RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG67/2
24 June 1999
(99-2582)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND THE CZECH REPUBLIC
Communication from the Parties
The following communication has been received from the Permanent Missions of the Turkey
and the Czech Republic with the request that it be circulated to Members.
_______________
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership, Dates of Signature, Ratification and Entry into Force
The Parties to the Agreement are the Republic of Turkey and the Czech Republic. The
Agreement applies in respect of the territory to which the customs laws of Turkey and the Czech
Republic are applicable respectively.
The free-trade area Agreement between Turkey and the Czech Republic was signed on
3 October 1997 in Ankara and entered into force on 1 September 1998 after the completion of thelegal internal ratification procedures of the two Parties.
2. Type of Agreement
The Agreement establishes a free-trade area in  conformity with the definition set out in
Article XXIV:8(b) of GATT 1994.
3. Scope
The free-trade area established by this Agreement, provides the framework for trade relations
between Turkey and the Czech Republic.
The provisions of the free trade Agreement apply to industrial and agricultural products
falling within Chapters 1 to 97 of the Harmonized System.  For further development of the relations
established by the Agreement, it contains provisions providing the opportunity of extending theserelations to fields not covered thereby.
In order to ensure the proper functioning of the free-trade area, the Agreement contains
provisions, inter alia , on state-aid, state monopolies, competition, government procurement and
intellectual property rights.WT/REG67/2
Page 2
4. Trade Data
The trade coverage of the Agreement in tota l trade between the Parties is as follows:
Imports of the Czech Republic from Turkey (1,000 US$)
Year Total Trade Trade Covered % of trade covered
1995 61,318 59,489 97
1996 78,561 75,418 96
1997 70,158 68,755 98
Imports of Turkey from the Czech Republic (1,000 US$)
Year Total Trade Trade Covered % of trade covered
1995 104,531 81,888 78
1996 108,442 91,631 84
1997 98,491 98,336 100
See also Annex.
II. TRADE PROVISIONS
The Parties mutually exchanged concessions on all industrial  products.  Turkey and the
Czech Republic granted each other preferential market access for a  number of agricultural products.
1. Import Restrictions
All customs duties and charges having equivalent effect on imports of industrial products,
except for those classified as sensitive, were abolished on 1 September 1998.  As for the sensitive
products, customs duties and charges having equivalent effect will be gradually eliminated by1 January 2001.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on imports according to Article 7.
2. Export Restrictions
Under Article 6, prohibition of new customs duties or charges having equivalent effect on
exports between the Parties is stipulated.  All existing duties and charges having equivalent effect on
exports applied to industrial products are abolished with the entry into force of the Agreement.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on exports.WT/REG67/2
Page 3
3. Rules of Origin
The rules of origin on trade between Turkey and the Czech Republic, defined in Protocol 3 of
the Agreement, are based on the sufficient working or processing criteria. In general, origin is
conferred when:
- the good is wholly obtained or produced in the territory of a Party;- each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification set out in the specific rule for that good, and
the good satisfies any other applicable requirement set out in that rule, as a result of
production occurring entirely in the territory of one or both of the Parties:
- the good is produced entirely in the territory of one or both of the Parties exclusively
from originating materials; or,
- other particular circumstances as set out in Protocol 3.As stated in the Joint Declaration on Protocol 3, the rules of origin enable extended
cumulation of products between Turkey, the Czech Republic, EU countries, EFTA countries and
Central and Eastern European Countries when the necessary procedures have been completed.  Until
that time, diagonal cumulation will be implemented in relation with the Czech Republic.
5. Safeguards
The Agreement permits the application of safeguard measures in the case of dumping
(Article 24), emergency action on imports of particular products (Article 26), measures relatingstructural adjustment (Article 27) and re-export and serious shortage (Article 28), state-aid
(Article 21) provisions concerning rules of competition (Article 20) between the Parties.
In the case of balance of payments difficulties, Article 31 of the Agreement gives to the
Parties the right of adopting restrictive measures in accordance with the conditions laid down within
the framework of GATT 1994 and with Article VIII of the Articles of Agreement of the International
Monetary Fund.
The procedure for the application of these measures is laid down in Article 30 of the
Agreement.
6. Anti-Dumping and Countervailing Measures
Article 24 of the Agreement states that if a Party finds that dumping is taking place in trade
with the other Party within the meaning of Article VI of the GATT, it may take appropriate measures
against this practice in accordance with  the Agreement on Implementation of Article VI of the
GATT 1994, under the conditions and in accordance with the procedures laid down in Article 30.Through this Article the conformity with GATT 1994 rules has been provided.
7. Subsidies and State-Aid
The Agreement evaluates “state-aid” issue in the context of distortion of competition.
According to Article 21 of the Agreement, the Pa rties shall ensure transparency in the area of
state-aid, in accordance with the Agreement on Subsidies and Countervailing Measures and the
GATT 1994.WT/REG67/2
Page 4
Against the improper practices of a Party, Article 21 of the Agreement gives the right to the
other Party to take appropriate measures.
7. Sector-Specific Provisions
Agriculture
Under Article 11 of the Agreement the Parties has declared their readiness to foster, on a
mutually advantageous and reciprocal basis, the harmonious development of trade in agricultural
products and to discuss this issue periodically in the Joint Committee.  The conditions of concessions
granted in trade on agricultural products between the Parties are laid down in Protocol 2 to the
Agreement.
9. Other
Cooperation in Customs Administration
A framework was established for cooperation in customs administration with Article 14 and
Protocol 3 on the definition of the concept of “ori ginating products” and methods of administrative
cooperation between the Parties.
State MonopoliesUnder Article 18 of the Agreement, the Parties agreed to adjust progressively any state
monopoly of a commercial character so as to ensure that by 1 July 1999 no discrimination regarding
the conditions under which goods are procured and marketed exists between the nationals of the
parties.
Internal TaxationAny measures or practice of an internal fiscal nature establishing discrimination between the
products originating in Turkey and the Czech Republic has been prohibited with Article 15.  This
Article also prohibits repayment of indirect intern al taxation in excess of the amount of indirect or
direct taxes on exports.
Intellectual Property RightsThe protection of intellectual property is addressed in Article 25.  The Parties shall grant and
ensure adequate, effective and non-discriminatory protection of intellectual property rights includingmeasures for the grant and the enforcement of such rights.
PaymentsAccording to Article 19 of the Agreement, paymen ts in freely convertible currencies relating
to commercial transactions within the framework of  the Agreement and transfer of such payments to
the territory of the each Party shall be free from any restriction.
In the same Article, it is also stated that any measure concerning current payments taken by
either side connected with the movement of goods shall be in conformity with the conditions laid
down in Article VIII of the Articles of Agreement of the International Monetary Fund.WT/REG67/2
Page 5
Public Procurement
The Parties recognize, under Article 22, the liberalization of their respective public
procurement  markets as objective of  the free-trade area Agreement and shall progressively develop
their respective regulations for public procurement.  The progress in this field will be reviewed in theJoint Committee.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
 This Agreement will not preclude prohibitions or restrictions on imports, exports or goods in
transit justified  on grounds of public morality, public order or public security; the protection of health
and life of humans, animals or plants and of the environment; the protection of national treasures
possessing artistic, historic or archeological value; or the protection of intellectual, industrial and
commercial property, or the rules relating to gold or silver or to the conservation of exhaustiblenatural resources.
The Agreement allows the Parties to take appropriate measures, with concerns of security, in
the cases specified in Article 17.
2. Accession
There is no provision in the Agreement allowing other countries to accede to the free-trade
area.
3. Dispute Settlement Procedures
A Joint Committee, which is responsible for the administration of the Agreement and its
proper implementation, has the authority to take decisions on issues mentioned in various Articles of
the Agreement. In the procedure for application of safeguard measures relating to “Dumping”, “Rules
of competition concerning undertakings”, “State-aid”, “Fulfilment of obligations” and “Re-export and
Serious Shortage”, the Joint Committee has also commissioned actively  as a competent authority inArticle 30 of the Agreement.
4. Relation with Other Trade Agreements
Regarding “basic duties” defined in Article 4, the Agreement envisages that any tariff
reduction applied on an erga omnes  basis be replaced by former basic duty.
The Agreement stipulates that rights and ob ligations relating to certain matters namely
anti-dumping measures, balance of payments, state-aid, technical barriers to trade, sanitary and
phytosanitary measures will be in conformity with the relevant WTO Agreements.
The Agreement stipulates that measures concerning current payments connected with the
movement of goods and rules on balance of payment difficulties shall be in conformity with the
Article VIII of the Articles of Agreement of the International Monetary Fund.WT/REG67/2
Page 6
5. Institutional Framework
The Agreement establishes a Joint Committee under Article 33, which is responsible for
administration of the Agreement and shall meet at least once a year to monitor the implementation of
it.WT/REG67/2
Page 7
ANNEX
Imports into the Czech Republic from Republic of Turkey
1995 1996 1997 HS Code
US$ Percentage
ShareUS$ Percentage
ShareUS$ Percentage
Share
01
02
03
04 4 0
05 23,418 0.0334
06 23 0 71 0.0001
07 1,546,639 2.5224 2,040,836 2.5978 3,129,406 4.4607
08 10,736,225 17.5092 10,982,285 13.9793 11,889,521 16.9478
09 62,779 0.1026 94,646 0.1204 147,184 0.2098
10
11 18,956 0.0241
12 50,839 0.0829 166,337 0.2118 362,574 0.5168
13
14 269 0.0003 373 0.0006
15 23 0
16 116,093 0.1893 14,226 0.0181 50,199 0.0716
17 307,350 0.5012 438.213 0.5579 334,308 0.4766
18 156,245 0.2548 247,327 0.3148 134,206 0.1914
19 565,742 0.9227 851,695 1.084 850,004 1.2116
20 393,142 0.6413 836,852 1.0653 682,212 0.9723
21 50,796 0.0647 28,517 0.0405
22 1,316 0.0016 20,371 0.029
23
24 9,433,947 15.3853 15,836,490 20.1582 8,775,557 12.509
25 14,359 0.0234 155,683 0.1982 108,633 0.1549
26 21,155 0.0345 653 0.0008
27
28 1,940,430 3.1645 2,320,965 2.9543 4,629,109 6.5985
29 247 0.0004 214,044 0.3051
30 1,584,117 2.5835 1,906,078 2.4262 1,993,719 2.8421
31
32 1,266 0.0021 1,108 0.0014 115 0.0002
33 135,549 0.2209 74,388 0.0947 140,797 0.2006
34 1,508,092 2.4595 1,500,005 1.9093 980,910 1.3982
35 111 0.0002 71 0.0001
36 5 0 34 0
37 99 0.0002 298 0.0004 101 0.001
38 384 0.0006
39 880,775 1.4364 916,697 1.1665 455,257 0.6488
40 222,749 0.3633 127,760 0.1628 384,946 0.5487
41 32,237 0.0525 6,026 0.0077 45,498 0.0649
42 1,521,743 2.4818 1,310,853 1.6686 967,515 1.3792
43 219,087 0.3574 140,144 0.1784 208,543 0.2973
44 972,283 1.5856 861,999 1.0971 588,626 0.8389
45
46 31 0 258 0.0003 43 0.0001
47
48 195,825 0.3191 18,799 0.0239 356,317 0.5079
49 21,347 0.0348 26,624 0.0339 10,397 0.0149
50 824 0.001 2 0
51 25 0 1,711 0.0021 58,615 0.0836
52 4,154,855 6.7761 11,115,820 14.1493 5,356,673 7.6354
53 5,905 0.0075 17 0WT/REG67/2
Page 8
1995 1996 1997 HS Code
US$ Percentage
ShareUS$ Percentage
ShareUS$ Percentage
Share
54 1,797,979 2.9321 2,361,494 3.0058 2,121,171 3.0235
55 1,198,772 1.9555 1,855,766 2.3624 1,874,653 2.6721
56 4,300 0.007 2,105 0.0026 6,945 0.0099
57 93,074 0.1518 113,073 0.1437 61,454 0.0876
58 85,996 0.1403 146,271 0.1861 141,676 0.2019
59 35,475 0.0579 73,060 0.0929 32,614 0.0464
60 6,395 0.0104 415 0.0005 17,823 0.0255
61 4,842,784 7,8977 5,136,211 6.5379 3,838,228 5.4707
62 4,285,478 6.9891 5,298,696 6.7441 4,757,134 6.7813
63 90,962 0.1486 114,509 0.1458 410,389 0.5848
64 622,950 1.0156 442,674 0.5635 423,524 0.6033
65 11,264 0.0183 17,005 0.0217 20,518 0.0292
66 66 0.0001 38 0 392 0.0005
67 42 0.0001 1,588 0.002 920 0.0013
68 34,654 0.0565 12,676 0.0161 4,276 0.0062
69 42,738 0.0697 302,619 0.3852 95,256 0.1358
70 62,489 0.1019 206,524 0.2626 256,660 0.3658
71 2,930,805 4.7799 2,857,587 3.6374 2,491,842 3.5518
72 17,509 0.0286 23,945 0.0305 114,178 0.1629
73 1,028,449 1.6772 1,010,390 1.2861 1,334,436 1.9019
74 71 0.0001 5,311 0.0069 5,765 0.0083
75
76 6,466 0.0104 24,354 0.031 78,146 0.1113
77
78
79 67 0.0001
80
81 5,546 0.009
82 21,189 0.0346 33,435 0.0427 38,669 0.0551
83 156,211 0.2547 264,320 0.3364 191,505 0.2728
84 1,010,626 1.6485 834,159 1.0615 1,446,473 2.0619
85 4,358,904 7.1089 1,686,964 2.1475 2,943,914 4.1961
86
87 265,852 0.4337 1,266,483 1.6123 2,177,261 3.1034
88
89
90 506,558 0.826 692,576 0.8816 230,879 0.329
91 31,013 0.0506 2,120 0.0027 23,199 0.0329
92 2,253 0.0028 7,939 0.0114
93 27,465 0.035 7,729 0.011
94 520,549 0.849 1,153,799 1.4684 1,723,376 2.4564
95 39,025 0.0636 19,426 0.0247 9,854 0.0139
96 407,333 0.6645 498,425 0.6345 336,483 0.4797
97 80
Suma 61,317,275 100.0000 78,560,606 100.0000 70,153,282 100.000WT/REG67/2
Page 9
Turkey – Total Imports from Czech Republic
HS Chapter 1995 1996 1997
15 7 8 2 0
30 0 0
4 388 645 25
60 0 0
9 0 0 102
10 22,316 15,381 0
12 21 0 58
18 0 0 0
22 0 58 0
24 0 856 0
25 3 15 11
27 0 0 0
28 210 71 93
29 2,014 2,281 1,600
30 74 121 219
31 0 13 0
32 1,888 1,749 1,562
34 1 3 1
35 11 0 95
36 0 0 653
37 0 3 0
38 147 226 77
39 3,458 2,624 1,443
40 218 571 792
41 26 65 53
42 5 0 8
43 0 13 0
44 0 2 54
45 2 0 0
46 0 1 0
48 1,656 745 3,210
49 31 92 49
51 3,203 986 1,482
52 254 342 416
53 6 0 15
54 1,205 712 670
55 1,919 409 324
56 79 108 47
57 0 2 1
58 79 311 247
59 1 32 40
60 0 0 43
61 1 3 2
62 8 1 30
63 0 4 4
64 10 9 35
65 62 51 33
66 6 18 6
68 20 159 91
69 274 434 135
70 1,685 1,878 2,559
71 94 158 132
72 5,272 5,524 3,954
73 7,781 8,957 20,743
74 0 0 0
76 2,162 1,232 37
82 195 310 395
83 209 253 198WT/REG67/2
Page 10
HS Chapter 1995 1996 1997
84 17,280 29,067 15,461
85 2,149 2,600 2,227
86 0 3 0
87 17,430 24,551 28,291
88 0 0 2
90 257 472 337
91 5 6 1
92 23 75 303
93 10,134 3,953 9,794
94 27 54 175
95 0 28 1
96 175 117 144
97 5 5 17
Total 104,531 108,442 98,491
Trade Covered 81,749 91,422 98,307
% of Coverage 78 84 100
__________