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AGREEMENT ON TRADE RELATIONS
BETWEEN THE REPUBLIC OF ALBANIA
AND THE UNITED STATES OF AMERICA


    The Republic of Albania and the United States of America (hereinafter referred to collectively as "Parties" and individually as "Party"),
    Affirming that the evolution of market-based economic institutions and the strengthening of the private sector, will aid the development of mutually beneficial trade relations,
    Acknowledging that the development of trade relations and direct contact between nationals and companies of both Parties will promote openness and mutual understanding,
    Considering that expanded trade relations between the Parties will contribute to the general well-being of the peoples of each Party,
    Recognizing that development of bilateral trade may contribute to better mutual understanding and cooperation and promote respect for internationally recognized worker rights,
    Taking into account Albania's Membership in the International Monetary Fund and the International Bank for Reconstruction and Development and the prospects for economic reform and restructuring of the economy,
    Having agreed that economic ties are an important and necessary element in the strengthening of their bilateral relations,
    Being convinced that an agreement on trade relations between the two Parties will best serve their mutual interests, and
    Desiring to create a framework which will foster the development and expansion of commercial ties between their respective nationals and companies,
    Have agreed as follows:

ARTICLE I
MOST FAVORED NATION AND NONDISCRIMINATORY TREATMENT

1.   Each party shall accord unconditionally to products originating in or exported to the territory of the other Party treatment no less favorable than that accorded to like products originating in or exported to the territory of any third country in all matters relating to:

2.    Each Party shall accord to products originating in or exported to the territory of the other Party nondiscriminatory treatment with respect to the application of quantitative restrictions and the granting of licenses.

3.    Each Party shall accord to imports of products and services originating in the territory of the other Party nondiscriminatory treatment with respect to the allocation of and access to the currency needed to pay for such imports.

4.    The provisions of paragraphs I and 2 shall not apply to:

5.    The provisions of paragraph 2 of this Article shall not apply to Albanian exports of textiles and textile products.
ARTICLE II
MARKET ACCESS FOR PRODUCTS AND SERVICES

1.   Each Party shall administer all tariff and nontariff measures affecting trade in a manner which affords, with respect to both third country and domestic competitors, meaningful competitive opportunities for products and services of the other Party.

2.   Accordingly, neither Party shall impose, directly or indirectly, on the products of the other Party imported into its territory, internal taxes or charges of any kind in excess of those applied, directly or indirectly, to like domestic products.

3.   Each Party shall accord to products originating in the territory of the other Party treatment no less favorable than that accorded to like domestic products in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution, storage or use.

4.    The charges and measures described in paragraphs 2 and 3 of this Article should not be applied to imported or domestic products so as to afford protection to domestic production.

5.    The Parties shall ensure that technical regulations and standards are not prepared, adopted or applied with a view to creating obstacles to international trade or to protect domestic production.  Furthermore, each Party shall accord products imported from the territory of the other Party treatment no less favorable than that, accorded to like domestic products and to like products":-originating in any third country in relation to such technical regulations or standards, including conformity testing and certification.

6.    The Government of the Republic of Albania shall accede to the Convention Establishing the Customs cooperation Council and the International Convention on the Harmonized Commodity Description and Coding System, and shall take all necessary measures to implement entry into force of such Conventions with respect to the Republic of Albania.  The United States of America shall endeavor to provide technical assistance, as appropriate, for the implementation of such measures.
ARTICLE III
GENERAL OBLIGATIONS WITH RESPECT TO TRADE

1.   The Parties agree to maintain a satisfactory balance of market access opportunities, including through concessions in trade in products and services and through the satisfactory reciprocation of reductions in tariffs and nontariff barriers to trade resulting from multilateral negotiations.

2.    Trade in products and services shall be effected by contracts between nationals and companies of both Parties concluded on the basis of nondiscrimination and in the exercise of their independent commercial judgment and on the basis of customary commercial considerations such as price, quality, availability, delivery, and terms of payment.

3.     Neither Party shall require or encourage its nationals or companies to engage in barter or countertrade transactions.  Nevertheless, where nationals or companies decide to resort to barter or countertrade operations, the Parties will encourage them to furnish to each other all necessary information to facilitate the transaction.

ARTICLE IV
EXPANSION AND PROMOTION OF TRADE

1.   The Parties affirm their desire to expand trade in products and services consistent with the terms of this Agreement.  They shall take appropriate measures to encourage and facilitate trade in goods and services and to secure favorable conditions for long-term development of trade relations between their respective nationals and companies.

2.   The Parties shall take appropriate measures to encourage the expansion of commercial contacts with a view to increasing trade.  In this regard, the Government of the Republic of Albania expects that, during the term of this Agreement, nationals and companies of the Republic of Albania shall increase their orders in the United States for products and services, while the United States expects that the effect of this Agreement shall be to encourage increased purchases by nationals and companies of the United States-of products and services from the Republic of Albania.  Toward this end, the Parties shall publicize this Agreement and ensure that it is made available to all interested parties.

3.   Each Party shall encourage and facilitate the holding of trade promotional events such as fairs, exhibitions, missions and seminars in its territory and in the territory of the other Party.  Similarly, each Party shall encourage and facilitate the participation of its respective nationals and companies in such events.  Subject to the laws in force within their respective territories, the Parties agree to allow the import and re-export on a duty free basis of all articles for use in such events, provided that such articles are not sold or otherwise transferred.
ARTICLE V

GOVERNMENT COMMERCIAL OFFICES

1.   Subject to its laws and regulations governing foreign missions, each Party shall allow government commercial offices to hire directly host-country nationals and, subject to immigration laws and procedures, third country nationals.

2.   Each Party shall ensure unhindered access of host country nationals to government commercial offices of the other Party.

3.   Each Party shall encourage the participation of its nationals and companies in the activities of the other Party=s government commercial offices, especially with respect to events held on the premise of such commercial offices.

4.   Each Party shall encourage and facilitate access by government commercial office personnel of the other Party to host-country officials at both the national and subnational level, and representatives of nationals and companies of the host Party.
ARTICLE VI

BUSINESS FACILITATION

1.   Each Party shall afford commercial representations of the other Party fair and equitable treatment with respect to the conduct of their operations.

2.   Subject to its laws and procedures governing immigration and foreign missions, each Party shall permit the establishment within its territory of commercial representations of nationals and companies of the other Party and shall accord such representations treatment at least as favorable as that accorded to commercial representations of nationals and companies of third countries.

3.   Subject to its laws and procedures governing immigration and foreign missions, each Party shall permit such commercial representations established in its territory to hire directly employees who are nationals of either Party or of third countries and to compensate such employees on terms and in a currency that is mutually agreed between the parties, consistent with such Party's minimum wage laws.

4.    Each Party shall permit commercial representations of the other Party to import and use in accordance with normal commercial practices, office and other equipment, such as typewriters, photocopiers, computers and telefax machines in connection with the conduct of their activities in the territory of such Party.

5.    Each Party shall permit, on a nondiscriminatory basis and at nondiscriminatory prices (where such prices are set or controlled by the government), commercial representations of the other Party access to and use of office space and living accommodations, whether or not designated for use by foreigners.  The terms and conditions of such access and use shall in no event be on a basis less favorable than that accorded to commercial representations of nationals and companies of third countries.

6.   Subject to its laws and procedures governing immigration, each Party shall permit nationals and companies of the other Party to engage agents, consultants and distributors of either Party and of third countries on prices and terms mutually agreed between the parties.

7.    Subject to its immigration laws and procedures, each Party shall permit nationals and companies of the other Party to serve as agents, consultants and distributors of nationals and companies of either Party and of third countries on prices and terms mutually agreed between the parties.

8.    Each Party shall permit nationals and companies of the other Party to advertise their products and services (a) through direct agreement with the advertising media, including television, radio, print and billboard, and (b) by direct mail, including the use of enclosed envelopes and cards preaddressed to that national or company.

9.    Each Party shall encourage direct contact, and permit direct sales, between nationals and companies of the other Party and end-users and other customers of their goods and services, and with agencies and organizations whose decisions will affect potential sales.

10.    Each Party shall permit nationals and companies of the other Party to conduct market studies, either directly or by contract, within its territory.  To facilitate the conduct of market research, each Party shall upon request make available non-confidential, non-proprietary information within its possession to nationals and companies of the other Party engaged in such efforts.

11.    Each Party shall provide nondiscriminatory access to governmentally-provided products and services, including public utilities, to nationals and companies of the other Party in connection with the operation of their commercial representations.

12.    Each Party shall permit commercial representations to stock an adequate supply of samples and replacement parts for aftersales service on a non-commercial basis.

13.    Neither Party shall impose measures which unreasonably impair contractual or property rights or other interests acquired within its territory by nationals and companies of the other Party.
ARTICLE VII
TRANSPARENCY

1.    Each Party shall rake available publicly an a timely basis all laws and regulations related to commercial activity, including trade, investment taxation, banking, insurance and other financial services, transport and labor.  Each Party shall also make such information available in reading rooms in its own capital and in the capital of the other Party.

2.    Each Party shall provide nationals and companies of the other Party with access to available non-confidential, non-proprietary data on the national economy and individual sectors, including information on foreign trade.

3.    Each Party shall allow the other Party the opportunity to comment on the formulation of rules and regulations which affect the conduct of business activities.
ARTICLE VIII

FINANCIAL PROVISIONS RELATING TO TRADE
IN PRODUCTS AND SERVICES



1.    Unless otherwise agreed between the parties to individual transactions, all commercial transactions between nationals and companies of the Parties shall be made in United States dollars or any other currency that may be designated from time to time by the International Monetary Fund as being a freely usable currency.

2.    Neither Party shall restrict the transfer from its territory of convertible currencies or deposits, or instruments representative thereof, obtained in connection with trade in products and services by nationals and companies of the other Party.

3.    Nationals and companies of a Party holding currency of the other Party received in an authorized manner may deposit such currency in financial institutions located in the territory of the other Party and may maintain and use such currency for local expenses.

4.    Without derogation from paragraphs 2 or 3 of this Article, in connection with trade in products and services, each Party shall grant to nationals and companies of the other Party the better of most-favored-nation or national treatment with respect to:
ARTICLE IX

PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

1.    Each Party shall provide adequate and effective protection and enforcement for patents, trademarks, copyrights, trade secrets, industrial designs and layout designs for integrated circuits.  Each Party agrees to adhere to the Paris Convention for the Protection of Industrial Property as revised at Stockholm in 1967, the Berne Convention for the Protection of Literary and Artistic Works as revised at Paris in 1971, the Universal Copyright Convention of September 6, 1952 as revised at Paris on July 24, 1971, and the Geneva Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of their Phonograms (1971).

2.    To provide adequate and effective protection and enforcement of intellectual property rights, each Party shall, inter alia, observe the following commitments:(viii) Transfer(c) Patents

ARTICLE X
AREAS FOR FURTHER ECONOMIC AND TECHNICAL COOPERATION

1.   For the purpose of further developing bilateral trade and providing for a steady increase in the exchange of products and services, both Parties shall strive to achieve mutually acceptable agreements on taxation and investment issues, including the repatriation of profits and transfer of capital.

2.   The Parties shall take appropriate steps to foster economic and technical cooperation on as broad a base as possible in all fields deemed to be in their mutual interest, including with respect to statistics and standards.

3.   The Parties, taking into account the growing economic significance of service industries, agree to consult on matters affecting the conduct of service business between the two countries and particular matters of mutual interest relating to individual service sectors with the objective, among others, of attaining maximum possible market access and liberalization.

ARTICLE XI

MARKET DISRUPTION SAFEGUARDS

1.   The Parties agree to consult promptly at the request of either Party whenever either actual or prospective imports of products originating in the territory or the other Party cause or threaten to cause or significantly contribute to market disruption.  Market disruption exists within a domestic industry whenever imports of an article, like or directly competitive with an article produced by such domestic industry, are increasing rapidly, either absolutely or relatively, so as to be a significant cause of material injury, or threat thereof, to such domestic industry.

2.    Determination of market disruption or threat thereof by the importing Party shall be based upon a good faith application of its laws and on an affirmative finding of relevant facts and on their examination.  The importing Party, in determining whether market disruption exists, may consider, among other factors, the volume of imports of the merchandise which is the subject of the inquiry; the effect of imports of the merchandise on prices in the territory of the importing Party for like or directly competitive articles; the impact of imports of such merchandise on domestic producers of like or directly competitive articles; and evidence of disruptive pricing practices or other efforts to unfairly manage trade patterns.

3.   The consultations provided for in paragraph 1 of this Article shall have the objectives of (a) presenting and examining the factors relating to such imports that may be causing or threatening to cause or significantly contributing to market disruption, and (b) finding means of preventing or remedying such market disruptions.  Such consultations shall be concluded within sixty days from the date of the request for such consultation, unless the Parties otherwise agree.

4.   Unless a different solution is mutually agreed upon during the consultations, and notwithstanding paragraphs I and 2 of Article 1, the importing Party may (a) impose quantitative import limitations, tariff measures or any other restrictions or measures it deems appropriate to prevent or remedy threatened or actual market disruption, and (b) take appropriate measures to ensure that imports from the territory of the other Party comply with such quantitative limitations or other restrictions.  In this event, the other Party shall be free to deviate from its obligations under this Agreement with respect to substantially equivalent trade.

5.   Where in the judgment of the importing Party, emergency action is necessary to prevent or remedy such market disruption, the importing Party may take such action at any time and without prior consultations provided that such consultations shall be requested immediately thereafter.

6.    In the selection of measures under this Article, the Parties shall endeavor to give priority to those which cause the least disturbance to the achievement of the goals of this Agreement.

7.    Each Party shall ensure that its domestic procedures for determining market disruption are transparent and afford affected parties an opportunity to submit their views.

8.    The Parties acknowledge that the elaboration of the market disruption safeguard provisions in this Article is without prejudice to the right of either Party to apply its laws and regulations applicable to trade in textiles and textile products and its laws and regulations applicable to unfair trade, including antidumping and countervailing duty laws.
ARTICLE XII
DISPUTE SETTLEMENT

1.   Nationals and companies of either Party shall be accorded national treatment with respect to access to all courts and administrative bodies in the territory of the other Party, as plaintiffs, defendants or otherwise.  They shall not claim or enjoy immunity from suit or execution of judgment, proceedings for the recognition and enforcement of arbitral awards, or other liability in the territory of the other Party with respect to commercial transactions; they also shall not claim or enjoy immunities from taxation with respect to commercial transactions, except as may be provided in other bilateral agreements.

2.   The Parties encourage the adoption of arbitration for the settlement of disputes arising out of commercial transactions concluded between nationals or companies of the United States and nationals or companies of the Republic of Albania.  Such arbitration may be provided for by agreements in contracts between such nationals and companies, or in separate written agreements between them.

3.   The parties may provide for arbitration under any internationally recognized arbitration rules, including the UNCITRAL Rules of December 15, 1976 and any modifications thereto, in which case the parties should designate an Appointing Authority under said rules in a country other than the United States or the Republic of Albania.

4.   Unless otherwise agreed between the parties, the parties should specify as the place of arbitration a country other than the United States or the Republic of Albania, that is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York, June 10, 1958.

5.   Nothing in this Article shall be construed to prevent, and the Parties shall not prohibit, the parties from agreeing upon any other form of arbitration or an the law to be applied in such arbitration, or other forms of dispute settlement which they mutually prefer and agree best suits their particular needs.

6.   Each Party shall ensure that an effective means exists within its territory for the recognition and enforcement of arbitral awards.

ARTICLE XIII
NATIONAL SECURITY

    The provisions of this Agreement shall not limit the right of either Party to take any action for the protection of its security interests.

ARTICLE XIV

CONSULTATIONS

1.   The Parties agree to set up a Joint Commercial Commission which will, subject to the terms of reference of its establishment, foster economic cooperation and the expansion of trade under this Agreement and review periodically the operation of this Agreement and make recommendations for achieving its objectives.

2.   The Parties agree to consult promptly through appropriate channels at the request of either Party to discuss any matter concerning the interpretation or implementation of this Agreement and other relevant aspects of the relations between the Parties.
ARTICLE XV

DEFINITIONS

    As used in this Agreement, the terms set forth below shall have the following meaning:
(c) "national," means a natural person who is a national of a Party under its applicable law.
ARTICLE XVI

GENERAL EXCEPTIONS

1.   Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail, or a disguised restriction on international trade, nothing in this Agreement shall be construed to prohibit the adoption or enforcement by a Party of:
2.   Nothing in this Agreement limits the application of any existing or future agreement between the Parties on trade in textiles and textile products.
ARTICLE XVII
ENTRY INTO FORCE, TERM, SUSPENSION AND TERMINATION

1.   This Agreement (including its side letters which are an integral part of the Agreement) shall enter into force on the date of exchange of written notices of acceptance by the two governments and shall remain in force as provided in paragraphs 2 and 3 of this Article.

2.   (a) The initial term of this Agreement shall be three years, subject to subparagraph (b) and (c) of this paragraph.
3.   This Agreement shall be extended for successive terms of three years each unless either Party has given written notice to the other Party of its intent to terminate this Agreement at least 30 days prior to the expiration of the then current term.

   IN WITNESS THEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.       DONE at            on this   day of  
1992, in two original copies in the English language.  An Albanian language text shall be prepared which shall be considered equally authentic upon an exchange of diplomatic notes confirming its conformity with the English language text.

FOR THE REPUBLIC                           FOR THE UNITED OF ALBANIA: STATES OF AMERICA:



TERMS OF REFERENCE
THE U.S.-ALBANIA JOINT COMMERCIAL COMMISSION


   The U.S.-Albania Joint Commercial Commission is established pursuant to Article XIV of the Agreement on Trade Relations Between the Government of the United States of America and the Government of the Republic of Albania of May 14, 1992 (hereinafter the "Agreement"), to facilitate the development of commercial relations and related economic matters between the United States and the Republic of Albania (hereinafter the "Parties").

     The Commission shall, as appropriate and feasible, formulate recommendations on the basis of mutual consent.

      The Commission may, as appropriate and feasible:      The Commission shall be comprised of two sections, a U.S. section and an Albania section.  Each section shall be composed of a chairman and other government officials as designated by each Party.
   
   Appropriate officials from the U.S. Department of Commerce and the Albanian Ministry of Trade and Foreign Economic Relations shall act as co-chairs of the Commission, and shall head their respective sections.
     
     The Commission shall meet in Washington or Tirane, as mutually agreed by the Parties.

    The Commission may, as mutually agreed, establish joint working groups to consider specific matters.  Such working groups shall operate on the basis of mutual agreement.

    Expenses incidental to the meetings of the Commission and any working group established by the Commission shall be borne by the host Party.  Travel expenses from one Party to the other, as well as living and other personal expenses of representatives participating in meetings of the Commission and any working group of the Commission, shall be borne by the Party which sends such persons to represent it.

   Each section may invite advisers and experts to participate at any meeting of the Commission or its working groups, except that such participation must be mutually agreed by the Parties in advance of the meeting.

    These terms of reference may be amended by mutual agreement of the Parties.

     DONE at Washington, May 14, 1992, in two originals in the English language.  An Albanian language text shall be prepared which shall be considered equally authentic upon an exchange of diplomatic notes confirming its conformity with the English language text.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT UNITED STATES OF AMERICA: OF THE            
       REPUBLIC OF                                       ALBANIA:

Thomas J. Duesterberg Naske Afezolli
Assistant Secretary                        Minister
U.S. Department of Commerce
Deputy                                                          
and Foreign  
                                       Economic Relations


Washington, May 14, 1992

Dear Mr. Secretary:

I have the honor to confirm receipt of your letter of todays date which reads as follows:

Official Tourism Promotion Offices

John G. Keller, Jr.
Under Secretary for
Travel and Tourism
e) performing market research

Commercial Tourism Enterprises

I have the further honor to confirm that the foregoing understanding is shared by my Government and constitutes an integral part of the Agreement.

Sincerely,

Naske Afezolli
Deputy Minister
Ministry of Trade and
Economic Relations.


UNITED STATES DEPARTMENT OF COMMERCE
The Under Secretary for Travel and Tourism
Washington, D.C. 20230

Washington, May 14, 1992

Dear Mr. Deputy Minister:


Official Tourism Promotion Officese) performing market research

Commercial Tourism Enterprises

Sincerely,

John G. Keller, Jr.
Under Secretary