WORLD TRADE
ORGANIZATIONTN/S/O/TUR
3 September 2003
(03-4599)
Council for Trade in Services
Special SessionOriginal:  English
COMMUNICATION FROM TURKEY
Initial Conditional Offer
The following initial offer has been received from the delegation of Turkey on
15 August 2003 with the request that it be circulated to the Members of the Council for Trade in
Services.
_______________
Turkey's initial conditional offer to the Services Negotiations is enclosed herewith.  This offer
includes the Schedule of Specific Commitments and the Article II (MFN) Exemption List.
Modifications are indicated in this document by strikethrough for deletions, bold for new text anditalics for technical refinements.
This offer is conditional and does not prejudge Turkey's final position related to the final
commitments as an outcome of the ongoing services negotiations and the overall negotiations under
the Doha Development Agenda.
Turkey reserves the right to withdraw, modify or reduce this offer in whole or in part at any
time prior to the conclusion of the negotiations.
Turkey further reserves the right to make any technical change or correction in this initial
offer and any subsequent offer that could follow.TN/S/O/TUR
Page 3TURKEY – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
IN THIS SCHEDULE∗1) None
2) None
3) All investment to be made within the range of  at
least  $50,000 and $150,000,000  by non-
residents (natural or juridical  persons) through:
- the establishment of incorporated or
limited liability companies;
- the purchase of shares including the
portfolio investment registered under theForeign Investment Encouragement LawNo. 6224 (portfolio investment, according
to the Article No. 15-F of the Decree No. 32
is subject to the registration within the
framework of the Law No. 6224, if the
investor desires to  participate in the board
of directors or general assembly of the
company, as well as to interfere in the
management of it in any other way) ;
- the opening of branches; and- the creation of liaison offices, will be
authorized by the General Directorate ofForeign Capital provided that such activities
are beneficial to the economic development
of Turkey, are in the areas open to theTurkish private sector and do not entail amonopoly or special privilege. Foreign
investment above  $150 million requires the
approval of the  Council of Ministers. A
new Decree removing  this limitation is
under preparation.  The capital must be
brought in cash  as foreign exchange or in
kind .
                                                          
∗ The conditions and criteria, required for obtaining all the permissions and authorizations which are indicated in the schedule  and those which are applied for becoming a member of all the
related chambers, do not limit market access or qualify national treatment within the scope of Articles XVI and XVII.TN/S/O/TUR
Page 4Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Authorization is required for the investments by
established foreign-owned enterprises or jointventures in a new line of business and forparticipation or takeover of existing enterprises.
For the investments in the same line of
business, proposals are generally approved as amatter of course.
Real Estate
Foreign controlled  firms are permitted to
acquire real estate in Turkey pursuant to
Foreign Investment legislation provided thatthe real estate to be acquired is related to theinvestor's permitted activities.  However,foreign controlled enterprises are prohibitedfrom engaging in real estate trading.
Monopolies
The following sectors are closed to privateinvestments because of the public monopolies:postal services and
 telecommunications ;  voice
telephony services along with the
establishment and operation of all
telecommunications in frastructure except
private telecommunications networks andtelecommunications infrastructure which iscontemplated to be established by new
operators pursuant to their authorizations;
railways; administration of harbour and quay;
lotteries in cash, football pools and
 ; public
utilities.TN/S/O/TUR
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
4) Unbound except for the entry and temporary
stay of natural persons in the followingcategories:4) The professional services which are
assigned only to Turkish citizens by thespecific laws cannot be rendered byforeigners either as service providers or as
the personnel of service providers.  On the
other hand foreign citizens with Turkishorigin may work in professions which areassigned only to Turkish citizens with thepermission obtained from the Ministry of
Interior.  Those professions which are
assigned only to Turkish citizens are givenbelow:
A. Administrative and technical Personnel
Work permits for the employment of the belowdefined administrative and technical personnel
of a foreign service provider in the branch,
subsidiary, affiliate or representative office aregiven by the relevant authorities in accordancewith the Foreign Capital legislation and theother Laws concerning the employment offoreigners.
The work permits are valid up to 2 years and
subject to renewal after that. In addition to thework permits, the Ministry of Interior givesresidence permits for the same personnel forthe periods of up to 2 years, which can be
extended parallel to the work permit-renewals.1) Doctors, 2) Pharmacists, 3) Nurses, 4)
Veterinarians, 5) Responsible directors ofthe factories producing medicine, 6)
Guides,7) Responsible directors of private
hospitals, 8) Responsible directors oftravel  agencies, 9) Directors of newspaper,10) Dentists, 11) Notaries, 12)Thosepersonnel working in Free Trade Zonesother than managers and qualified
personnel, 13) Those personnel
undertaking coastal commerce and relatedactivities, 14) Opticians, 15) Doctors,pharmacists and veterinarians dealing withlaboratory services, 16) Lawyers who
practice in Turkish Courts, 17)
Accountants and Certified PublicAccountants.
Managers-executives
Persons who primarily direct the organization
or one of its departments and who receive only
general supervision or direction from higher-
level executives, the board of directors or thestockholders of the organization.TN/S/O/TUR
Page 6Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Specialists
Highly qualified persons who, within an
Organization, are indispensable for theprovision of a specific service by reason of
their knowledge at an advanced level of
expertise in the field of services, researchequipment, techniques or management of theorganization.
B. Service sellers
It is not necessary to obtain work permits and
residence permits for natural persons (servicesellers as defined below) who stay in Turkeyfor not more than 30 days, for the purpose ofparticipating in business meetings, businesscontracts including negotiations for the sale of
services, entry into contract to sell services and
visit of business establishments, or other
similar activities.
 
Service sellers
Defined as persons employed or mandated by
an organization and who stay temporarily in
another signatory country in order to conclude
the sale of service on behalf of the organizationwhich employs them or has mandated them.Service sellers may not sell services directly tothe general public.
                                                          
  Note: Turkish legislation related to taxation, prudential and professional competency requirements, immigration policies has n ot been listed separately in this schedule.TN/S/O/TUR
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
II. SECTOR SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
(a) Legal services (advisory
services on foreign and
International Lawonly)( Part of  CPC 861*
)1) None
2) None
3) None
4) None1) None
2) None
3) Representation in the Turkish Courts is
assigned only to Turkish nationals.
4) None
(b) Accounting, auditing and
bookkeeping services(CPC 862)1) Unbound
2) None3) Authorized financial advisers
1 establish their
company among themselves after being amember of the related Chamber.1) Unbound
2) None3) Foreign titles and names cannot be used in
the titles of partnerships or corporationsamong Turkish and Foreign FinancialAdvisers (this restriction will be
eliminated by an amendment to the related
regulation).
4) Unbound 4) Turkish citizenship is required for
Accountants and Certified PublicAccountants.
(d),(e)Engineering and
Architectural services(CPC 8671, 8672)1)
2None
2)2None
3)2None
4)2None1) None
2) None3) None4) None
                                                          
1 Foreign financial advisers can be authorized, under reciprocal condition, by the approval of the Prime Minister upon the propo sal of the Ministry of Finance.  Foreign financial advisers
can perform all the accountancy, tax advisory, financial advisory and auditing services without making certification.
2 Foreigners may engage in these services after becoming a temporary member of the related Union of Chambers.TN/S/O/TUR
Page 8Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
B. Computer and Related
Services
(a) Consultancy services
related to the installationof computer hardware
(CPC 841)
(b) Software implementation
services (CPC 842)
(c) Data processing services
(CPC 840
 843)
(e) Other
(Part of CPC 8499)
- Training services for
staff  of clients 31)4None
2) None3)
4None
4)4None1) None
2) None3) None
4) None 
F. Other Business Services
(a) Advertising services
(CPC 871)
(b) Market research services
(CPC 864)
(c) Management consulting
services (CPC 865)
(q) Packaging services
(CPC 876)1) None
2) None3) None4) None1) None
2) None3) None4) None
                                                          
3 Electrical, electronic and  computer engineers must obtain prof iciency and qualification certificates from the permanent in se rvice training center of the Chamber of Electrical Engineers.
4 Computer engineers may engage in these services after becoming a temporary member of the related Union of Chambers.TN/S/O/TUR
Page 9Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(f) Services incidental to
hunting (CPC 881)1) Establishment is required
2) None1) None
2) According to the decision of Commission
of Hunting by obtaining the huntinglicence, foreigners may hunt for 10 days
and pay US$ 50 fee per day.
3) Only Group A travel agencies may operate in
this field with the condition of obtaininghunting licence3) None
4) None 4) None
(h) Services incidental to
mining(CPC 883, 515
 5115  )1) Establishment is required.
2) None
3)5None
4)6None1) Nationality is required for real person
None
2) None
3) None
4) None
2. COMMUNICATION
SERVICES
A. Postal Services
(CPC 7511)1),3) Public monopoly
2) None4) Unbound1),3) Public monopoly
2) None4) Unbound
B. Courier Services
(CPC 7512)1),3) None
2) None4) None1),3) None
2) None4) None
                                                          
5 Petroleum and Mining Laws specify that services incidental to mining require an operating licence.
6 Engineers and architects may engage in these services after becoming a temporary member of the related Union of Chambers.TN/S/O/TUR
Page 10Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
C. Telecommunication 
Services7
(a) Voice telephone services
(b) Packet-switched data
transmission services1),3) Türk Telekomünikasyon A.S. is the exclusive
operator.  Exclusive right will end by
31.12.2005, subject to adoption of the relevant
legislation by the parliament.
2)      None
4)      Unbound except as indicated in horizontal
section.1),3)None except as indicated in the market
access column.
2)      None
4)      Unbound except as indicated in horizontal
section.- Independent  Regulatory
The regulatory body is
separate from and not
accountable to any supplier
of basic telecommunications
services. The decisions of
and the procedures used by
regulators shall be impartial
with respect to all market
participants.
(c) Circuit-switched data
transmission services
(d) Telex services(f) Facsimile services(g) Private leased circuit
services1)
,3) Interconnection between private companies is
prohibited.  The licenses and permissions are
available only for the companies which deal
with the subject of licence and registered in
Turkey.  Total Turkish citizens equity should
not be less than 51%.
2)      None
4)      Unbound except as indicated in horizontal
section.1),3)None except as indicated in the market
access column.
2)      None
4)      Unbound except as indicated in horizontal
section.Regulatory and operational
functions are separated.  The
Directorate General of
Communications established
within the Ministry of
Transport and
Communications is the
Responsible Body to:
- Regulate the required 
         qualifications for 
         operators,  Issue 
         li censes,
- Inspect,
- Give type approval for
telecommunications
terminal equipment.
                                                          
7 The scope of basic telecommunications in our final Schedule does not cover any kind of (analog-digital) radio and TV programme  broadcasting services to the public.TN/S/O/TUR
Page 11Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
-Public Availability of
Licensing  Criteria
Where a licence is required,
the following will be made
publicly available:
(a)     all the licensing criteria
and the period of time
normally required to
reach on decision
concerning an
application for a licence
and
(b)     the terms and
conditions of individual
licenses.
(h) Electronic mail
(CPC 7523)1),3)  Public monopoly.  Revenue-sharing model may
be applied.
2)      None
4)      Unbound except personnel at the establishment
stage of the system in case of revenue-sharing
applications1),3) None
2)      None
4)      None
(i) Voice mail
(CPC 7523)1),3)  Public monopoly
2)      None
4)      Unbound1),3)  Public monopoly
2)      None
4)      Unbound
(j) On-line information and
data-base retrieval(CPC 7523)1),3)  Public monopoly
2)      None
4)      Unbound1),3)  Public monopoly
2)      None
4)      Unbound
(k) Electronic data
interchange
(CPC 7523)1),3)  Public monopoly.  Revenue-sharing model may
be applied.
2)      None
4)      Unbound except personnel at the establishment
stage of the system in case of revenue-sharing
applications1),3)  None
2)      None
4)      NoneTN/S/O/TUR
Page 12Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(l) Enhanced/value-added
facsimile services, incl.store and forward, storeand retrieve
(CPC 7523)1),3)  Public  monopoly.  Revenue-sharing model may
be applied.
2)      None
4)      Unbound except personnel at the establishment
stage of the system in case of revenue-sharing
applications1),3)  None
2)      None
4)      None
(m) Code and protocol 1) ,3)  Public monopoly.  Revenue-s haring model may
be applied.
2)      None
4)      Unbound except personnel at the  establishment
stage of the system in case of revenue-sharing
applications1),3)  None
2)      None
4)      None
(n) On-line information and/or
data processing
(CPC 843)1),3)  Public monopo ly
2)      None
4)      Unbound1),3)  Public monopoly
2)      None
4)      UnboundTN/S/O/TUR
Page 13Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(o) Others
- Mobile services
analog/digital cellular
- Paging services
-C a b l e  T V  services
- Satellite
Communications
Services (VSAT, SCPC
VSAT)
- Satellite Platform
Services
- GMPCS services- SMS services over
mobile Networks
- Partial Infrastructure
establishment
- Internet Provision and
Access Services
- Audiotext Services over
PSTN1)
,3)  The Ministry of Transport and
Communications may grant licence and
authorization to private companies for the
operation of network, with licensing criteria
publicly available.  Interconnection between
private companies is prohibited.  The licences
and permissions are available only for the
companies which deal with the subject of
licence and registered in Turkey. Total Turkish
citizens equity Should not be less than 51%.
2)      None
4)      Unbound except as indicated in  horizontal
section.1),3)  None except as indicated in the market
access column.
2)      None
4)      Unbound except as indicated in horizontal
section.TN/S/O/TUR
Page 14Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
1),3) None except; the monopoly of Türk Telekom
on voice telephony until 31.12.2003 or thedate when the state shares of Türk Telekomfall below 50%.  Establishment and
operation of all telecommunications
infrastructure,  other than privatetelecommunication networks andtelecommunication infrastructure which iscontemplated to be established by new
operators pursuant to their authorizations,
are included in the monopoly scope.
Foreign natural and le gal persons can not
hold more than 45% of Türk Telekomshares and they may not directly or
indirectly own the majority shares of the
company.
With regard to services rendered under
concession agreements
8, only 49% of shares
can be owned by foreign investors.1),3) None Turkey Undertakes the
obligations contained in thereference paper attachedhereto.
2) None
4) Unbound except as indicated in the
horizontal section2) None
4) Unbound except as indicated in the
horizontal section
(e) Telegraph services 1)  Directorate General of Posts  General
Directorate of PTT  is the exclusive service
provider.
2) None
3) Directorate General of Posts  General
Directorate of PTT   is the exclusive service
provider.
4) Unbound except as indicated in the horizontal
section.1) None except as indicated in the market
access column.
2) None
3) None except as indicated in the market
access column.
4) Unbound except as indicated in the
horizontal section.
                                                          
8 Concession Agreement:
An agreement that an operator signs with the Telecommunications Authority to establish and operate nationwide telecommunication s infrastructures and/or services that require limited
number of operators and allocation of scarce resources.TN/S/O/TUR
Page 15Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
3. CONSTRUCTION AND
RELATEDENGINEERINGSERVICES
(CPC 512, 513, 514+516,
517)1)
9None 1) Investor public entities will give priority
to domestic firms in works that they could
not do such as engineering, architectural
and consultancy services in investments
that are not subject to patent and could be
carried out with the technology used in
Turkey except in projects financed by
international institutions.
                                                          
9 Responsible engineers or architects of the firms must be temporary members of the related Union of Chambers.  Foreign contracto rs or foreign establishments  which contracted, solely or
jointly with national firms, engineering or arch itecture-related works with public entities or real natural  and legal persons in the public or private sectors, may employ foreign specialists only for
these works with approval of the Ministry of Public Works and Settlement  based on the opinion of the Union of Chambers.  Engineers and architects in activities other than those mentioned above
could be employed by the decision of Ministry of Public Works and Settlement  upon the opinion of Administrative Committee of Union of Chambers.  However, those brought for advisory works
by public offices, official and private companies and real natural  persons and legal entities and those who come for technical inst ruction are not bound to the above rule. These persons may not  work
in other activities other than those mentioned above. The foreign engineers and architects, who want to stay more than one mont h in Turkey must apply to the related Union of Chambers in order to
become a temporary member.TN/S/O/TUR
Page 16Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
In Government tenders, the ratio of
discrimination in favour of national
companies is determined by the Ministry
accordingly to the Decision of Council of
Ministers, advantage can be obtained up to
15 per cent in favour of national
companies in determining appropriate
value, however, this issue and ratio (also
the system to be applied if partnership of
national and foreign companies exists)
should bementioned in the bid contract.
In tenders held under Public
Procurement Law, the contractingentities have the right to set provisionsin the tender documents;
- restricting participation to only
domestic tenderers in tenders of whichestimated values are below thethreshold values,
- providing up to 15% price advantage in
favour of domestic tenderers in
procurement of services and public
works in tenders of which estimatedvalues are above threshold values.However, this provision is notapplicable for the domestic tendererswho participate in the tender
proceedings by form ing joint ventures
with foreign tenderers.TN/S/O/TUR
Page 17Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
2) None
3) For Construction Services, establishing
ordinary partnership under Civil Code (whichis not a legal entity) excluding the ordinary
partnership formed for international tenders in
Turkey by the non-residents is subject topermission of the Ministry to which theUndersecretariat of Treasury and Foreign
Trade (UTFT)  is attached.
4)10None2) None
3) None
4) None
5. EDUCATION SERVICES
A.,B.,E. Primary, Secondary
and Other Educational
Services
(CPC 921, 922, 929)1),3 Real Natural  and legal foreign persons directly
or by establishing partnership with Turkish
citizens may establish international educational
institutions (including vocational and technicalschools) only for foreign students.1),3)None
2) None
4) Foreign teachers and experts  may work in
pre-primary, primary and secondary
educational institutions and in non-formal
educational institutions (i.e. in language
teaching and vocational training centers)
after taking permission from the Ministry of
Education.2) None
4) None
                                                          
10 Responsible engineers or architects of the firms must be temporary members of the related Union of Chambers.TN/S/O/TUR
Page 18Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
C. Higher Education Services
(CPC 923)1) None
2) None3) Private universities are founded by Law and
can only be established by foundations
constituted Under Civil Code with the
permission of the Council of Ministers ,.
provided that the   The majority of the
administration of such foundations must beTurkish citizens.
4) None1) None
2) None3) None
4) None
6. ENVIRONMENTAL
SERVICES
A. Sewage Services
(CPC 9401)1) Unbound
2) None3) None
4) None1) Unbound
2) None3) None
4) None
B. Refuse Disposal Services
(CPC 9402)1) Unbound
2) None3) None4) None1) Unbound
2) None3) None4) None
C. Sanitation and Similar
Services
(CPC 9403)1) Unbound
2) None3) None4) None1) Unbound
2) None3) None4) NoneTN/S/O/TUR
Page 19Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
7.  FINANCIAL SERVICES
1. Turkey undertakes commitments on Financial Services in accordance with the provisions of the "Understanding on Commitments in  Financial Services" (the
Understanding).
2. The market access commitments in respect of modes 1) and 2) appl y only to the transactions indicated in paragraphs 3 and 4 of  the market access section of the
Understanding respectively.
3. The admission to the market of new financial services or produ cts (such as subsectors B/l and B/m-ii) may be subject to the e xistence of, and consistency with, a
regulatory framework aimed at achieving the objectives indicated in Article 2.1 of the Financial Services Annex.
Measures applicable to all sectors in Financial Services:
Banking 3) Establishment of a bank which has to be in the
form of a joint-stock company and opening of
the first branch of a foreign bank require
authorization from the Council of Ministers .
According to the prevailing circumstances, the
Undersecretariat of Treasury may require
additional conditions, which are determined by
a regulation, for the establishment of a bank or
opening the first branch of a foreign bank in
Turkey.  Following the establishment,
operation license from Undersecretariat of
Treasury must be obtained in order to start
collecting deposits or execute banking
operations.
Permission to establish a bank which has to
be established in the form of a joint-stock
company or to open the first branch of aforeign bank in Turkey, shall be given by adecision taken by the Banking Regulationand Supervision Board. A permission tooperate should also be  received following the
consummation of establishment or branch
opening transactions, in order to startreceiving deposits and/or conductingbanking transactions.3) NoneTN/S/O/TUR
Page 20Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
The establishment of additional branches by
the banks is subject to the meeting of the
criteria and ratios required by the
Undersecretariat of Treasury.  The
Undersecretariat has the right to limit or
prohibit the additional branch establishment, if
necessary.
The establishment of the first branch of a
non-resident bank as well as establishment
of a domestic or foreign bank is subject to
the same amount of minimum capitalrequirement set forth in the Banks Act.
According to the Banks Act, lending limits forthe branches of foreign banks are based on
branch capital rather than worldwide capital.
The establishment of domestic or foreign banks
as well as the first branch of a non-resident
bank are subject to the same amount of
minimum capital requirement.  Acquisition or
transfer of the shares representing a ratio equal
or higher than 5, 20, 33 and 50 per cent of the
capital is subject to the authorization of the
Undersecretariat of Treasury.
Any acquisition of shares that result in the
acquisition by one person directly or
indirectly of shares representing 10% ormore of the capital of a bank, or if shares
held by one shareh older exceed 10%, 20%,
33% or 50% of the capital as a result
thereof, and assignments of shares that
result in shares held by one shareholderfalling below the percentages above, shallrequire the permission of the BankingRegulation and Supervision Board.TN/S/O/TUR
Page 21Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Insurance 3) In order to be established in Turkey, insurance
and reinsurance companies have to be foundedin the form of a joint-stock or a mutualcompany.  Foreign insurance and reinsurance
companies may operate in Turkey by opening
branches as well.3) None
However, reinsurance companies can do
reinsurance business without fulfillingestablishment conditions mentioned above.
Establishment of insurance and reinsurancecompanies or opening of a branch of a foreigninsurance or a reinsurance company is subject
to prior permission of the Ministry of State.
Following the establishment, operation licencefrom Undersecretariat of Treasury must beobtained in order to start insurance orreinsurance business.
Acquisition or transfer of shares representing10, 20, 33, 50 per cent or higher of the capitalis subject to the authorization ofUndersecretariat of Treasury.
3),4) Engaging of natural persons in brokerage
business or establishment of an insurance and
reinsurance broker company or opening of abranch of a foreign insurance and reinsurancebroker company in Turkey is subject to priorpermission and obtaining operation licence
from Undersecretariat of Treasury.  Such a firm
must be founded in the form of a joint-stock ora limited liability company, and must possessthe required minimum paid-in capital.3),4) NoneTN/S/O/TUR
Page 22Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Foreign commercial presence or presence of
foreign natural persons regarding servicesauxiliary to insurance is permitted only forconsultancy and risk management.
4) Natural person insurance and reinsurance
brokers have to reside in Turkey and they must
have at least 5 years of experience as brokers intheir countries of origin.4) None
Securities market 3) For the establishment of capital market
institutions11 the permission of the Capital
Market  Markets  Board is required.  If banks or
insurance companies apply to the Capital
Markets  Board to form a mutual fund or to
increase fund capital, the opinion of the
Banking  Regulation  and Supervision Board
and the Undersecretariat of Treasury has to be
obtained respectively  to finalize the
applications.3) None
                                                          
11 According to the Capital Market Law, capital market institutions are specified as follows:
(a) Securities Intermediary Institutions.
(b) Investment Corporations  Companies .
(c) Mutual Funds(d) Other capital market instituti ons permitted to operate in the capital market such as clearing and custodial houses, rating a nd auditing institutions, etc.TN/S/O/TUR
Page 23Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Establishment of branches and agencies by
securities intermediary institutions establishedin Turkey also requires the Capital Markets
Board's permission. The permission of the
Board is required for obtaining 5 per cent or
more of the capital of already established
securities intermediary institutions by one
shareholder (natural or legal persons).
Permission of the Capital Markets Board is
required when a legal or  natural person (or
more persons acting in concert) acquire(s) aminimum of 10% of outstanding shares tobecome a sharehol der of an already
established securities intermediaryinstitution. Same permission requirement
also applies when the threshold of
10%,20%, 33% or 50% capital by oneowner or more owners acting in concert is
crossed upward or downward.
Intermediary institutions, investmentcorporation
s companies , portfolio
management companies and rating agencies
can only be established in the form of a joint-stock company.
Establishment of branches and representative
offices of foreign non-bank intermediary
institutions is not permitted.
Additionally, operations of all capital marketinstitutions and banks are subject to thepermission of the Capital Markets  Board.
While giving such permission, the Capital
Markets  Board issues "Authorization
Certificates" for the activities to be carried outby each institution.TN/S/O/TUR
Page 24Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Rating agencies should have a know-how
agreement with an international rating agencyrecognized by the Capital Markets  Board.  In
case of partnership with an international rating
agency recognized by the Capital Markets
Board, the share of the international ratingagency shall not be less than 25 per cent of thecapital of the domestic rating agency.
OTHER FINANCIAL
SERVICES
A. Financial leasing service 3) Financial leasing companies (lessors) can be
established (a) in the form of a joint-stockcompany, and (b) through the establishmentand opening of a branch of a lessor, as well as
opening of a branch of a foreign lessor.  In the
case of (b), subject to prior permission of theMinistry of State to which the Undersecretariatof Treasury is attached.3) The minimum paid-in capital required for
opening a branch by a foreign lessor ismore than that of establishing a company.
B. Factoring and consumer
credit services3) Factoring companies and consumer credit
companies must be established in the form of a
joint-stock company.
For the establishment of these companies, prior
permission of the Undersecretariat of Treasury
must be obtained.3) None
C. Authorized institutions
(foreign exchange dealers)3) In order to engage in activities as an authorized
institution, the permission of theUndersecretariat of Treasury must be obtained.
Authorized institutions must be incorporated in
the form of a joint-stock company.3) NoneTN/S/O/TUR
Page 25Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
D. Precious metals exchange 3),4) Precious metals intermediaries (banks,
authorized institutions, precious metalsintermediary institutions as well as resident andnon-resident natural or legal persons) can
operate in Istanbul Gold Exchange after being
granted the operation licence by theUndersecretariat of Treasury and beingregistered by the Istanbul Gold Exchange.3),4) None
A. Insurance and Insurance-
related Services
(a) (i) Direct insurance
(i) (B) Non-life 1),2) Unbound except:
(a) The hull insurance of aircrafts, helicopters
and ships which are purchased through aforeign loan or leased through a financialleasing contract from abroad, provided that
the insurance period is limited to the term of
the credit or leasing contract;1),2) None
(b) marine liability insurance;
(c) transportation insurance of imported and
exported goods;
(d) individual accident, sickness and motor
vehicle insurance during any travel abroad.
3) None
4) None3) Compulsory traffic insurance of publicly
owned motor vehicles can only be done bythose insurance companies whosemajority of paid-in capital belongs toTurkish citizens.
4) NoneTN/S/O/TUR
Page 26Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(ii) (A) Life 1) Unbound   None
2) None3) A certain per cent of paid insurance premiums
is deducted from gross wages and corporate
income in order to determine real individual
and corporate taxable income. In order tobenefit from this facility, life insurance policiesmust be concluded with the insurancecompanies or the branches of foreign insurance
companies established in Turkey.1) None
2) None3) None
4) None 4) None
(b) (ii) Reinsurance and
retrocession1),2) Non-life insurance premiums, after holding  the
retention, are subject to a certain per cent
compulsory ceding to Milli Reinsurance Co. If
the total retention ratio of the insurance
company reaches to 75 per cent, compulsory
ceding is cancelled.
Non-life insurance premiums, after holding
the retention, are subject to a certainpercent (20% of premiums subject to
cession) compulsory ceding to the
reinsurance pool.
3) None
4) None1),2) None
3) None
4) NoneTN/S/O/TUR
Page 27Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(c) (iii) Insurance 
intermediation1),2) Unbound for dependent  intermediaries
(agencies, producers).  Dependent
intermediaries can act only on behalf of
insurance companies authorized to operate in
Turkey.
Unbound for intermediaries (agents,
producers).
3) Insurance and reinsurance brokers and fully
authorized agencies can only engage in
insurance-related business.1),2) None
3) None
4) Unbound except administrative and technical
personnel.  Foreign natural person insurance
and reinsurance brokers  must have at least
5 years of experience as a broker abroad.4) None except natural person insurance
and reinsurance brokers have to  reside
in Turkey.
(d) (iv) Services auxiliary to
insurance1),2) None except adjusters and actuaries .
3) None
4) None except adjusters and actuaries .1),2) None
3) None
4) NoneTN/S/O/TUR
Page 28Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
B. Banking and Other
Financial Services
(e) (v) Acceptance of deposits 1),2) None
3) No natural person or legal entity other than
those authorized under the Banks Act or under
specific regulations may can accept deposits.
4) None1),2) None
3) None
4) None
(f) (vi) Lending of all types
(i)  (A) Consumer credit 1),2) None
3) Banks and consumer credit companies may can
lend consumer credits.
4) None1),2) None
3) None
4) None
(ii)   (B) Factoring 1),2) None
3) Banks and factoring companies can engage in
factoring activities.
4) None1),2) None
3) None
4) None
(iii)   (C) Mortgage 
credit and  financing of 
commercial 
transactions1),2) None
3) Banks can engage in trading of these activities.4) None1),2) None
3) None4) None
(g) (vii) Financial leasing 1),2) Leasing contracts related to cross-border
leasing transactions must be permitted by theUndersecretariat of Treasury.
3) Banks which are not authorized to accept
deposits (Investment Banks and
Development Banks) and  lessors can engage
in financial leasing transactions.
4) None1),2) Regarding cross-border leasing
transactions, the annual rent may not beless than the Turkish Lira equivalent of
$25,000.
3) None
4) NoneTN/S/O/TUR
Page 29Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(h) (viii) All payment and
money  transmissionservices1),2) None
3) Transfers of foreign exchange abroad must be
carried out through the banking system.
4) None1),2) None
3) None
4) None
(i)(ix) Guarantees and
commitments1),2) None except that performance bonds with
guarantee letters issued for  the transactions
specified in the  State Tender  Public
Procurement  Law must be obtained from a
bank operating in Turkey.1),2) None
3)     None
4)     None3) None
4) None
(j)  (x) Trading for own
account or for accountof customer
(i)  (A) Money market
instruments1),2) None
3) Banks and securities intermediary institutions
can engage in trading of money marketinstruments.
4) None1),2) None
3) None
4) None
(ii)  (B) Foreign exchange 1),2) None
3) Banks and authorized institutions can engage
in foreign exchange trading.
4) None1),2) None
3) None
4) None
(iii)  (C)Derivative products 1),2) None
3) Banks and related intermediary institutions can
engage in trading of these products.
4) None1),2) None
3) None
4) NoneTN/S/O/TUR
Page 30Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(iv)  (D)Exchange rate and
interest  rateinstruments1),2) None
3) Banks and related intermediary institutions can
engage in trading of these instruments.
4) None1),2) None
3) None
4) None
(v)  (E) Transferable securities 1),2) None
3) Banks and securities intermediary institutions
can engage in trading of these products.
However, banks can not engage in equities
trading in the ISE equities market.
4) None1),2) None
3) None
4) None
(vi)(F)Other negotiable
instruments andfinancial assets,including bullion1),2) None
3) Banks and related intermediary institutions can
engage in trading of these products. Onlyprecious metals intermediaries can engage in
trading of bullion in the Istanbul Gold
Exchange.
4) None1),2) None
3) None
4) None
(k)  (xi) Underwriting and
placement1),2) None
3) Banks which are not authorized to accept
deposits and securities intermediary
institutions can provide underwriting andplacement services for the securities to beissued after being registered by the CapitalMarket
 Markets  Board.
4) None1),2) None
3) None
4) None
(l)  (xii) Money broking121),2),
3),4) None1),2),
3),4) None
(m)  (xiii)  Asset management
portfolio management1),2) None
3) Banks  which are not authorized to accept
deposits , securities intermediary institutions
and portfolio management companies canprovide these services.
4) None1),2) None
3) None
4) None
                                                          
12 This is a new financial service.TN/S/O/TUR
Page 31Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
(i)  (A) Collective investment
management1),2) None
3) Mutual funds and investment corporations
companies  can engage in collective investment
management.
4) The majority of the members of the board of
directors of an investment corporation musthave Turkish nationality.1),2) None
3) None
4) None
(ii)  (B) Pension fund
management131),2),3),4) None1),2),
3),4) None
(iii)  (C)Custodial, depository
and trust services1),2) None
3) Banks and securities intermediary institutions
operating in capital market can providecustodial services for their customers'securities, until their buying-selling orders are
realized .
4) None1),2) None
3) None
4) None
(n) (xiv) Settlement and clearing
services1),2) None
3) Only Takasbank A.S. can provide securities
settlement and clearing services.
4) None1),2) None
3) None
4) None
(o)  (xv) Provision and transfer
of  financial
information1),2) None
3) None
4) None1),2) None
3) None
4) None
(p)  (xvi)  Advisory,
intermediation andother auxiliary services1),2) None
3) None4) None1),2) None
3) None4) None
                                                          
13 This is a new financial service.TN/S/O/TUR
Page 32Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
8. HEALTH RELATED AND
SOCIAL SERVICES
A. Hospital Services
(CPC 9311)1) Unbound*
2) None
3) Foreigners may establish private hospitals with
the permission of Ministry of Health.
4) Unbound1) None
2) None
3) None
4) Unbound
9. TOURISM AND
TRAVEL RELATED
SERVICES
A. Hotels and restaurants
(CPC 641-643)1) Unbound*
2)14None
3) None1) None
2) None3) None 
4) After receiving the permission of the Ministry
of Interior based on the affirmative opinion ofthe Ministry of Culture  and Tourism, the
hotels and restaurants with the tourismencouragement certificate, may employ foreignpersonnel.  But the amount of foreign
personnel that would be employed in an
enterprise should not exceed 10 per cent of thetotal personnel.  This amount could beincreased up to 20 per cent by the decision ofthe related Ministry.4) None
                                                          
* Unbound due to the lack of technical feasibility.
14 Turkish citizens may travel abroad without any restriction.  Only, they are required to pay, with certain exceptions, a TL amo unt equivalent up to US$ 100 fee to the Public Housing
Fund,  for each exit. The Turkish citizens going abroad for education and health purposes, as well as the ones who are either employe d or assigned to permanent official duties in foreign countries,  are
exempt from that payment.TN/S/O/TUR
Page 33Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
B. Travel Agencies and Tour
Operators Services
(CPC 7471)1) Establishment is required
2) None
3) None1) Foreign travel agencies may not organise
tours abroad.
2) None
3) In case of bringing into the country of
US$80,000 foreign exchange income from
the tours organised by the travel agencies(to Turkey), the temporary operatingcertificates of A Class Travel Agenciesare changed with permanent operating
certificate. The amount of foreign
exchange stipulated for this transaction isthree times more for foreign travelagencies.
The amount of guarantees required forforeign travel agencies is twice as much asnational ones.  Foreign travel agencies and
branches can not benefit from the credits
given by Turkish Development Bank todomestic ones.  Foreign Travel Agenciesmay only take A class or temporary Aclass operating certificates.
The minimum amount of capital to bebrought (to Turkey) by the branches offoreign travel agencies in order to begranted Operation Certificate isdetermined by the Ministry of  Culture
and Tourism  with the appropriate opinion
of the Ministry of Finance.
4) None 4) NoneTN/S/O/TUR
Page 34Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
11. TRANSPORT SERVICES
A. Maritime Transport
Services
(a) Passenger transportation
(CPC 7211)1) None except cabotage
2) None
3)15In order to fly the Turkish flag, the shippingcompanies must have the majority of 51 percent Turkish shareholders.
4) Captain and crew of the Turkish flag vessels
should be Turkish residents.1) Charges taken for port services from
foreign and Turkish ships may differ in
favour of Turkish flag vessels according
to the tariffs on port charges which are
determined by the port administrations.
None
2) None
3) None
4) Turkish nationality is required for captain
and crew. 
(b) Freight transportation
(CPC 7212)1) None except cabotage 1) The vessels flying Turkish flag either
bidding for public cargoes to be shipped tooverseas countries or carrying strategic
raw materials are benefited from the
preference given in favour of them (i.e.they are entitled to be awarded the bidseven though their quotations are up to 10% higher than the lowest foreign flag
vessels quotations)
The Undersecretariat of Treasury and
Foreign Trade is authorized to permit the
public entities to have their importedgoods transported by foreign flag vessels.
                                                          
15 All Turkish ships shall fly the Turkish flag .  A ship shall be regarded as Turkish on ly if its owner (or owners) is/are Turkis h.  However, the following ship s shall also be considered as
Turkish: i) Ships which belong to legal persons such as bodies, institutions, associations and foundations set up in accordance  with Turkish Law, the majority of whose Board of Directors are of Turkish
 nationality.  ii)  Ships which belong to the trading companies the majority of whose managerial staff and representatives are of Turkish nationality and are registered on the Turkish Trade Register .TN/S/O/TUR
Page 35Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
Charges taken for port services from
foreign and Turkish ships may differ in
favour of Turkish flag vessels according
to the tariffs on port charges which are
determined by the port administrations.
2) None
3)16   In order to fly the Turkish flag, the shipping
companies must have the majority of 51 percent Turkish shareholders.
4) Captain and crew of the Turkish flag vessels
should be Turkish residents2) None
3) None
4) None
(c) Rental of vessels with
crew (CPC 7213)1) None
2) None
3) None
4) None1) Vessels rented by foreigners may not
operate inside the Turkish coastal waters.
This kind of vessels are considered as
foreign vessels and can not fly theTurkish flag.
2) This kind of vessels are considered as
foreign vessels and do not have to fly the
Turkish flag  None
3) None4) None
d) Maintenance and repair of
vessels (CPC 8868)1) None
2) None
3) None4)
17None1) None
2) None
3) None4) None
                                                          
16 All Turkish ships shall fly the Turkish flag.  A ship shall be regarded as Turkish only  if its owner (or ow ners) is/are Turkish .  However, the following  ships shall also be considered as Turkish:
i) Ships which belong to legal persons such as bodies, institutions, associations and foundations set up in accordance with Tur kish Law, the majority of whose Board of Directors are of Turkish nationality;
ii) Ships which belong to the trading companies the majority of  whose managerial staff and representatives are of Turkish natio nality and are registered on the Turkish Trade Register .
17 Engineers may engage in these services after becoming a temporary member of the related Union of Chambers.TN/S/O/TUR
Page 36Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
C. Air Transport Services
(a) Selling of air transport
services1) Foreign airline companies may sell their tickets
by opening sales offices in Turkey.
2) None
3) None
4) None1) None
2) None
3) None
4) None
(b) Computer reservation
systems1) None
2) None
3) None
4) None1) None
2) None
3) None
4) None
(c) Maintenance and repair of
aircraft(CPC 8868)1) None
2) None3) Authorization from the Ministry of Transport is
necessary to perform functions for the
maintenance and repair of aircraft.
4)
18None1) None
2) None3) None
4) None
E. Rail Transport Services
(CPC 7111, 7112)1) Internal rail transportation is a public
monopoly.
2) None
3) Internal rail transportation is a public
monopoly.
4) None1) None
2) None
3) None
4) None
                                                          
18 Engineers may engage in these services after becoming a temporary member of the related Union of Chambers.TN/S/O/TUR
Page 37Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limit ations on National Treatment Additional Commitments
F Road Transport Services
(a) Passenger transportation
(CPC 7121 + 7122)
(b) Freight transportation
(CPC 7123)1) Unbound
2) None3) Turkish citizenship or being a legal entity
established under the relevant Turkish laws are
required for obtaining a carrier licence given bythe Ministry of Transport in order to become aninternational transporter.
4) None1) Unbound
2) None3) None
4) NoneTN/S/O/TUR
Page 38
REFERENCE PAPER
SCOPE
The following are definitions and principles on the regulatory framework for the basic
telecommunications services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public telecommunications transport network or
service that:
(a) are exclusively or predominantly provi ded by a single or limited number of
suppliers;  and
(b) cannot feasibly be economically or technically substituted in order to provide a
service.
A major supplier is a supplier, which has the ability to materially affect the terms of
participation (having regard to price and supply) in the relevant market for basic
telecommunications services as a result of:
(a) control over essential facilities;  or(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who,
alone or together, are a major supplier from engaging in or continuing anti-competitive
practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:
(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results;  and(c) not making available to other services suppliers on a timely basis technical
information about essential facilities and commercially relevant information
which are necessary for them to provide services.
2. Interconnection
2.1 This section applies to linking with suppliers providing public telecommunications
transport networks or services in order to allow the users of one supplier to communicate withTN/S/O/TUR
Page 39
users of another supplier and to access services provided by another supplier, where specific
commitments are undertaken.
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in
the network.  Such interconnection is provided:
(a) under non-discriminatory terms, conditions (including technical standards
and specifications) and rates and of a quality no less favourable than that
provided for its own like services or for like services of non-affiliated service
suppliers or for its subsidiaries or other affiliates;
(b) in a timely fashion, on terms, conditions (including technical standards and
specifications) and cost-oriented rate s that are transparent, reasonable,
having regard to economic feasibility, and sufficiently unbundled so that the
supplier need not pay for network components or facilities that it does not
require for the service to be provided;  and
(c) upon request, at points in addition to the network termination points offered
to the majority of users, subject to charges that reflect the cost of construction
of necessary additional facilities.
2.3 Public availability of the procedures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly
available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection
agreements or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse,
either:
(a) at any time or(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory body as referred to in paragraph 5
below, to resolve disputes regarding appropriate terms, conditions and rates for interconnection
within a reasonable period of time, to the extent that these have not been established previously.
3. Universal service
Any Member has the right to define the kind of  universal service obligation it wishes to
maintain.  Such obligations will not be regarded as anti-competitive per se , provided they are
administered in a transparent, non-discriminatory and competitively neutral manner and are
not more burdensome than necessary for the kind of universal service defined by the Member.TN/S/O/TUR
Page 40
4. Public availability of licensing criteria
Where a license is required, the following will be made publicly available:
(a) all the licensing criteria and the period  of time normally required to reach a
decision concerning an application for a license;  and
(b) the terms and conditions of  individual licenses.
The reasons for the denial of a license will be made known to the applicant upon
request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of basic
telecommunications services. The decisions of and the procedures used by regulators shall be
impartial with respect to all market participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of scarce resources, including frequencies,
numbers and rights of way, will be carried out in an objective, timely, transparent and non-
discriminatory manner. The current state of allocated frequency bands will be made publicly
available, but detailed identification of frequenc ies allocated for specific government uses is not
required.
_______________TN/S/O/TUR
Page 41TURKEY – FINAL LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
ALL SECTORS (a) Extending full national
treatment for the investments
of the nationals or companiesof these countries.
(b)(i)Executing the transfers, in
specific periods, of the
nationals and companies ofcertain countries which madeinvestments in Turkey(Belgium-Luxembourg,Kuwait).Germany, USA, The
Netherlands, Belgium,
Luxembourg, Romania,Bangladesh, Austria,Switzerland, Denmark,Japan, Kuwait, Tunisia,
South Korea, Poland, China,
United Kingdom, Finland,Hungary, Argentina, Albania,Kyrgyzstan, Turkmenistan,Kazakhstan, Uzbekistan,Georgia, Jordan, Malaysia,
Spain, Italy, Norway,
Algeria, Russian Federation,Mongolia,Indefinite Desire to create favourable
conditions for a greater
economic cooperation betweenTurkey and mentionedcountries and to encourageinvestments by nationals and
companies of one country in the
territory of the other countries.
(ii) Granting foreign exchange
risk guarantee for certaincountries for the transferswhich are not realized due to
the difficulties in balance of
payments.Lithuania, France, Sweden,
Bulgaria, Moldova, Estonia,Latvia, Azerbaijan, Israel,Ukraine.
(c) Covering "trade risk" in
subrogation one country.
(Japan).TN/S/O/TUR
Page 42 Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
(d) The agreements with five
countries, the MFN Articlesof which do not include the
derogation paragraphs
relating to the privilegeswhich are accorded to theinvestors of the thirdcountries resulting from its
membership in or associated
with a free trade zone, aneconomic cooperation, acustoms union or a commonmarket.  (Japan, Bangladesh,Poland, Germany, South
Korea).
ALL SECTORS The restriction in the transfer
of the premiums for long-term insurance schemes andthe employment of theforeign country workers by
foreign companies is waived
for one country.  (Notapplied de facto).Libya Indefinite To ensure social security and
continuous employment ofTurkish workers in thementioned country.
ALL SECTORS If the amount of the
consulate duties collected
from the Turkish nationalsby any country is higher thanthe amounts written in thetariff list, the amounts ofconsulate duties which are
collected from the nationals
of that country will beincreased reciprocally.All countries Indefinite Desire to ensure equal treatment
to Turkish nationals.TN/S/O/TUR
Page 43Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
ALL SECTORS On the condition that the
legal provisions are reservedand with the condition of
reciprocity, the foreign real
persons could own realestates in Turkey byacquisition or by inheritance.All countries Indefinite To secure the right of Turkish
nationals to acquire real estatesin a foreign country.
Professional
ServicesIf any foreign country lays
down legal and
administrative conditionsagainst Turkish citizens forperforming arts andsupplying services, thesimilar activities of the
citizens of that country could
be prohibited in Turkey.All countries Indefinite Desire to create favourable
circumstances for Turkish
citizens to perform theiractivities under equalconditions in the othercountries.
Telecommunication
ServicesTo apply, on the basis of
reciprocity, reduction in the
fees for the transit land
connections and the usage  of
satellite ground stations.Iran, Syria. Indefinite Desire to facilitate
telecommunication services
between Turkey and the
mentioned countries.TN/S/O/TUR
Page 44 Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
Postal Services To apply, on the basis of
reciprocity, reduction in the
prices of letter mail.Iraq, Greece, Iran and
Pakistan.Indefinite Desire to carry out postal
services more rapidly and
economically.
TransportationServices
1The income and corporatetax rates for the foreign road,maritime and air transportcompanies, can reciprocallybe decreased down to zero or
increased to a new rate not
exceeding  one fold of theexisting rate can bedetermined, as a country bycountry basis either for eachtransportation type
separately or for all types of
them.  (As in the case of
USA, Israel and
Switzerland) .All countries Indefinite Desire to facilitate and to lower
the costs of transportationservices between Turkey andother countries.
Transportation
Services1Transit or bilateraltransportation services, can
be excluded from VAT.This exception is granted,with the condition ofreciprocity, to the related
countries' tax payers who do
not have the residence, legaland business centre inTurkey.All countries Indefinite Desire to lower costs and to
create favourable conditions for
the provision of services in thissector.
                                                          
1 This exemption request will be evaluated in the light of developments in the GATS in the field of taxation.TN/S/O/TUR
Page 45Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
TransportationServicesTo apply, on the basis of
reciprocity, restrictions,prohibitions, different
treatments and different
tariffs to the goods andtransportation vehicles of thecountries which applyrestrictions, prohibitions and
different treatments to the
Turkish road, air andmaritime transportationvehicles.All countries Indefinite Desire to secure the smooth
functioning of mutualtransportation services.
Road TransportServices
2To grant, on the basis ofreciprocity, the privileges
about the quotas and fees,
the exemptions from thepermission procedures.Afghanistan, Austria,
Belgium, Bulgaria, Former
Czechoslovakia, Denmark,
Germany, Finland, France,The Netherlands, Iraq, UnitedKingdom, Iran, Sweden,Switzerland, Italy, Kuwait,Hungary, Norway, Poland,
Romania, Former
Yugoslavia, Greece, Syria,Saudi Arabia, Jordan,Luxembourg, Albania,Ukraine, Slovenia, Moldova,
Egypt, Lithuania, Macedonia,
Lebanon.Indefinite Desire to facilitate road
transport services between
Turkey and other countries.
                                                          
2If the partners of these Road Transport Agreements agree to remove the measures, Turkey will also do so.TN/S/O/TUR
Page 46 Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
Rail TransportServicesThe bilateral reduction in the
renting fees of railwaywagons of countries
mentioned aside (paragraph
a) and the application ofnational treatment to tariffrates on the reciprocaltransportation of goods with
the countries mentioned
aside (paragraph b).a) Syria, Iraq, Iran, Lebanon
b) Commonwealth of
Independent States and the
Baltic Republics.Indefinite Desire to facilitate rail transport
services between Turkey andother countries.
Financial Services
- BankingShould national banks
wishing to operate by
establishing branches in the
countries whose banks have
already established or will
establish branches in Turkey,
are forced to meet stricter
conditions which they will
be subject to under the
legislation of those countries,
or which are to be made
stricter afterwards, than
those imposed in the Turkish
Banks Act, foreign banks'
compliance with the same
conditions and the annulment
of the permissions of those
failing  to comply with such
conditions may  be required
by Council of Ministers'
decision.All countries Indefinite Desire to ensure equal treatment
to Turkish banks in the other
countries.TN/S/O/TUR
Page 47Sector or SubsectorDescription of measure
indicating its inconsistency with
Article IICountries to which the measure
appliesIntended durationConditions creating  the need for
the exemption
Accounting,Auditing and Book-keeping ServicesIn order to perform the
services under the title of"financial advisor", the
citizens of the countries
which have officiallycodified the principles forthe profession of financialadvisory may be authorized,
under reciprocal conditions,
provided that these personsshould have thecharacteristics required forthe professional of financialadvisory in Turkey and
should have rights to
perform similar services intheir own countries.All countries Indefinite Desire to create favourable
conditions for Turkish financialadvisors to perform their jobs
under equal conditions all over
the world.
Telecommunication
ServicesMeasures, including the
application of different
accounting rates for  different
operators/countries covered
by International
Telecommunication  Services
Agreements  between
Government of  Turkey or
Telecommunication
Company and other
Governments or various
foreign operators.Neighbouring countries
and/or countries covered by
Economic Cooperation
Organization and Black Sea
Economic Cooperation.Indefinite Bilateral agreements between
Government of Turkey or
Telecommunication Company
and other governments and/or
various foreign operators
dealing with various aspects of
cooperation.
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