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Desiring to enhance and strengthen, the good economic and trade relationship between the two countries on the basis of equality and mutual benefits;

Desiring to ensure the complementarity and stability of the rice market in both countries;

The Government of the Republic of the Philippines and the Government of the Kingdom of Thailand (hereinafter referred to individually as "the Philippine Government" and "the Royal Thai Government" respectively and collectively as "the Parties")

Have agreed as follows:

1.    
   The Royal Thai Government is willing to sell and the Philippine Government has the option to buy up to one million metric tons (MT) of Thai white rice annually beginning from the year 2014 to 2016, subject to market demand, supply and production conditions in both countries and the international market price prevailing at the time of actual purchase.   
    
 
2.    
   For purposes of the implementation of this agreement, the Royal Thai Government shall designate the Department of Foreign Trade (DFT) as its implementing agency, provided DFT shall have a proven track record in similar Government to Government transactions with any government within the latest 5-year period; and the Philippine Government, on the other hand, shall designate the National Food Authority (NFA), a government owned and controlled corporation as its implementing agency.     
 
3.    
   In the procurement of rice from the Royal Thai Government, both Parties shall observe standard international trade practices, rules, regulations and procedures. The Philippine Government shall invite the Royal Thai Government to submit offers to the Philippine Government. The price offered by the Royal Thai Government shall be reviewed and evaluated by the Philippine Government. Should the price quoted be acceptable to the Philippine Government, it. shall accept the offer and proceed with the procurement of the commodity. If the price is not acceptable, the Parties shall immediately proceed to negotiate an acceptable price until an agreement is reached. The Parties shall endeavor to reach an agreement within a period of ten (10) days after the start of the negotiations. Should the Parties fail to reach an agreement after fifteen (15) days, the Philippine Government is then free to reject the offer. Contract awarded to DFT shall not be assigned or performed by any third party, except by Public Warehouse Organization (PWO) which is a state-owned enterprise under the Ministry of Commerce of Thailand. Third country sourcing shall not be allowed.
      
    
 
4. To ensure stability of the rice market in both countries, the Parties hereby commit themselves to adopt and implement strict measures in accordance with their respective laws and regulations to curb and stop illegal rice trading between the two countries'.     
 
5. Any divergence arising from the interpretation or implementation of this agreement shall be resolved amicably through consultations and negotiations between the Parties.
   
        
 
6. Any amendments to this MOA shall be mutually agreed upon by both Parties. Either Party may propose amendments to this agreement and such proposal shall be in writing. The other Party shall respond in writing to such proposal within a period of sixty (60) days from receipt of said proposal.     
 
7.  This MOA shall enter into force immediately after the signing by the Parties and ratification by relevant authorities of the Parties concerned. This MOA shall remain in force and effect from the date of its ratification until 31 December 2016 and shall be renewed upon approval of both Parties. Either Party may terminate this agreement by serving a 6 month written notice to the other Party prior to the notice of such termination taking effect. The termination of this agreement shall not affect the validity of any sale and purchase already conducted pursuant to this agreement. 

IN WITNESS WHEREOF, the undersigned being duly authorized by their respective Governments, have signed this Memorandum of Agreement.

DONE in duplicate at Manila, the Republic of the Philippines this 12^th day of September, two-thousand and fourteen (2014), in the English language.