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Agreement between the Government of Canada and the Government of the Russian Federation on the Supply of Grain [1992] CATSer 3 (1 February 1992)

E102695

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION ON THE SUPPLY OF GRAIN

The Government of Canada and the Government of the Russian Federation, hereafter called the Contracting Parties,

Desiring to strengthen long-term cooperation between the two countries on the basis of mutual benefit and equality,

Recognizing the need to stabilize trade in grain between the two countries, and

Affirming their conviction that cooperation in the field of grain trade will contribute to further development of trade and economic relations between the two countries,

Have agreed as follows:

ARTICLE 1

The Contracting Parties hereby enter into an Agreement for the supply of Western Canadian wheat and feed grain. To this end, during the period that this Agreement is in force, the appropriate Russian organizations shall purchase in Canada and the Canadian Wheat Board shall sell to them for shipment in each twelve-month period beginning on the day that this Agreement comes into force, five million metric tons of wheat and feed grain.

The Contracting Parties may agree to increase or reduce the quantities of wheat and feed grain shipped in each twelve-month period. Meanwhile, the overall quantity of wheat and feed grain which the appropriate Russian organizations mentioned above will purchase in Canada and which the Canadian Wheat Board will sell to them for shipment during the period that this Agreement is in force shall be no less than twenty-five million metric tons.

Purchases/sales of wheat and feed grain under this Agreement shall be made at the prices prevailing on major international markets for these products at the moment of the purchase/sale.

ARTICLE 2

The Contracting Parties shall with all the means at their disposal facilitate and encourage the conclusion and fulfilment of contracts for the delivery of wheat and feed grain purchased in Canada under this Agreement. To this end, competent institutions of both countries shall, in particular, freely issue relevant import and export permits when required.

ARTICLE 3

The Contracting Parties understand that wheat and feed grain shipped from Canada under this Agreement are intended for the Russian Federation; however, shipments may nonetheless be redirected to other States for the fulfilment of commitments of the Russian Federation in respect to these States.

ARTICLE 4

The Government of Canada shall with all the means at its disposal facilitate the provision of the appropriate quality and condition of grain shipped under this Agreement.

ARTICLE 5

Taking into account that a continued Canadian trade surplus of the present magnitude is not conducive in the long term to sustained and dynamic bilateral trade, the Contracting Parties shall take appropriate measures, within the framework of their respective laws and regulations, to encourage and facilitate the growth of Russian exports to Canada.

ARTICLE 6

The Contracting Parties shall hold consultations concerning the implementation of this Agreement and related matters at least twice each year, by turns, in the Russian Federation and in Canada.

ARTICLE 7

This Agreement shall enter into force on signature and shall remain in force for a period of five years.

Not later than one year prior to the expiration of this Agreement, representatives of the Contracting Parties shall meet to discuss the possible extension of this Agreement.

DONE in duplicate at Ottawa, this 1st day of February, 1992, in the English, French and Russian languages, each version being equally authentic.

Charles Mayer

FOR THE GOVERNMENT OF CANADA

Viktor Khlystun

FOR THE GOVERNMENT OF THE RUSSIAN FEDERATION

PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION ON THE SUPPLY OF GRAIN

The Contracting Parties proceed from the understanding that this Agreement replaces the Agreement between the Government of Canada and the Government of the USSR on the Supply of Grain which is due to expire July 31, 1993 in respect of the Russian Federation.

Done in duplicate at Ottawa, this 1st day of February, 1992, in the English, French and Russian languages, each version being equally authentic.

Charles Mayer

FOR THE GOVERNMENT OF CANADA

Viktor Khlystun

FOR THE GOVERNMENT OF THE RUSSIAN FEDERATION