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Agreement Between Canada and the Russian Federation on Economic Cooperation

E101214 - CTS 1994 No. 38

Canada and the Russian Federation (hereinafter referred to collectively as "Parties" and individually as "Party"),

DESIRING to strengthen the traditional links of friendship and the cordial relations which exist between the two countries reflected in the Treaty of Concord and Cooperation between Canada and the Russian Federation signed at Ottawa on June 19, 1992;

TAKING INTO CONSIDERATION the Agreement on Trade and Commerce between Canada and the Russian Federation signed at Ottawa on June 19, 1992 and the Agreement for the Promotion and Reciprocal Protection of Investments signed at Moscow on November 20, 1989;

RECALLING the Joint Statement on Main Principles and Directions of Economic Cooperation between Canada and the Russian Federation signed at Moscow on July 3, 1992;

RECOGNIZING that broader and more diversified links between their public and private sectors of economy would be of mutual benefit to both countries;

NOTING the importance of bilateral programs for technical cooperation, including personnel training, for the success of market reform in Russia and achieving the objectives of this Agreement;

CONSCIOUS of the importance of an open international trading system based on market principles and a liberalized regime for foreign investment;

DESIROUS of undertaking further development, promotion and expansion of trade, investment, financial, industrial and scientific and technological cooperation between the two countries and;

RESOLVING to undertake new and energetic efforts to develop and expand this cooperation;

HAVE AGREED as follows:

Article I

Subject and Objectives

The Parties agree that the subject of the current Agreement is economic cooperation including trade, investment, financial, industrial and scientific and technological cooperation between enterprises, organizations, companies and Government agencies of the two countries.

The objectives of this Agreement are to:

  1. Promote the activities of enterprises, organizations and companies with differing forms of ownership and Government agencies in their efforts to expand bilateral economic cooperation;
  2. Expand two-way trade and facilitate access to each other's markets;
  3. Facilitate the identification of specific trade and investment opportunities in their respective countries; and
  4. Encourage the development of mutually beneficial cooperation in areas of science and technology and in particular, those with economic and industrial applications.

Article II

Principles and Forms of Cooperation

The Parties share a commitment to market principles with respect to international trade and foreign investment. The Parties agree to encourage and facilitate in accordance with their national laws, regulations and policies, and on the basis of fair and equitable treatment, direct contact and broader cooperation between business and scientific communities, associations, organisations, and Government agencies of both countries.

To this end, the Parties agree:

  1. With respect to economic cooperation, to exchange information on economic development priorities, national economic plans and forecasts, and other significant policies and developments which have an impact on economic relations between the two countries.
  2. With respect to trade and investment cooperation, to:
    1. promote and support trade and investment missions, market analyses, links between business communities and institutions and other initiatives which bring together potential business partners;
    2. exchange trade, investment and market information provided that its provision does not conflict with existing laws and regulations of either country;
    3. exchange appropriate information at an early stage on significant forthcoming public sector industrial projects;
    4. identify and facilitate trade and investment opportunities by:
      1. ensuring that its laws, regulations, procedures and administrative rulings of general application respecting any matter covered by this Agreement are promptly published or otherwise made available to interested persons;
      2. identifying specific projects and sectors of potential interest for cooperation;
      3. informing their respective business communities of investment opportunities in the other country;
      4. encouraging the expansion of financial and banking cooperation;
    5. assist in identifying appropriate sources of possible project financing;
    6. facilitate, where appropriate, the staging of industrial fairs, exhibitions and other promotional activities;
    7. encourage business communities, particularly small and medium-sized enterprises, in their efforts to develop joint business activities;
    8. facilitate, in accordance with national laws and regulations and on the basis of reciprocity, the entry and exit of public and private sector experts, investors, business representatives, scientists, and technicians as well as material and equipment necessary for the fulfilment of activities falling within the scope of this Agreement: this material and equipment shall not be for commercial sale;
    9. encourage joint activities between Canadian firms and Russian enterprises and organizations in exporting to third countries;
    10. review impediments to trade and investment which might hinder achievement of the objectives of this Agreement with the aim of eliminating such impediments.
  3. With respect to industrial, scientific and technological cooperation, to promote and improve cooperation between the public and private sectors of the two countries including joint research and development and the transfer of technology, through appropriate channels in accordance with their respective economic and development policies and priorities, by encouraging, supporting and facilitating:
    1. the exchange of information on technologies and know-how;
    2. the conclusion of licensing arrangements and industrial consulting agreements;
    3. the industrial application of research and development results and the transfer of technology in order to promote the application, adaptation and improvement of existing and new high technology products, processes and management skills;
    4. initiatives to improve quality control and standards for products, notably for export;
    5. joint projects involving scientific and technological communities in the public and private sectors;
    6. exchanges of views on the formulation and application of scientific and technological policies.

Article III

Sectors of Cooperation

The principle areas of cooperation shall be in sectors of respective economic, trade, investment, industrial and scientific and technological priorities of the Parties and may include the following:

  • energy, particularly in oil and gas developments, and safety issues in the generation of nuclear power;
  • agriculture, food processing, including storage, handling and distribution;
  • conversion of the defence industry;
  • forestry industry, particularly the development and modernization of pulp, paper and wood products facilities;
  • mining, including geological exploration, mine development and metallurgy;
  • telecommunications and information technology;
  • construction, particularly in cold and hostile weather conditions;
  • aerospace industry;
  • establishment of transport infrastructure and manufacture of means of transportation and associated equipment;
  • environmental protection;
  • transportation and distribution services;
  • professional business services;
  • fundamental and applied research on these and other sectors; specific to the economic development of both countries; and

any other fields of cooperation as may be agreed to in the framework of the Intergovernmental Economic Commission.

Article IV

Financial Support of Cooperation

The Parties reaffirm the significance of credit and financial support, on mutually beneficial terms and conditions, for purposes of the stable and effective development of economic and commercial cooperation.

The Parties confirm their readiness to continue cooperation in the framework of international financial institutions.

Article V

Intergovernmetal Economic Commission

The Parties agree to establish a Canadian-Russian Intergovernmental Economic Commission, (hereinafter referred to as the "Commission"). The Commission will facilitate the implementation of cooperation arising from this agreement and may consider issues related to the Agreement on Trade and Commerce between Canada and the Russian Federation of June 19, 1992 and the Agreement for the Promotion and Reciprocal Protection of Investments done at Moscow on November 20, 1989.

The Commission will be headed from the Canadian side by the Minister for International Trade of Canada and from the Russian side by the Minister of Economy of the Russian Federation. The Co- Chairmen of the Commission will agree on its terms of reference and procedures.

The Commission shall meet at regular intervals, as a rule, once a year, with meetings alternating between Canada and Russia.

The Commission shall establish such Committees or working groups as may be necessary. As appropriate, the Commission may invite business representatives of both countries to participate in its activities and in the activities of Committees or working groups created by the Commission.

Article VI

Entry into Force, Revision, Term and Termination

  1. This Agreement shall enter into force on the date of an exchange of notes confirming that the Parties have completed their respective legal requirements necessary to bring it into force. In the event that the exchange of notes does not take place on the same day, the Agreement shall enter into force on the date of the last note.
  2. On the date of the entry into force of this Agreement, the Long Term Agreement between the Government of Canada and the Government of the Union of Soviet Socialist Republics to Facilitate Economic, Industrial, Scientific and Technical Cooperation signed at Ottawa on July 14, 1976, the Protocol on its extension of October 2, 1986, as well as the Agreement between Canada and the Union of Soviet Socialist Republics on Cooperation in the Industrial Application of Science and Technology signed at Moscow on January 27, 1971, shall cease to have force as between Canada and the Russian Federation.
  3. Except as set out above, nothing in this Agreement terminates or amends the Agreements already in force between the Parties.
  4. This Agreement shall remain in force indefinitely, unless either Party provides the other Party with not less than six months' written notice of its intention to terminate the Agreement.
  5. At the request of either Party, this Agreement may be revised in full or in part by mutual agreement.
  6. The revision or termination of this Agreement shall not affect the validity of arrangements or contracts already concluded under this Agreement or any other bilateral trade and investment agreement.

DONE at Moscow, this 8th day of May, 1993 in duplicate, in the English, French and Russian languages, all three texts being equally authentic.

Brian Mulroney

Boris Yeltsin

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