RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG70/2
24 June 1999
(99-2581)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF TURKEY
AND THE REPUBLIC OF ESTONIA
Communication from the Parties
The following communication has been received from the Permanent Missions of Turkey and
Estonia with the request that it be circulated to Members.
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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 Republic of Estonia.  The
Agreement applies in respect of the territory to which the customs laws of Turkey and the Republic of
Estonia are applicable respectively.
The Free Trade Agreement between the Republic of Turkey and the Republic of Estonia was
signed on 3 June 1997 in Tallinn and entered into force on 1 July 1998 after the completion of the
legal 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 Republic of Estonia.
The provisions of the Agreement apply to agricultural and industrial 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 these relations 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, public procurement and intellectual
property rights.WT/REG70/2
Page 2
4. Trade Data
The trade coverage of the Agreement in tota l trade between the Parties is as follows:
Imports of the Republic of Estonia from Turkey (million US$)
Year Total Trade Trade Covered % of trade covered
1995 2.7 2.7 100
1996 6.6 6.6 100
1997 8.7 8.7 100
Imports of Turkey from the Republic of Estonia (million US$)
Year Total Trade Trade Covered % of trade covered
1995 9.4 9.4 100
1996 8 8 100
1997 11 11 100
See also Annex.
II. TRADE PROVISIONS
The Parties; Turkey and Estonia, mutually exchanged concessions on all industrial products.
Turkey and Estonia granted each other preferential market access for a number of products.
1. Import Restrictions
All customs duties and charges having equivalent effect on imports of industrial and
agricultural products into Estonia were abolished on 1 July 1998.  The Republic of Estonia has taken
derogation to introduce customs duties on imports on limited number of agricultural products
originating in Turkey which can only be applied for a limited time period.
All customs duties and charges having equivalent effect on imports of industrial products into
Turkey were abolished on 1 July 1998.  Turkey initially granted Estonia preferential market access for
a number of agricultural products under tariff quotas.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on imports.
2. Export Restrictions
Under Article 6, prohibition of new duties or ch arges 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/REG70/2
Page 3
3. Rules of Origin
The rules of origin on trade between Turkey and the Republic of Estonia, defined in the
Protocol 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 the Protocol.As stated in the Joint Declaration on the Protocol, the rules of origin enable extended
cumulation of products between Turkey, the Republic of Estonia, EU countries, EFTA countries and
Central and Eastern European Countries when the necessary procedures have been completed.
5. Safeguards
The Agreement permits the application of safeguard measures in the case of dumping
(Article 20), emergency action on imports of particular products (Article 17), measures relating
structural adjustment (Article 15) and re-export and serious shortage (Article 18), state-aid
(Article 24), provisions concerning rules of  competition (Article 24) between the Parties.
In the case of  balance of payments difficulties, Article 25 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 20 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 Article VI of the GATT 1994 and the rules established by
agreements related to that Article, under the condi tions and in accordance with the procedures laid
down in Article 20.  Through this Article  the co nformity with GATT 1994 rules has been provided.
7. Subsidies and State-Aid
The Agreement evaluates the “state-aid” issue in the context of distortion of competition.
According to Article 24 of the Agreement, the Pa rties will shall ensure transparency in the
area of state-aid.WT/REG70/2
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Against the improper practices of a Party, Article 24 of the Agreement gives the right to the
other Party to take appropriate measures.
8. Sector-Specific Provisions
Agriculture
The conditions of concessions in trade on agricultural products and agricultural policies
between the Parties are laid down in Chapter II of the Agreement.
9. Other
Cooperation in Customs Administration
A framework was established for cooperation in customs administration, with Article 21 and
the Protocol on the definition of the concept of “originating products” and methods of administrative
cooperation between the Parties.
State MonopoliesUnder Article 19 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 regardingthe conditions under which goods are procured and marketed exists between the nationals of the
Parties.
Internal Taxation
Any measures or practice of an internal fiscal nature establishing discrimination between the
products originating in Turkey and the Republic of Estonia has been prohibited with Article 13.  This
Article also prohibits repayment of indirect intern al taxation in excess of the amount of indirect or
direct taxes on exports.
Intellectual Property Rights
The protection of intellectual property is addressed in Article 26 of the Agreement.  The
Parties accepted to grant and ensure adequate and effective protection of intellectual property rights
on a non-discriminatory basis, including measures for granting and enforcing such rights.
PaymentsAccording to Article 23 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 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 International Monetary Fund.
Public ProcurementThe Parties recognize, under Article 27 of the Agreement, the liberalization of their respective
public procurement markets as objective of the free-trade area Agreement and shall progressivelyWT/REG70/2
Page 5
develop their respective regulations for public procurement.  The progress in this field will be
reviewed in the Joint Committee.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
All customs duties and charges having equivalent effect on imports applied to industrial and
agricultural products are abolished with the entry into force of the Agreement.  This, however, 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 orplants 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 gold or silver.
The Agreement allows the Parties to take appropriate measures, with concerns of security, in
the cases specified in Article 22.
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 been commissioned actively as a competent
authority in Article 20 of the Agreement.
4. Relation with Other Trade Agreements
Regarding “basic duties” defined in Article 2, the Agreement envisages any tariff reduction
applied on an erga omnes  basis, in particular reductions resulting from the tariff agreement concluded
as a result of the GATT Uruguay Round, Turkey - EU Customs Union or the Europe Agreement
between the EU and Estonia, replaces the former basic duty.
The Agreement stipulates that rights and ob ligations relating to certain matters, namely
anti-dumping measures, balance of payments, state-aid 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
Article VIII of the Articles of Agreement of the International Monetary Fund.
5. Institutional Framework
The Agreement, under Article 28 establishes a Joint Committee which is responsible for
administration of the Agreement and shall meet at least once a year to monitor the implementation of
it.WT/REG70/2
Page 6
ANNEX
Turkey – Total Imports from Estonia
(1,000 US$)
HS Chapter 1995 1996 1997
42 8 0 0
15 13 0 0
25 0 51 28
27 0 34 127
28 0 0 1
29 0 0 14
31 0 0 4,943
38 0 0 0
39 0 0 12
40 0 0 0
41 0 33 81
42 0 0 0
44 12,927 12,779 6,124
48 0 355 662
52 0 53 45
53 0 0 19
56 0 0 3
60 0 1 0
61 4 0 0
62 0 1 0
63 0 26 0
64 0 0 8
65 0 0 0
72 0 1,071 18,501
73 0 1 0
74 0 11 0
75 0 0 0
76 0 0 5
84 0 108 271
85 0 1 58
87 0 0 2
90 0 15 22
91 0 1 0
94 202 0 12
95 0 0 12
96 0 2 7
Total 13,173 14,544 30,958
Trade Covered 13,132 14,544 30,958
% of Coverage 100 100 100
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