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Agreement between the Government of the Republic of Uzbekistan and Government of Turkmenistan on the main directions of long-term trade and economic cooperation

of January 16, 1996

The government of the Republic of Uzbekistan and the Government of Turkmenistan which are referred to as further Contracting Parties

aiming at development of trade and economic cooperation between the Republic of Uzbekistan and Turkmenistan on the basis of equality and mutual advantage,

proceeding from the sovereign right of each state to pursue independent external economic policy,

intending to promote growth of economic capacity of the Republic of Uzbekistan and Turkmenistan on the basis of development of mutually advantageous and cooperation bonds and cooperation,

confirming the commitment to free development of mutual economic cooperation,

recognizing that free movement of goods and services requires implementation of mutually agreed measures,

confirming commitment of the Republic of Uzbekistan and Turkmenistan to the principles of the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO),

agreed as follows:

Article 1

The trade and economic cooperation of Contracting Parties is based on the principles of neighborliness, equality, economic sovereignty, mutual advantage with respect for rules of international law and the national legal system.

According to provisions of this agreement Contracting Parties will take specific measures for approval of the directions of long-term trade and economic cooperation.

Article 2

Contracting parties will take all necessary measures for stabilization of trade and economic relations between them and will create favorable conditions for managing to subjects of the states of Contracting Parties, regardless of their patterns of ownership.

Each Contracting Party will abstain from the actions capable to cause damage to economy and trade of other Contracting Party.

Article 3

1. Contracting parties provide each other free trade regime.

Contracting parties do not apply the customs duties, taxes and fees having equivalent action, except procedural charges, provided by legislations of the states of Contracting Parties, and also the quantitative restrictions for export and/or commodity import coming from customs area of the state of one of the Contracting Parties and intended for customs area of the state of other Contracting Party. Exceptions of this trade regime according to the approved nomenclature of goods are drawn up by the documents which are integral part of this agreement.

2. According to Item 1 of this Article Contracting Parties are annually developed and will approve the general list of withdrawals from free trade regime, and also methods of application of such withdrawals.

3. For the purposes of this agreement and for its action the goods coming from the territories of the states of Contracting Parties are understood as the goods determined according to the Rules of determination of the country of goods' origin of September 24, 1993 approved by the Decision of Council of Heads of Government of the Commonwealth of Independent States.

Article 4

Each Contracting Party will not be:

directly or indirectly to assess the goods of other Contracting Party falling under action of this agreement, the internal taxes or charges exceeding the corresponding taxes or charges which assess the similar goods of internal production or goods coming from the third countries;

enter concerning the import or commodity export falling under action of this agreement, any special restrictions or requirements which in similar situation are not applied to the similar goods of internal production or goods coming from the third countries;

apply to warehousing, overload, storage, transportation of goods by origin from the territory of the state of other Contracting Party, and also payments and payment transfer of the rule others, than those which are applied in similar cases to own goods or goods by origin from the third countries.

Article 5

Contracting parties in mutual trade will abstain from application in relation to other Contracting Party of discriminatory measures, introductions of quantitative restrictions or measures equivalent to them for export and/or commodity import within this agreement.

Contracting parties can set quantitative or other special restrictions unilaterally, but only reasonably and for strictly certain term.

These restrictions shall have exclusive nature and can be applied only in the cases provided by agreements within the GATT/the WTO.

The contracting party applying restrictions according to this Article shall provide whenever possible beforehand to other Contracting Party the complete information about basic reasons of introduction, forms and expected terms of application of the mentioned restrictions then consultations are appointed.

Article 6

This agreement does not interfere with the right of any of Contracting Parties to unilaterally take the commonly accepted measures of state regulation in the international practice in the field of foreign economic relations which she considers necessary for protection of the vital interests or which certainly are necessary for accomplishment of international treaties which participant she is or intends to become if these measures concern:

protection of life and human health, environment, animal protection and plants;

protection of public morals and public order;

ensuring national security;

arms trade, ammunition and military equipment;

supply of the split materials and sources of radioactive materials, utilizations of radioactive waste;

trade in gold, silver or other precious metals and stones;

preserving irreplaceable natural resources;

violations of paying balance;

restrictions of export of products on which internal prices are lower than state programs of support, world as a result of implementation;

protection of industrial and intellectual property;

protection of values of national property;

the measures applied in wartime or in other force majeure in the international relations;

actions in obligation fulfillment based on the Charter of the UN for preserving international peace and safety.

The contracting party applying such measures according to this Article shall provide whenever possible beforehand to other Contracting Party the complete information about basic reasons of introduction, forms and expected terms of application of the mentioned restrictions then consultations are appointed.

Article 7

All calculations and payments for trade and economic cooperation between Contracting Parties will be approved by the free interbank standing agreement.

Settlement for deliveries of goods and the rendered services between subjects of the states of Contracting Parties will be performed on contract prices, on the basis of environment of the world markets.

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