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ANNEX 13C

                          APPLICATION OF ARTICLE 13.3 (APPROPRIATE MEASURES
                         AGAINST ANTI-COMPETITIVE ACTIVITIES) AND ARTICLE 13.4
                                           (COOPERATION) TO LAO PDR


                       1.     If, as of the date of entry into force of this Agreement, Lao PDR
                              has not complied with the obligations under paragraphs 1 and 2
                              of  Article  13.3  (Appropriate  Measures  against  Anti-Competitive
                              Activities), Lao PDR shall comply with those obligations no later
                              than  three  years  after  the  date  of  entry  into  force  of  this
                              Agreement.

                       2.     Paragraphs 3 through 11 of Article 13.3 (Appropriate Measures
                              against Anti-Competitive Activities) and Article 13.4 (Cooperation)
                              shall apply to Lao PDR as soon as it complies with the obligations
                              under paragraphs 1 and 2 of Article 13.3 (Appropriate Measures
                              against Anti-Competitive Activities) and, in any case, no later than
                              three years after the date of entry into force of this Agreement.

                       3.     During the three-year transitional period, Lao PDR shall take such
                              steps as may be necessary to ensure that it is in compliance with
                              Article  13.3  (Appropriate  Measures  against  Anti-Competitive
                              Activities) and Article 13.4 (Cooperation) by the end of the three-
                              year period and shall endeavour to comply with the obligations
                              under those Articles before the end of such period.

                       4.     On request of a Party, Lao PDR shall inform the Parties of its
                              progress since the date of entry into force of this Agreement in
                              developing  and  adopting  appropriate  competition  laws  and
                              regulations and in establishing an authority or authorities for the
                              effective implementation of those laws and regulations.

























                                                          13C-1
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