WORLD TRADE
ORGANIZATIONWT/L/499
29 November 2002
(02-6595)
General Council
10-11 December 2002Original:  English
TURKEY – PREFERENTIAL TREATMENT FOR BOSNIA-HERZEGOVINA
Report of the Government of Turkey under the
Decision of 8 December 20001
The following communication, dated 25 November 2002, has been received from the
Permanent Mission of Turkey.
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I. INTRODUCTION
1. On 8 December 2000, Turkey was granted a waiver from its obligations under paragraph 1 of
Article I of the GATT 1994 until 31 December 2006, to the extent necessary to permit Turkey to
provide duty-free or preferential treatment to eligible products originating in Bosnia-Herzegovina
without being required to extend the same duty-free or preferential treatment to like products of any
other Member.
2. Under the terms of this waiver, Turkey is re quired to submit to the General Council an annual
report on the implementation of the preferences and duty-free treatment afforded to eligible products
from Bosnia-Herzegovina, including the extent to which such preferences and duty-free treatment
derogate from Turkey's MFN concessions, with a view  to facilitating the annual review provided for
in paragraph 4 of Article IX of the WTO Agreement.  Accordingly, the first report has been circulatedon 7 December 2001 with the symbol of WT/L/431.  This second report covers calendar year 2002.
Trade data has been provided for calendar year 2001, the most recent year for which full data is
available.
II. DUTY-FREE TREATMENT AFFORDED TO ELIGIBLE PRODUCTS FROM
BOSNIA-HERZEGOVINA
3. As stated in the first report, the relevant provisions of the Decision No. 1/95 establishing the
Customs Union, require that, all the duties and import regulations of Turkey and the European
Communities are to be applied identically.  In line with this, Turkey eliminated the duties on
industrial products listed in chapters 25-97 of the Harmonized Tariff Schedule of Turkey vis-à-vis
Bosnia-Herzegovina on 30 June 1999.  For a number of sensitive products certain tariff quota limits
were imposed at the level of 20 per cent of the quantities adopted by the EU.
2
                                                     
1 WT/L/381.
2 The products subject to tariff quotas are given in WT/L/431 .WT/L/499
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III. PERFORMANCE OF THE REGIME
4. Same as the previous period concerned, the amount of foreign trade between Turkey and
Bosnia-Herzegovina has not reached a noticeable level due to the trading capacity of Bosnia-
Herzegovina as well as the overall decrease in Turkey's imports.  However, it is expected to gain
progress promisingly in the forthcoming years.
5. Bosnia-Herzegovina's main export products to Turkey broadly remained to be the same:  arms
and ammunition and their parts;  electrical machinery and equipment; organic chemicals; nuclear
reactors, boiler and machinery;  raw hides and skins (other than furskins) and leather;  and iron and
steel as seen in Tables 2 and 3.  Duty-free treatment for Bosnian exports through tariff quotas was
only utilized in 1999 for motorcars (8703).
6. Statistical tables are provided to present a detailed description of the trade aspects of the
regime for the most recent period.
- Table 1 provides information on Turkey's foreign trade with Bosnia-Herzegovina
during 1998-2002, where six months figures are also given for 2000-2001.
- Table 2 provides information on the first 10 leading Turkish imports, by product
(2 Digit Description) from Bosnia-Herzegovina during 2000-2001.
- Table 3 provides information on the first 15 leading Turkish imports, by product
(6 Digit Description) from Bosnia-Herzegovina during 2000-2001.WT/L/499
Page 3TABLE 1
Turkey's Foreign Trade with Bosnia-Herzegovina, 1998-2002
(US$1,000)
Year Turkey's
imports from
Bosnia-
HerzegovinaChange over the
previous year or the
same period of the
previous year
%Turkey's
imports
from the
WorldShare of Bosnia-
Herzegovina in
Turkey's total
importsTurkey's
exports to
Bosnia-
HerzegovinaChange over the
previous year or the
same period of the
previous year
%Turkey's
exports to
the WorldShare of Bosnia-
Herzegovina in
Turkey's total
exportsTrade Balance
(Turkey's Exports-
Imports from
Bosnia-
Herzegovina)
1998 5,298 45,921,392 %0.012 38,07 7 26,973,978 0.141 32,779
1999 16,222 206 40,687,270 %0.040 39, 892 5 26,588,612 0.150 23,670
2000 7,497 -54 54,502,821 %0.014 26, 871 -33 27,774,906 0.097 19,374
2001 4,926 -34 41,399,083 %0.012 27, 585 3 31,342,034 0.088 22,659
2000 (1st  half) 3,982 25,478,651 %0.016 13,392 13,806,022 0.097 9,410
2000 (2nd half) 3,515 29,024,169 %0.012 13,478 13,968,884 0.096 9,963
2001 (1st half) 1,849 -54 20,670,770 %0. 009 11,526 -14 15,360,647 0.075 9,677
2001 (2nd half 3,077 -12 20,728,312 %0.015 16,060 19 15,981,387 0.100 12,983
2002 (1st half) 3,632 96 21,725,031 %0.017 17,819 55 16,031,351 0.111 14,187
Source: Official Statistics of the Undersecretariat for Foreign Trade.WT/L/499
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TABLE 2
Leading Turkish Imports, by Product (2 Digit Description), from Bosnia-Herzegovina, 2000
No. Description/Chapter Value
1. 93 - Arms and ammunition, parts and accessories thereof 2,888,537
2. 85 - Electrical machinery and equi pment and parts thereof 1,413,003
3. 41 - Raw hides and skins (other than furskins) and leather 1,151,444
4. 29 - Organic chemicals 868,673
5. 84 - Nuclear reactors, boiler and machinery 297,254
6. 72 - Iron and steel 262,619
7. 85 - Electrical machinery and equipment and parts thereof 268,730
8. 44 - Wood and articles of wood, wood charcoal 112,039
9. 39 - Plastics and articles thereof 94,287
10. 62 - Articles of apparel and clothing accessories not knitted or crocheted 44,934
Sub-Total 7,391,520
Total 7,497,165
Leading Turkish Imports by Product (2 Digit Description), from Bosnia-Herzegovina, 2001
No. Description/Chapter Value
1. 41 - Raw hides and skins (other than furskins) and leather 1,858,403
2. 84 - Nuclear reactors, boiler and machinery 1,169,436
3. 98 - Other arms and ammunitions 578,835
4. 72 - Iron and steel 394,858
5. 29 - Organic chemicals 347,435
6. 90- Optical, photographic, cinematographic, measuring, checking, precision, medical or
surgical instruments and apparatus and articles thereof211,340
7. 85 - Electrical machinery and equipment and parts thereof 142,620
8. 39 - Plastics and articles thereof 61,560
9. 44 - Wood and articles of wood, wood charcoal 38,759
10. 21- Miscellaneous  Edible Preparations 31,710
Sub-Total 4,834,956
Total 4,926,277
Source:  Official Statistics of the Undersecretariat for Foreign Trade.WT/L/499
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TABLE 3
Leading Turkish Imports, by Product (6 Digit Description), from Bosnia-Herzegovina, 2000
No. Description Value
1. 930630 - Other cartridges and parts thereof 1,666,537
2. 930629 - Air gun pellets;  other 893,000
3. 291714 - Maleic anhydride 858,008
4. 410210 - Raw skins of sheep or lambs with wool on 580,795
5. 410519 - Sheep or lamb skin leather without wool on;  other 404,053
6. 853529 - Automatic circuit breakers 382,447
7. 930690 - Cartridges and munitions of military weapons 329,000
8. 853521 - Automatic circuit breakers for a voltage of less than 72.5 kVA 277,722
9. 722490 - Other alloy steel in ingots or other primary forms;  semi-finished products of
other alloy steel;  other254,065
10. 860719 - Parts of railway or tramway locomotives or rolling-stock;  other, including parts 246,621
11. 850431 - Other transformers having a power handling capacity exceeding 16 kVA but not
exceeding 500 kVA241,718
12. 850431 - Other transformers having a power handling capacity not exceeding 1 kVA 177,378
13. 410121 - Skins of bovine animals:  whole, fresh or well-salted 131,978
14. 854590 - Other carbon articles used for electrical purposes 103,651
15. 392340 - Spools, caps, bobbins and similar supports of plastics 94,287
Sub-Total 6,641,260
Total 7,497,165
Leading Turkish Imports by Product (6 Digit Description), from Bosnia-Herzegovina, 2001
No. Description Value
1. 410210 - Raw skins of sheep or lambs with wool on 1,581,287
2. 983100 - Other arms and ammunitions 578,835
3. 848180 - Other appliances, machinery 450,127
4. 720836- Other in coils, not further worked than hot-rolled 376,544
5. 291714 - Maleic anhydride 347,435
6. 410221- Raw skins of sheep or lamps, without wool on, picked 271,930
7. 843049 - Other boring or sinking machinery, other 217,524
8. 901310 - Telescopic sights for fitting to arms; periscopes; telescopes 210,340
9. 841381 - Other pumps, liquid elevators 170,400
10. 841330-Fuel, lubricating or cooling medium pumps for internal combustion piston engines 116,113
11. 840999- Other parts of engines 98,147
12. 854590 - Other carbon articles 71,910
13. 851790 - Parts of various electric assemblies 35,636
14. 841440 - Air compressors mounted on a wheeled chassis for towing 35,000
15. 848310 - Transmission shafts 32,839
Total 4,926,277
Source:  Official Statistics of the Undersecretariat for Foreign Trade.
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