WORLD TRADE
ORGANIZATIONWT/REG115/1
22 January 2001
(01-0302)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
The following text reproduces the Agreement between the Republic of Turkey and the Former
Yugoslav Republic of Macedonia.1
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FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF TURKEY
AND THE REPUBLIC OF MACEDONIA
PREAMBLE
Desirous  to develop and strengthen friendly relations, especially in the fields of economic co-
operation and trade, with an aim to contribute to the progress of economic co-operation between thetwo countries and to increase the scope of mutual trade exchange,
The Republic of Turkey  (hereinafter referred to as "Turkey") and the Republic of Macedonia
(hereinafter referred to as "Macedonia");
Confirming their intention to participate actively in the process of economic integration in
Europe and in the Mediterranean Basin expressing their preparedness to co-operate in seeking waysand means to strengthen this process;
Taking into consideration  the Agreement Establishing an Association between Turkey and the
European Economic Community and the Co-operation Agreement between the European
Communities and Macedonia;
Having regard to the experience gained from the co-operation developed between the Parties
to this Agreement (hereinafter referred to as "the Parties") as well as between them and their main
trading partners;
Declaring  their readiness to undertake activities with a view of promoting harmonious
development of their trade as well as of expanding and diversifying their mutual co-operation in the
fields of joint interest, including fields not covere d by this Agreement, thus creating a framework and
supportive environment based on equality, non discrimination, and a balance of rights and obligations;
Referring  to the mutual interest of the Partie s in the continual reinforcement of the
multilateral trading system and considering the prov isions and instruments of GATT/WTO constitute
a basis for their foreign trade policy;
                                                     
1 The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).WT/REG115/1
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Resolved to lay down for this purpose provisions aimed at the progressive abolition of the
obstacles to trade between the Parties in accordan ce with the provisions of these instruments, in
particular those concerning the establishment of free trade areas;
HAVE DECIDED, in pursuance of these objectives, to conclude the following Agreement
(hereinafter referred to as "this Agreement").
Article 1
Objectives
1. Turkey and Macedonia, by taking into account the Turkey’s obligations arising from its
Customs Union with the EU and the development of the Co-operation Agreement between Macedonia
and the EU, shall gradually liberalise trade in a transitional period lasting a maximum of ten years
starting from the entry into force of this Agr eement in accordance with the provisions of this
Agreement and in conformity with those of the GATT 1994 and the other multilateral agreements on
trade in goods annexed to the Agreement Establishing the WTO.
2. The objectives of this Agreement are:
(a) to increase the economic cooperation and raise the living standard of the population
of the two countries;
(b) to gradually eliminate difficulties and restrictions on trade in goods, including also
the agricultural products;
(c) to promote, through the expansion of reci procal trade, the harmonious development
of the economic relations between the Parties;
(d) to provide fair conditions of competition for trade between the Parties;
(e) to contribute in this way, by removal of barriers to trade, to the harmonious
development and expansion of world trade;
(f) to enhance cooperation between the Parties;
(g) to create conditions for further encouragement of investments particularly for the
development of joint investments in both countries;
(h) to promote trade and cooperation between the Parties in third country markets.
Article 2
Basic Duties
1. For commercial exchanges covered by this Agreement, the Customs Tariffs of the Parties
shall be applied to the classification of goods for imports into them.
 
2. For each product the basic duty to which successive reductions set out in this Agreement areto be applied shall be the MFN duty that was in force in the Parties on the date of entry into force of
this Agreement.
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3. If after entry into force of this Agreement, any tariff reduction is applied on an erga omnes
basis, in particular, reductions resulting from the tariff agreement concluded as a result of the 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, such reduced duties shall replace the
basic duties referred to in paragraph 2 as from that date when such reductions are applied.
 
4. The Parties shall mutually exchange their basic duties.
CHAPTER I
Industrial Products
Article 3
Scope
The provisions of this Chapter shall apply to products falling within Chapters 25 to 97 of
Harmonized Commodity Description and Coding System  with the exception of the products listed in
Annex I.
Article 4
Customs Duties on Imports and Charges having Equivalent Effect
1. No new customs duty on imports or charge having equivalent effect shall be introduced in
trade between the Parties from the date of entry into force of this Agreement.
2. Customs duties on imports applicable in Macedonia to products originating in Turkey shall be
abolished in accordance with Annex II to  this Agreement.
3. Subject to special provisions laid down in Annex III to this Agreement, products originating
in Macedonia shall be imported in Turkey free of customs duties or charges having equivalent effect.
4. Any changes in Turkish and Macedonian comm itments to the European Communities in this
regard shall be referred to the Joint Committee.
Article 5
Customs Duties of a Fiscal Nature
The provisions of  Article 4 shall also apply to customs duties of a fiscal nature, except the
charge for the customs record keeping applied by Macedonia.
Article 6
Customs Duties on Exports and Charges having Equivalent Effect
1. No new customs duty on exports or charge having equivalent effect shall be introduced in
trade between the Parties.
 
2. All customs duties on exports and any charges having equivalent effect shall be abolishedbetween the Parties upon entry into force of this Agreement.WT/REG115/1
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Article 7
Quantitative Restrictions on Imports and Measures having Equivalent Effect
1. No new quantitative restriction on imports or measure having equivalent effect shall be
introduced nor shall those existing be made more restrictive in trade between the Parties from the date
of entry into force of this Agreement.
 
2. All quantitative restrictions on imports and measures having equivalent effect shall be
abolished between the Parties upon the date of entry into force of this Agreement with the exception
of textile products which are covered by the Memorandum of Understanding between the Governmentof Macedonia and the Government of Turkey signed on 27 October 1997.
Article 8
Quantitative Restrictions on Exports and Measures having Equivalent Effect
1. No new quantitative restriction on exports or measure having equivalent effect shall be
introduced nor shall those existing  be made more restrictive in trade between the Parties from the
date of entry into force of this Agreement.
 
2. All quantitative restrictions on exports and any measures having equivalent effect shall beabolished between the Parties upon the date of entry into force of this Agreement.
Article 9
Technical Regulations
1. The rights and obligations of the Parties relating to standards or technical regulations and
related measures shall be governed by the WTO Agreement on Technical Barriers to Trade.
2. Each Party, upon request of the other Party, shall provide information on particular individual
cases of standards, technical regulations and related measures.
3. The Parties shall aim to reduce technical barriers to trade.  To this end the Parties will enter
where appropriate into negotiations for the conclusi on of the agreements for the mutual recognition in
the field of conformity assessment, in the spirit of the recommendations of the WTO Agreement on
Technical Barriers to Trade.
CHAPTER II
Agricultural, Processed Agricultural and Fish Products
Article 10
Scope
1. The provisions of this Chapter shall apply to agricultural, processed agricultural and fish
products originating in the Parties.
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2. The term "agricultural products" means for the purpose of this Agreement the products falling
within Chapters 1 to 24 of the Harmonized Comm odity Description and Coding System and the
products listed in Annex I.
Article 11
Exchange of Concessions
1. The Parties to this Agreement shall mutually allocate concessions set forth in Protocol 1 in
accordance with the provisions of this Chapter.
2. Taking into account the role of agriculture in their respective economies;  the development of
trade in agricultural products between the Parties;  the high sensitivity of agricultural products;  the
rules of their respective agricultural policy, the Parties shall examine in the Joint Committee the
possibilities for mutual allocation of future concessions.
 
3. In pursuance of this objective, Protocol 1 providing for measures to facilitate trade inagricultural products has been concluded between the Parties.
Article 12
Sanitary and Phytosanitary Measures
The Parties shall not apply their regulations in sanitary and phytosanitary matters as an
arbitrary or unjustifiable discrimination or a disguised restriction on  trade between them.  The Parties
shall apply their sanitary measures within the spirit of the provisions of the GATT and the other
relevant WTO agreements.
CHAPTER III
Right of Establishment and Supply of Services
Article 13
1. The Parties to this Agreement recognize the growing importance of certain areas, such as
services and investments.  In their efforts to gradually develop and broaden their co-operation, in
particular in the context of the European integratio n, they will co-operate with the aim of achieving a
progressive liberalization and mutual opening of their markets for investments and trade in services,taking into account relevant provisions of the General Agreement on Trade and Services.
 
2. The Parties will discuss in the Joint Committee this cooperation with the aim of developing
and deepening of their relations governed in this Article.WT/REG115/1
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CHAPTER IV
Common Provisions
Article 14
Internal Taxation
1. The Parties to this Agreement shall refrain from any measure or practice of an internal fiscal
nature establishing, whether directly or indirectly, discrimination between the products of one Party
and like products originating in the other Party.
 
2. Products exported to one of the Parties may not benefit from repayment of internal taxes inexcess of the amount of direct or indirect taxes imposed on them.
Article 15
Trade Relations Governed by Other Agreements
1. This Agreement shall not prevent the maintenance or establishment of customs unions, free
trade areas or arrangements for cross-border trade of the Parties with third countries to the extent that
these do not negatively affect the trade regime and in particular the provisions concerning rules oforigin provided for by this Agreement.
 
2. Exchange of information shall take place, upon  request of either Party, within the Joint
Committee concerning agreements establishing such customs unions or free trade areas.
Article 16
Structural Adjustment
1. Exceptional measures of limited duration which derogate from the provisions of Article 4
may be taken by the Parties in the form of increased customs duties.
2. These measures may only concern infant industries, or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce important
social problems.
3. Customs duties on imports applicable in the Parties to products originating in the other Party
introduced by these measures may not exceed 25 per cent ad valorem and shall maintain an element of
preference for products originating in the other Party.  The total value of imports of the products
which are subject to these measures may not exceed 15 per cent of total imports of industrial products
from the other Party as defined in Article 4, during the last year for which statistics are available.
4. These measures shall be applied for a period not exceeding five years unless a longer duration
is authorized by the Joint Committee.  They shall cease to apply at the latest on the expiry of the
transitional period.
5. No such measures can be introduced in respect of a product if more than three years have
elapsed since the elimination of all duties and quantitative restrictions or charges or measures having
an equivalent effect concerning that product.WT/REG115/1
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6. The Parties shall inform the Joint Committee of any exceptional measures  they intend to take
and, at the request of  either Party, consultations shall be held in the Joint Committee on such
measures and the sectors to which they apply before they are applied.  When taking such measures the
Parties shall provide the Joint Committee with a schedule for the elimination of the customs duties
introduced under this Article.  This schedule shall provide for a phasing out of these duties starting atthe latest two years after their introduction, at equal rates.  The Joint Committee may decide on a
different schedule.
Article 17
Dumping
If a Party finds that dumping, within the m eaning of Article VI of General Agreement on
Tariffs and Trade is taking place in trade relations governed by this Agreement, it may take
appropriate measures against that practice in accordance with  Article VI of the GATT and the rules
established by agreements related to that Article, under the conditions and in accordance with the
procedures laid down in Article 21 of this Agreement.
Article 18
Emergency Action on Imports of Particular Products
Where any product is being imported into either of the Parties in such increased quantities and
under such conditions as to  cause, or threaten to cause:
(a) serious injury to domestic producers or disturbances on the market of like or directly
competitive products;
 
(b) serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region ,
the Party concerned may take appropriate measures under the conditions and in accordance with the
procedures laid down in Article 21.
Article 19
Re-export and Serious Shortage
Where compliance with the provisions of Articles 6 and 8 leads to:(a) re-export towards a third country against which the exporting Party to this Agreement
maintains for the product concerned quantitative export restrictions, export duties or
measures or charges having equivalent effect;  or
(b) a serious shortage, or threat thereof, of a product essential to the exporting Party;
and where the situations referred to above give rise or are likely to give rise to major difficulties for
the exporting Party, that Party may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 21 of this Agreement.  The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.WT/REG115/1
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Article 20
State Monopolies
1. The Parties shall progressively adjust any state monopoly of a commercial character so as to
ensure that by the end of the year following the en try into force of this Agreement, no discrimination
regarding the conditions under which goods are procured and marketed will exist between nationals of
the Parties.
 
2. The Joint Committee shall be informed about the measures adopted to implement this
objective.
Article 21
Procedure for The Application of Safeguard Measures
1. Before initiating the procedure for the application of safeguard measures set out in this
Article, the Parties shall endeavour to solve any differences between themselves through direct
consultations, and shall inform the other Party thereof.
2. In the cases specified in Articles 17, 18, 19, 24 and 32 a Party which is considering to resort
to safeguard measures shall promptly notify the Jo int Committee thereof.  The Party concerned shall
provide the Joint Committee with all relevant information and give it the assistance required to
examine the case.  Consultations between the Parties shall take place without delay in the Joint
Committee with a view to finding a commonly acceptable solution.
3. If, within one month of the matter being referr ed to the Joint Committee, the Party in question
fails to put an end to the practice objected to or to  the difficulties notified and in the absence of a
decision by the Joint Committee in the matter, the concerned Party may adopt the safeguard measures
it considers necessary to remedy the situation.
4. The safeguard measures taken shall be notified immediately to the Joint Committee.  They
shall be restricted, with regard to their extent and to their duration, to what is strictly necessary in
order to rectify the situation giving rise to their application and shall not be in excess of the damagecaused by the practice or the difficulty in question.  Priority shall be given to such measures that will
least disturb the functioning of this Agreement.
5. The safeguard measures taken shall be the subject of regular consultations within the Joint
Committee with a view to their relaxation, or a bolition when conditions no longer justify their
maintenance.
6. Where exceptional circumstances requiring immediate action make prior examination
impossible, the Party concerned may, in the cases of Articles 17, 18, 19, 24 and 32, apply forthwith
the precautionary measures strictly necessary to remedy the situation.  The measures shall be notifiedwithout delay to the Joint Committee and consultatio ns between the Parties to this Agreement shall
take place within the Joint Committee.
Article 22
Rules of Origin and Cooperation between the Customs Administrations
Protocol 2 lays down the rules of origin and methods of administrative cooperation.WT/REG115/1
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Article 23
Payments
Any settlement and payment arising from trade of goods, services and rights to non material
goods between both states shall be made in convertible currency, in accordance with the respective
legislation of the Parties.
Article 24
Rules of Competition Concerning Undertakings, State Aid
1. The following are incompatible with the proper functioning of this Agreement, in so far as
they affect trade between the Parties:
(a) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect theprevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of dominant position in the territories of the
Parties as a whole or in a substantial part thereof;
(c) any state aid which distorts or threatens to distort competition by favoring certain
undertakings or the production of certain goods.
2. Each Party shall ensure transparency in the area of  state aid. Upon request by one Party, the
other Party shall provide information on particular individual cases of state aid.
3. For the purpose of applying the provisions of paragraph 1 of this Article, the Parties will take
the measures in conformity with the procedures and under the conditions laid down in their respective
Agreements with the European Communities.  In case of any change in those procedures and/or
conditions these changes will be applicable between the Parties.
4. If the Parties consider that a particular practice is incompatible with the terms of the first
paragraph of this Article, and:
(a) is not adequately dealt with under the implementing rules referred to in paragraph 3
of this Article, or;
(b) in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interest of the other Party or material injury to its domestic industry,
including its services industry,
it may take appropriate measures after consultation within the Joint Committee or after thirty working
days following referral for such consultation.
5. In the case of practices incompatible with paragraph 1(c) of this Article, such appropriate
measures may, where the WTO/GATT 1994 applies thereto, only be adopted in conformity with the
procedures and under the conditions laid down by the WTO/GATT 1994 and any other relevantinstrument negotiated under its auspices which are applicable between the Parties.
 WT/REG115/1
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6. Notwithstanding any provisions to the contra ry adopted in conformity with paragraph 3 of
this Article, the Parties shall exchange information taking into account the limitations imposed by the
requirements of professional and business secrecy.
Article 25
Balance of Payments Difficulties
Where either Party is in a serious balance of payments difficulties or under threat thereof, the
Party concerned may in accordance with the conditions laid down within the framework of
WTO/GATT 1994 and with Article VIII of the Articles of Agreement of International Monetary
Fund, adopt restrictive measures, which shall be of limited duration and may not go beyond what isnecessary to remedy the balance of payments situation.  The Party concerned shall inform the other
Party forthwith of their introduction and present to the other Party, as soon as possible, of a time
schedule of their removal.
Article 26
Intellectual, Industrial and Commercial Property
1. The Parties shall provide suitable and effective protection of intellectual, industrial and
commercial property rights in line with the highest international standards.  This shall encompasseffective means of enforcing such rights.
 
2. Implementation of this Article shall be regularly assessed by the Parties.  If difficulties which
affect trade arise in connection with intellectual , industrial and commercial property rights, either
Party may request urgent consultations to find mutually satisfactory solutions.
Article 27
Public Procurement
1. The Parties consider the opening up of the award of public contracts on the basis of
non-discrimination and reciprocity, to be a desirable objective.
 
2. As of the entry into force of this Agreement,  both Parties shall grant each other’s companies
access to contract award procedures a treatment no le ss favorable than that accorded to companies of
any other country.
Article 28
Establishment of the Joint Committee
1. A Joint Committee is hereby established in which each Party shall be represented.  The Joint
Committee shall be responsible for the administration of this Agreement and shall ensure its proper
implementation.
 
2. For the purpose of the proper implementation of this Agreement, the Parties shall exchange
information and, at the request of  either Party, shall hold consultations within the Joint Committee.
The Joint Committee shall keep under review the possibility of further removal of the obstacles to
trade between the Parties.
 WT/REG115/1
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3. The Joint Committee may, in accordance with the provisions of paragraph 3 of Article 29,
take decisions in the cases provided for in this Agreement.  On other matters the Joint Committee may
make recommendations.
Article 29
Procedures of the Joint Committee
1. For the proper implementation of this Agreement, the Joint Committee shall meet at an
appropriate level whenever necessary upon request but at least once a year.  Either Party may request
a meeting be held.
 
2. The Joint Committee shall act by common agreement.
 
3. If a representative in the Joint Committee of a Party to this Agreement has accepted adecision subject to the fulfilment of constitutional requirements the decision shall enter into force, if
no later date  is contained therein, on the day the lifting of the reservation is notified.
 
4. The Joint Committee shall adopt its rules of procedure which shall, inter alia, containprovisions for convening meetings and for the designation of the Chairman and his/her term of office.
 
5. The Joint Committee may decide to set up such sub-committees and working parties as itconsiders necessary to assist it in accomplishing its tasks.
Article 30
Security Exceptions
Nothing in this Agreement shall prevent a Part y from taking any measures which it considers
necessary:
(a) to prevent the disclosure of information contrary to its essential security interests;
 
(b) for the protection of its essential security interests or for the implementation of
international obligations or national policies:
(i) relating to the traffic in arms, ammunition and implements of war and to such
traffic in other goods, materials and services as is carried on directly or
indirectly for the purpose of supplying a military establishment;  or
(ii) relating to the non-proliferation of biological and chemical weapons, nuclear
weapons or other nuclear explosive devices;  or
(iii) in time of war or other serious international tension constituting threat of war.
Article 31
General Exceptions
This Agreement shall not preclude prohibitions or restrictions on 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;  the protection of intellectual, industrial and commercial property.WT/REG115/1
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Such prohibitions or restrictions must not, however, constitute a means of arbitrary discrimination or a
disguised restriction on trade between the Parties.
Article 32
Fulfilment of Obligations
1. The Parties shall take all necessary measures to ensure the achievement of the objectives of
this Agreement and the fulfilment of their obligations under this Agreement.
 
2. If either Party considers that the other Party has failed to fulfill an obligation under this
Agreement, the Party concerned may take the appropriate measures under the conditions and inaccordance with the procedures laid down in Article 21 of this Agreement.
Article 33
Evolutionary Clause
1. Where either Party considers that it would be useful in the interest of the economies of the
Parties to develop the relations established by this Agreement by extending them to fields not covered
thereby, it shall submit a reasoned request to the ot her Party.  The Parties may instruct the Joint
Committee to examine this request and, where appropriate, to make recommendations to them,particularly with a view to opening negotiations.
 
2. Agreements resulting from the procedure referred to in paragraph 1 will be subject to
ratification or approval by the Parties to this Agreement in accordance with their internal legal
procedures.
Article 34
Amendments
Amendments to this Agreement, including to it s Annexes and Protocols, shall enter into force
on the date of receipt of the last notification, via diplomatic channels, confirming that all internal legalprocedures required by either Party for their entry into force have been concluded.
Article 35
Protocols and Annexes
Protocols and Annexes and Record of Understanding 1 and 2 to this Agreement shall form an
integral part thereof.  The Joint Committee may decide to amend the Protocols and Annexes in
accordance with the internal legislation of the Parties.
Article 36
Validity and Termination
1. This Agreement is concluded for an unlimited period.
 
2. Each party may denounce this Agreement by means of a written notification to the other
Party.  This Agreement shall cease to apply after six months from the date of receipt of the written
notification by the other Party.WT/REG115/1
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Article 37
Entry into Force
This Agreement shall enter into force on the first day of the second month, from the last
notification, via diplomatic channels between the Parties, on entry into force of this Agreement in
accordance with the internal legislation of the Parties.
DONE at  Ankara, this 7th day of September 1999, in duplicate copies, in the Macedonian,
Turkish and English languages, all texts being equally authentic.  In case of any divergence in the
interpretation of this Agreement, the English text shall prevail.
For the Republic of Turkey For the Republic of MacedoniaWT/REG115/1
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RECORD OF UNDERSTANDING - I
Notwithstanding the Articles 7 and 8 of this Agreement, Turkey and Macedonia, by taking
into account the state of a transitional economy in Macedonia, have agreed that Macedonia may
continue to implement the existing protective measures on exports and imports in a period foreseen byMacedonia.
RECORD OF UNDERSTANDING - II
Trade in textile products falling within Chapters 50 to 63 of the Harmonized Commodity and
Coding System between Turkey and Macedonia shall continue to be regulated by the Memorandum of
Understanding between the Government of Turkey and the Government of Macedonia concerning
trade in textiles and clothing products signed on 27 October 1997.
This Memorandum of Understanding will become null and void when the European Union
abolishes the arrangements on trade in textile products with Macedonia.
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