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June 08, 1994

The Government of the Republic of the Philippines and the Government of the People's Republic of China, desirous of developing trade relations between the two countries on the basis of equality and mutual benefits:

1. Have reviewed and taken not of the exchange of commodities between the two countries in l993, and noted that total value in trade experienced a moderate increase and the status of balance in trade improved considerably. During that year, the Philippine side exported to China chemical fertilizers, copper cathodes, copper concentrates, tinplates, chrome ore, shelled cashew nuts, chemical products, construction materials, fatty acid alcohol, foodstuffs and other commodities. On the other hand, the Chinese side exported to the Philippines crude petroleum, oil , coal, cement, machinery, textile, chemical products, foodstuffs, other raw materials, electric motors, diesel oil, and other commodities .

2. Both sides agreed to take more positive steps to expand the bilateral trade in 1994 and through. friendly consultations, reached the following agreement on the import and export trade schedules of the two countries for the year 1994:

A. The Philippine side is prepared to import from China in 1994 the following commodities:

Crude oil	100,000 - 150,000 MT
Cement	200,000 - 300,000 MT
Soyabean	10,000 - 20,000 MT
Soyabean meal	40,000 - 60,000 MT

and certain quantities of power plants, transformers, transmission lines and towers, metal manufactures, road building equipment, electrical products, coal, textiles, steel billets, minerals and mineral products, industrial, agricultural and pharmaceutical chemicals, foodstuffs, rice, cotton and other products.

The importation of specific items mentioned above will be decided according to the needs of the Philippines and the capability of China to supply.

B. The Chinese side is prepared to import from the Philippines in 1994 the following commodities:

Phosphatic and compound fertilizer	200, 00 - 400, 000 MT
Coconut oil	25, 000 - 40, 000 MT
Bananas, fresh	10, 000 - 20, 000 MT
Copper cathodes	25, 000 - 35, 000 MT
Chrome ore	50, 000 - 60, 000 MT
Cold-rolled steel coil	5, 000 - 10, 000 MT
Tin Plates	60, 000 - 90, 000 MT
Copper concentrates	10, 000 - 20, 000 MT
Phosphoric acid	5, 000 - 10, 000 MT
Fatty acid alcohol	10, 000 - 20, 000 MT
Shelled cashew nuts	2, 000 - 3, 000 MT
Mangoes	200 - 250 MT
Coffee beans	1, 000 - 2, 000 MT

and certain quantities of refined glycerine, copper wire bars, rods and slabs, floppy disk drive for computer, black and white picture tubes, construction materials, tobacco, chemicals (e.g., activated carbon), coconut products, palm oil, pharmaceutical preparations, seafoods, float glass, processed coffee beans, carrageenan, foodstuffs, and other products.

The importation of specific items mentioned above will be decided according to the needs of China and the capability of the Philippines to supply.

3. The price and other terms of the transaction covering the commodities mentioned above will be arranged by designated trade organizations or import and export traders of the two countries. Both sides shall jointly endeavor to achieve more or less a balance between the values of imports and exports in their bilateral trade.

4. The two sides agreed that the proposed transactions as referred to above shall not preclude other commercial transactions between designated trade organizations or import and export traders of the two countries. Towards this end, both sides agreed to adopt and review concrete measures in assisting trade organizations and enterprises in the exploration of trade opportunities through the exchange of updated and relevant trade and economic information, exchange of trade missions, reciprocal facilities for trade fairs and exhibitions, and the relaxation of the regulations on foreign exchange allocation and other trade obstacles for the positive development of Philippines - China trade relations.

5. The two sides agreed to encourage and support the companies and enterprises of both sides in developing economic and technical cooperation like (1) offering bidding invitation and making bid for various engineering projects, (2) providing machines, equipment and parts and sending specialists, engineering and technical personnel to offer consulting and technical services, and (3) making investment, establishing joint ventures and launching cooperative projects consistent with the foreign investment law of the other country.

6. The Philippine side requests the Chinese side to provide credit and other payment arrangements for the immediate export of power generating equipment and other plants and machineries which are being negotiated and have been negotiated by relevant enterprises of both countries.

7. The two sides agreed that officials of the Philippine Department of Trade and Industry and officials of the Commercial Office of the Embassy of the People's Republic of China will meet in the middle, of the Protocol year to review and encourage the trade performance between the two countries.

8. The two sides agreed to set a bilateral trade target of US$400 - 600 million for the year 1994.

Done in Beijing, People's Republic of China at the Seventeenth Meeting of the Philippine - China Joint Trade Committee on the 8th day of June 1994, in two original copies, each in the English and Chinese languages.