Canadian Treaty Series
E103409 - CTS 1988 No. 26
AGREEMENT ON ECONOMIC CO-OPERATION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE KINGDOM OF THAILAND
The Government of Canada and the Government of the Kingdom of Thailand, hereafter known as the Parties.
INSPIRED by the traditional links of friendship and the cordial relations which exist between them;
RECALLING the Exchange of Notes between Canada and Thailand of April 22, 1969, constituting a commercial modus vivendi between the two countries, by which both Parties agreed to accord each other unconditional most-favoured nation treatment;
RECALLING that the two Governments entered into a Development Cooperation Agreement on January 5, 1983;
CONSIDERING the close cooperation that exists with respect to the provision of economic and social assistance through Canada's program of development cooperation;
RECOGNIZING that broader and more diversified links between their private sectors would be of mutual benefit to the two countries; and
RESOLVING to undertake new and sustained efforts to consolidate, develop and diversify their economic, commercial, industrial and human resource development cooperation to their mutual benefit;
HAVE AGREED as follows:
The Parties agree that the objectives of the Agreement are to:
(a) Promote the activities of their respective private sectors in endeavours to increase bilateral economic, commercial, industrial and human resource development cooperation;
(b) Expand two-way trade and facilitate access to each other's markets;
(c) Facilitate the identification of specific commercial and investment opportunities in their respective countries;
(d) Encourage the development of cooperation in mutually beneficial science and technology areas of interest, especially those relevant to economic and social development;
(e) Increase the scope and frequency of educational exchanges; and
(f) Reinforce development cooperation for the overall enhancement of the economic relationship between the Parties.
Economic, Commercial and Industrial Cooperation
The Parties share a commitment to the principle of free enterprise. They recognize, however, that public sector initiatives have been valuable in supporting their respective private sectors in the conduct of business overseas and in the pursuit of new export opportunities. They consequently agree to encourage and facilitate greater cooperation between their business communities, associations, institutions, and government agencies. To this end, they agree to:
1. Economic Cooperation
(a) Exchange information on the economic development priorities, national economic plans and forecasts, and other significant policies and developments which have an impact on trade and commerce between the two countries.
(b) Identify and facilitate investment opportunities in the private sector and parastatal enterprises by:
(i) informing each other on the laws and regulations governing foreign investment, and any changes thereto;
(ii) identifying specific projects and sectors of potential interest for joint cooperation;
(iii) informing their respective business communities of investment opportunities in the other country; and
(iv) encouraging the expansion of financial and banking cooperation.
2. Commercial Cooperation
(a) Promote and support trade and investment missions, market analyses, exchange of commercial and marketing information, business and institutional linkages, and other initiatives which bring together potential commercial partners.
(b) Establish a Project Review Committee which would provide for the:
(i) exchange of information at an early stage on significant forthcoming projects; and
(ii) identification of project financing requirements and appropriate financing facilities.
(c) Extend the appropriate facilities for the mounting of industrial fairs, exhibits, missions and other promotional activities.
(d) Facilitate the entry and exit of public and private sector experts, technicians, investors and business representatives, as well as material and equipment necessary for the fulfillment of activities falling within the scope of this Agreement in accordance with respective national laws and regulations.
(e) Explore joint export development possibilities in third countries arising from partnership between Thai and Canadian firms.
(f) Review impediments to trade which might hinder achievement of the objectives of this Agreement.
3. Industrial Cooperation
Promote and enhance private sector industrial cooperation, including transfer of technology, through appropriate channels in accordance with their respective economic and development policies and priorities by encouraging, supporting and facilitating:
(a) Business interests in their efforts to establish joint ventures;
(b) Exchange of information on technologies and know-how, licensing arrangements and industrial consultancy;
(c) Transfer of technology through human resource development and research programs in order to promote the application, adaptation and improvement of existing and new technological products, processes and management skills;
(d) Initiatives to improve quality control and standards for products notably for export;
(e) Contacts between the respective science and technology communities; and
(f) Exchanges of views on the formulation and application of science and technology policies.
The Parties share a commitment to the concept of development cooperation. Under this Agreement and in light of the provisions of Canada's Modern Sector Program they have agreed to work together to encourage and facilitate greater private sector involvement in the industrial and technological growth of Thailand. The Parties shall make special efforts to foster long lasting linkages between their private sectors, including educational institutions and non-governmental organizations, by identifying development projects that would:
(a) Strengthen Thailand's planning and economic management institutions through technical assistance and other mechanisms;
(b) Assist in the implementation of human resource development through projects linking Canadian and Thai educational, training and research institutions, with particular attention to programs that would enhance the capacity of Canadian and Thai organizations to utilize new technologies appropriate to their developmental needs;
(c) Assist in the implementation of rural and regional industrialization, particularly with respect to the needs of small and medium-size industries; and
(d) Encourage, support and facilitate programs to assist the Government of Thailand in the development of export markets.
Sectors of Cooperation
The principal areas of cooperation shall be in sectors of respective economic, commercial, industrial and developmental priorities of the Parties, and may include:
(a) Natural Resources, including resource management in forestry, fisheries, livestock and mining;
(b) Human Resource Development;
(e) Agriculture and Food processing;
(g) Computer and Information technology;
(h) Defence products;
(j) Institution building; and
(k) Other fields of cooperation that may be mutually agreed upon.
1. Implementation of this Agreement shall require close coordination and consultation between the two governments. Consequently, the parties agree to establish an Economic Commission to accomplish the objectives of the Agreement. The Commission shall meet at regular intervals at the level of Ministers or senior officials.
2. The Commission shall establish such committees or working groups as may be necessary. As appropriate, the Commission may involve representatives of the private sectors to assist in the implementation of the Agreement. This shall include private sector participation in specialized working groups, including the Project Review Committee referred to in Article II (2) (b).
Fair and Equitable Treatment
Subject to its laws, regulations and policies, each Party shall accord fair and equitable treatment to the individuals, companies, government agencies and other entities of the other Party engaged in the pursuit of activities under this Agreement.
1. This Agreement shall enter into force on the date of signature and shall remain in force for an indefinite period.
2. At the request of either Party this Agreement may be revised by mutual consent.
3. Either Party may terminate this Agreement at any time on twelve months written notice to the other Party.
4. The revision or termination of this Agreement shall not affect the validity of arrangements and contracts already concluded nor of guarantees given under this Agreement nor of any other trade agreements or arrangements.
IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Agreement.
DONE in duplicate at Bangkok, this eleventh day of July 1988, in English, French and Thai, each version being equally authentic.
FOR THE GOVERNMENT OF CANADA
FOR THE GOVERNMENT OF THE KINGDOM OF THAILAND