WORLD TRADE WT/REG22/1/Add.1
21August 1996
ORGANIZATION(96-3291)
Original: English Committee onRegional Trade Agreements
CUSTOMS UNION BETWEEN TURKEY AND THE EUROPEAN COMMUNITY
Addendum
Thefollowing textreproduces theAgreement between theEuropean CoalandSteelCommunity
andtheRepublic ofTurkey ontradeinproducts covered bytheTreaty establishing theEuropean Coal
andSteel Community.1
______________________
AGREEMENT BETWEEN TURKEY AND THE EUROPEAN COAL AND STEEL
COMMUNITY ONTRADE INPRODUCTS COVERED BYTHE TREATY
ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY
THE EUROPEAN COAL AND STEEL COMMUNITY,
oftheonepart,and
THE REPUBLIC OFTURKEY,
oftheother part,
WHEREAS theCommunity andTurkey infurtherance oftheAnkara Agreement areconcluding
aCustoms Union inrespect ofproducts covered bytheTreaty establishing theEuropean Community,
PURSUING theobjective oftheelimination ofbarriers totrade anddesiring tofindsolutions
fortheproducts covered bytheTreaty establishing theEuropean CoalandSteel Community,
HAVE DECIDED, inpursuance ofthese objectives,
TOCONCLUDETHISAGREEMENTandtothisendhavedesignatedastheirPlenipotentiaries:
THE COMMISSION OFTHE EUROPEAN COMMUNITIES
THE PRESIDENT OFTHE REPUBLIC OFTURKEY
1TheAnnexes andProtocols thereto have been submitted totheSecretariat forconsultation byinterested
Members (Office No.3006).WT/REG22/1/Add.1
Page2
WHO, having exchanged theirfullpowers, found ingood anddueform,
HAVE AGREE ASFOLLOWS:
Article 1
ThisAgreement shallapply tothose coalandsteelproducts covered bytheTreaty establishing
theEuropean CoalandSteel Community (ECSC) andwhich originate intheCommunity orTurkey
aslisted inAnnex I.
Article 2
TheCommunity andTurkey shallestablish, inaccordance withtheprovisions ofthisAgreement
andinconformity withtheirobligations under theWorld Trade Organization (WTO), afree-trade area
inrespect oftheproducts referred toinArticle 1.
Elimination ofCustoms Duties andCharges Having Equivalent Effect
Article 3
1. Customs duties onimports orexports shallbeabolished intrade between theParties inthe
products referred toinArticle 1onthedateofentry intoforce ofthisAgreement, savethat
customs duties inrespect ofimports intoTurkey ofthose products setoutinAnnex IIshall
beabolished overthree years beginning onthefirstdayofthemonth following thedateon
which theAgreement enters intoforce pursuant toArticle 20inaccordance withtheschedule
setoutinAnnex II,namely areduction to50percentoftheconsolidated duties specified in
Annex IIduring thefirstyearofthisAgreement andbywayofafurther reduction to25per
centofthose duties during thesecond andthirdyears ofthisAgreement.
2. Nonewcustoms duties onimports orexports shallbeintroduced intrade between theParties
from thedateofentry intoforce ofthisAgreement.
3. Taxes, duties andlevies other thancustoms duties, including allmeasures having equivalent
effect, shallbeabolished onbothsides onthedateofentry intoforce ofthisAgreement and
shallnotbereintroduced.
Elimination ofQuantitative Restrictions orMeasures Having Equivalent Effect
Article 4
Quantitativerestrictionsormeasureshavingequivalenteffectshallbewhollyabolishedinrespect
totrade between theCommunity andTurkey onthedateofentry intoforce ofthisAgreement. The
Community andTukey shallrefrain from introducing anynewquantitative restrictions ormeasures
having equivalent effect inrespect oftrade between theCommunity andTurkey from thatdate.
Article 5
IftheCommunity orTurkey considers thataparticular practice isincompatible withtheterms
ofArticles 3or4itmayreferthematter totheECSC/Turkey JointCommittee andmaytakeappropriate
measuresfollowingconsultationoftheJointCommitteeorafter45daysofreferralforsuchconsultations.
Priority willbegiven tomeasures which leastdisturb thefunctioning ofthisAgreement.WT/REG22/1/Add.1
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Customs Provisions
Article 6
1. Thecombined nomenclature ofgoods shallbeapplied totheclassification ofgoods forimport
intotheCommunity.
2. Protocol 1laysdown rules oforigin forthepurposes ofthisAgreement.
Competitions, Concentrations andState-aids
Article 7
1. Thefollowing shallbeincompatible withtheproper functioning ofthisAgreement, insofar
astheymayaffect trade between theCommunity andTurkey:
(i) allagreements ofcooperative orconcentrative nature between undertakings, decisions
byassociations ofundertakings andconcerted practices between undertakings which
haveastheirobject oreffect theprevention, restriction ordistortion ofcompetition;
(ii) abuse byoneormore undertakings ofadominant position intheterritories ofthe
Community orofTurkey asawhole orinasubstantial partthereof;
(iii) public aidinanyformwhatsoever except derogations allowed pursuant totheECSC
Treaty.
2. Anypractices contrary toparagraph 1(i),(ii)and(iii)shallbeassessed onthebasis ofthe
relevant criteria arising from theapplication oftherules ofArticles 65and66oftheTreaty
establishing theECSC (and, where relevant, Article 85oftheTreaty establishing theEuropean
Community) andtherules onState-aid intheECSC sector, together withitssecondary
legislation.
3. Turkey shallnotify theCommunity insufficient timeofanypublic aidproposed tobegranted
intheECSC steelsector. TheCommunity shallhavetherighttoraiseobjections against any
suchaidwhich would havebeendeemed unlawful under Community lawhaditbeengranted
byaMember State. IfTurkey doesnotagree withtheCommunity 'sopinion, andifthecase
isnotresolved within 30days, theCommunity andTurkey shalleachhavetherighttorefer
thecasetoarbitration.
4. Eachparty shallensure transparency intheareaofpublic aidbyafullandcontinuous exchange
ofinformation totheother Party, including amount, intensity andpurpose ofanyproposed
aid.
5. TheECSC/Turkey JointCommittee shall, within twoyears from theentry intoforce ofthis
Agreement adopt thenecessary rulesfortheimplementation ofparagraphs 1to4.These rules
shallbebased onthose already existing intheCommunity andshall, interalia,specify the
roleoftherespective competition orState-aid authorities.
6. IftheCommunity orTurkey considers thataparticular practice isincompatible withtheterms
ofparagraphs 1to4,and
- isnotadequately dealtwithunder therules adopted pursuant toparagraph 5,orWT/REG22/1/Add.1
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- intheabsence ofsuchrules, andifsuchpractice causes orthreatens tocause serious
prejudice toitsdomestic industry, orasubstantial partthereof,
itmaytakeappropriate action following consultation oftheECSC/Turkey Joint Committee
orafter45daysofthereferral forsuchconsultations. Priority shallbegiven tomeasures which
leastdisturb thefunctioning ofthisAgreement. Inthecaseofpractices incompatible with
paragraph 1(iii), suchappropriate measures may,where theAgreement Establishing theWTO
applies thereto, onlybeadopted inconformity withtheprocedures andunder theconditions
laiddown bytheWTO andanyother relevant instrument negotiated under itsauspices which
areapplicable between theParties.
7. Turkey shallhavetherighttoraiseobjections andseisetheECSC/Turkey Joint Committee
inrespect ofaidgranted byaMember Statewhich itdeems tobeunlawful under Community
law. Ifthecaseisnotresolved within three months theECSC/Turkey JointCommittee may
decide toreferittotheCourt ofJustice oftheEuropean Communities.
Article 8
1. TheParties recognize thatduring fiveyears aftertheentry intoforce ofthisAgreement, and
bywayofderogation fromArticle 7,paragraph 1(iii), Turkey may, exceptionally, asregards
theproductscoveredbythisAgreement,grantpublicaidonacase-by-casebasisforrestructuring
orconversion purposes, provided that:
- transparency isensured byafullandcontinuous exchange ofinformation concerning
theimplementation oftherestructuring programme including amount, intensity and
purpose oftheaidandadetailed restructuring plan;
- therestructuring programme islinked torationalizing notinvolving anoverall increase
incapacity forhot-rolled products;
- theaidleads toviability determined according totheusual viability criteria implying
modernization withthesoleaimtoimprove efficiency ofthebenefiting firms under
normal market conditions attheendoftherestructuring period;
- theamount ofaidgranted isnotoutofproportion toitsobjectives andisstrictly limited,
inamount andintensity, towhatisabsolutely necessary torestore viability;
- Turkey notifies theCommunity insufficient timeofanyaidproposed tobegranted
under thisArticle. TheCommunity shallhavetherighttoraisereasoned objections
inrespect ofanysuchaidwhich doesnotcomply withthecriteria setoutabove.
2. If,during aperiod equal tothederogation forsubsidies pursuant toparagraph 1above and
given theparticular sensitivity ofsteelmarket, imports ofspecific steelproducts originating
inoneParty, cause orthreaten tocause serious injury todomestic producers oflikeproducts
orserious disturbances tothesteelmarkets oftheother Party, bothParties shallenter into
consultation immediately tofindanappropriate solution. Pending such asolution and
notwithstanding other provisions oftheAgreement andinparticular when exceptional
circumstances require immediate action, theimporting Party mayadopt forthwith quantitative
orothersolutions strictly necessary todealwiththesituation, inaccordance withitsinternational
andmultilateral obligations. Suchaction mayinclude quantitative restrictions limited toone
ormore regions thatareaffected byimports ofthesteelproducts inquestion.WT/REG22/1/Add.1
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Article 9
TheParties shallexchange information, taking intoaccount thelimitations imposed bythe
requirements ofprofessional andbusiness secrecy.
Trade Defence Instruments
Anti-dumping Procedures
Article 10
IfoneoftheParties finds thatdumping istaking place intrade withtheother Party within
themeaning ofArticle VIoftheGeneral Agreement onTariffs andTrade, itmaytakeappropriate
measures against thispractice, inaccordance withtheAgreement relating totheapplication ofArticle
VIoftheGeneral Agreement onTariffs andTrade, withrelated internal legislation andwiththe
conditions andprocedures setoutinArticle 11.
Article 11
1. Where dumping isbeing practised intrade between theCommunity andTurkey theinjured
Party maynotify theECSC/Turkey JointCommittee, which shalladdress recommendations
totheperson orpersons withwhom suchpractices originate forthepurpose ofputting anend
tothem.
2. Theinjured Party may, after notifying theECSC/Turkey Joint Committee, takesuitable
protective measures where:
(a) theECSC/TurkeyJointCommitteehastakennodecisionpursuanttoparagraph1within
three months from themaking oftheapplication;
(b) despite theissue ofrecommendations thedumping practices continue.
Moreover, where theinterests oftheinjured Party callforimmediate action, thatParty may,
afterinformingtheECSC/TurkeyJointCommittee,introduceinterimprotectivemeasureswhich
mayinclude anti-dumping duties. Such measures shallnotremain inforce more thanthree
months fromthedateofapplication, orfromthedateonwhich theinjured Party takesprotective
measures under (b)ofthefirstsub-paragraph.
3. Where protective measures havebeentaken under (a)ofthefirstsub-paragraph ofparagraph 2,
orunder thesecond sub-paragraph ofthatparagraph, theECSC/Turkey JointCommittee may
atanytime, decide thatsuchprotective measures shall besuspended pending theissue of
recommendations under paragraph 1.
TheECSC/Turkey JointCommittee mayrecommend theabolition oramendment ofprotective
measures taken under (b)ofthefirstsub-paragraph ofparagraph 2.
Safeguard Measures
Article 12
1. Where anyproduct isbeing imported insuchincreased quantities andunder suchconditions
astocause, orthreaten tocause:WT/REG22/1/Add.1
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- serious injury todomestic producers oflikeordirectly competitive products inthe
territory ofoneoftheParties, or
- serious disturbances inthesteelsector orarelated sector oftheeconomy ordifficulties
which could bring about serious deterioration intheeconomic situation ofaregion,
theCommunity orTurkey, whichever isconcerned, maytakeappropriate measures under the
conditions andinaccordance withtheprocedures laiddown inArticle 16.
2. Inthechoice ofmeasures tobetaken inpursuance ofparagraph 1,preference shallbegiven
tomeasures which leastdisturb thefunctioning ofthisAgreement.
Article 13
Intheframework oftheapplication oftradepolicy measures towards thirdcountries, theParties
shallendeavour, through exchange ofinformation andconsultation, toseekpossibilities forcoordinating
theiraction when thecircumstances andinternational obligations ofbothParties allow.
TheECSC/Turkey Joint Committee
Article 14
1. AnECSC/Turkey Joint Committee ishereby established. TheJoint Committee shallcarry
outanexchange ofviews andinformation, formulate recommendations totheParties anddeliver
opinions withaviewtoensuring theproper functioning ofthisAgreement. Inthecasesprovided
forherein theJointCommittee shallhavethepower totakedecisions. Such decisions shall
bebinding ontheParties which shalltakethenecessary measures toimplement thedecisions
taken.
Itshalldraw upitsdecisions andrecommendations byagreement between theParties.
2. TheParties shallconsult within theJointCommittee onanypointrelating totheimplementation
ofthisAgreement which gives risetoadifficulty foreither ofthem.
3. TheJoint Committee shalladopt itsrules ofprocedure.
Article 15
1. TheJoint Committee shallconsist ofrepresentatives oftheParties.
2. Theoffice ofChairman oftheJoint Committee shall beheldalternately, foraperiod of
sixmonths, bytherepresentative oftheCommunity, i.e.theCommission oftheEuropean
Communities, andtherepresentative ofTurkey.
3. Inorder tocarry outitsduties, theJointCommittee shalldecide onthefrequency ofitsmeetings
andshallalsomeetontheinitiative ofitsChairman orattherequest ofoneoftheParties.WT/REG22/1/Add.1
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Consultation oftheESCS/Turkey Joint Committee
Article 16
1. Inthecases referred toinArticles 5,10and12,theCommunity orTurkey, asthecasemay
be,shallsupply theECSC/Turkey JointCommittee withallrelevant information withaview
toseeking asolution acceptable totheParties.
2. Forthepurposes ofimplementing paragraph 1,thefollowing provisions shallapply:
(a) asregards Article 12,thedifficulties arising from thatArticle shallbereferred for
examination totheJoint Committee, which maytakeanydecision needed toputan
endtosuchdifficulties. IftheJointCommittee ortheexporting Party hasnottaken
adecision toputanendtothedifficulties ornoother satisfactory solution hasbeen
reached within 30daysofthematter being referred totheJoint Committee, the
importing Party mayadopt appropriate measures toremedy thedifficulties which have
arisen. Priority shallbegiven tosuchmeasures asleastdisturb thefunctioning ofthis
Agreement;
(b) where exceptional circumstances requiring immediate action make prior information
orexamination, asthecasemaybe,impossible, theCommunity orTurkey, whichever
isconcerned, may,insituations specified inArticle 12apply forthwith theprecautionary
andprovisional measures strictly necessary todealwiththesituation, andtheJoint
Committee willbeinformed immediately.
Settlement ofDisputes
Article 17
Ifexamination bytheJointCommittee failstosettle adispute relating tosafeguard measures
taken inaccordance withArticle 12,within sixmonths ofthedateonwhich thereferral wasmade,
either Party mayreferthedispute toarbitration under theprocedures laiddown inArticle 18.The
arbitration award shallbebinding ontheParties tothedispute.
Article 18
1. Ifadispute hasbeenreferred toarbitration there shallbethree arbitrators.
2. ThetwoParties tothedispute shalleachappoint onearbitrator within 30days.
3. Thetwoarbitrators sodesignated shallnominate bycommon agreement oneumpire whoshall
notbeanational ofeither Contracting Party. Iftheycannot agree within twomonths oftheir
appointment, theumpire shallbechosen bythem fromseven persons onalistestablished by
theJointCommittee, which shallestablish andreview thislistinaccordance withitsrulesof
procedure.
4. Thearbitration tribunal shallsitinBrussels. Unless theParties decide otherwise, itshalladopt
itsrules andprocedure. Itshalltakeitsdecisions bymajority.WT/REG22/1/Add.1
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Contact Group
Article 19
TheParties shall establish aContact Group which willdiscuss matters arising outofthe
functioning ofthisAgreement including inparticular questions related totrade between theParties,
cooperation between them inrespect ofinvestment andtheprogress ofrestructuring. TheContact
Group shallreport totheJoint Committee.
General andFinal Provisions
Entry intoForce
Article 20
ThisAgreement shallbeapproved bytheParties inaccordance withtheirownprocedures.
TheAgreement shallenter intoforce onthefirstdayofthemonth following thedateonwhich the
Parties notify eachother thatthese procedures havebeencompleted.
Article 21
ThisAgreement shallbedrawn upinduplicate intheDanish, Dutch, English, Finnish, French,
German, Italian, Spanish, Swedish, Greek, Portuguese andTurkish languages, eachofthetextsbeing
equally authentic.
Interpretation
Article 22
Theprovisions ofthisAgreement, insofar astheyareidentical insubstance tothecorresponding
provisions oftheTreaty establishing theEuropean Community shallbeinterpreted forthepurposes
oftheirimplementation andapplication toproducts covered bythisAgreement, inconformity with
therelevant decisions oftheCourt ofJustice oftheEuropean Communities.
Done atBrussels, 25July1996
FortheEuropean CoalandSteel Community FortheRepublic ofTurkey