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

of June 2, 1997

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

aiming at development of trade and economic cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan on the basis of equality and mutual advantage, considering the developed integration commercial ties of the Republic of Uzbekistan and the Republic of Kazakhstan and complementarity of economies of two states,

being guided by provisions of the Agreement on creation of the Common economic space,

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

confirming commitment of the Republic of Kazakhstan and the Republic of Uzbekistan 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 pattern 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 provide each other free trade regime.

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 the state of one of the Parties and intended for customs area of the state of Other Party. Exceptions of this trade regime according to the approved nomenclature of goods are drawn up by the Protocol which is integral part of this agreement.

2. According to Item 1 of this Article of the Party annually develop 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 customs areas of the states of the Parties are understood as the goods determined by 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 3

Each Party will not be:

directly or indirectly to assess the goods of other 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 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 in relation to other Party of discriminatory measures of 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 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. The decisions made during consultations are drawn up by the relevant documents.

Article 5

This agreement does not interfere with the right of the either party 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;

and other cases provided by the XX article GATT.

The party intending to enter measures according to this Article shall beforehand prior to application of such measures, except as specified the emergency nature, to provide 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.

Article 6

All calculations and payments for trade and economic cooperation between business entities of the states of the Parties will be made on the basis of the relevant interbank agreements.

Article 7

The parties will communicate on regular basis about internal legal regulation of foreign economic relations, including concerning trade, investments, the taxation, banking and insurance activity and other services, on transport and customs questions, including the customs statistics concerning the Parties.

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

Authorized bodies of Contracting 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;

provide information which would open any trade, entrepreneurial, industrial, trade or professional secrecy, either trade process, or other information which disclosure would contradict state interests of the Party.

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