Being revised

GUIDED by the principles contained in the New Delhi Declaration adopted at the thirty-first session of the Economic and Social Commission for Asia and the Pacific;

REALIZING that the expansion of trade could act as a powerful stimulus to the development of their national economies, by expanding investment and production opportunities through benefits to be gained from specialization and economies of scales thus providing greater opportunities of employment and securing higher living standards for their populations

MINDFUL of the importance of expanding access on favourable terms for their goods to each others markets and of developing trade arrangements which promote the rational and outward-oriented expansion of production and trade;

NOTING that the international community has fully recognized the importance of encouraging the establishment of preferences among developing countries at the internationals regional and subregional levels, particularly through the resolutions of the General Assembly of the United Nations establishing the International Development Strategy for the Second United Nations Development Decade and the Declaration on the Establishment of a New International Economic Order and the Programme of Action for the Establishment of a New International Economic Order; the Concerted Declaration on Trade Expansion, Economic Co-operation and Regional Integration among Developing Countries adopted at UNCTAD 11; as well as Part IV of the General Agreement on Tariffs and Trade and decisions made in pursuance thereof;

NOTING FURTHER that developed and developing countries have already taken some major decisions intended to promote such type of preferential arrangements among developing countries as well as between developed and developing countries in terms favourable to the latter.

CONVINCED that the establishment of preferences among the developing countries of ESCAP, complementary to other efforts under- taken in other international forums, could make an important contribution to the development of trade among developing countries.

The Governments of Bangladesh, India, Laos, the Philippines, the Republic of Korea, Sri Lanka and Thailand ON WHOSE BEHALF this AGREEMENT has been signed, HAVE AGREED as follows:

For the purposes of articles 3 and 5, goods shall be accepted as eligible for preferential treatment if they have been consigned to the territory of the importing Participating State from the territory of another Participating State and if they satisfy the conditions of origin set out in annex 11, which is an integral part of this Agreement.

If, as a result of a tariff revisions a Participating State reduces or abrogates ;he value of concessions granted to the other Participating States, within a reasonable period it shall take mutually acceptable compensatory action to re-establish preferential margins of equivalent value or enter into prompt consultations with the other Participating States as provided for in chapter IV in order to negotiate a mutually satisfactory modification of its National List of Concessions.

1. To the fullest extent possible, Participating States shall grant to one another, in relation to imports originating in the territory of any one of theme a treatment no less favourable than that which prevailed prior to the entry into force of this Agreement.
2. With respect to taxes, rates and other internal duties and charges, products originating in the territory of a Participating State shall enjoys in the territory of every other Participating State, a treatment no less favourable than that accorded by that other Participating State to similar products of domestic origin;
3. Participating States shall endeavour, in relation to each other, not to introduces or increase the incidence of, customs duties and non-tariff import barriers on products of current or potential export interest to the other Participating States. For purposes of determination of which products fall within the purview of this paragraphs within one year from the date of entry into force of this Agreement, the Participating States shall submit, and the Standing Committee shall decide on, lists of products in this category;
4. Whenever considered necessary, Participating States shall take appropriate measures for co-operation, particularly in customs administration, to facilitate implementation of this Agreement and to simplify and standardize procedures and formalities relating to reciprocal trades For this purposes the Standing Committee shall take the required administrative action;
5. With respect to drawbacks within one year from the date of entry into force of this Agreement, the Standing Committee shall consider whether drawbacks on goods imported from third countries should be permitted in relation to products used in the manufacture of finished products for which concessions have been exchanged by the Participating States;
6. With respect to dumping and other unfair trade practices, the Participating States shall, within one year from the date of entry into force of this Agreement, establish appropriate regulations to offset or prevent such practices, as required, and to ensure that the provisions of this Agreement are harmoniously applied;
7. As soon as possible, Participating States shall adopt a common tariff nomenclatures which would serve as a more adequate basis for conducting further negotiations at a more disaggregated level, and for the purpose of improving the collection and presentation of trade information;
8. Through further negotiations, Participating States shall {eke steps to expand the coverage and value of concessions on products of export interest to one another To this end, within one year from the date of entry into force of this Agreement, the Standing Committee shall adopt a programme of action to accelerate the process of negotiations, including additional negotiating techniques and the possible establishment of specific targets for the negotiations.

1. Through bilateral trade agreements, to other Participating States and to third countries.
2. Exclusively to other developing countries prior to the entry into force of this Agreement.
3. To other Participating States which may be classed by the Participating States as at a relatively less advanced stage of economic development, provided that such preferences are accorded without full reciprocity from the relatively less advanced country Within one year from the date of entry into force of this Agreement, the Standing Committee shall decide which Participating States shall be considered to be in the category of countries at a relatively less advanced stage of economic development;
4. To any other Participating State(s) and/or other ESCAP developing countries with which the Participating State engages in the formation of an economic integration groupings
5. To any other Participating State(s) and/or other developing countries with which the Participating State enters into an industrial co-operation agreement or joint venture in other productive sectors, within the purview of article 12.

If agreement among the Participating States concerned cannot be reached within 90 days, the Standing Committee shall then seek to obtain a mutually acceptable solution through (a) confirmation of the suspension, or (b) modification of the concessions or its replacement by a concession of equivalent value. If the Standing Committee cannot reach a satisfactory solution within 90 days from that date, the Participating State(s) affected by the suspension shall then be free to temporarily suspend the application to the trade of the Participating State which has taken such action of substantially equivalent concessions, subject to notification to and further negotiation for a mutually acceptable solution by the Standing Committee, which shall adopt its final decision by at least a two-thirds majority vote within 90 days following the date of receipt of the latter notification

If, as a result of the implementation of this Agreement, significant and persistent disadvantages are created in respect of the trade between one Participating State and the others as a whole, those Participating States shall, at the request of the affected Participating State, accord sympathetic consideration to the representation or request of the latter, and the Standing Committee shall afford adequate opportunity for consultations with a view to taking the necessary steps to remedy such disadvantages through the adoption of suitable measures, including additional concessions, designed to further expand multilateral trades

If a Participating State should consider that another Participating State is not duly complying with any given provision under this Agreement, and that such non-compliance adversely affects its own trade relations with that Participating State, the former may make formal representation to the latter, which shall give due consideration to the representation made to it. If no satisfactory adjustment is effected between the Participating States concerned within 120 days following the date on which such representation was made, the matter may be referred to the Standing Committee, which may, by majority vote, make to any Participating State such recommendation as it considers appropriate. If the Participating State concerned does not comply with the recommendation of the Standing Committee, the latter may, by majority decisions authorize any Participating State to suspends in relation to the non-complying State, the application of such obligations under this Agreement as the Standing Committee considers appropriate.

The Participating States shall accord to any other interested developing country full and prompt opportunity for consultations with respect to any matter or difficulty which may arise as a result of the implementation of this Agreement.

The Committee shall, by a two-thirds majority votes adopt such rules of procedure as may be required for the performance of its functions Except as otherwise provided for in this Agreement, decisions by the Committee shall be taken by a majority of votes cast by members present and voting, provided that at least two thirds of the Participating States are present. The Committee shall communicate with third countries and international organizations in matters relating to the interpretation and operation of this Agreement, and may request the technical advice and the co-operation of national and international organizations.

Except where provision for modification is made elsewhere in this Agreements all articles of this Agreement may be modified through amendments to the Agreement. Amendments to the provisions of chapters II and III and of article 21 shall become effective upon acceptance by all Participating States. All other amendments shall become effective upon acceptance by two thirds of the Participating States.

Except for the special circumstances listed under chapter IV, the concessions contained in the National Lists of Concessions shall have a minimum duration of application of three years from the date of their entry into forces If at the end of that period they are modified or withdrawn, the Participating States concerned shall enter into consultations with a view to re-establishing a general level of concessions which shall be at least as favourable to their mutual trade as that existing prior to the modification or withdrawal.

1. The reduction of duties and non-tariff barriers to imports on products already included in the National Lists of Concessions;
2. The reduction of duties and non-tariff barriers to imports on products not yet included in the National Lists of Concessions;

Upon receipt by the Committee of the respective notification of intention by the Participating State concerned, any amendment to annex I shall enter into force 30 days after the date on which the Committee, by a two-thirds majority vote, has declared the compatibility of such proposed amendment with the objectives of this Agreements The Governments of the Participating States bind themselves to undertake whatever internal administrative measure may be required to comply with this provision. The National List. of Concessions of acceding States shall enter into force 30 days after the dates on which the respective instruments of ratification have been deposited.

For the purposes of application of this Agreement, the developing countries which are members of the ESCAP Trade Negotiations Group shall mean those countries included in paragraphs 3 and 4 of the terms of reference of the Economic and Social Commission for Asia and the Pacific, including any future amendments thereto.

Except for the provisions made under article 31, this Agreement may not be signed with reservations nor shall reservations be admitted at the time of ratification or accession.

This Agreement shall enter into force for the first three original signatory, States which deposit instruments of ratification, 30 days after the date of deposit of the third instrument of ratification. For every other original signatory State which deposits its instrument or ratification after the deposit of the third instrument of ratification, this Agreement shall come into force 30 days after the date on which that State has deposited its respective instrument of ratification, provided that such instruments of ratification are deposited before 31 January 1976.

Any original signatory State which has not deposited its instrument of ratification to this Agreement by 31 January 1976 shall lose the rights associated with the status of original signatory, and therefore shall not be entitled to accede through ratifications unless the Committee, by a two-thirds majority vote, decides otherwise. If less than three countries have deposited their instruments of ratification by 31 January 1976, this time-limit shall be extended to 30 days after the date on which the third instrument of ratification is deposited.

Countries which are not original signatories to this Agreement, or which have relinquished such right in accordance with the provisions of articles 33 and 34, but which are eligible to accede to it in accord dance with the provisions of chapter VII, shall be entitled to do so after due negotiations with the Participating States, as provided for in chapter VII. This Agreement shall come into force for an eligible acceding State 30 days after the date of deposit of its corresponding instrument of accession.

For the purposes of application of this Agreements the original signatory States shall mean those countries on whose behalf their authorized representatives have signed below.

The original of this Agreement, of which the English and French texts shall be considered to be equally authentic shall be deposited with the Executive Secretary of the Economic and Social Commission for Asia and the Pacific or with a competent authority designated by the signatories. The depositary shall transmit duly certified copies of the Agreement to the Governments of all developing countries which are members of the ESCAP Trade Negotiations Group and shall notify signatories and other developing countries which are members of the ESCAP Trade Negotiations Group of (a) ratifications of this Agreement and (b) the date on which this Agreement enters into force.