GENERAL AGREEMENT GATS/EL/88
15April 1994
ONTRADE INSERVICES (94-1152)
TURKEY
Final ListofArticle II(MFN) Exemptions
(This isauthentic inEnglish only)
____________________TURKEY -FINAL LIST OFARTICLE II(MFN) EXEMPTIONS
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
ALL SECTORS
a) Extending fullnational
treatment forthe
investments ofthenationals
orcompanies ofthese
countries.
b) i)Executing the
transfers, inspecific
periods, ofthe
nationals and
companies ofcertain
countries which made
investments inTurkey
(Belgium-
Luxembourg, Kuwait).
ii)Granting foreign
exchange risk
guarantee forcertain
countries forthe
transfers which are
notrealized duetothe
difficulties inbalance
ofpayments.Germany, USA, The
Netherlands, Belgium,
Luxembourg, Romania,
Bangladesh, Austria,
Switzerland, Denmark, Japan,
Kuwait, Tunisia, South Korea,
Poland, China, United Kingdom,
Finland, Hungary, Argentina,
Albania, Kyrgyzstan,
Turkmenistan, Kazakhstan,
Uzbekistan, Georgia, Jordan,
Malaysia, Spain, Italy, Norway,
Algeria, Russian Federation,
Mongolia, Lithuania, France,
Sweden, Bulgaria, Moldova,
Estonia, Latvia, Azerbaijan,
Israel, Ukraine.Indefinite Desire tocreate favourable
conditions foragreater
economic cooperation between
Turkey andmentioned countries
andtoencourage investments by
nationals andcompanies ofone
country intheterritory ofthe
other countries.
c) Covering "trade risk" in
subrogation onecountry.
(Japan).
GATS/EL/88
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Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
d) Theagreements withfive
countries, theMFN
Articles ofwhich donot
include thederogation
paragraphs relating tothe
privileges which are
accorded totheinvestors of
thethird countries resulting
from itsmembership inor
associated withafreetrade
zone, aneconomic
cooperation, acustoms
union oracommon
market. (Japan,
Bangladesh, Poland,
Germany, South Korea).
ALL SECTORS Therestriction inthetransfer of
thepremiums forlong-term
insurance schemes andthe
employment oftheforeign
country workers byforeign
companies iswaived forone
country. (Not applied de
facto).Libya Indefinite Toensure social security and
continuous employment of
Turkish workers inthe
mentioned country.TURKEY (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
ALL SECTORS Iftheamount oftheconsulate
duties collected from theTurkish
nationals byanycountry is
higher thantheamounts written
inthetariff list,theamounts of
consulate duties which are
collected from thenationals of
thatcountry willbeincreased
reciprocally.Allcountries Indefinite Desire toensure equal treatment
toTurkish nationals.
ALL SECTORS Onthecondition thatthelegal
provisions arereserved andwith
thecondition ofreciprocity, the
foreign realpersons could own
realestates inTurkey by
acquisition orbyinheritance.Allcountries Indefinite Tosecure theright ofTurkish
nationals toacquire realestates
inaforeign country.
Professional Services Ifanyforeign country laysdown
legal andadministrative
conditions against Turkish
citizens forperforming artsand
supplying services, thesimilar
activities ofthecitizens ofthat
country could beprohibited in
Turkey.Allcountries Indefinite Desire tocreate favourable
circumstances forTurkish
citizens toperform their
activities under equal conditions
intheother countries.
Telecommunication
ServicesToapply, onthebasis of
reciprocity, reduction inthefees
forthetransit landconnections
andtheusage ofsatellite ground
stations.Iran, Syria. Indefinite Desire tofacilitate
telecommunication services
between Turkey andthe
mentioned countries.
GATS/EL/88
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Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Postal Services Toapply, onthebasis of
reciprocity, reduction inthe
prices ofletter mail.Iraq, Greece, IranandPakistan. Indefinite Desire tocarry outpostal
services more rapidly and
economically.
Transportation
Services1Theincome andcorporate tax
rates fortheforeign road,
maritime andairtransport
companies, canreciprocally be
decreased down tozeroor
increased toanewratenot
exceeding onefoldofthe
existing ratecanbedetermined,
asacountry bycountry basis
either foreach transportation
typeseparately orforalltypes
ofthem. (Asinthecaseof
USA, Israel andSwitzerland).Allcountries Indefinite Desire tofacilitate andtolower
thecosts oftransportation
services between Turkey and
other countries.
Transportation
Services1Transit orbilateral transportation
services, canbeexcluded from
VAT. Thisexception is
granted, withthecondition of
reciprocity, totherelated
countries 'taxpayers whodonot
have theresidence, legal and
business centre inTurkey.Allcountries Indefinite Desire tolower costs andto
create favourable conditions for
theprovision ofservices inthis
sector.
1 Thisexemption request willbeevaluated inthelight ofdevelopments intheGATS inthefield oftaxation.TURKEY (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Transportation
ServicesToapply, onthebasis of
reciprocity, restrictions,
prohibitions, different treatments
anddifferent tariffs tothegoods
andtransportation vehicles ofthe
countries which apply
restrictions, prohibitions and
different treatments tothe
Turkish road, airandmaritime
transportation vehicles.Allcountries Indefinite Desire tosecure thesmooth
functioning ofmutual
transportation services.
Road Transport
Services2Togrant, onthebasis of
reciprocity, theprivileges about
thequotas andfees, the
exemptions from thepermission
procedures.Afghanistan, Austria, Belgium,
Bulgaria, Former
Czechoslovakia, Denmark,
Germany, Finland, France, The
Netherlands, Iraq, United
Kingdom, Iran, Sweden,
Switzerland, Italy, Kuwait,
Hungary, Norway, Poland,
Romania, Former Yugoslavia,
Greece, Syria, Saudi Arabia,
Jordan, Luxembourg, Albania,
Ukraine, Slovenia, Moldova,
Egypt, Lithuania, Macedonia,
Lebanon.Indefinite Desire tofacilitate road
transport services between
Turkey andother countries.
2 Ifthepartners ofthese Road Transport Agreements agree toremove themeasures, Turkey willalsodoso.
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Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
RailTransport
ServicesThebilateral reduction inthe
renting feesofrailway wagons
ofcountries mentioned aside
(paragraph a)andtheapplication
ofnational treatment totariff
rates onthereciprocal
transportation ofgoods withthe
countries mentioned aside
(paragraph b).a) Syria, Iraq, Iran, Lebanon
b) Commonwealth of
Independent States andthe
Baltic Republics.Indefinite Desire tofacilitate railtransport
services between Turkey and
other countries.
Financial Services
Banking3Should national banks wishing to
open branches inthecountries
whose banks have already
opened orwillopen branches in
Turkey, areforced tomeet
stricter conditions which they
willbesubject tounder the
legislation ofthose countries, or
which aretobemade stricter
afterwards, thanthose imposed
intheTurkish Banks Act,
foreign banks compliance with
thesame conditions andthe
annulment ofthepermissions of
those failing tocomply with
such condition should be
required.Allcountries Indefinite Desire toensure equal treatment
toTurkish banks intheother
countries.
3 Iftheother countries remove thismeasure, Turkey willalsoremove it.TURKEY (continued)
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
Accounting,
Auditing andBook-
keeping ServicesInorder toperform theservices
under thetitleof"financial
advisor", thecitizens ofthe
countries which have officially
codified theprinciples forthe
profession offinancial advisory
maybeauthorized, under
reciprocal conditions, provided
thatthese persons should have
thecharacteristics required for
theprofessional offinancial
advisory inTurkey andshould
have rights toperform similar
services intheir owncountries.Allcountries Indefinite Desire tocreate favourable
conditions forTurkish financial
advisors toperform their jobs
under equal conditions allover
theworld.
GATS/EL/88
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