RESTRICTED
WORLD TRADE G/STR/Q1/TUR/3
4July1997
ORGANIZATION(97-2812)
Original: English Working Party onState Trading Enterprises
Replies toQuestions Posed bytheUNITED STATES1Concerning
theArticle XVII Notification ofTURKEY2
Thefollowing communication, dated 30June1997, hasbeenreceived from thePermanent
Mission ofTurkey.
_______________
Q1. WenotethatTurkey didnotinclude anumber ofState Economic Enterprises inits
Article XVII notification, suchasTurkish Sugar Factories, TeaIndustry Corporation,
Turkish Agricultural Supply Corporation andtheMeat andFishOrganization. We
understand thattheseentities enjoy "special orexclusive rights orprivileges" inthemeaning
oftheUnderstanding ontheInterpretation ofArticle XVII oftheGATT 1994.
Could Turkey explain whythese entities were notincluded inthenotification?
Reply
Theenterprises inquestion donothaveanyspecial orexclusive rights orprivileges inthe
meaning ofArticle XVII:4(a) oftheGATT 1994 andParagraph 1oftheUnderstanding onthe
Interpretation ofArticle XVII oftheGATT 1994.
Since theydonothaveanyspecial orexclusive rights orprivileges, theactivities ofthese
enterprises inquestion were notincluded inTurkey 'sArticle XVII notification.
Q2. WenotethatTurkey didnotinclude tobacco under itsnotification ofTEKEL inits
Article XVII notification. weunderstand thatthisentity enjoys "special orexclusive rights
orprivileges" fortobacco inthemeaning oftheUnderstanding ontheInterpretation of
Article XVII oftheGATT 1994.
Could Turkey explain whythisproduct wasnotincluded inthenotification?
Reply
Turkish StateMonopoly (TEKEL) doesnotenjoy anyspecial rights orprivileges fortobacco
inthemeaning ofArticle XVII:4(a) oftheGATT 1994 andParagraph 1oftheUnderstanding onthe
Interpretation ofArticle XVII oftheGATT 1994.
1G/STR/W/10.
2G/STR/N/1/TUR.G/STR/Q1/TUR/3
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Furthermore, under theframework oftheLawforTobacco andtheMonopoly ofTobacco,
theimport ofthisproduct wasfullyliberalized.
Since thereisnospecial orexclusive rightorprivilege forthisproduct, tobacco wasnotincluded
under theactivities ofTEKEL inTurkey 'sArticle XVII notification.
Q3. WenotethatfortheTurkish Grain Board, Turkey didnotprovide anyspecific information
under Description oftheFunctioning oftheState Trading Enterprise, part3ofthe
1960 Questionnaire. Turkey made thefollowing report initsnotification:
"Turkish SoilProduct Office (Turkish Grain Board) wasestablished in1938 withstate
capital toadminister purchases forwheat, coarse grains andother commodities under
itsresponsibility; tosellthese commodities ondomestic markets andwhen authorized by
theGovernment toaugment domestic supplies withimports andtoexport surpluses. The
Office isexcepted from theMass Housing Fund Levy initsimports ofthegoods listed
above inSection I:Aaccording tocurrent Import Regime."
(a) Could Turkey report onthespecific activities usedbytheTurkish Grain Board,
suchasthemechanisms theTurkish Grain Board usestomake purchases (both
domestic andimports), what itspurchasing criteria are,andhowprices for
imported products compare todomestic prices?
(b) Inaddition, could Turkey report ontherelation oftheTurkish Grain Board with
private traders?
Reply
WiththeentryintoforceoftheCustoms Union between Turkey andtheECon1January 1996,
Turkey made important legalandpractical arrangements onaverywidevariety offields particularly
incommercial andcompetition policies.
Thecomprehensive measures taken byTurkey were published intheOfficial Gazette dated
31December 1995 (No.BIS22510) withtheImport Regime ofTurkey. Thespecial andexclusive
rights andprivileges granted topublic enterprises andstatemonopolies ofcommercial nature, bythe
Import Regime, were terminated. Inthiscontext, theexclusive right granted totheTurkish Grain
Board (Turkish SoilProduct Office) toimport some products freeofmass housing fundlevies was
abolished. Inrelation tothis,Iwould liketoinform youthatweshallprovide ourupdating notification
assoonaspossible.
However,detailedinformationaboutthespecificactivitiesoftheTurkishGrainBoardisprovided
under thefollowing paragraphs.
TheTurkish Grain Board isaninstitution responsible forpurchasing andselling ofcereals
andother commodities withdetermined prices, providing andmaintaining necessary stocks forthe
products under itsresponsibility andbythiswaymaintaining thestability inthemarket forthese
products.
Incaseofnecessity, theTurkish Grain Board canexport andimport theproducts.
Other functions oftheBoard are:preserving, drying, cleansing, disinfecting andclassifying
theproductsunderitsresponsibility,operatingdepotsandsilos,establishingundertakingsororganizationsG/STR/Q1/TUR/3
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inthedomestic orforeign markets, renting buildings necessary fortheuseoftheBoard andrenting
theBoard 'sproperties.
TheTurkish Grain Board considers andevaluates theworld production figures andprices of
theproducts under itsresponsibility.
TheTurkish Grain Board makes quality determination fortheproducts subject toimportation
toTurkey. TheBoard determines selling prices ofthese products byconsidering thequality criteria
andimport costs.
Import andexport activities oftheBoard aredonebyinternational public tender. Inthiscontext,
Iwould liketostatethatthere isnolimitation nordiscrimination between thelocalandforeign firms
toparticipate inthispublic tender.