Iran and Thailand Conclude Trade Agreement

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Nourlaw.com- Tehran- 28 December 2016- The Law of Trade Agreement between the Government of the Islamic Republic of Iran and the Kingdom of Thailand was published today in the Official Gazette.

The pact was approved by the Iranian parliament on 2/8/1395 (15 November 2016) in line with Principle 125 of the Constitution Law which states,  “The President or his legal representative has the authority to sign treaties, protocols, contracts, and agreements concluded by the Iranian government with other governments, as well as agreements pertaining to international organizations, after obtaining the approval of the Islamic Consultative Assembly (parliament)”.

The Agreement includes 11 articles and  it stipulates that the government of the Islamic Republic of Iran and the Kingdom of Thailand in light of their mutual desire for consolidation and development of bilateral trade relations, expansion, diversification of commercial transactions and upgrading trade cooperation on the basis of mutual benefit, non-discrimination and safeguarding bilateral interests have agreed to take appropriate measures in accordance with their respective laws and regulations for encouraging and facilitating trade and economic cooperation between the two countries.

The agreement states that import and export of goods and services, the origin of which are the territories of both contracting parties shall be based on the trade contracts concluded between natural and juridical persons under the laws and regulations of each country. The contracting states shall not be held responsible for the liabilities emerging from such contracts. Payment of the price of deals and settlement of accounts would be affected through open market foreign exchange, provided that such manner of settlement would not be in contravention with the laws of either contracting state.

Iran and Thailand have undertaken in the Agreement to encourage their firms and companies to participate in exhibitions, trade shows, delegations, seminars and the like to be held in both states and each party will extend the required facilities necessary to the extent possible.

Cooperation of the chambers of commerce, formation of a joint trade task force for implementing and revising the Agreement and removing any impediments in this regard, transparent and unhindered access of the nationals of each state to the judicial authorities of the other state, prevention of any actions jeopardizing public morals, health of human beings, wildlife and the environment, national heritage, etc. are included in other parts of the Agreement.

As for duration, the Agreement will be valid for three years and extendable for one year periods, unless one party decides to terminate the accord.