Agreement on Economical, Trade and Technical Co-operation between Government of State of Kuwait and Government of Hash mite Kingdom of Jordan.
In confirmation of national ties and support of Arab fraternity bonds which bring two brother countries together and believing combined Arab determination, desiring to strengthen and develop the existing relations of economic, trade and technical co-operation between them and in harmony with the charter of Arab League, the two governments, State of Kuwait and Hash mite Kingdom of Jordan, referred to them herein after as contracting parties, agreed as follows:
The two parties shall work to strengthen and deepen the trade and economical ties between them by all means and possibilities including the expansion of field in different trade and economical activities for individuals and corporate in their countries in harmony with the requirements of development there.
Two contracting parties will take steps to increase and diversify the volume of trade between them and remove all blockades coming between as per system and laws observed in each of the two countries.
I. Agricultural, animal and natural resources products which are produced by either contracting party, shall be exempted completely from tariff duties and import duties.
II. Industrial products shall be exempted from customs duties and other duties which are produced by either contracting party and imported by other contracting party excluding the products set forth in the schedules agreed by the two contracting parties.
III. The products included in the schedules set forth in Para (B) shall be exempted gradually at the ration of 30% p.a. over the maximum period of five years from the date of the effect hereof.
Every industrial product, of which cost of raw material of Arabian origin, local workmanship and other local production costs, is not less than 40% of total production costs, shall be considered as an industrial product of Kuwait or Jordanian origin. Product & output imported from/to the country of either contracting party to the country of other contracting party shall be accompanied with certificate of origin issued by concerned authorities in the exporting country.
The two contracting parties shall encourage for establishing permanent and temporary specialized fairs in each of the two countries with the view of widening the introduction of their products. Likewise they will encourage for exchanging official and non-official delegations and information of about foreign trade as well as enhancing the role of trade centers and importance of their establishment in both countries as per laws and systems observed.
Every contracting party shall encourage the investments of other contracting party in his country and such investments shall be accepted in the fields allowed as per systems and laws observed in each contracting party. The two contracting parties will work for encouraging to set up joint projects in public sector and private sector in different economic activities to serve the mutual interests of two contracting parties.
I. The investments and returns of the investments made by either contracting party or its individuals or corporate bodies in the country of other contracting party shall be given priority not less than the priority given to the investments and returns of investments made by any third country nevertheless as per laws effective in each of the two countries, as such investments shall have the advantage of encouragement and ordained protection of expatriates capital as per investment encouraging laws effective in each of the two countries in accordance with the agreements concluded in Arab League Zone in respect of investment of Arabian Capitals in Arab Countries which have been authenticated by each contracting party.
II. As for these investments will be provided suitable facilities, incentives and other encouraging forms including tax exemptions on borders and terms declared time to time with the agreement of two contracting parties.
III. Every contracting party should allow to transfer profits, interests and other proceeds result of investments mentioned above as well as should allow to of capital and retransfer and accrued funds out of total or partial liquidation of such investments in the same currency in which originally capital was brought for investment purposes or in any other currency convertible with full liberty and without delay.
The investment of either contracting party or his persons or corporate bodies can't be nationalized nor dispossessed neither subjugated for any actions equal to nationalization or dispossession inside the borders of other contracting party except due to public cause of that contracting party against a just momentary compensation. The amount of compensation shall be evaluated on the value of investments at the time of dispossession. And the compensation value shall be converted in the same currency in which it was brought for an investment or any other convertible currency.