FRAMEWORK
AGREEMENT
BETWEEN
THE
THE
ON CLOSER
ECONOMIC PARTNERSHIP
PREAMBLE
The Governments of the
Desiring to strengthen the special bonds of friendship and
economic relations and co-operation that exist between them with a view to
raising living standards, promoting economic growth, investment opportunities,
employment, development and prosperity;
Desiring to raise the capacity and international competitiveness
of their goods and services;
Aspiring to promote their mutual interests through
liberalization and expansion of trade and investment between them and with a
view to establishing a Free Trade Area;
Re-affirming their respective rights and obligations under
existing bilateral,
regional and multilateral agreements and in conformity with Article XXIV of the
General Agreement on Trade and Tariffs 1994 (“GATT”) and Article V of the
General Agreement on Trade in Services (“GATS”);
Re-affirming their commitments to strengthen and reinforce the
multilateral trading system as reflected by the World Trade Organisation
(“WTO”) and to contribute to regional and international co-operation; and
According to the Joint Declaration on Bahrain-Thailand Closer
Economic Partnership;
HAVE AGREED as follows:
OBJECTIVES
The Parties shall use their best endeavours to:
1. create favourable conditions for greater economic
co-operation and to promote fair competition;
2. eliminate barriers to trade in, and facilitate the
cross-border movement of, goods and services between the territories of the
Parties;
3. increase substantially investment opportunities in the
territories of the Parties;
4. create effective procedures for the implementation and
application of this Agreement; and
TRADE IN GOODS
1.
Each
Party shall reduce its customs duties on goods originating from the territory
of the other Party by the 29th Day of December 2002 to between zero (0%) per cent and three (3%) per
cent in accordance with the list set out in the Schedule annexed hereto and
shall use its reasonable endeavours
to reduce the customs duties for commodity tariff lines in stages to zero
percent (0%) by 2010.
2.
Each
Party shall:
2.1
not
impose any other duty (other than customs duties) which have an equivalent
effect;
2.2
not
impose quantitative restrictions on imports originating in the territory of the
other party; and
2.3 endeavour
to reduce non-tariff barriers on goods (other than those non-tariff barriers
permitted by the WTO.)
3.
Neither
of the Parties shall introduce a new customs duty or new quantitative
restrictions on imports between the two Parties.
4. If
one Party to this Agreement finds that the other Party is dumping goods in its
territory, then the Parties agree to apply the provisions of the WTO Agreement
on Implementation of Article VI of GATT 1994 (“the WTO Anti-Dumping Agreement”)
to prevent such dumping. In any event the parties agree to under take
consultations before the imposition of any final anti-dumping duties.
RULES OF ORIGIN
1. Each
Party shall, in a manner consistent with the objectives of this Agreement
endeavour to administer effectively and uniformly the rules regarding
eligibility for preferential tariff treatment set out in this Agreement.
2. Originating
goods and products imported into the territory of the Parties shall be eligible
for preferential tariff treatment if they conform to the following
requirements;
2.1 The goods or products
were wholly produced by or obtained from natural resources arising in the
territory of the exporting Party; or
2.2 the goods or
products were partly produced in the territory of the exporting Party and have
value added of at least 40%.
3. Guidelines
for implementation of the Rules of Origin will be established by the Joint
Committee.
1. This
Article applies to measures by a Party affecting trade in services between the
Parties.
2. With respect to market
access each Party shall accord services and service suppliers of the other
Party treatment no less favourable than that provided for under the terms,
limitations and conditions to be agreed and specified by the Technical Working
Group.
3. Each
Party shall liberalize and promote trade in services giving priority to
finance, including banking, Islamic banking, insurance and joint ventures,
education and training, tourism, healthcare, transport and communication, and
construction, by
1.
Each Party shall
encourage and create favourable conditions for investors of the other Party to
invest in its territory and to collaborate through joint ventures, joint
investments or any other form of investment.
2. This
Article shall be construed in accordance with the Agreement between the Parties
for the Promotion and Protection of Investments signed on
ARTICLE 6
SAFEGUARD
MEASURES
A
Party shall apply safeguard measures, either in the form of a duty or
quantitative restrictions, only to the extent necessary to prevent or remedy
serious injury in accordance with WTO rules and regulations.
ARTICLE 7
ECONOMIC CO-OPERATION
1. The
Parties shall foster economic co-operation between them in all areas, including
energy, finance, including banking, Islamic banking, insurance and joint
ventures, manufacturing, trade and investment, promotion and facilitation,
mobility of business people, transportation, fisheries, information and
communication technology, customs procedures and quarantine, and standards and
specifications in accordance with the objectives of this Agreement.
2. This
Agreement shall be construed in accordance with the Agreement between the
Parties on Economic, Trade and Technical Co-operation signed on
JOINT COMMITTEE
1. A
Joint Committee composed of representatives of the Parties and headed by
2. The
Joint Committee shall have the following extended functions under this
Agreement:
2.1
Reviewing the
implementation of this Agreement generally and specifically with regard to the
objectives of the customs union established under the Economic Agreement
between the
2.2
Providing interpretation
and guidelines for implementation of this Agreement;
2.3
Considering and making
recommendations on the amendment or introduction of additional annexes,
commitments or schedules to this Agreement or modification to the commitments
subject to the domestic legal requirements of each Party;
2.4
Preparing the Schedules
to be annexed hereto;
2.5
Facilitating the
avoidance and settlement of disputes, through consultation; and
2.6
Any other related issues
to this Agreement.
3.
The Joint Committee may
establish and delegate responsibilities to working groups or ad-hoc task
forces.
4.
The Joint Committee shall
convene as and when necessary.
ARTICLE 9
MISCELLANEOUS
PROVISIONS
1.
Any dispute arising
between the Parties regarding the interpretation, application or implementation
of this Agreement shall be settled amicably by consultation between the
Parties.
2.
This
Agreement may be amended by the written consent of the Parties.
ARTICLE 10
ENTRY INTO FORCE AND TERMINATION
OF THE AGREEMENT
1. This Agreement shall enter into force on
the 29th day of December 2002.
Each Party will exchange notices of fulfillment of the Parties’
respective domestic procedures regarding the approval and ratification thereof.
2. This Agreement shall remain in force
unless terminated by either Party upon six months notice in writing.
DONE
on the 29th day of December 2002 in duplicate copies in the English
language, with all copies being equally authentic.
For the Government of For
the Government of
the
Adisai
Bodharamik Abdullah
Hassan Saif
Minister of Commerce Minister
of Finance
and National Economy