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Agreement between the Government of the Republic of Kazakhstan and Government of Georgia on free trade

of November 11, 1997

(as amended on on November 11, 2004)

The government of the Republic of Kazakhstan and the Government of Georgia which are referred to as further the Party

confirming the commitment to free development of mutual economic cooperation,

considering the developed integration commercial ties of the Republic of Kazakhstan and Georgia,

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

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

agreed as follows:

Article 1

The parties, being guided by the principles of equality, mutual advantage and interest, will develop and expand trade and economic relations between business entities irrespective of their patterns of ownership on the basis of direct economic connections with observance of the legal acts existing in the states of the Parties.

Each of the Parties abstains from the actions capable to cause economic damage to other Party.

Article 2

1. The parties do not apply the customs duties, taxes and fees having equivalent action, except for the charges for customs clearance, and also quantitative restrictions for export and/or commodity import coming from customs area of one of the Parties and intended for customs area of other Party. Withdrawals from this trade regime according to the approved nomenclature of goods are drawn up by the Protocol which is integral part of this agreement.

The parties agreed to cancel the withdrawals from free trade regime applied between the Republic of Kazakhstan and Georgia according to the specified Protocol, according to the enclosed Schedule of step-by-step cancellation of withdrawals from free trade regime between the Republic of Kazakhstan and Georgia, being integral part of this agreement.

2. For the purposes of this agreement and for its action the goods coming from customs areas of the states of the Parties are understood as goods which origin is determined according to Rules of determination of the country of goods' origin, approved by the decision of Council of Heads of Government of the Commonwealth of Independent States of November 30, 2000.

Article 3

Each Party will not be:

directly or indirectly to assess the goods 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;

apply to warehousing, overload, storage, transportation of goods by origin from other 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 4

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

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

The quantitative restrictions mentioned in the first paragraph of this Article can be also established according to the mutual arrangement of the Parties and be drawn up by the Protocol.

Article 5

The party will not be allowed by unauthorized re-export of goods which concerning export other Party from which territory there are these goods, to apply measures of tariff and/or non-tariff regulation.

The parties exchange lists of goods to which measures of tariff and non-tariff regulation are applied.

Re-export of such goods to the third countries can be performed only from written consent and on the conditions determined by authorized body of the state which is country of source of these goods. In case of failure to carry out of this provision the Party which interests are violated has the right to enter unilaterally measures for regulation of commodity exportation on the territory of the state of other Party which allowed unauthorized re-export. In case of unauthorized re-export the Country of goods' origin can require compensation of the caused damage and apply sanctions.

In this Article re-export is understood as commodity exportation, the state of one Party coming from customs area, other Party out of limits of customs area of its state, for the purpose of export to the third country.

Article 6

All calculations and payments for trade and economic cooperation between the Parties shall be made according to the interbank Agreement on the organization of calculations between authorized banks of the Parties.

Article 7

The parties will communicate on regular basis - about the laws and other regulations connected by economic activity including concerning trade, investments, the taxation, banking and insurance activity, other financial services, on transport and customs questions, including customs statistics.

The parties without delay report each other about changes in the national legal system which can influence accomplishment of this agreement.

Authorized bodies of the Parties will approve procedure for exchange of such information. Provisions of this Article will not be:

be interpreted as binding competent authorities of any Party to provide information which cannot be received by the legislation or during customary administrative practice of one of the Parties;

the basis for provision of information which would open any trade, entrepreneurial, industrial, trade or professional secrecy, or other information which disclosure would contradict state interests of the Party.

Article 8

The parties recognize incompatible with this agreement purposes unfair business practice and not allow in particular, but not its exclusively following methods:

agreements between the companies, the decisions made by merging of the companies and the common methods of business practice aiming to prevent or limit the competition or to violate conditions for it in the territories of the states of the Parties;

actions by means of which one or several companies use the dominant position, limiting the competition on all or on considerable part of the territory of the states of the Parties.


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