WORLD TRADE
ORGANIZATIONWT/DS34/14
19 July 2001
(01-3576)
Original:  English
TURKEY - RESTRICTIONS ON IMPORTS OF TEXTILE AND
CLOTHING PRODUCTS
Notification of Mutually Acceptable Solution
The following communication, dated 6 July 2001, from the Permanent Mission of India and
the Permanent Mission of Turkey to the Chairman of the Dispute Settlement Body, is circulated at the
joint request of these delegations.
_______________
The Governments of India and Turkey wish to notify the Dispute Settlement Body (DSB) that
they have reached a mutually satisfactory solu tion regarding implementation by Turkey of the
conclusions and recommendations adopted by the DSB in the dispute "Turkey - Restrictions on
Imports of Textile and Clothing Products" (WT/DS34).  Accordingly, India and Turkey consider that
Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes no
longer requires that this item remain on the agenda of the DSB.
Please find attached the text of the exchange of letters of 6 July 2001 on this subject.  We
would be grateful if you could circulate these letters to WTO Members.
For India           For Turkey
(H.E. Ambassador S. Narayanan)
Permanent Representative
Permanent Mission of India(H.E. Ambassador O ğuz Demiralp)
Permanent Representative
Permanent Mission of TurkeyWT/DS34/14
Page 2
Letter addressed to H.E. Mr. S. Narayanan,
Ambassador and Permanent Representative of India to the WTO, Geneva
The Permanent Mission of Turkey
to the World Trade Organization
Geneva, 6 July 2001
Dear Ambassador,
As a result of the consultations between our two Governments, I am writing to confirm that
the following agreement has been reached concerning a mutually satisfactory compensation pendingcompliance by Turkey of the recommendations and ru lings of the Dispute Settlement Body (DSB) in
the Dispute "Turkey - Restrictions on Imports of Textile and Clothing Products" (WT/DS34).
1. The Government of India and the Government of Turkey agree that the following shall
constitute the compensation to India in accordance with Articles 22.1 and 22.2 of the "Understandingon Rules and Procedures Governing the Settlement of Disputes" (DSU), pending compliance by
Turkey of the recommendations and rulings of the DSB in the dispute "Turkey - Restrictions on
Imports of Textile and Clothing Products". (WT/DS34):
(i) The Government of Turkey shall by 30 June 2001 or the date of signature of this
Agreement, whichever is earlier , remove the quantitative restrictions it applies on
textile categories 24 and 27 in respect of imports from India.
(ii) The Government of Turkey shall carry out tariff reductions on the applied rate basis
as described in detail in ANNEX attached to this agreement, by 30 September 2001.
(iii) The Government of Turkey shall strive towards early compliance of the
recommendations and rulings of the DSB in  the dispute "Turkey - Restrictions on
Imports of Textile and Clothing Products". (WT/DS34).
2. The compensation under this Agreement, and any arrangements reached pursuant to
consultations between the two parties, shall remain effective till Turkey removes all quantitative
restrictions applied as of 1 January 1996 in respect of imports from India for the 19 categories of
textile and clothing products.
3. Acceptance by the Government of India of the above compensation is without prejudice to
Turkey's legal obligation to comply  with the recommendations and rulings of the  DSB in the dispute
"Turkey - Restrictions on Imports of Textile a nd Clothing Products" (WT/DS34).  Pending such
compliance Turkey acknowledges India's right under Article 22.2 of the DSU, as per the agreement
reached on 8 March 2001, regarding "Agreed Procedures between India and Turkey under Articles 21and 22 of the Dispute Settlement Understanding in the follow-up to the dispute in "Turkey -
Restrictions on Imports of Textile and Clothi ng Products" (WT/DS34), beyond the time period
specified in Article 22.6 of the DSU.  Turkey also acknowledges the right to recourse by India to
Article 21.5, if India, at any time, considers that the situation described in Article 21.5 of the  DSU
has arisen.WT/DS34/14
Page 3
4. At the request of either party consultations on the implementation or effects of any aspect of
this compensation pending compliance by Turkey of  the recommendations and rulings of the  DSB in
the dispute "Turkey - Restrictions on Imports of Textile and Clothing Products" shall be held
expeditiously with a view to reaching a satisfactory solution.
5. This Agreement shall come into force on the date of exchange of letters between the
Government of India and the Government of Turkey memorializing the Agreement.
This letter and your letter in reply is without prejudice to the rights or obligations of either
Member under the Agreement Establishing the World Trade Organisation.
Oğuz Demiralp
Ambassador
Permanent RepresentativeWT/DS34/14
Page 4
ANNEX
Tariff Line Description Current Applied Tariff
(in percentage)Applied Tariff as of
30 September 2001
(in percentage)
282760003000 Iodides and Iodide oxides 5,5 0
283110000012 Dithionites and
sulphoxylates of sodium7.5 0
291639009019 Unsaturated acyclic
monocarboxylic and
cyclic acids:other6.5 0
291890900019 Carboxylic acids with
additional oxygen
function:
Other6.5 0
292429900029 Carboxyamide and amide
function compounds of
carbonic acid:  other6.5 2.2
292690990029 Nitrile-function
compounds:
Other8.5 0
293229809019 Heteroxylic compounds
with Oxygen
heteroatoms:
Other6.5 0
293339950049 Heteroxylic compounds
with nitrogen
heteroatoms:
Other6.5 0
293359700031 Heteroxylic compounds
containing a pyrimidine
ring:  siprofloksasin6.5 0
293359700039 Heteroxylic compounds
containing a pyrimidine
ring:
Other6.5 0
293390950059 Lactams; Other 6.5 0
293410000019 Nucleic acids compounds
containing an unfused
thiazole ring6.5 0
293490969029 Nucleic acids compounds
containing a
phenothiazine ring:
Other6.5 0
293500900029 Sulphonamides:
Other6.5 4.5WT/DS34/14
Page 5
Letter addressed  to H.E. Mr. O ğuz Demiralp,
Ambassador and Permanent Representative of Turkey to the WTO, Geneva
Permanent Mission of India
  to the WTO
9, rue du Valais
1202 Geneva
6 July 2001
Dear Ambassador,
I acknowledge receipt of your letter dated 6 July 2001 that reads as follows:"As a result of the consultations between our two Governments, I am writing to confirm that
the following agreement has been reached concerning a mutually satisfactory compensation pendingcompliance by Turkey of the recommendations and ru lings of the Dispute Settlement Body (DSB) in
the Dispute "Turkey - Restrictions on Imports of Textile and Clothing Products" (WT/DS34)
1. The Government of India and the Government of Turkey agree that the following shall
constitute the compensation to India in accordance with Articles 22.1 and 22.2 of the "Understandingon Rules and Procedures Governing the Settlement of Disputes" (DSU), pending compliance by
Turkey of the recommendations and rulings of the DSB in the dispute "Turkey - Restrictions on
Imports of Textile and Clothing Products" (WT/DS34):
(i) The Government of Turkey shall by 30 June 2001 or the date of signature of this
Agreement, whichever is earlier , remove the quantitative restrictions it applies on
textile categories 24 and 27 in respect of imports from India.
(ii) The Government of Turkey shall carry out tariff reductions on the applied rate basis
as described in detail in ANNEX attached to this agreement, by 30 September 2001.
(iii) The Government of Turkey shall strive towards early compliance of the
recommendations and rulings of the DSB in  the dispute "Turkey - Restrictions on
Imports of Textile and Clothing Products" (WT/DS34).
2. The compensation under this Agreement, and any arrangements reached pursuant to
consultations between the two parties, shall remain effective till Turkey removes all quantitative
restrictions applied as of 1 January 1996 in respect of imports from India for the 19 categories of
textile and clothing products.
3. Acceptance by the Government of India of the above compensation is without prejudice to
Turkey's legal obligation to comply with the reco mmendations and rulings of the DSB in the dispute
"Turkey - Restrictions on Imports of Textile a nd Clothing Products" (WT/DS34).  Pending such
compliance Turkey acknowledges India's right under Article 22.2 of the DSU, as per the agreement
reached on 8 March 2001, regarding "Agreed Procedures between India and Turkey under Articles 21and 22 of the Dispute Settlement Understanding in the follow-up to the dispute in Turkey -
Restrictions on Imports of Textile and Clothi ng Products" (WT/DS34), beyond the time period
specified in Article 22.6 of the DSU.  Turkey also acknowledges the right to recourse by India to
Article 21.5, if India, at any time, considers that the situation described in Article 21.5 of the  DSU
has arisen.WT/DS34/14
Page 6
4. At the request of either party consultations on the implementation or effects of any aspect of
this compensation pending compliance by Turkey of  the recommendations and rulings of the DSB in
the dispute "Turkey - Restrictions on Imports of Textile and Clothing Products" shall be held
expeditiously with a view to reaching a satisfactory solution.
5. This Agreement shall come into force on the date of exchange of letters between the
Government of India and the Government of Turkey memorializing the Agreement.
This letter and your letter in reply is without prejudice to the rights or obligations of either
Member under the Agreement Establishing the World Trade Organization".
I am pleased to confirm that your letter and my reply reflect the agreement reached by our
two governments on the issue of compensation to India pending compliance by Turkey of the
recommendations and rulings of the Dispute Settlement  Body in the dispute "Turkey - Restrictions on
Imports of Textile and Clothing Products" (WT/DS34).
S. Narayanan
Ambassador/PRWT/DS34/14
Page 7
ANNEX
Tariff Line Description Current Applied Tariff
(in percentage)Applied Tariff as of
30 September 2001
(in percentage)
282760003000 Iodides and Iodide oxides 5,5 0
283110000012 Dithionites and
sulphoxylates of sodium7.5 0
291639009019 Unsaturated acyclic
monocarboxylic and
cyclic acids:other6.5 0
291890900019 Carboxylic acids with
additional oxygen
function:
Other6.5 0
292429900029 Carboxyamide and amide
function compounds of
carbonic acid:  other6.5 2.2
292690990029 Nitrile-function
compounds:
Other8.5 0
293229809019 Heteroxylic compounds
with Oxygen
heteroatoms:
Other6.5 0
293339950049 Heteroxylic compounds
with nitrogen
heteroatoms:
Other6.5 0
293359700031 Heteroxylic compounds
containing a pyrimidine
ring:  siprofloksasin6.5 0
293359700039 Heteroxylic compounds
containing a pyrimidine
ring:
Other6.5 0
293390950059 Lactams; Other 6.5 0
293410000019 Nucleic acids compounds
containing an unfused
thiazole ring6.5 0
293490969029 Nucleic acids compounds
containing a
phenothiazine ring:
Other6.5 0
293500900029 Sulphonamides:
Other6.5 4.5
__________