WORLD TRADE
ORGANIZATIONWT/REG116/1
22 January 2001
(01-0301)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND LATVIA
The following text reproduces the Agreement between the Republic of Turkey and the
Republic of Latvia.1
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FREE TRADE AGREEMENT BETWEEN
THE REPUBLIC OF TURKEY AND THE REPUBLIC OF LATVIA
PREAMBLE
The Republic of Turkey  (hereinafter referred to as "Turkey") and the Republic of Latvia
(hereinafter referred to as "Latvia");
Recalling  their intention to participate actively in the process of economic integration in
Europe and expressing their preparedness to co-operate in seeking ways and means to strengthen this
process;
Referring  to the Agreement Establishing an Association between Turkey and the European
Economic Community and Agreement on Free Trade and Trade-Related Matters between theEuropean Communities and the Republic of Latvia;
Having  regard to the experience gained from the co-operation developed between the Parties
to this Agreement (hereinafter referred to as "the Parties") as well as between them and their main
trading partners;
Declaring  their willingness to take action with a view to promoting harmonious development
of their trade as well as to expanding and diversifying their mutual co-operation in the fields of
common interest, including fields not covered by this Agreement, thus creating a framework and
supportive environment based on equality, non discrimination, and a balance of rights and obligations;
Resolved  to lay down for this purpose provisions aimed at the progressive abolition of the
obstacles to trade between the Parties in accordan ce with the provisions of these instruments, in
particular those concerning the establishment of free trade areas;
Recalling  the mutual interest of the Parties in th e continual reinforcement of the multilateral
trading system and considering their relations to the General Agreement on Tariffs and Trade
                                                     
1 The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).WT/REG116/1
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(hereinafter referred to as "GATT") and the World Trade Organization (hereinafter referred to as
"WTO"), the provisions and instruments of which constitute a basis for their foreign trade policy;
Considering  the respective commitments of the Parties to free trade and in particular to
compliance with the rights and obligations arising out of the  GATT and the WTO.
HAVE DECIDED, in pursuance of these objectives, to conclude the following Agreement
(hereinafter referred to as "this Agreement"):
Article 1
Objectives
 
1. Turkey and Latvia establish a free trade area upon the entry into force of this Agreement, in
accordance with the provisions of this Agreement and in conformity with those of the GATT 1994
and the WTO.
 
2. The objectives of this Agreement are:
 
(a) to promote, through the expansion of reci procal trade, the harmonious development
of the economic relations between the Parties;
(b) to provide fair conditions of competition for trade between the Parties;
(c) to contribute in this way, by removal of barriers to trade, to the harmonious
development and expansion of world trade;
(d) to enhance cooperation between the Parties.
Article 2
Basic Duties
 
1. For commercial exchanges covered by this Ag reement, the Latvian Combined Nomenclature
shall be applied to the classification of goods for imports into Latvia.  The Turkish Customs Tariffs
shall be applied to the classification of goods for imports into Turkey.
 
2. For each product originating in the Parties the basic duty to which successive reductions setout in this Agreement are to be applied shall be the MFN duty that applied in the Parties, erga omnes,
on the date of entry into force of this Agreement.
 
3. If after entry into force of this Agreement, any tariff reduction is applied on an erga omnesbasis, in particular, reductions resulting from the tariff agreement concluded as a result of the GATT
Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 2 as from
that date when such reductions are applied.
 
4. The Parties  shall communicate to each other their respective basic duties.WT/REG116/1
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CHAPTER I
Industrial Products
Article 3
Scope
The provisions of this Chapter shall apply to products falling within Chapters 25 to 97 of
Harmonized Commodity Description and Coding System  with the exception of the products listed in
Annex I.
Article 4
Customs Duties on Imports and Charges having Equivalent Effect
 
1. No new customs duty on imports or charge having equivalent effect shall be introduced in
trade between the Parties from the date of entry into force of this Agreement.
 
2. The Parties shall abolish on their imports from each other all customs duties and charges
having equivalent effect on imports on the date of entry into force of this Agreement, with the
exception of those listed in Annex II.
 
3. Customs duties for products originating in the Parties which are listed in Annex II to thisAgreement shall be abolished in accordance with the conditions set out therein.
Article 5
Customs Duties of a Fiscal Nature
 
No Customs duties of a fiscal nature shall be introduced in trade between the Parties.  The
provisions of Article 4 concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature.
Article 6
Customs Duties on Exports and Charges having Equivalent Effect
1. No new customs duty on exports or charge having equivalent effect shall be introduced in
trade between the Parties.
 
2. Customs duties on exports and any charges having equivalent effect shall be abolished
between the Parties upon entry into force of this Agreement, with the exception of those listed in
Annex III, which shall be abolished by La tvia at the latest by the end of 1998.
Article 7
Quantitative Restrictions on Imports and Measures having Equivalent Effect
1. No new quantitative restriction on imports or measure having equivalent effect shall be
introduced in trade between the Parties from the date of entry into force of this Agreement.
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2. Quantitative restrictions on imports shall be abolished between the Parties upon the date of
entry into force of this Agreement.
Article 8
Quantitative Restrictions on Exports and Measures having Equivalent Effect
1. No new quantitative restriction on exports or measure having equivalent effect shall be
introduced in trade between the Parties as from the date of entry into force of this Agreement.
 
2. Quantitative restrictions on exports and any measures having equivalent effect shall be
abolished upon the date of entry into force of this Agreement.
Article 9
Trade in Textile Products
Protocol A lays down the other arrangements applicable to the textile products.
CHAPTER II
Agricultural, Processed Agricultural and Fishery Products
Article 10
Scope
1. The provisions of this Chapter shall apply to agricultural, processed agricultural and fishery
products originating in the Parties.
 
2. The term "agricultural products" means for the purpose of this Agreement the products falling
within Chapters 1 to 24 of the Harmonized Comm odity Description and Coding System and the
products listed in Annex I.
 
3. In trade between the Parties from the date of entry into force of this Agreement no newcustoms duty on import or exports or charges having equivalent effect shall be introduced, nor shall
those already applied be increased.
Article 11
Exchange of Concessions
1. The Parties to this Agreement declare their readiness to foster, in so far as their agricultural
policies allow, the harmonious development of trade in agricultural products and to discuss this issue
periodically in the Joint Committee.
 
2. In pursuance of this objective Protocol B providing for measures to facilitate trade in
agricultural, processed agricultural and fishery products has been concluded between the Parties.WT/REG116/1
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Article 12
Sanitary and Phytosanitary Measures
The parties shall not apply their regulations in sanitary and phytosanitary matters as an
arbitrary or unjustifiable discrimination or a disguised restriction on trade between them.
CHAPTER III
Right of Establishment and Supply of Services
Article 13
1. The Parties shall seek to widen the scope of the Agreement to cover the right of establishment
of firms of one Party in the territory of the other Party and the liberalization of the provision of
services by one Party’s firms to consumers of services in the other.
 
2. The Parties will discuss this cooperation in the Joint Committee with the aim of developingand deepening their relations under this Article.
CHAPTER IV
Common Provisions
Article 14
Internal Taxation
1. The Parties to this Agreement shall refrain from any measure or practice of an internal fiscal
nature establishing, whether directly or indirectly, discrimination between the products originating in
the Parties.
 
2. Exporters may not benefit from repayment of internal taxes in excess of the amount of director indirect taxes imposed on products exported to the territory of one of the Parties.
Article 15
Trade Relations Governed by Other Agreements
1. This Agreement shall not prevent the maintenance or establishment of customs unions, free
trade areas or arrangements for frontier trade to the extent that these do not negatively affect the trade
regime and in particular the provisions concerning rules of origin provided for by this Agreement.
 
2. Exchange of information between the Parties sh all take place, on request, within the Joint
Committee concerning agreements establishing such customs unions or free trade areas.WT/REG116/1
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Article 16
Structural Adjustment
1. Exceptional measures of limited duration which derogate from the provisions of Article 4
may be taken by the Parties in the form of increased customs duties.
 
2. These measures may only concern infant industries, or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce important
social problems.
 
3. Customs duties on imports applicable in the Parties to products originating in the other Partyintroduced by these measures may not exceed 25 per cent ad valorem and shall maintain an element of
preference for products originating in the other Party.  The total value of imports of the products
which are subject to these measures may not exceed 15 per cent of total imports of industrial products
from the other Party as defined in Article 3, during the last year for which statistics are available.
 
4. These measures shall be applied for a period not exceeding three years and shall cease toapply at the latest by the end of the third year from the date of entry into force of the Agreement.
 
5. No such measure can be introduced in respect of a product if more than three years have
elapsed since the elimination of all duties and quantitative restrictions or charges or measures havingan equivalent effect concerning that product.
 
6. The Parties shall inform the Joint Committee of  any exceptional measures they intend to take
and, at the request of either Party, consultations shall be held in the Joint Committee on such measures
and the sectors to which they apply before they are applied.  When taking such measures the Partyconcerned shall provide the Joint Committee with a schedule for the elimination of the customs duties
introduced under this Article.  This schedule shall provide for a phasing out of these duties starting at
the latest two years after their introduction at equal annual rates.  The Joint Committee may decide on
a different schedule.
Article 17
Dumping
If a Party finds that dumping, within the meaning of Article VI of GATT is taking place in
trade relations governed by this Agreement, it may take appropriate measures against this practice in
accordance with Article VI of the GATT and WTO Agreement on Implementation of Article VI ofthe GATT 1994 and the rules established by agreements related to that Article, under the conditions
and in accordance with the procedures laid down in Article 21.
Article 18
General Safeguards
Where any product is being imported in such increased quantities and under such conditions
as to cause, or threaten to cause:
(a) serious injury to domestic producers of like or directly competitive products in the
territory of one of the Parties, or
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(b) serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region,
the Party concerned may take appropriate measures under the conditions and in accordance with the
procedures laid down in Article 21 of this Agr eement, Article XIX of the GATT 1994 and the WTO
Agreement on Safeguards.
Article 19
Re-export and Serious Shortage
Where compliance with the provisions of Articles 4-8 leads to:
 
(1) re-export towards a third country against which the exporting Party to this Agreement
maintains, for the product concerned, quantitative export restrictions, export duties or
measures or charges having equivalent effect;  or
 
(2) a serious shortage, or threat thereof, of a product essential to the exporting Party;
and where the situations referred to above give rise, or are likely to give rise to major difficulties for
the exporting Party, that Party may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 21.  The measures shall be non-discriminatory and beeliminated when conditions no longer justify their maintenance.
Article 20
State Monopolies
The Parties shall progressively adjust any state monopolies of a commercial character so as to
ensure that by the end of 1998, no discrimination regarding the conditions under which goods are
procured and marketed will exist between nationa ls of the Parties.  The Joint Committee will be
informed about the measures adopted to implement this objective.
Article 21
Procedure for the Application of Safeguard Measures
1. Before initiating the procedure for the application of safeguard measures set out in this
Article, the Parties to this Agreement shall ende avour to solve any differences between themselves
through direct consultations, and shall inform the other Party.
 
2. In the cases specified in Articles 16, 17, 18 and 19 a Party which is considering to resort to
safeguard measures shall promptly notify the Joint Committee.  The Party concerned shall provide the
Joint Committee with all relevant information and give it the assistance required to examine the case.Consultations between the Parties shall take place without delay in the Joint Committee with a view to
finding a commonly acceptable solution.
 
3. If, within one month of the matter being referr ed to the Joint Committee, the Party in question
fails to put an end to the practice objected to or to  the difficulties notified and in the absence of a
decision by the Joint Committee in the matter, the concerned Party may adopt the safeguard measures
it considers necessary to remedy the situation.
 
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4. The safeguard measures taken shall be notified immediately to the Joint Committee.  They
shall be restricted, with regard to their extent and to their duration, to what is strictly necessary in
order to rectify the situation giving rise to their application and shall not be in excess of the damage
caused by the practice or the difficulty in question.  Priority shall be given to such measures that will
least disturb the functioning of this Agreement.
 
5. The safeguard measures taken shall be the subject of regular consultations within the JointCommittee with a view to their relaxation, or a bolition when conditions no longer justify their
maintenance.
 
6. Where exceptional circumstances requiring immediate action make prior examination
impossible, the Party concerned may, in the case of Articles 16, 17, 18, 19, 25 and 26, apply forthwiththe precautionary measures strictly necessary to remedy the situation.  The measures shall be notified
without delay to the Joint Committee and consultatio ns between the Parties to this Agreement shall
take place within the Joint Committee.
Article 22
Rules of Origin and Cooperation in Customs Administration
1. Protocol C lays down the rules of origin and methods of administrative cooperation.
 
2. The Parties shall take all appropriate measures, including arrangements regarding
administrative cooperation, to ensure that the provisions of Articles 2, 4, 5, 6, 7  and 8 of this
Agreement and Protocol C are effectively and harmoniously applied, taking into account the need to
reduce as far as possible the formalities imposed on trade and the need to achieve mutually
satisfactory solutions to any difficulties arising out of the operation of those provisions.
Article 23
General Exceptions
This Agreement shall 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 healthand life of humans, animals or plants and of environment, the protection of national treasures
possessing artistic, historic or archaeological value, or the protection of industrial and commercial
property, or rules relating to gold or silver or the conservation of exhaustible natural resources.  Such
prohibitions or restrictions shall not, however, cons titute a means of arbitrary discrimination or a
disguised restriction on trade between the Parties.
Article 24
Payments
The Parties undertake to authorize, in freely convertible currency, in accordance to the
provisions of Article VIII of the Articles of the Agreement of the International Monetary Fund, any
payments on the current account of balance of payments to the extent that the transactions underlying
the payments concern movements of goods.WT/REG116/1
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Article 25
Rules of Competition Concerning Undertakings, Public Aid
 
1. The following are incompatible with the proper functioning of this Agreement, in so far as
they affect trade between the Parties:
(a) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the
Parties as a whole or in a substantial part thereof;
(c) any public aid which distorts or threatens to distort competition by favoring certain
undertakings or the production of certain goods. The provisions of this paragraph
shall not apply to products referred in Chapter II.
2. Each Party shall ensure transparency in the area of public aid inter alia by reporting annually
to the other Party on the total amount and the distribution of the aid given and by providing, uponrequest, information on aid schemes.  Upon request by one Party, the other Party shall provide
information on particular individual cases of public aid.
 
3. If Turkey or Latvia considers that a particular practice is incompatible with the terms of the
first paragraph of this Article, and:
 
(a) is not adequately dealt with under the implementing rules referred to in paragraph 3
of this Article, or
(b) in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interest of the other Party or material injury to its domestic industry,
 it may take appropriate measures under the conditions and in accordance with the provisions laid
down in Article 21 of this Agreement.
 
4. In the case of practices incompatible with paragraph 1(c) of this Article, such appropriate
measures may, where the WTO/GATT 1994 applies thereto, only be adopted in conformity with the
procedures and under the conditions laid down by the WTO/GATT 1994 and any other relevant
instrument negotiated under its auspices which are applicable between the Parties.
 
5. Notwithstanding any provisions to the contra ry adopted in conformity with paragraph 3 of
this Article, the Parties shall exchange information taking into account the limitations imposed by the
requirements of professional and business secrecy.
Article 26
Balance of Payments Difficulties
Where either Party is in serious balance of payment difficulties or under threat thereof,
Turkey and Latvia as the case may be, may, in accordance with the conditions laid down within the
framework of GATT and with Article VIII of the Articles of Agreement of International Monetary
Fund, adopt restrictive measures including measures related to imports, which shall be of limited
duration and may not go beyond what is necessary to remedy the balance of payment situation.  EitherWT/REG116/1
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Party, as the case may be, shall inform the other Party forthwith and present to the other Party, as soon
as possible, of a time schedule of their removal.
Article 27
Intellectual, Industrial and Commercial Property
1. Pursuant to the provisions of this Article and of Annex IV, by 1.1.1999, the Parties shall
ensure adequate and effective protection of intellectual, industrial and commercial property rights in
accordance with the international standards, includi ng effective means of enforcing such rights.
 
2. If problems in the area of intellectual, industrial and commercial property affecting trading
conditions were to occur, urgent consultations within the Joint Committee will be undertaken, at the
request of either party, with a view to reaching mutually satisfactory solutions.
Article 28
Public Procurement
1. The Parties consider the opening up of the award of public contracts on the basis of non-
discrimination and reciprocity, to be a desirable objective.
 
2. As of the entry into force of this Agreement,  both Parties shall grant each other’s companies
access to contract award procedures a treatment no less favorable than that granted to companies of
any other country according to the provisions of their internal legislation.
Article 29
Establishment of the Joint Committee
1. A Joint Committee is hereby established in which each Party shall be represented.  The Joint
Committee shall be responsible for the administration of this Agreement and shall ensure its proper
implementation.
 
2. For the purpose of the proper implementation of this Agreement, the Parties shall exchangeinformation and, at the request of any Party, shall hold consultations within the Joint Committee.  The
Joint Committee shall keep under review the possibility of further removal of the obstacles to trade
between the Parties.
 
3. The Joint Committee may, in accordance with the provisions of paragraph 3 of Article 30,take decisions in the cases provided for in this Agreement.  On other matters the Joint Committee may
make recommendations.
Article 30
Procedures of the Joint Committee
1. For the proper implementation of this Agreement, the Joint Committee shall meet at an
appropriate level whenever necessary upon request but at least once a year.  Either Party may requesta meeting to be held.
 
2. The Joint Committee shall act by common agreement.
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3. If a representative in the Joint Committee of a Party to this Agreement has accepted a
decision subject to the fulfilment of constitutional requirements, the decision shall enter into force, if
no later date is contained therein, on the day the lifting of the reservation notified.
 
4. The Joint Committee shall adopt its rules of procedure which shall, inter alia, containprovisions for convening meetings and for the designation of the Chairman and his/her term of office.
 
5. The Joint Committee may decide to set up such sub-committees and working parties as it
considers necessary to assist it in accomplishing its tasks.
Article 31
Security Exceptions
Nothing in this Agreement shall prevent a Part y from taking any measures which it considers
necessary:
(a) to prevent the disclosure of information contrary to its essential security interests;
(b) for the protection of its essential security interests or for the implementation of
international obligations or national policies;
(i) relating to the traffic in arms, ammunition and implements of war and to such
traffic in other goods provided that such measures do not impair theconditions of competition in respect of products not intended for specifically
military purposes materials and services as is carried on directly or indirectly
for the purpose of supplying a military establishment;  or
(ii) relating to the non-proliferation of biological and chemical weapons, nuclear
weapons or other nuclear explosive devices;  or
(iii) in time of war or other serious international tension constituting threat of war.
Article 32
Fulfilment of Obligations
1. The Parties shall take all necessary measures to ensure the achievement of the objectives of
this Agreement and the fulfilment of their obligations under this Agreement.
 
2. If either Party considers that the other has failed to fulfill an obligation under this Agreement,
the Party concerned may take the appropriate measures under the conditions and in accordance with
the procedures laid down in Article 21.
Article 33
Evolutionary Clause
 
1. Where either Party considers that it would be useful in the interest of the economies of the
Parties to develop the relations established by this Agreement by extending them to fields not covered
thereby, it shall submit a reasoned request to the ot her Party.  The Parties may instruct the JointWT/REG116/1
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Committee to examine this request and, where appropriate, to make recommendations to them,
particularly with a view to opening negotiations.
 
2. Agreements resulting from the procedure referred to in paragraph 1 will be subject to
ratification or approval by the Parties to this Agreement in accordance with their internal legalprocedures.
Article 34
Amendments
Amendments to this Agreement other than those referred to in paragraph 3 of Article 29,
which are approved by the Joint Committee shall be submitted to the Parties for ratification or
acceptance in accordance with their internal legal pr ocedures and shall enter into force in accordance
with the provisions of Article 37.
Article 35
Protocols and Annexes
Protocols and Annexes to this Agreement are an integral part of this Agreement.  The Joint
Committee may decide to amend the Protocols and Annexes in accordance with the provision ofparagraph 3 of the Article 30 .
Article 36
Expiration
Each party may denounce this Agreement by means of a written notification to the other
Party.  This Agreement shall cease to apply six mont hs after the date of receipt of such notification.
Article 37
Entry into Force
This Agreement shall enter into force on the fi rst day of the second month, following the date
on which the Parties have notified each other through diplomatic channels, that their internal legal
requirements for the entry into force of this Agreement have been fulfilled.
IN WITNESS WHEREOF the undersigned plenipotentiaries, being duly authorized thereto,
have signed this Agreement.
DONE at                     , this 16th day of June, 1998, in two originals each in the English
language both texts being equally authentic
For the Republic of Latvia For the Republic of Turkey
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