisfaction on the implementation and performance of the crude oil sale/purchase contract by PNOC for the year 1993-1994. The Iranian side emphasized on the continuation and expansion of crude oil trade between the two parties for 1995. The Philippine side took note of the matter and recommended that the appropriate oil organizations/companies of the two countries shall maintain their contacts and continue their dialogues.

In order to conduct studies and research on banking regulations of the two countries, the two sides agreed to exchange information on these aspects whenever necessary.

In order to expand commercial and economic relations, the two sides agreed to study the banking regulations governing the establishment of bank representative offices in Manila and Tehran, subject to obtaining the authorizations from competent authorities.

INDUSTRY

The Iranian side proposed to expand the industrial cooperation between the two countries and to increase the share of industrial exportable products of the Islamic Republic of Iran to the Philippines and to enter into transactions such as countertrade, buy-back systems as well as joint industrial cooperation in the third markets particularly in the field of textile, pharmaceuticals, agricultural machineries, cement, light industries, processed food and food processing machineries.

The Philippine side welcomed the proposal and expressed its readiness to persuade relevant firms and companies to initiate such cooperation.

The Iranian side while recognizing the role of coconut and rubber production played in the economy of Philippines, declared its readiness to consider the cooperation in the utilization of such goods for the production of suitable items.

The Philippine side expressed its willingness to increase the volume of its exportation to the Islamic Republic of Iran and send a list of the exporting companies and their respective products.

The Iranian side expressed its readiness in constructing silos, cement factories and heavy concrete chimneys in the Philippines. At the same time, the Philippine side will assist Iran in terms of providing consultancy and engineering design services in third countries as well as in Iran.

Both sides emphasized the necessity of exchange of information, scientists, technical experts, expert delegations and developing training and research collaborations in order to have long-term industrial cooperation in the field of practical industrial research such as collaboration of Iranian training and research centers with the Philippine training and research center of small industry.

The Philippine side offered assistance to the Iranian side, through the University of the Philippines Institute of Small Scale Industries (UPISSI), in establishing a training and research center for the development of small industries. Assistance being offered include national plan for the development of small scale industries; organization and management study for the establishment of Center for the Development of Small and Medium Enterprises; and training activities of the Center. The Iranian side took note of the proposal and would communicate its views in the future.

The Iranian side expressed its willingness to cooperate with Philippine side to erect and build cold storages and chilling equipment in the Philippines. The Philippine side welcomed the proposal and agreed to encourage the Philippine private sector to cooperate with the Iranian side.

ENERGY

Both sides expressed willingness to cooperate in the field of generation, transmission and distribution of electricity.

According to the information provided by both sides it was agreed that both countries would procure their requirement of electrical apparatus and equipment from each other, subject to the usual international bidding procedure.

The Iranian side proposed:

1. Design, erection, commissioning and supply of substation and transmission line equipment.

2. Feasibility study for assemblying and manufacturing such equipment based on joint venture between the two parties.

The Philippine side welcomed the idea and suggested that, preliminarily, assembly and production of porcelain insulators, steel towers and poles, assembly of electricity meters and switchgears be initiated. To attain this aim it was agreed that a delegation from the National Power Corporation (KPC) and other relevant agencies pay a visit to the Bureau of Water and Electricity Industries and affiliated plants in Iran in the near future.

MINING AND METALLURGY

Iranian side expressed its desire to export chromite and zinc concentrate, and to import zinc bars, lead concentrate and nickel from the Philippine side. The Philippine side showed keen interest in the proposal, but clarified that there would be a need to first consult the private sector concerning the proposal.

With a view to expanding mutual technical cooperation between the Philippines and Iran, both sides expressed their interest in the exchange of information and experts in the fields of geology, mineral exploration and exploitation and mineral processing.

The Philippine side through the Philippine Mines and Geo-sciences Bureau conveyed its invitation to Iran to enter into joint ventures in the development of the former's mineral resources. The Iranian side took note of the interest and shall communicate its view to the Philippine side in the near future.

STEEL

Iranian side expressed its capability and readiness to up to 600,000 metric tons of various steel products.

The Iranian side would also consider the possibility of importing various steel products not manufactured in the Islamic Republic of Iran such as thin gauge, cold-rolled and galvanized flat steel from the Philippines. The Philippine side, while showing its keen interest in the said proposal, agreed to execute the whole operation through the private sector.

The Philippine side, expressed its interest in the establishment of galvanizing, and coating industries and steel-service centers in Iran through its private sector jointly with the Iranian side. The Iranian side showed its interest in the said proposal and requested a detailed plan in these respects in order to study and consider the matter as soon as possible.

AGRICULTURE

Both sides agreed to closely cooperate in the fields of transportation, marketing and holding specialized agricultural product exhibitions and to take necessary measures for providing the possibility of expert visits and the exchange of experience in the fields of sorting, packaging and agro-products processing industries.

Philippine side requested the Iranian side to minimize, if not remove, non-tariff barriers on Philippine exports of bananas to Iran and for Iran to introduce greater predictability in tariff setting. The Iranian side reciprocally requested a reduction in the tariff for apples exported to the Philippines and requested assistance from the Philippine side to facilitate the imports of apples from Iran.

The Philippine side agreed to the proposal on the exchange of experience in the field of tropical fruit cultivation, particularly banana, papaya, mango, chico and guava through holding short and medium term training courses. Likewise, the Iranian side agreed to offer short and medium term training courses for Filipino-experts on grapes, citrus, apples and other horticultural crops. Both sides agreed to subsidize as far as possible of the training expenses, such as training fees, boarding, except plane fare and other expenses.

The Iranian side expressed its willingness to purchase diammonium phosphate fertilizers from the Philippines. The Philippine side agreed to supply this requirement on mutually acceptable terms and conditions.

Both sides agreed to cooperate in exchanging information and organizing training courses in the fields of animal husbandry as well as poultry production.

Both sides agreed to examine the possibility of sheep breeding in the Philippines in order to develop wool type of sheep in the it above-mentioned country.

Both sides agreed to explore the establishment of a joint research center for animal husbandry.

Both sides agreed to examine the possible ways for buying animal feeds such as grain, fishmeal and corn.

Both sides expressed readiness in organizing exchange visits of expert teams as well as adopting decisions for investment and joint venture projects in livestock, dairy, protein industries, handicraft and wool production.

Both sides agreed to cooperate in the fields of developing and reviving the Iranian South Mangrove forests and exchange information about the interpretation of satellite information concerning the management of forests, rangelands, watersheds and natural resources.

Both sides agreed to exchange their experiences about training and research in livestock affairs, forestry range, and aquaculture.

The Philippine side agreed to explore the possibility of organizing courses for designing and constructing fish and shrimp aquaculture ponds in brackish water for Iranian experts.

The Iranian side also expressed its readiness to hold an exhibition of Iranian handicrafts and rural industrial in the Philippines,

The Iranian side expressed its readiness to supply serums of snake, scorpion and some human and animal vaccines from RAZI institute, fire Philippine side welcomed the offer and agreed to inform and encourage concerned entities to take advantage of the offer.

Both sides agreed to adopt countertrade /buy-back as a supplemental tool to implement the above-mentioned projects/activities.

The cooperation between both countries in the field of animal breeding will be governed by the rules and regulations of the Organization International Epizootes (O.I.E.)

HOUSING

Both sides agreed to do their best in bringing about the of joint ventures in the areas of urban planning, construction, exchange of expert information/ especially the application of advanced technology such as the Geological Investigation Survey (GIS).

Both sides agreed to explore the potentialities of their technical and engineering capacities of construction companies and consulting engineers which exceeded the needs of their domestic development plans, to third countries, including Commonwealth of Independent States.

The Iranian side expressed its willingness for the possibility of investment in housing projects in the Islamic Republic of Iran through the Philippine companies. The Philippine side expressed its interest to consider the proposal.

Both sides agreed to cooperate in the fields of national physical planning, construction technology, and technological know-how on responding to natural disasters such as earthquake through the holding of seminars, symposia and exchange of experts.

CULTURAL
SCIENTIFIC AND EDUCATIONAL

The Iranian side submitted a draft of the agreement on cultural, scientific and educational cooperations to the Philippine side. Both sides agreed to take all necessary measures to conclude the agreement. The Philippine side also agreed to communicate its views on the draft as soon as possible.

Both sides agreed to exchange missions with the aim of considering the ways and means of developing cooperations between cultural and art centers of the two countries.

Both sides agreed to invite each other to participate in the international book exhibitions held in two countries from time to time as well as to provide all necessary facilities to the participants of the two countries.

Both sides shall exchange information, know-how and imbrications on cinematography, theater and traditional music and folklore, and they shall also provide necessary facilities during the international festivals held in both countries.

Both sides shall encourage cooperations in the fields of archeology as well as maintaining and preserving the historical monuments and museums between the two countries.

Both sides welcomed the promotion of touristic cooperations between the two countries and to this end they shall exchange information, statistics and experiences.

Both sides while providing necessary facilities agreed to hold different cultural, artistic exhibitions especially the artistic works and book exhibitions held in each other's country.

The Philippine side is interested in collaborating with the Iranian side on the following areas: food processing including exchange of information and technology; manufacture of agricultural tools and machineries; joint research and development of Pharmaceuticals and biotechnology. The Philippine side also expressed interest to enter into a joint project with the Iranian side and exchange of information on seismology and to participate in the forthcoming conference/seminar on seismology to be held in Iran. The Iranian side took note of the interest and will encourage the concerned Iranian organizations to pursue these proposals.

The next session of the Philippines-Iran Joint Commission will be held in Manila at a date to be mutually agreed upon. This agreed minutes is made on Esfand 20, 1373 (March 11, 1995) in Tehran in two original texts, in English and Persian languages. In case of divergency in the interpretation of the texts, the English text shall prevail.