Framework Agreement on the BIMST-EC Free Trade Area

ARTICLE 4
Trade in Services

With the view to expediting the expansion of trade in services, the Parties agree to enter into negotiations to progressively liberalise trade in
services with substantial sectoral coverage through a positive list approach. Such negotiations shall be directed to:

(a) progressive elimination of substantially all discrimination between or among the Parties and/or prohibition of new or more discriminatory
measures with respect to trade in services between the Parties, except for measures permitted under Article V(1) (b) of the WTO General Agreement on Trade in Services (GATS);

(b) expansion in the depth and scope of liberalisation of trade in services beyond those undertaken by the Parties under the GATS;

(c) enhance cooperation in services among the Parties in order to improve efficiency and competitiveness, as well as to diversify the
supply and distribution of services of the respective service suppliers of the Parties.

ARTICLE 5
Investment

To promote investments and to create a facilitative, transparent and competitive investment regime, the Parties agree to:

(a) provide for the promotion and protection of investments;

(b) strengthen cooperation in investment, facilitate investment and improve transparency of investment rules and regulations; and

(c) enter into negotiations in order to progressively liberalise the investment regime through a positive list approach.

ARTICLE 6
Areas of Economic Cooperation

l. The Parties agree to strengthen cooperation in the already identified sectors of technology, transportation and communication,
energy, tourism and fisheries.

2. The Parties further agree to enhance trade facilitation in areas, including but not limited to, the following:

(a) Mutual Recognition Arrangements (MRAs), conformity assessment, accreditation procedures, and standards & technical regulations;

(b) Customs cooperation;

(c) Trade finance;

(d) E-commerce; and

(e) Business visa and travel facilitation.

3. The Parties agree to implement capacity building programmes and technical assistance, particularly for the least developed countries of the BIMST-EC, in order to adjust their economic structure and expand their trade and investment with other Parties.

4. The Parties further agree to provide technical support, to the extent possible, to the LDC Parties in their efforts to comply with the SPS
and TBT requirements of the BIMST-EC countries. For this purpose, bilateral negotiations for fast tracking the process of MRAs, conformity assessment, accreditation procedures or any other necessary arrangements will be carried out in parallel with negotiations for PTA in goods.

ARTICLE 7
Timeframes

l. The negotiations for tariff reduction/elimination and other matters as set out in Article 3 of this Agreement shall commence in July 2004
and be concluded by December 2005 .

2. For trade in services and investments, the negotiations on respective agreements shall commence in 2005 and be concluded by
2007. The identification, liberalisation, etc., of the sectors of services and investments shall be finalized for implementation subsequently in
accordance with the timeframes to be mutually agreed; (a) taking into account the sensitive sectors of the Parties; and (b) with special and
differential treatment and flexibility for the LDC Parties.

3. The Parties shall continue to build upon existing or agreed programmes, develop new economic cooperation programmes and
conclude agreements on various areas of economic cooperation. The Parties shall do so expeditiously for early implementation in a manner
and at a pace acceptable to all the Parties concerned.

ARTICLE 8
General Exceptions

Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable
discrimination between or among the Parties where the same conditions prevail, or a disguised restriction on trade within the BIMST-EC, nothing in this Agreement shall prevent any Party from taking action and adopting measures for the protection of its national security or the
protection of articles of artistic, historic and archaeological value, or such other measures which it deems necessary for the protection of public morals, or for the protection of human, animal or plant life, health and conservation of exhaustible natural resources.

ARTICLE 9
Dispute Settlement Mechanism

1. The Parties shall establish appropriate formal dispute settlement procedures and mechanism for the purpose of this Agreement by
December 2005.

2. Pending the establishment of the formal dispute settlement procedures and mechanism under paragraph 1 of this Article, any dispute arising between the Parties regarding the interpretation, application or implementation of this Agreement shall be settled amicably through
mutual consultations.

ARTICLE 10
Institutional Arrangements

1. BIMST-EC Trade Negotiating Committee (BIMST-EC TNC) shall be established to carry out the programme of negotiations as set out in this Agreement.

2. The BIMST-EC TNC may involve other experts or establish any working group as may be necessary to assist in their negotiations, as
also to coordinate and implement any economic cooperation activities undertaken pursuant to this Agreement.

3. The BIMST-EC TNC shall regularly report to the BIMST-EC Trade/Economic Ministers through the Senior Trade and Economic
Officials Meeting on the progress and outcome, of its negotiations.

ARTICLE 11
Amendments

The provisions of this Agreement may be modified through amendments mutually agreed upon in writing by the Parties.

ARTICLE 12
Miscellaneous Provisions

1. Any subsidiary agreement or arrangement, which may be concluded by the Parties pursuant to the provisions of this Agreement,
shall form an integral part of this Agreement and be binding on the Parties.

2. Except as otherwise provided in this Agreement, any action taken under it shall not affect or nullify the rights and obligations of a Party
under other agreements or arrangements to which it is a party.

3. The Parties shall endeavor to refrain from increasing restrictions or limitations that would affect the application of this Agreement.

ARTICLE 13
Withdrawal from the Agreement

l. A Party may withdraw from the Agreement by giving a six months' notice in writing to the other Parties.

2. Subject to the dispute settlement procedures and mechanisms to be established pursuant to Article 9, the rights and obligations of a
Party which has withdrawn from this Agreement shall cease to apply six months after the date of such notice.

ARTICLE 14
Accession

1. This Agreement shall be open for accession to any member country of BIMST-EC which notifies its intention in writing to the Parties.

2. Accession shall be subject to acceptance by that country of all the rights and obligations accrued as on the date of accession, and such
other terms and conditions as may be agreed by the Parties.

3. The acceding country may become a Party to this Agreement by submitting an instrument of accession through diplomatic channels to
the Parties.

ARTICLE 15
Entry into Force

1. This Agreement shall enter into force on 30th June 2004, by which time the Parties undertake to complete their internal procedures required for this purpose.

2. A Party shall, upon the completion of its internal procedures for entry into force of this Agreement, notify all other Parties in writing
through diplomatic channels. IN WITNESS WHEREOF,. the undersigned, being duly authorised thereto by their respective Governments, have signed this Framework Agreement on BIMST-EC Free Trade Area.

Done in Phuket, Kingdom of Thailand, on 8th February 2004 in
Six (6) originals in the English language.

For the Government of the Kingdom of Bhutan

(H.E. Lyonpo Chenkyab Dorji)
Ambassador of Bhutan in Thailand

For the Government of Republic of India

(H.E. Mr. Arun Jaitley)
Minister of Commerce and Industry

For the Government of Union of Myanmar

(H.E. Brigadier General Pyi Sone)
Minister of Commerce

For His Majesty's Government of Nepal

(H.E. Dr. Bhekh B. Thapa)
Ambassador-at-Large

For the Government of the Democratic Socialist Republic of Sri Lanka

(H.E. Mr. Ravi Karunanayake)
Minister of Commerce and Consumer Affairs

For the Government of the Kingdom of Thailand

(H.E. Mr. Watana Muangsook)
Minister of Commerce