. /.WORLD TRADE
ORGANIZATIONWT/REG115/4/Add.2
11 July 2002
(02-3881)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
Questions and Replies
Addendum
II. TRADE PROVISIONS
3. Rules of Origin
Would the Parties explain in detail what is meant by "other particular circumstances"
as set out in Protocol 2?
Is the concept of cumulation with materi als originating in the European Community
applicable for the determination of Preferential Rules of Origin in this Agreement? If applied,
what is the rationale on extended cumulation of  products originating from non-Parties to this
Agreement?
The term "other particular circumstances" in the standard format aims to clarify the conditions
other than the general requirements set out in Article 2 of the FTA. The detailed bilateral cumulation
circumstances and procedure have been set out in the Articles 3 to 13 of the Protocol 2 annexed to the
FTA between Turkey and Macedonia. As stated in the footnote 1 of the WTO document
WT/REG115/1 regarding the Agreement, the Annexe s and Protocols have been submitted to the
Secretariat for consultation by interested Members (Office3006).
There is apparently no extented cumulation for products originating from non-Parties to this
Agreement. Only bilateral cumulation is permitted  between the Parties. Since Macedonia is not a
member of the Pan-European Cumulation System, neither the EU nor another country could get
involved in the bilateral cumulation between Turkey and Macedonia.
5. Safeguards
Is the Emergency Action under Article 18 of the Agreement a global measure or a
bilateral one?
Please explain the difference between disturbances on the market of like or directly
competitive products under Article 18 (a) and serious disturbances in any sector of the economy
under Article 18 (b).
The requirement under Article 18 (b) does not exist in the WTO Safeguard Agreement.
What is the rationale for introducing a new requirement for safeguard measures? Which
factors will be taken into account in order to establish this requirement during the investigation
procedure?WT/REG115/4/Add.2
Page 2
Paragraph 6 of the Article 21 of the Agreement allows the Parties to apply the
precautionary measures without prior examination.  Is it possible to apply the precautionary
measures if there is merely the application of the domestic industry? What is the minimum
standard or criteria before precautionary measures are applied?
Emergency Action under Article 18 of the Agreement is definitely a bilateral measure.
Article 18 (b) refers to a broader circumstance of disturbance because of increase in quantities
of import of a product. "Serious injury in a domestic industry" stated in the WTO Safeguard
Agreement Articles 4 (1)(a) and 4 (2)(a) explains could be referred hereto.
Turkey operates under Safeguard legislation which is fully compatible with the WTO rules.Although Article 18 (b) of FTA differs in wording, from the WTO Safeguard Agreement
word by word, Article 4 (2), (a) of the WTO Safeguard Agreement clearly refers it by stating “in the
investigation to determine whether increased imports have caused or are threatening to cause serious
injury to a domestic industry under the terms of this Agreement, the competent authorities shall
evaluate all relevant factors....”
It is obvious that the sentence “ .... to cause serious injury to a domestic industry under this
Agreement...” in the Article 4 (2), (a) of WTO Safeguard Agreement, refers to the sentence “ serious
disturbance in any sector of the economy...” in  the Article 18 (b) of FTA.
The factors which will be taken into account in order to establish this requirement for
safeguard measures during the investigation procedure are also clearly indicated in the Article 4 (2),
(a) of WTO Safeguard Agreement; the rate and amount of the increase in imports of the product
concerned in absolute and relative terms, the share of the domestic market taken by increased imports,changes in the level of sales, production, productivity, capacity utilisation, profits and losses, and
employment.
No separate track has been created in the Turkish national legislation in order to implement
specific FTA provisions concerning safeguard.
Against the existence of similar provisions referring to the use of safeguards in its all FTA's,
Turkey has not applied any until now, since we believe that the conditions requiring the use of
safeguards could be solved through direct consultations between the Parties of an FTA, which is
apparently a more preferable application in terms of WTO Rules as well.
6. Anti-Dumping and Countervailing Measures
What is the rationale to extend the application of the precautionary safeguard measures
under paragraph 6 of Article 21 to Antidumping in  Article 17 and to the Rules of Competition
Concerning Undertakings, State-Aid in Article 24?
We believe that the misunderstanding in the question might have occurred from the
terminology used in the standard format. Ac cordingly, as explained in the WTO document
WT/REG115/4/Add.1, the conf usion is due to the fact that th e terminology used is not in the
conformity with the terminology of the WTO.
All trade related legislation of Turkey is fully compatible with the WTO rules and has been
notified to the relevant Committee of WTO. There is no separate track in the national legislation in
order to implement specific FTA provisions.
__________