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Exchange of Notes between the Government of Canada and the Government of Thailand constituting a Commercial Modus Vivendi between the two countries [1969] CATSer 5 (22 April 1969)

E103407 - CTS 1969 No. 11

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THAILAND CONSTITUTING A COMMERCIAL MODUS VIVENDI BETWEEN THE TWO COUNTRIES

I

The Ministry of Industry, Trade and Commerce of Canada to the Minister of Foreign Affairs of Thailand

BANGKOK, April 22, 1969

No. 74

His Excellency Thanat Khoman
Minister of Foreign Affairs
Bangkok

Excellency,

I have the honour to refer to discussions which have taken place between representatives of the Government of Canada and of the Government of Thailand on the possibility of our two countries entering into a Commercial Modus Vivendi. Further to those discussions and with a view to strengthening and developing trade relations between our two countries I have been authorised by the Government of Canada to propose to Your Excellency the conclusion of a Commercial Modus Vivendi to regulate commercial relations between Canada and Thailand as follows:

1. Each country shall accord to the other country unconditional most-favoured-nation treatment in all matters respecting customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports; the method of levying such duties and charges; the rules and formalities connected with importation or exportation; all internal taxes or other internal charges of any kind; all laws, regulations and requirements affecting internal sale, offering for sale, purchase, distribution or use of imported goods within its territory.

2. The provisions of paragraph 1 relating to most-favoured-nation treatment are not applicable to exclusive advantages accorded by Canada to countries and their dependent overseas territories entitled to the benefits of the British Preferential Tariff.

3. Each country reserves the right to accord special advantages:

(a) to the commodities and goods imported under an assistance program;

(b) to adjacent countries in order to facilitate frontier traffic;

(c) by virtue of a customs union or free trade area of which either country may become a member, or of an interim agreement leading to the formation of a customs union or a free trade area which either country may enter into.

4. (a) Each country shall accord to the products of the other country, which have been in transit through the territory of any third country receiving most-favoured-nation treatment from the importing country, treatment no less favourable than that which would have been accorded such products had they been transported from their place of origin to their destination without going through the territory of such third country. Each country shall, however, be free to maintain its requirements of direct consignment existing on the date of signature of the present agreement in respect of any goods in regard to which such direct consignment has relation to that country’s prescribed method of valuation for duty purposes.

(b) Each country shall be free to maintain its prescribed method of valuation for customs purposes.

5. In all matters relating to the importation or exportation of any product from or to the territory of the other country, to the allocation of foreign exchange, and to the administration of foreign exchange restrictions affecting transactions involving the importation and exportation of any product, each country undertakes not to apply any prohibitions or restrictions which are not similarly applied to the importation or exportation of the like product from or to the territories of all third countries.

6. The provisions of the present Modus Vivendi shall not limit the right of either country to apply prohibitions or restrictions of any kind directed to the protection of its essential security interests or to the implementation of its obligations under any multilateral commodity agreement concluded under the auspices of the United Nations which is open to participation by both Governments.

7. Each country undertakes that if it establishes or maintains a state enterprise wherever located, or grants to any enterprise, formally or in effect, exclusive or special privileges, such enterprises shall, in its purchases or sales involving either imports or exports, act in a manner consistent with the principle of non-discriminatory treatment provided for in the present Modus Vivendi. To this end, such enterprise shall make any purchases or sales solely in accordance with commercial considerations including price, quality, availability, marketability and other conditions of purchase or sale, and shall afford to the enterprises of the other country adequate opportunity in accordance with customary business practice to compete for participation in such purchases or sales.

8. The provisions of paragraph 7 shall not apply to imports of products of immediate or ultimate consumption in governmental use and not otherwise for resale or use in the production of goods for sale. With respect to such imports, each country shall accord to the trade of the other country fair and equitable treatment.

9. Each Government shall give sympathetic consideration to any representations which the other Government may make in respect of the implementation of the present Modus Vivendi and shall afford adequate opportunity for consultation regarding such representations.

10. If the foregoing provisions are acceptable to the Government of Thailand, I have the further honour to propose that this Note, which is authentic in English and French, together with Your Excellency’s reply, which will be authentic in Thai and English, shall constitute an agreement between our two Governments. This agreement shall enter into force upon the date of Your Excellency’s Note in reply and shall remain in force for a period of one year and thereafter until terminated by either Government by means of a three months prior notice in writing to the other.

Accept, Excellency, the assurances of my highest consideration.

Jean-Luc Pépin

Minister of Industry, Trade and Commerce

II

The Minister of Foreign Affairs of Thailand to the Minister of Industry, Trade and Commerce of Canada

MINISTRY OF FOREIGN AFFAIRS
SARANROM PALACE

22nd April, B.E. 2512

No. 0501 / 12256

The Honourable Mr. Jean-Luc Pépin
Minister of Industry, Trade and Commerce of Canada
Bangkok

Excellency,

On behalf of the Government of Thailand I have the honour to acknowledge the receipt of your Note of April 22, 1969 proposing the conclusion of a Commercial Modus Vivendi to regulate commercial relations between Thailand and Canada, which reads as follows:

“I have the honour to refer to discussions which have taken place between representatives of the Government of Canada and of the Government of Thailand on the possibility of our two countries entering into a Commercial Modus Vivendi. Further to those discussions and with a view to strengthening and developing trade relations between our two countries I have been authorized by the Government of Canada to propose to Your Excellency the conclusion of a Commercial Modus Vivendi to regulate commercial relations between Canada and Thailand as follows:

1. Each country shall accord to the other country unconditional most-favoured-nation treatment in all matters respecting customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports; the method of levying such duties and charges; the rules and formalities connected with importation or exportation; all internal taxes or other internal charges of any kind; all laws, regulations and requirements affecting internal sale, offering for sale, purchase, distribution or use of imported goods within its territory.

2. The provisions of paragraph 1 relating to most-favoured-nation treatment are not applicable to exclusive advantages accorded by Canada to countries and their dependent overseas territories entitled to the benefits of the British Preferential Tariff.

3. Each country reserves the right to accord special advantages;

(a) to the commodities and goods imported under an assistance program;

(b) to adjacent countries in order to facilitate frontier traffic;

(c) by virtue of a customs union or free trade area of which either country may become a member, or of an interim agreement leading to the formation of a customs union or a free trade area which either country may enter into.

4. (a) Each country shall accord to the products of the other country, which have been in transit through the territory of any third country receiving most-favoured-nation treatment from the importing country, treatment no less favourable than that which would have been accorded such products had they been transported from their place of origin to their destination without going through the territory of such third country. Each country shall, however, be free to maintain its requirements of direct consignment existing on the date of signature of the present agreement in respect of any goods in regard to which such direct consignment has relation to that country’s prescribed method of valuation for duty purposes.

(b) Each country shall be free to maintain its prescribed method of valuation for customs purposes.

5. In all matters relating to the importation or exportation of any product from or to the territory of the other country, to the allocation of foreign exchange, and to the administration of foreign exchange restrictions affecting transaction involving the importation and exportation of any product, each country undertakes not to apply any prohibition or restrictions which are not similarly applied to the importation or exportation of the like product from or to the territories of all third countries.

6. The provisions of the present Modus Vivendi shall not limit the right of either country to apply prohibitions or restrictions of any kind directed to the protection of its essential security interests or to the implementation of its obligations under any multilateral commodity agreement concluded under the auspices of the United Nations which is open to participation by both Governments.

7. Each country undertakes that if it establishes or maintains a state enterprise wherever located, or grants to any enterprise, formally or in effect exclusive or special privileges such enterprise shall, in its purchase or sales involving either imports or exports, act in a manner consistent with the principle of non-discriminatory treatment provided for in the present Modus Vivendi. To this end, such enterprise shall make any purchases or sales solely in accordance with commercial considerations including price, quality, availability, marketability and other conditions of purchase or sale, and shall afford to the enterprises of the other country adequate opportunity in accordance with customary business practice to compete for participation in such purchases or sales.

8. The provisions of paragraph 7 shall not apply to imports of products of immediate or ultimate consumption in governmental use and not otherwise for resale or use in the production of goods for sale. With respect to such imports, each country shall accord to the trade of the other country fair and equitable treatment.

9. Each government shall give sympathetic consideration to any representations which the other Government may ask in respect of the implementations of the present Modus Vivendi and shall afford adequate opportunity for consultation regarding such representations.

10. If the foregoing provisions are acceptable to the Government of Thailand, I have the further honour to propose that this Note, which is authentic in English and French together with Your Excellency’s reply which will be authentic in Thai and English, shall constitute an agreement between our two Governments. This agreement shall enter into force upon the date of Your Excellency’s Note in reply and shall remain in force for a period of one year and thereafter until terminated by either Government by means of a three months prior notice in writing to the other.

Accept, Excellency, the assurances of my highest consideration.”

I have further the honour to inform you that the proposals in your Note are fully acceptable to and are concurred in by my Government. I am authorized by the Government of Thailand to confirm that your Note and this reply shall therefore constitute an agreement between the two Governments on this subject.

I avail myself of this opportunity to extend to Your Excellency the assurance of my highest consideration.

Thanat Khoman

Minister of Foreign Affairs