GENERAL AGREEMENT GATS/SC/88
15April 1994
ONTRADE INSERVICES (94-1086)
TURKEY
Schedule ofSpecific Commitments
(This isauthentic inEnglish only)
____________________TURKEY -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
INTHIS SCHEDULE*
1) None
2) None
3) Allinvestment tobemade within therange
of$50,000 and$150,000,000 bynon
residents (natural orjuridical persons)
through:
-theestablishment ofincorporated or
limited liability companies;
* Theconditions andcriteria, required forobtaining allthepermissions andauthorizations which areindicated intheschedule andthose which areapplied forbecoming
amember ofalltherelated chambers, donotlimit market access orqualify national treatment within thescope ofArticles XVIandXVII.
GATS/SC/88
Page1TURKEY (continued)GATS/SC/88
Page2
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-thepurchase ofshares including the
portfolio investment registered under
theForeign Investment
Encouragement LawNo.6224
(portfolio investment, according tothe
Article No.15-F oftheDecree No.32
issubject totheregistration within the
framework oftheLawNo.6224, if
theinvestor desires toparticipate in
theboard ofdirectors orgeneral
assembly ofthecompany, aswellas
tointerfere inthemanagement ofitin
anyother way);
-theopening ofbranches; and
-thecreation ofliaison offices,TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
willbeauthorized bytheGeneral
Directorate ofForeign Capital provided
thatsuch activities arebeneficial tothe
economic development ofTurkey, arein
theareas open totheTurkish private sector
anddonotentail amonopoly orspecial
privilege. Foreign investment above $150
million requires theapproval ofthe
Council ofMinisters. AnewDecree
removing thislimitation isunder
preparation. Thecapital must bebrought
inasforeign exchange.
Authorization isrequired forthe
investments byestablished foreign-owned
enterprises orjoint ventures inanewline
ofbusiness andforparticipation or
takeover ofexisting enterprises. Forthe
investments inthesame lineofbusiness,
proposals aregenerally approved asa
matter ofcourse.
Real estate
Foreign firms arepermitted toacquire real
estate inTurkey pursuant toForeign
Investment legislation provided thatthereal
estate tobeacquired isrelated tothe
investor 'spermitted activities. However,
foreign-controlled enterprises areprohibited
from engaging inrealestate trading.
GATS/SC/88
Page3TURKEY (continued)GATS/SC/88
Page4
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Monopolies
Thefollowing sectors areclosed toprivate
investments because ofthepublic
monopolies: postal services and
telecommunications, railways;
administration ofharbour andquay;
lotteries incash, football pools andpublic
utilities.
4) Unbound except fortheentry and
temporary stayofnatural persons inthe
following categories:4) Theprofessional services which are
assigned onlytoTurkish citizens bythe
specific laws cannot berendered by
foreigners either asservice providers oras
thepersonnel ofservice providers. Onthe
other hand foreign citizens withTurkish
origin maywork inprofessions which are
assigned onlytoTurkish citizens withthe
permission obtained from theMinistry of
Interior. Those professions which are
assigned onlytoTurkish citizens aregiven
below:TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
A. Administrative andtechnical personnel
Work permits fortheemployment ofthe
below defined administrative andtechnical
personnel ofaforeign service provider in
thebranch, subsidiary, affiliate or
representative office aregiven bythe
relevant authorities inaccordance withthe
Foreign Capital Legislation andtheother
Laws concerning theemployment of
foreigners. Thework permits arevalid up
to2years andsubject torenewal after that.
Inaddition tothework permits, the
Ministry ofInterior gives residence permits
forthesame personnel fortheperiods of
upto2years, which canbeextended
parallel tothework permit-renewals.1)Doctors, 2)Pharmacists, 3)Nurses,
4)Veterinarians, 5)Responsible
directors ofthefactories producing
medicine, 6)Guides, 7)Responsible
directors ofprivate hospitals, 8)
Responsible directors oftravel
agencies, 9)Directors ofnewspapers,
10)Dentists, 11)Notaries, 12)Those
personnel working inFree Trade
Zones other thanmanagers and
qualified personnel, 13)Those
personnel undertaking coastal
commerce andrelated activities, 14)
Opticians, 15)Doctors, pharmacists
andveterinarians dealing with
laboratory services, 16)Lawyers who
practice inTurkish Courts, 17)
Accountants andCertified Public
Accountants.
Managers-executives
Persons whoprimarily direct the
organization oroneofitsdepartments and
whoreceive onlygeneral supervision or
direction from higher-level executives, the
board ofdirectors orthestockholders of
theorganization.
GATS/SC/88
Page5TURKEY (continued)GATS/SC/88
Page6
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Specialist
Highly qualified persons who, within an
organization, areindispensable forthe
provision ofaspecific service byreason of
their knowledge atanadvanced level of
expertise inthefield ofservices, research
equipment, techniques ormanagement of
theorganization.
B. Service sellers
Itisnotnecessary toobtain work permits
andresidence permits fornatural persons
(service sellers asdefined below) whostay
inTurkey fornotmore than30days, for
thepurpose ofparticipating inbusiness
meetings, business contracts including
negotiations forthesaleofservices, entry
intocontract tosellservices andvisitof
business establishments, orother similar
activities.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Service sellers
Defined aspersons employed ormandated
byanorganization andwhostay
temporarily inanother signatory country in
order toconclude thesaleofservice on
behalf oftheorganization which employs
them orhasmandated them. Service
sellers maynotsellservices directly tothe
general public.
Note: Turkish legislation related totaxation, prudential andprofessional competency requirements, immigration policies hasnotbeen listed separately inthis
schedule.
GATS/SC/88
Page7TURKEY (continued)GATS/SC/88
Page8
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
II. SECTOR-SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional services
a) Legal services (advisory
services onforeign and
International Lawonly)
(CPC 861*)1) None
2) None
3) None
4) None1) None
2) None
3) Representation intheTurkish Courts is
assigned onlytoTurkish nationals.
4) None
b) Accounting, auditing and
bookkeeping services
(CPC 862)1) Unbound
2) None
3) Authorized financial advisers1establish
their company among themselves after
being amember oftherelated Chamber.1) Unbound
2) None
3) Foreign titles andnames cannot beused in
thetitles ofpartnerships orcorporations
among Turkish andForeign Financial
Advisers (thisrestriction willbeeliminated
byanamendment totherelated regulation).
* Asterisks designate "part of".
1 Foreign financial advisers canbeauthorized, under reciprocal condition, bytheapproval ofthePrime Minister upon theproposal oftheMinistry ofFinance. Foreign
financial advisers canperform alltheaccountancy, taxadvisory, financial advisory andauditing services without making certification.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Unbound 4) Turkish citizenship isrequired for
Accountants andCertified Public
Accountants.
d),e) Engineering and
Architectural services
(CPC 8671, 8672)1)2None
2)2None1) None
2) None
3)2None 3) None
4)2None 4) None
B. Computer andrelated
services
a) Consultancy services
related totheinstallation
ofcomputer hardware
(CPC 841)
b) Software implementation
services
(CPC 842)1)3None
2) None
3)3None
4)3None1) None
2) None
3) None
4) None
c) Data processing services
(CPC 840)
2 Foreigners mayengage inthese services after becoming atemporary member oftherelated Union ofChambers.
3 Computer engineers mayengage inthese services after becoming atemporary member oftherelated Union ofChambers.
GATS/SC/88
Page9TURKEY (continued)GATS/SC/88
Page10
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
F. Other business services
a) Advertising services
(CPC 871)
b) Market research services
(CPC 864)
c) Management consulting
services
(CPC 865)1) None
2) None
3) None
4) None1) None
2) None
3) None
4) None
q) Packaging services
(CPC 876)
f) Services incidental to
hunting
(CPC 881)1) Establishment isrequired
2) None
3) Only Group Atravel agencies mayoperate
inthisfield withthecondition ofobtaining
hunting licence
4) None1) None
2) According tothedecision ofCommission
ofHunting byobtaining thehunting
licence, foreigners mayhuntfor10days
andpayUS$50feeperday.
3) None
4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
h) Services incidental to
mining
(CPC 883, 515)1) Establishment isrequired
2) None
3)4None
4) None1) Nationality isrequired forrealpersons
2) None
3) None
4) None
2. COMMUNICATION
SERVICES
A. Postal services
(CPC 7511)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
B. Courier services
(CPC 7512)1),3) None
2) None
4) None1),3) None
2) None
4) None
C. Telecommunication
services
a) Voice telephone services
(CPC 7521)1),3) Alltelecommunication services including
basic andvalue added services areunder
public monopoly1),3) Public monopoly
4 Petroleum andMining Laws specify thatservices incidental tomining require anoperating licence.
GATS/SC/88
Page11TURKEY (continued)GATS/SC/88
Page12
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2) None 2) None
4) Unbound 4) Unbound
b) Packet-switched data
transmission services
(CPC 7523)1),3) Thissector isapublic monopoly.
However, "revenue-sharing" model canbe
applied intheprovision ofvalue-added
services inTurkey. Inthisapplication,
relevant firmprovides theequipment and
installs thesystem withalltheinvestment
costs born byitself. Thefirmturns the
system over toTurkish PTT before itisput
intotheservice. Theoperation and
maintenance ofthesystem isunder the
PTT'sresponsibility. Thefirmreceives a
certain amount ofrevenues oftheservice
foragiven period according toaspecial
agreement made withTurkish PTT.1),3) None
2) None 2) None
4) Unbound except personnel atthe
establishment stage ofthesystem incaseof
revenue-sharing applications.4) None
c) Circuit-switched data
transmission services
(CPC 7523)1),3) Public monopoly. Revenue-sharing model
maybeapplied.
2) None1),3) None
2) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Unbound except personnel atthe
establishment stage ofthesystem incaseof
revenue-sharing applications.4) None
d) Telex services
(CPC 7523)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
e) Telegraph services
(CPC 7522)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
f) Facsimile services
(CPC 7521-7529)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
g) Private leased circuit
services
(CPC 7522-7523)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
h) Electronic mail
(CPC 7523)1),3) Public monopoly. Revenue-sharing model
maybeapplied.1),3) None
2) None 2) None
GATS/SC/88
Page13TURKEY (continued)GATS/SC/88
Page14
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Unbound except personnel atthe
establishment stage ofthesystem incaseof
revenue-sharing applications4) None
i) Voice mail
(CPC 7523)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
j) On-line information and
data-base retrieval
(CPC 7523)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
k) Electronic data
interchange
(CPC 7523)1),3) Public monopoly. Revenue-sharing model
maybeapplied.1),3) None
2) None 2) None
4) Unbound except personnel atthe
establishment stage ofthesystem incaseof
revenue-sharing applications.4) None
l) Enhanced/value-added
facsimile services, incl.
store andforward, store
andretrieve
(CPC 7523)1),3) Public monopoly. Revenue-sharing model
maybeapplied.
2) None1),3) None
2) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Unbound except personnel atthe
establishment stage ofthesystem incaseof
revenue-sharing applications.4) None
m) Code andprotocol 1),3) Public monopoly. Revenue-sharing model
maybeapplied.1),3) None
2) None 2) None
4) Unbound except personnel atthe
establishment stage ofthesystem incaseof
revenue-sharing applications.4) None
n) On-line information
and/or dataprocessing
(CPC 843)1),3) Public monopoly
2) None
4) Unbound1),3) Public monopoly
2) None
4) Unbound
GATS/SC/88
Page15TURKEY (continued)GATS/SC/88
Page16
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3. CONSTRUCTION AND
RELATED
ENGINEERING
SERVICES
(CPC 512, 513,
514+516, 517)1)5None 1) Investor public entities willgivepriority to
domestic firms inworks thattheycould not
dosuch asengineering, architectural and
consultancy services ininvestments thatare
notsubject topatent andcould becarried
outwiththetechnology used inTurkey
except inprojects financed byinternational
institutions.
InGovernment tenders, theratio of
discrimination infavour ofnational
companies isdetermined bytheMinistry
accordingly totheDecision ofCouncil of
Ministers, advantage canbeobtained upto
15percentinfavour ofnational companies
indetermining appropriate value, however,
thisissue andratio (also thesystem tobe
applied ifpartnership ofnational and
foreign companies exists) should be
mentioned inthebidcontract.
5 Responsible engineers orarchitects ofthefirms must beatemporary member oftherelated Union ofChambers. Foreign contractors orforeign establishments which
contracted, solely orjointly withnational firms, engineering orarchitecture-related works withpublic entities orrealandlegal persons inthepublic orprivate sectors,
mayemploy foreign specialists onlyforthese works withapproval oftheMinistry ofPublic Works based ontheopinion oftheUnion ofChambers. Engineers and
architects inactivities other thanthose mentioned above could beemployed bythedecision ofMinistry ofPublic Works upon theopinion ofAdministrative Committee
ofUnion ofChambers. However, those brought foradvisory works bypublic offices, official andprivate companies andrealpersons andlegal entities andthose
whocome fortechnical instruction arenotbound totheabove rule. These persons maynotwork inother activities other thanthose mentioned above. Theforeign
engineers andarchitects, whowant tostaymore thanonemonth inTurkey must apply totherelated Union ofChambers inorder tobecome atemporary member.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2) None 2) None
3) ForConstruction Services, establishing
ordinary partnership under Civil Code
(which isnotalegal entity) excluding the
ordinary partnership formed for
international tenders inTurkey bythenon-
residents issubject topermission ofthe
Ministry towhich theUndersecretariat of
Treasury andForeign Trade (UTFT) is
attached.3) None
4)6None 4) None
5. EDUCATION
SERVICES
A.,B.,E.Primary,
Secondary andOther
Educational services
(CPC 921, 922, 929)1),3) Real andlegal foreign persons directly or
byestablishing partnership withTurkish
citizens mayestablish international
educational institutions (including
vocational andtechnical schools) onlyfor
foreign students.1) None
2) None 2) None
4) Foreign teachers maywork inprimary and
secondary educational institutions after
taking permission from theMinistry of
Education4) None
6 Responsible engineers orarchitects ofthefirms must beatemporary member oftherelated Union ofChambers.
GATS/SC/88
Page17TURKEY (continued)GATS/SC/88
Page18
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
C. Higher education
services
(CPC 923)1) None
2) None1) None
2) None
3) Private universities canonlybeestablished
byfoundations constituted Under Civil
Code withthepermission oftheCouncil of
Ministers, provided thatthemajority ofthe
administration ofsuch foundations must be
Turkish citizens.3) None
4) None 4) None
6. ENVIRONMENTAL
SERVICES
A. Sewage services
(CPC 9401)1) Unbound
2) None
3) None
4) None1) Unbound
2) None
3) None
4) None
B. Refuse disposal services
(CPC 9402)1) Unbound
2) None
3) None
4) None1) Unbound
2) None
3) None
4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
C. Sanitation andsimilar
services
(CPC 9403)1) Unbound
2) None
3) None
4) None1) Unbound
2) None
3) None
4) None
7. FINANCIAL SERVICES
Measures applicable toallsectors infinancial services
Banking Establishment ofabank which hastobeinthe
form ofajoint-stock company andopening of
thefirstbranch ofaforeign bank require
authorization from theCouncil ofMinisters.
Foreign banks wishing toestablish branches or
representative offices must notbeprohibited
from performing banking operations intheir
country oforigin orinthecountries where they
operate.
According totheBanks Act,lending limits for
thebranches offoreign banks arebased on
branch capital rather thanworld-wide capital.
GATS/SC/88
Page19TURKEY (continued)GATS/SC/88
Page20
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Theestablishment ofdomestic orforeign banks
aswellasthefirstbranch ofanon-resident bank
aresubject tothesame amount ofminimum
capital requirement. Acquisition ortransfer of
theshares representing aratio equal orhigher
than10,33 and50percentofthecapital is
subject totheauthorization ofthe
Undersecretariat ofTreasury andForeign Trade.
Insurance Insurance andreinsurance companies tobe
established inTurkey have tobeintheforms of
ajoint-stock oramutual company.
Establishment ofaninsurance andreinsurance
company andopening ofthebranch ofaforeign
insurance andreinsurance company require prior
permission oftheMinistry ofState, towhich the
Undersecretariat ofTreasury andForeign Trade
isattached. Inaddition tothispermission,
obtaining alicence fortheoperation ofthese
enterprises isneeded from theUndersecretariat
ofTreasury andForeign Trade.Foreign insurance andreinsurance companies
operating inTurkey byopening branches must
have thebranch managers residing inTurkey.
Insurance intermediaries must reside inTurkey.
Foreign commercial presence regarding services
auxiliary toinsurance ispermitted onlyfor
consultancy andriskassessment services.
Foreign insurance companies wishing toestablish
branches must notbeprohibited from
performing insurance operations intheir country
oforigin orinthecountries where theyoperate.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Theestablishment ofdomestic orforeign
insurance companies byarealorlegal person is
subject tothesame amount ofminimum capital
requirement. Acquisition ortransfer ofthe
shares representing aratio equal toorhigher
than10,33 and50percentofthecapital is
subject totheauthorization ofthe
Undersecretariat ofTreasury andForeign Trade.
Securities market Fortheestablishment ofcapital market
institutions thepermission oftheCapital Market
Board isrequired. Ifbanks orinsurance
companies apply totheBoard toform amutual
fund, theopinion oftheUndersecretariat of
Treasury andForeign Trade hastobeobtained
tofinalize theapplications. Creation ofbranches
andagencies bynon-bank intermediary
institutions established inTurkey alsorequires
theBoard 'spermission.Establishment ofbranches andrepresentative
offices offoreign non-bank intermediary
institutions isnotpermitted.
Inorder toparticipate inintermediary operations
regarding thesecurities toberegistered bythe
Capital Market Board, banks andnon-bank
intermediary institutions must beestablished in
Turkey andhave togetAuthorization Certificate
from Capital Market Board inaccordance with
theCapital Market Law.
Intermediary institutions andinvestment
corporations canonlybeestablished intheform
ofajoint-stock company.
GATS/SC/88
Page21TURKEY (continued)GATS/SC/88
Page22
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Additionally, operations ofallcapital market
institutions aresubject tothepermission ofthe
Board. While giving such permission, theBoard
issues "Authorization Certificates" forthe
activities tobecarried outbyeach institution.
Authorized institutions
(Foreign exchange dealers)Inorder toengage inactivities asanauthorized
institution, thepermission ofthe
Undersecretariat ofTreasury andForeign Trade
must beobtained.
Ifnon-resident legal entities engage inactivities
asanauthorized institution byestablishing a
company orparticipating intheexisting
companies aswellasbyopening abranch, the
document certified bytheauthorities ofthe
country inwhich thecompany wasincorporated
isrequired, showing thatthecompany wasinthe
business offoreign exchange trading andwasnot
subject toanyrestriction onthismatter.
Authorized institutions must beincorporated in
theform ofajoint-stock company.
Establishment ofanauthorized institution and
opening abranch offoreign legal entities
performing similar activities necessitates a
minimum capital requirement which isanequal
amount forbothresidents andnon-residents.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
A. Insurance andinsurance
related services
a) Direct insurance
i)Non-life 1),2) Unbound except:
a)Thehullinsurance oftheaeroplanes,
helicopters andships which were
purchased through aforeign loanor
leased through afinancial leasing
contract, canbedone abroad provided
thattheinsurance period must be
limited totheterm ofeither acredit or
aleasing contract;
b)Marine liability insurance;
c)Transportation insurance concerning
imports andexports;
d)Individual accident andmotor vehicle
insurance forpeople whoaregoing to
travel abroad.1),2) None
GATS/SC/88
Page23TURKEY (continued)GATS/SC/88
Page24
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3) None 3) Compulsory traffic insurance forthepublic
sector vehicles canonlybedone bythe
insurance companies themajority ofwhose
capital aswellasthemembers oftheboard
ofdirectors andtheauditors must be
Turkish.
Insurance premiums paidfortheworkers
andother employees cannot bededucted
from corporations tax,should those
personnel beinsured bythebranches of
foreign insurance companies.
4) None 4) None
ii)Life 3) None 3) Inorder todeduct theinsurance premiums
from gross wages fordetermining thereal
taxable-income, those employees must not
beinsured bythebranches offoreign
insurance companies.
4) None 4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
b) Reinsurance and
retrocession1),2) After holding thenecessary retention,
certain percentage ofthevalue of
remaining non-life insurance premiums
collected inTurkey canbereinsured and
retroceded inTurkey orabroad. However,
iftheretention amount reaches 75percent
oftotalnon-life insurance premiums, all
theremaining value, without being subject
totherestriction inthefirstsentence, can
bereinsured andretroceded inTurkey or
abroad.1),2) None
3) None 3) None
4) None 4) None
c) Insurance intermediation 1),2) Insurance intermediation canonlybedone
onbehalf ofinsurance companies
established inTurkey. Foreign companies
notoperating inTurkey cannot sellpolicies
byanymeans.1),2) None
3) Insurance intermediaries mayonlyoperate
ininsurance related fields.3) None
4) Unbound except administrative and
technical personnel.4) None
d) Services auxiliary to
insurance1),2) None except adjusters.
3) None
4) None except adjusters.1),2) Adjusters should beTurkish citizens.
3) None
4) Adjusters should beTurkish citizens.
GATS/SC/88
Page25TURKEY (continued)GATS/SC/88
Page26
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Banking andOther
Financial services
e) Acceptance ofdeposit 1),2) None 1),2) None
3) Norealperson orlegal entity other than
those authorized under theBanks Actor
under specific laws mayaccept deposits.3) None
4) None 4) None
f) Lending ofalltypes 1),2) None
3) None
4) None1),2) None
3) None
4) None
g) Financial leasing 1),2) Lease must bepermitted bythe
Undersecretariat ofTreasury andForeign
Trade.1),2) None
3) Foreign financial leasing companies may
open abranch inTurkey provided thatthey
areinvolved infinancial leasing intheir
home country orinthecountries where
theyoperate. Permission oftheMinistry
towhich theUndersecretariat ofTreasury
andForeign Trade isattached isrequired.3) Theminimum paid-in capital foropening a
branch byaforeign leasing company is
more thanthatofestablishing aleasing
company.
4) None 4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
h) Allpayment andmoney
transmission services1),2) None
3) Transfers offoreign exchange abroad must
becarried outthrough thebanking system.1),2) None
3) None
4) None 4) None
i) Guarantees and
commitments1),2) None except thatperformance bonds with
thetransactions specified intheState
Tender Lawmust beobtained from abank
operating inTurkey.1),2) None
3) None 3) None
4) None 4) None
j) Trading forownaccount
orforaccount of
customer
i)Money market
instruments1),2) None 1),2) None
3) Capital Market Institutions7engage in
trading ofmoney market instruments3) None
4) None 4) None
7 According totheCapital Market Law, capital market institutions arespecified asfollows:
a)Banks andnon-bank intermediary institutions;
b)Investment Corporations;
c)Mutual Funds;
d)Other capital market institutions permitted tooperate inthecapital market suchasclearing andcustodial houses, rating, auditing andadvisory institutions, etc.
GATS/SC/88
Page27TURKEY (continued)GATS/SC/88
Page28
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
ii)Foreign exchange 1),2) None 1),2) None
3) Banks andauthorized institutions engage in
foreign exchange trading.3) None
4) None 4) None
iv)Exchange rateand
interest rate
instruments1),2) None
3) Banks canengage intrading ofthese
instruments. Capital Market institutions
other thanbanks, authorized toactas
intermediaries forthecontracts regarding
financial indicators, capital market
instruments, commodities andprecious
metals, canalsoengage intrading ofthese
instruments.
4) None1),2) None
3) None
4) None
v)Transferable
securities1),2) None
3) TheCapital Market Institutions canengage
intrading oftransferable securities.1),2) None
3) None
4) None 4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
vi)Other negotiable
instruments
including bullion1),2) None
3) Thecapital market institutions canengage
intrading ofthese instruments andassets.
However, banks, authorized institutions
andintermediary institutions operating in
Gold Exchange canengage intrading of
bullion.
4) None1),2) None
3) None
4) None
k) Underwriting and
placement1),2) None
3) Banks andnon-bank intermediary
institutions canprovide underwriting and
placement services forthesecurities tobe
issued after being registered bytheCapital
Market Board.1),2) None
3) None
4) None 4) None
m) -Asset management
portfolio
management1),2) None 1),2) None
3) Banks, intermediary institutions and
portfolio management institutions can
provide these services.3) None
4) None 4) None
GATS/SC/88
Page29TURKEY (continued)GATS/SC/88
Page30
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
-Collective
investment
management1),2) None
3) Mutual funds andinvestment corporations
canengage incollective investment
management.1),2) None
3) None
4) Themajority ofthemembers oftheboard
ofdirectors ofaninvestment corporation
must have Turkish nationality.4) None
-Custodial,
depository andtrust
services1),2) None
3) TheCapital Market Institutions canprovide
these services.1),2) None
3) None
4) None 4) None
n) Settlement andclearing
services1),2) None
3) Only theclearing house established within
theStock Exchange ofIstanbul provides
these services.1),2) None
3) None
4) None 4) None
o) Provision andtransfer of
financial information1),2) None
3) None1),2) None
3) None
4) None 4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
p) Advisory, intermediation
andother auxiliary
services1),2) None
3) Intermediation services canbeprovided by
banks andintermediary institutions.1),2) None
3) None
4) None 4) None
8. HEALTH RELATED
AND SOCIAL
SERVICES
A. Hospital services
(CPC 9311)1) Unbound*
2) None1) None
2) None
3) Foreigners mayestablish private hospitals
withthepermission ofMinistry ofHealth.3) None
4) Unbound 4) Unbound
* Unbound duetothelackoftechnical feasibility.
GATS/SC/88
Page31TURKEY (continued)GATS/SC/88
Page32
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
9. TOURISM AND
TRAVEL RELATED
SERVICES
A. Hotels andrestaurants
(CPC 641-643)1) Unbound* 1) None
2)8None 2) None
3) None 3) None
4) After receiving thepermission ofthe
Ministry ofInterior based onthe
affirmative opinion oftheMinistry of
Tourism, thehotels andrestaurants with
thetourism encouragement certificate, may
employ foreign personnel. Buttheamount
offoreign personnel thatwould be
employed inanenterprise should not
exceed 10percentofthetotal personnel.
Thisamount could beincreased upto20
percentbythedecision oftherelated
Ministry.4) None
* Unbound*: Unbound duetothelackoftechnical feasibility.
8 Turkish citizens maytravel abroad without anyrestriction. Only, theyarerequired topay,withcertain exceptions, aTLamount equivalent uptoUS$100tothePublic
Housing Fund, foreachexit. TheTurkish citizens going abroad foreducation andhealth purposes, aswellastheoneswhoareeither employed orassigned topermanent
official duties inforeign countries, areexempt from thatpayment.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Travel Agencies and
Tour Operators services
(CPC 7471)1) Establishment isrequired
2) None
3) None1) Foreign travel agencies maynotorganize
tours abroad.
2) None
3) Incaseofbringing intothecountry of
US$80,000 foreign exchange income from
thetours organized bythetravel agencies
(toTurkey), thetemporary operating
certificates ofAClass Travel Agencies
arechanged withpermanent operating
certificate. Theamount offoreign exchange
stipulated forthistransaction isthree times
more forforeign travel agencies.
Theamount ofguarantees required for
foreign travel agencies istwice asmuch as
national ones. Foreign travel agencies and
branches cannotbenefit from thecredits
given byTurkish Development Bank to
domestic ones. Foreign Travel Agencies
mayonlytakeAclass ortemporary A
class operating certificates.
Theminimum amount ofcapital tobe
brought (toTurkey) bythebranches of
foreign travel agencies inorder tobe
granted Operation Certificate isdetermined
bytheMinistry ofTourism withthe
appropriate opinion oftheMinistry of
Finance.
GATS/SC/88
Page33TURKEY (continued)GATS/SC/88
Page34
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) None 4) None
11. TRANSPORT
SERVICES
A. Maritime Transport
services
a) Passenger transportation
(CPC 7211)1) None except cabotage 1) Charges taken forportservices from
foreign andTurkish ships maydiffer in
favour ofTurkish flagvessels according to
thetariffs onportcharges which are
determined bytheportadministrations.
2) None 2) None
3)9Inorder toflytheTurkish flag, the
shipping companies must have themajority
of51percentTurkish shareholders.3) None
4) Captain andcrew oftheTurkish flag
vessels should beTurkish residents.4) Turkish nationality isrequired forcaptain
andcrew.
9 AllTurkish ships shall flytheTurkish flag. Ashipshall beregarded asTurkish onlyifitsowner (orowners) is/are Turkish. However, thefollowing ships shall also
beconsidered asTurkish: i)Ships which belong tolegal persons such asbodies, institutions, associations andfoundations setupinaccordance withTurkish Law,
themajority ofwhose Board ofDirectors areofTurkish nationality. ii)Ships which belong tothetrading companies themajority ofwhose managerial staffand
representatives areofTurkish nationality andareregistered ontheTurkish Trade Register.TURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
b) Freight transportation
(CPC 7212)1) None except cabotage 1) Thevessels flying Turkish flageither
bidding forpublic cargoes tobeshipped to
overseas countries orcarrying strategic raw
materials arebenefited from thepreference
given infavour ofthem (i.e.they are
entitled tobeawarded thebidseven though
their quotations areupto10%higher than
thelowest foreign flagvessels quotations)
TheUndersecretariat ofTreasury and
Foreign Trade isauthorized topermit the
public entities tohave their imported goods
transported byforeign flagvessels.
Charges taken forportservices from
foreign andTurkish ships maydiffer in
favour ofTurkish flagvessels according to
thetariffs onportcharges which are
determined bytheportadministrations.
2) None 2) None
3)9Inorder toflytheTurkish flag, the
shipping companies must have themajority
of51percentTurkish shareholders.3) None
9 AllTurkish ships shall flytheTurkish flag. Ashipshall beregarded asTurkish onlyifitsowner (orowners) is/are Turkish. However, thefollowing ships
shall alsobeconsidered asTurkish: i)Ships which belong tolegal persons such asbodies, institutions, associations andfoundations setupinaccordance with
Turkish Law, themajority ofwhose Board ofDirectors areofTurkish nationality. ii)Ships which belong tothetrading companies themajority ofwhose
managerial staffandrepresentatives areofTurkish nationality andareregistered ontheTurkish Trade Register.
GATS/SC/88
Page35TURKEY (continued)GATS/SC/88
Page36
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4) Captain andcrew oftheTurkish flag
vessels should beTurkish residents.4) None
c) Rental ofvessels with
crew (CPC 7213)1) None 1) Vessels rented byforeigners maynot
operate inside theTurkish coastal waters.
2) None 2) Thiskindofvessels areconsidered as
foreign vessels anddonothave toflythe
Turkish flag.
3) None 3) None
4) None 4) None
d) Maintenance andrepair
ofvessels
(CPC 8868)1) None
2) None
3) None
4) None1) None
2) None
3) None
4) None
C. Airtransport services
a) Selling ofairtransport
services1) Foreign airline companies mayselltheir
tickets byopening sales offices inTurkey.1) None
2) None 2) None
3) None 3) None
4) None 4) NoneTURKEY (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
b) Computer reservation
systems1) None
2) None1) None
2) None
3) None 3) None
4) None 4) None
c) Maintenance andrepair
ofaircraft
(CPC 8868)1) None
2) None1) None
2) None
3) Authorization from theMinistry of
Transport isnecessary toperform functions
forthemaintenance andrepair ofaircraft.3) None
4) None 4) None
E. Railtransport services
(CPC 7111, 7112)1) Internal railtransportation isapublic
monopoly.1) None
2) None 2) None
3) Internal railtransportation isapublic
monopoly.3) None
4) None 4) None
GATS/SC/88
Page37TURKEY (continued)GATS/SC/88
Page38
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
F. Road transport services
a) Passenger transportation
(CPC 7121 +7122)1) Unbound 1) Unbound
b) Freight transportation
(CPC 7123)2) None 2) None
3) Turkish citizenship orbeing alegal entity
established under therelevant Turkish laws
arerequired forobtaining acarrier licence
given bytheMinistry ofTransport inorder
tobecome aninternational transporter.3) None
4) None 4) None