Trade Agreement Between the Royal Government of Cambodia 

and the Government of the Lao People's Democratic Republic

The Royal Government of Cambodia and the Government of the Lao People's Democratic Republic, being desirous of developing trade relations between the two countries and strengthening the friendly relationship between the Governments and the Peoples of the two countries, on the basis of principles of equality and mutual benefit have agreed as follows:

Article 1:

The two Governments continuously concentrate all cooperation efforts to develop and strengthen trade relations between the two countries. Each Government shall study the proposals which the other Government may submit for consideration and abide by such decisions as may be agreed upon by the two Governments for the purpose of achieving closer economic and trade relations between the two countries.

Article 2:

Each Government shall permit the exportation of its exportable commodities to the other and facilitate the importation of exportable commodities from the other and where and when the export or import licensing is involved, shall facilitate the issue of export and import licenses in conformity with the laws, rules and regulations in force of each country and will abide by international practices.

Article 3:

The two Governments shall grant to the other the most favored-nation treatment in regard to customs duties, charges and customs procedures in connection with the importation and exportation of goods from one country to the other.

This provision, however, shall not apply to the advantages, exemptions or privileges which the two Governments have granted or shall grant to countries participating with either country in a customs union or a free trade area or within the framework of a regional association for economic cooperation already in existence or which might be established in the future.

Article 4:

Each Government shall grant merchant vessels of the other country while entering, anchoring and docking its international ports the most-favored-nation treatment accorded by the respective laws, rules and regulations to the vessels of any third country.

Article 5:

All payments in connection with commodities sold or purchased by the two countries shall be made in freely convertible currencies acceptable to the two Governments in accordance with foreign exchange laws and regulations in force in each country.

Article 6:

Both Governments shall consult each other whenever necessary in order to recommend measures for expanding economic and trade relations or to settle matters that might arise in connection with the implementation of the provisions of this Agreement.

Article 7:

The provisions of this Agreement shall be applied after its termination in respect of contracts concluded within the framework of this Agreement but not having been fulfilled as on the date of the termination of the Agreement.

Article 8:

Each Government shall, subject to the laws, rules and regulations in force, exempt from customs duties or any other fiscal charges the following goods originating the country of the other Party:

a. Articles to be used temporarily for fairs and exhibitions must be returned to the country of origin within the period stipulated by rules and regulations concerned of each party.

 

b. Sample of goods provided that they are used only for samples and not intended for sale.

Article 9:

The provisions of this Agreement shall not limit the right of either Government to adopt or take measures for the protection of its essential security interests or for the protection of public health or environmental protection, the prevention of diseases and pests in animal or plants.

Article 10:

This Agreement may be revised, amended or terminated by mutual consent 'in writing by the two Governments. Any revision, amendment or termination of this Agreement shall not be prejudicial to any right or obligation occurring for or incurred under the Agreement prior to the effective date of such revision, amendment or termination.

Article 11:

This Agreement shall enter into force on the date of its signature and shall remain in force for one year.

It shall be automatically renewed for a period of one year at a time unless either Government expresses its intention in writing to terminate this Agreement three months before the expiry of its validity.

In witness whereof, the undersigned, being duly authorized by their respective government, have signed this agreement.

Done at Vientiane this 25^Th day of May 1998 in duplicate in the Khmer, Lao and English languages, all texts being equal authentic. In case of any divergence of interpretation, interpretation the English text shall prevail.

For the Royal Government                                                                              For the Government of

         of Cambodia                                                                           the Lao People‘s Democratic Republic

        Cham Prasidh                                                                                         Phoumy Thipphavone

  Minister of Commerce                                                                           Minister of Trade and Tourism

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