WORLD TRADE
ORGANIZATIONWT/REG115/3
20 July 2001
(01-3637)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
Communication by Turkey
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership, dates of signature, ratification and entry into force
The Parties to the Agreement are the Republic of Turkey and the Republic of Macedonia.
The Agreement applies in respect of the territory to which the customs laws of Turkey and Macedonia
are applicable respectively.
The Free Trade Area Agreement between Turkey and Macedonia was signed on
7 September 1999 in Ankara and entered into force on 1 September 2000 after the completion of the
legal internal ratification procedures of the two Parties.
2. Type of Agreement
 The Agreement establishes a free trade area in conformity with the definition set out in
Article XXIV:8 (b) of WTO/GATT 1994.
3. Scope
The free-trade area established by this Agreement provides the framework for future trade
relations between Turkey and Macedonia.
The Free Trade Area Agreement covers all trade in industrial products (HS Chapter 25-97)
and a number of agricultural, processed agricultural and fishery products. In accordance with the
evolutionary clause contained in the Agreement Parties agreed to further develop the relation
established by this Agreement by extending them to fields not covered thereby.
With the entry into force of the Agreement, customs duties and other restrictive regulations of
commerce on industrial and certain agricultural products were abolished or decreased, thus meeting
the requirement of Article XXIV in respect of the principle of “covering substantially all trade”.
In order to ensure the proper functioning of the free-trade area, the Agreement contains
provisions, inter alia , on State-aid, State monopolies, competition, public procurement and protection
of intellectual industrial and commercial property.
4. Trade Data
See Annex.WT/REG115/3
Page 2
II. TRADE PROVISIONS
1. Import restrictions
All customs duties and charges having equivalent effect on imports of industrial products
except for those classified as sensitive, were abolished by the entry into force of the Agreement.  As
for the sensitive products, customs duties and charges having equivalent effect will be graduallyeliminated by the year 2008.  There are also annual ceilings fixed for the imports of several industrial
Macedonian originating products into Turkey.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on imports and agreed upon the elimination of all quantitative restrictions on imports and
measures having equivalent effect upon the entry into force of the Agreement with the exception of
textile products which are covered by the Memorandum of Understanding between the Government ofMacedonia and the Government of Turkey signed on 27
 October 1997.
Turkey and Macedonia granted each other preferential market access for a number of
agricultural products.
2. Export restrictions
Under Article 6, prohibition of new customs dut y or charges having equivalent effect on
exports between the Parties is envisaged.  Moreover all existing duties and charges having equivalent
effect on exports applied to industrial products are abolished with the entry into force of the
Agreement.
3. Rules of origin
The rules of origin on trade between Turkey and Macedonia, defined in Protocol 2 of the
Agreement, are based on the sufficient working or processing criteria.  In general, origin is conferred
when:
− the good is wholly obtained or produced in the territory of a Party;
− each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification set out in the specific rule for that good, and thegood satisfies any other applicable requirement set out in that rule, as a result of
production occurring entirely in the territory of one or both of the Parties;
− the good is produced entirely in the territory of one or both of the Parties exclusively from
originating materials;  or,
− other particular circumstances as set out in Protocol 2.
5. Safeguards
The Agreement permits the application of safeguard measures in the case of dumping
(Article 17), emergency action on imports of particular products (Article 18), re-export and serious
shortage (Article 19), provisions concerning rule s of competition and State-aid (Article 24), and
fulfilment of obligations (Article 32) between the Parties.
In the case of balance of payments difficulties, Article 25 of the Agreement gives to the
Parties the right of adopting restrictive measures in accordance with the conditions laid down withinWT/REG115/3
Page 3
the framework of WTO/GATT 1994 and with the Article VIII of the Agreement of International
Monetary Fund.
The procedure for the application of these measures is laid down in Article 21 of the
Agreement.
6. Anti-Dumping and Countervailing Measures
Article 17 of the Agreement states that if a Party finds that dumping is taking place in trade
with the other Party within the meaning of Article VI of the WTO/GATT, it may take appropriate
measures against this practice in accordance with Article VI of the WTO/GATT 1994 and with the
rules established by agreements, under the conditions and in accordance with the procedures laid
down in Article 21.  Through this Article the conformity with WTO/GATT 1994 rules has beenprovided.
7. Subsidies and State-aid
The Agreement evaluates “State-aid” issue in the context of distortion of competition.
According to Article 24 of the Agreement, the Pa rties will ensure transparency in the area of
State-aid.
Against the improper practices of a Party, Article 24 of the Agreement establishes the right of
the other Party to take appropriate measures.
8. Sector-specific provisions
(a) Agriculture
The conditions of concessions in trade on agricultural products and agricultural policies
between the Parties are laid down in Chapter II of the Agreement.
(b) Services
Turkey and Macedonia agreed to cooperate with the aim of achieving gradual liberalization
and mutual opening of markets for investments and trade in services, taking into account the relevant
WTO provisions.
9. Other
(a) Cooperation in Customs Administration
A framework was established for cooperation in customs administration with Article 22 and
Protocol 2 on the definition of the concept of “ori ginating products” and methods of administrative
cooperation between the Parties.
(b) State Monopolies
Under Article 20 of the Agreement, the Parties agreed to adjust progressively any state
monopoly of a commercial character so as to ensure no discrimination regarding the conditions under
which goods are procured and marketed exists between the nationals of the Parties.WT/REG115/3
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(c) Internal Taxation
Any measure or practice of an internal fiscal nature establishing discrimination between the
products originating in the Parties has been prohibited with Article 14.  This Article also prohibits
repayment of internal taxation in excess of the amount of indirect or direct taxes on exports.
(d) Protection of Intellectual Industrial and Commercial Property
The protection of intellectual industrial and commercial property is addressed in Article 26.
In this Article, the Parties envisage the protectio n of intellectual, industrial and commercial property
rights in line with the highest international standards.
(e) Payments
According to the Article 23, any settlement and payment arising from trade of goods, services
and rights to non material goods between the Parties shall be made in convertible currency, in
accordance with the respective legislation of the Parties.
(f) Public Procurement
The Parties consider the liberalization of their respective public procurement markets as an
objective of this Agreement.  The Parties also agreed upon granting each other’s companies access to
contract award procedures a treatment no less favorable than that accorded to companies of any other
country.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
All customs duties and charges having equivalent effect on imports applied to industrial
products, except for those classified as sensitive, are abolished with the entry into force of the
Agreement.  As for the sensitive products, customs duties and charges having equivalent effect will be
gradually eliminated by the year 2008.  This, however, will not preclude prohibitions or restrictionson imports, exports or goods in transit justified on grounds of public morality, public policy or public
security;  the protection of health and life of humans, animals or plants;  the protection of national
treasures possessing artistic, historic or archaeological value;  or the protection of intellectual
industrial and commercial property.
The Agreement allows the Parties to take measures, with concerns of security, in the cases
specified in Article 31.
2. Accession
There is no provision in the Agreement allowing other countries to accede to the free trade
area.
3.  Dispute Settlement Procedures
A Joint Committee which is responsible for the administration of the Agreement and its
proper implementation has the authority to take decisions on issues mentioned in various Articles of
the Agreement.  In the procedure for application of safeguard measures relating to “Dumping”,
“Emergency Action on Imports of Particular Produ cts” and “Re-export and Serious Shortage” theWT/REG115/3
Page 5
Joint Committee has also commissioned actively as a competent authority in Article 21 of the
Agreement.
4. Relation with Other Trade Agreements
Regarding “basic duties” defined in Article 2, the Agreement envisages that any tariff
reduction resulting from the tariff agreement concluded as a result of the WTO/GATT Uruguay
Round or accession of Macedonia to the WTO and Turkey-EC Customs Union or reductions applied
by Macedonia to the products originating in the EC replaces the former basic duty.
The Agreement stipulates that rights and oblig ations relating to certain matters namely anti-
dumping measures, balance of payment difficulties and state aid shall be governed by the relevant
WTO Agreements.
The Agreement stipulates that measures concerning current payments connected with the
movement of goods and rules on balance of payment difficulties shall be in conformity with the
Articles of the Agreement of International Monetary Fund.
5. Institutional Framework
The Agreement establishes a Joint Committee which is responsible for administration of the
Agreement and shall meet once a year to monitor the implementation of it.WT/REG115/3
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ANNEX
Imports of Turkey from Macedonia, 1997-1999,
by different duty levels according to the Agreement
1997
Agricultural products Industrial products Total imports Duty Rate
(000 $) % (000 $) % (000 $) %
0 12 13 30,126 100 30,138 99
Less than MFN 000000
MFN 78 87 0 0 78 1
Total 90 100 30,126 100 30,216 100
1998
Duty Rate Agricultural products Industrial products Total imports
(000 $) % (000 $) % (000 $) %
0 2 1 12,705 97 12,707 96
Less than MFN 000000
MFN 137 99 393 3 530 4
Total 139 100 13,098 100 13,237 100
1999
Duty Rate Agricultural products Industrial products Total imports
(000 $) % (000 $) % (000 $) %
0 8 2 7,408 100 7,416 94
Less than MFN 1 1200 1 10
MFN 451 96 0 0 451 6
Total 470 100 7,408 100 7,878 100
Imports of Turkey from Macedonia
(US$)
HS CHAPTER 1996 1997 1998 1999
10 0 0 0
20 0 0 0
3 0 37,486 0 0
40 0 0 0
5 47,171 0 0 0
60 0 0 0
7 0 15,954 0 18,865
8 19,644 0 2,015 0
9 0 0 133,227 433,720
10 6,726,365 0 0 0
11 0 0 0 0
12 104,821 24,858 0 0
13 0 0 0 0
14 0 0 3,529 9,431WT/REG115/3
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HS CHAPTER 1996 1997 1998 1999
15 12,840 0 0 0
16 0 0 0 0
17 0 0 0 0
18 0 0 0 0
19 0 0 0 0
20 5,330 0 0 0
21 0 12,140 0 0
22 0 0 0 7,511
23 0 0 0 0
24 0 0 0 0
25 5,219 8,679 795 0
26 88,014 144,686 112,305 68,840
27 1,601 0 0 2,200
28 25,024 41,689 0 0
29 1,175,359 1,318,662 1,077,637 844,552
30 6 0 0 0
31 0 1,488,307 0 140,000
32 42,359 53,282 0 21,924
33 7,386 3,383 0 18,032
34 2,876 0 3,981 16,585
35 0 0 0 0
36 0 0 0 0
37 0 0 0 0
38 3,276 5,938 9,338 3,507
39 798,147 1,004,449 46,309 34,921
40 148,080 216,341 5,737 0
41 5,640,947 7,967,763 3,804,520 759,937
42 0 0 0 1,934
43 0 0 14,216 0
44 78,271 180,847 231,152 128,978
45 0 0 0 0
46 0 0 0 0
47 0 0 0 0
48 185,869 32,650 1,745 75,223
49 569 0 595 295
50 0 0 0 0
51 89,248 216,521 94,517 34,388
52 48,796 103,214 4,854 25,987
53 0 0 0 57,022
54 869,195 205,785 51,246 0
55 1,925,166 5,294,162 368,814 173,604
56 0 7,545 0 0
57 4,519 0 0 0
58 0 0 0 0WT/REG115/3
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HS CHAPTER 1996 1997 1998 1999
59 0 0 0 0
60 411,673 130,007 19,271 82,574
61 0 0 646,429 54,542
62 8,102 0 0 14,802
63 0 1,540 369 0
64 0 79,124 43,615 10,572
65 0 106 196 0
66 0 0 0 0
67 0 0 0 0
68 509 36,326 57,691 82,062
69 0 0 30,026 0
70 1,584,452 1,202,500 220,054 195,436
71 0 0 0 0
72 2,497,013 1,836,823 1,885,801 1,813,112
73 206,252 566,044 508,542 18,070
74 3,264,033 1,759,067 523,834 482,553
75 0 0 0 0
76 364,280 294,617 56,794 150,954
78 718,183 0 114,015 393,819
79 1,635,257 1,132,023 1,866,509 676,193
80 0 0 0 0
81 86,451 0 0 0
82 0 0 25,624 0
83 0 0 8,334 22,459
84 283,069 3,125,896 95,283 246,322
85 2,144,823 611,667 655,533 61,177
86 110,778 183,747 29,008 390,150
87 243,263 519,773 410,419 201,785
88 0 0 0 0
89 0 0 0 0
90 23,218 18,066 13,133 0
91 0 0 0 0
92 0 0 0 0
93 0 0 0 0
94 13,524 13,563 42,701 91,747
95 0 0 0 12,000
96 0 25,978 0 0
97 62,663 295,730 17,071 0
98 0 0 0 0
TOTAL 31,713,641 30,216,938 13,236,784 7,877,785WT/REG115/3
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Imports from Turkey into Macedonia
(US$)
HS CHAPTER 1996 1997 1998 1999
10 0 0 0
2 20,770 70,278 18,500 0
3 2,933 0 0 0
4 110,960 9,161 0 71,721
5 20,462 27,059 2,811 1,490
6 6,245 0 0 855
7 845,754 1,381,789 487,238 659,477
8 2,122,838 1,397,081 2,198,807 3,543,560
9 20,752 2,121 29,598 99,981
10 33,113 6,841 0 10,589
11 1,340,608 19,487 8,780 532,057
12 29,036 11,700 29,300 6,400
13 954 4,580 3,988 0
14 850 0 781 0
15 1,195,452 887,242 862,936 1,138,941
16 32,096 0 46,440 52,455
17 1,272,665 1,696,303 781,275 1,961,421
18 700,288 694,497 806,456 1,440,491
19 4,209,044 3,871,287 2,970,919 2,672,995
20 844,474 436,821 1,361,199 430,307
21 1,015,708 1,196,505 1,079,995 568,202
22 83,843 50,056 0 383,727
23 25,275 18,845 0 93
24 0 0 0 428
25 113,605 191,945 42,663 37,180
26 0 27 0 0
27 1,355,935 460,436 341,411 1,290,052
28 394,224 235,296 212,749 267,680
29 390,925 244,784 165,063 129,056
30 15,704 172,166 16,630 26,063
31 89 293 0 3,246
32 283,196 330,020 232,410 278,078
33 163,214 129,385 192,198 397,806
34 2,049,190 1,386,156 1,222,397 1,567,754
35 31,271 75,761 69,623 43,315
36 58 194 412 3,998
37 403 28,723 3,787 10,244
38 232,322 295,894 400,437 757,842
39 5,548,292 4,415,149 2,976,213 5,088,421
40 204,456 252,526 275,414 429,147
41 157,129 163,535 33,227 34,976WT/REG115/3
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HS CHAPTER 1996 1997 1998 1999
42 84,806 27,185 53,588 106,661
43 60,876 0 0 322
44 1,259,175 546,748 712,254 2,021,417
45 0 35 0 139
46 12,800 1,320 18,790 7,730
47 0 223 226 0
48 2,183,067 1,173,962 602,171 1,860,126
49 1,965 9,710 8,437 46,240
50 6,261 1,853 10,869 632
51 936,087 1,346,066 1,402,585 1,286,119
52 13,354,774 18,729,491 17,456,689 12,307,452
53 22,665 15,581 184,054 256,928
54 681,378 577,900 868,595 1,755,368
55 444,772 579,637 844,135 1,057,633
56 90,041 117,751 97,512 223,556
57 556,560 701,450 794,147 2,180,661
58 1,156,402 1,841,674 1,198,144 991,880
59 298,293 134,324 51,688 76,269
60 1,301,086 1,930,347 3,148,198 5,686,280
61 964,405 884,359 526,584 204,241
62 428,996 252,117 135,234 564,419
63 1,456,494 2,595,775 2,387,141 4,162,498
64 1,095,941 846,015 1,147,127 1,331,805
65 48,703 742 265 985
66 2,600 9,856 14,788 32,315
67 0 169 0 1,894
68 96,662 92,296 36,365 567,193
69 970,824 527,290 615,439 1,017,850
70 1,338,494 1,645,763 1,661,814 2,989,081
71 7,760 41,063 2,086 294,550
72 271,909 315,719 557,569 736,905
73 842,796 973,697 1,099,069 5,136,336
74 54,015 65,891 88,266 182,159
75 4,127 17 15,056 5,931
76 2,607,770 4,976,352 4,887,467 3,473,742
78 742 4,906 0 389
79 0 2,984 0 935
80 0 27 0 0
81 3,049 1,052 4,605 256
82 48,668 41,148 25,298 289,639
83 399,477 340,738 259,369 310,940
84 4,231,896 4,367,919 3,177,675 4,144,938
85 7,218,570 8,903,561 4,572,780 8,507,974
86 0 1,533 0 328,377WT/REG115/3
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HS CHAPTER 1996 1997 1998 1999
87 2,165,853 940,656 1,351,543 1,005,268
88 8,389 34,768 0 1,800
89 0 714 0 934
90 174,136 83,188 96,624 165,217
91 19,252 9,006 5,484 13,600
92 48 68 105 5,822
93 2,852 1,367 546 0
94 1,435,386 1,215,999 804,428 3,881,830
95 850,525 238,178 312,619 373,286
96 110,932 78,335 79,192 131,080
97 64,407 0 0 0
98 0 0 0 0
TOTAL 74,250,819 77,392,468 68,190,277 93,669,650
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