WORLD TRADE
ORGANIZATIONWT/REG61/1
10 June 1998
(98-2360)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY
AND LITHUANIA
The following text reproduces the Agreem ent between the Turkey and Lithuania.1
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Free Trade Agreement between Turkey and Lithuania
Article 1
Objectives
1. Turkey and Lithuania shall gradually establish during a transitional period ending at the latest
1 January 2001 a free-trade area in accordance with the provisions of this Agreement and in conformity
with those of the GATT 1994 and the WTO.
2. The objectives of this Agreement are:
(a) to promote, through the expansion of reci procal trade, the harmonious development of
the economic relations between Turkey and Lithuania;
(b) to provide fair conditions of competition for trade between the Parties;(c) to contribute in this way, by removal of barriers to trade, to the harmonious
development and expansion of world trade;
(d) to enhance co-operation between the Parties.
Article 2
Basic Duties
1. For commercial exchanges covered by this Agre ement, the Lithiuanian Customs Tariffs shall be
applied to the classification of goods for imports in to Lithuania.  The Turkish Customs Tariffs shall be
applied to the classification of goods for imports into Turkey.
2. For each product the basic duty to which successive reductions set out in this Agreement are to
be applied shall be:
                                                     
     1The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).WT/REG61/1
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- for products originating in Lithuania, th e m.f.n. duty that was in force in Turkey,
erga omnes, on date of entry into force of this Agreement.
- for products originating in Turkey, the m.f.m. duty that was in force on erga omnes on 1
April 1997 in Lithuania.
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 and Turkey-EC Customs Union, such reduced du ties shall replace the basic duties referred to in
paragraph 2 as from that date when such reductions are applied.
4. Lithuania and Turkey shall communicate each other their respective basic duties.
CHAPTER I
Industrial Products
Article 3
Scope
1. The provisions of this Chapter shall apply to pr oducts falling within Chapters 25 to 97 of the
Harmonized Commodity Description and Coding Sy stem excluding the products listed in Annex I.
2. The provisions of Articles 4 to 8 included do not apply to textile products as mentioned in
Article 9.
Article 4
Customs Duties on Imports and Char ges Having Equivalent Effect
1. No new customs duty on imports or charge having equivalent effect shall be introduced in trade
between Turkey and Lithuania from the date of entry into force of this Agreement.  The Parties shall
abolish on their imports from each other all charges having equivalent effect to customs duties.
2. Customs duties on imports applicable in Lithuani a to products originating in Turkey which are
not listed in Annex II shall be abolished on the date of entry into force of this Agreement.
3. Customs duties on imports applicable in Lithuani a to products originating in Turkey which are
listed in Annex II shall be reduced in accordance with the timetable defined  below:
- For the products listed in Table A:
- on 1.1.1998 - to 50% of the basic duty
- on 1.1.2001 - to 0% of the basic duty
- For the products listed in Table B customs duties shall be abolished by 1.1.2001
4. Customs duties on imports applicable in Turkey to products originating in Lithuania which are
not listed in Annex III shall be abolished on the date of entry into force of the Agreement.WT/REG61/1
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5. Customs duties on imports applicable in Turkey to products originating in Lithuania which are
listed in Annex III shall be abolished in accordance with the timetable defined below:
- For the products listed in Table A:
- on 1.1.1998 - to 50% of the basic duty
- on 1.1.2001 - 0% of the basic duty
- For the products listed in Table B:
- on the date of entry into force of the Agreement to 85% of the basic duty
- on 1.1.1998 - to 75% of the basic duty- on 1.1.1999 - to 65% of the basic duty
- on 1.1.2000 - to 40% of the basic duty
- on 1.1.2001 - to 0% of the basic duty
Any changes in Turkish and Lithuanian comm itments to the Europ ean 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 ap ply to customs duties of a fiscal nature.
Article 6
Customs Duties on Exports and Char ges Having Equivalent Effect
1. No new customs duty on exports or  charge having equivalent effect shall be introduced in trade
between the Parties.
2. Customs duties on exports and any charges having equivalent effect shall be abolished between
Turkey and Lithuania upon entry into force of this Agreement, with the exception of those listed in
Annex IV, which shall be abolished by Lithuania at the latest on 1.1.2001.
Article 7
Quantitative Restrictions on Imports a nd 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 rest rictive in trade between Turkey and Lithuania from
the date of entry into force of this Agreement.
2. Quantitative restriction on imports shall be abolished between the Parties upon the date of entry
into force of this Agreement.WT/REG61/1
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Article 8
Quantitative Restrictions on Exports a nd 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 re strictive in trade between Turkey and Lithuania
from the date of entry into force of this Agreement.
2. Quantitative restrictions on exports and any measures having equivalent effect shall be
abolished upon the date of entry into force of this Agreement.
Article 9
Trade in Textile Products
1. The textile products of Lithuanian origin list ed in Annex V shall benefit from a suspension of
customs duties on imports into Turkey, under the condi tions set out in that Annex.  The Annex may be
revised by decision of the Joint Committee.
2. Protocol 1 lays down the arrangements applicab le to the textile products referred to therein.
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 Turkey and Lithuania.
2. The term "agricultural products" means for the purpose of this Agreement the products falling
within Chapters 1-24 of the Harmonized Commodity  Description and Coding  System and the products
listed in Annex I.
Article 11
Exchange of Concessions
1. The Parties to the Agreement declare their read iness to foster, insofar as their agricultural
policies allow, the harmonious development of trade in agricultural products and to discuss this issue
periodically in the Joint Committee.
2. In pursuance of this objective Protocol 2 providin g for measures to facilitate trade in agricultural
products has been concluded between the Parties.WT/REG61/1
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Article 12
Sanitary and Phytosanitary Measures
The Parties shall not apply their regulations in sa nitary and phytosanitary matters as an arbitrary
or unjustifiable discrimination or a disg uised restriction on trade between them.
CHAPTER III
Right of Establishment and Supply of Services
Article 13
1. The Parties shall seek to widen the scope of th e Agreement to cover the right of establishment
of firms of one Party in the territory of another Pa rty and the liberalization of the provision of services
by one Party's firms to consumers of services in the other.
2. The Parties will discuss this cooperation in the Joint Committee with the aim of developing and
deepening their relations under this Article.
CHAPTER IV
Common Provisions
Article 14
Internal Taxation
1. The Parties to this Agreement shall refrain fro m any measure or practice of an internal fiscal
nature establishing, whether directly or indirec tly, discrimination between the products originating in
Turkey and like products originating in Lithuania.
2. Products exported to one of the Parties may not benefit from repayment of internal taxes in
excess 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 frontier trade to  the extent that these do not negatively affect the
trade regime and in particular the provisions concerni ng rules of origin provided for by this Agreement.
2. Exchange of information between the Parties shall take place, on request, within the Joint
Committee concerning agreements establishing  such customs unions or free trade areas.WT/REG61/1
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Article 16
Structural Adjustment
1. Exceptional measures of limited duration which derogate from the provisions of Article 4 may
be taken by  Lithuania and Turkey in the form of increased customs duties.
2. These measures may only concern infant industrie s, or certain sectors undergoing restructuring
or facing serious difficulties, particularly wher e these difficulties produce important social problems.
3. Customs duties on imports applicable in Lithuania and Turkey to products originating in each
Party introduced by these measures may not exceed 25 per cent ad valorem  and shall maintain an
element of preference for products originating in each 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 3, 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 at the expiration of the
transition period.
5. No such measures can be introduced in resp ect of a product if more than three years have
elapsed since the elimination of all duties and quantit ative restrictions or charges or measures having an
equivalent effect concerning that product.
6. Lithuania and Turkey Parties shall inform the Joint Committee of any exceptional measures
they intend to take and, at the request of each Part y, consultations shall be held in the Joint Committee
on such measures and the sectors to which they apply before they are applied.  When taking suchmeasures the Parties shall provide the Joint Comm ittee with a schedule for the elimination of the
customs duties introduced under this Article.  This schedule shall provide for phasing out of these duties
starting at the 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 meaning of Article VI of the GATT 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 es tablished by agreements related to that Article,
under the conditions and in accordance with  the procedures laid down in Article 21.
Article 18
Emergency Action on Imports of Particular Products
Where any product is being imported in such increased quantities and under such conditions as
to cause, or threaten to cause:
(a) serious injury to domestic producers of like or directly competitive products in the
territory of the other Party, or
(b) serious disturbances in any sector of  the economy or difficulties which could bring
about serious deterioration in the economic situation of a region,WT/REG61/1
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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 Article 6 and 8 leads to:1. re-export towards a third country against which the exporting Party to this Agreement
maintains for the product concerned quantitative export restrictions, export duties ormeasures or charges having equivalent effect; or
2. 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.  The measur es shall be non-discriminatory and be eliminated
when conditions no longer justify their maintenance.
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 procur ed and marketed 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 applicati on 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 16, 17, 18 and 19 a Party which is considering to resort to
safeguard measures shall promptly notify the Join t Committee thereof.  The Party concerned shall
provide the Joint Committee with all relevant informa tion and give it the assistance required to examine
the case.  Consultations between the Parties shall ta ke 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 referre d 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 itconsiders 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 th eir duration, to what is strictly necessary in order toWT/REG61/1
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rectify the situation giving rise to their applicati on and shall be in excess of the damage caused 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 abolition wh en conditions no longer justify their
maintenance.
6. Where exceptional circumstances requiring immediate action make prior examination
impossible, the Party concerned may, in the cas e of Articles 16, 17, 18, 19, 25 and 26 apply forthwith
the precautionary measures strictly necessary to reme dy the situation.  The measures shall be notified
without delay to the Joint Committee and consultations between the Parties shall take place as soon aspossible within the Joint Committee.
Article 22
Rules of Origin and Co-opera tion in Customs Administration
1. Protocol 3 lays down the rules of origin  and methods of administrative co-operation.
2. The Parties shall take all appropriate measures , including arrangements regarding administrative
co-operation, to ensure that the provisions of Articles 2, 4, 5, 6 and 7 of this Agreement and of
Protocol 3 are effectively and harmoniously applied, taking into account the need to reduce as far as
possible the formalities imposed on trade and the need to achieve mutually satis factory solutions to any
difficulties arising out of the operation of those provisions.
Article 23
General Exceptions
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public order or public security, the protection of health
and life of humans, animals or plants and of the environment,  the protection of national treasures
possessing artistic, historic or archaeological value,  or the protection of i ndustrial and commercial
property, or rules relating to gold or silver.  Such prohibitions or restrictions shall not, however,
constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 24
Payments
The Parties undertake to authorise, in freely convertible currency, any payments on the current
account of balance of payments to the extent that the transactions underlying the payments concern
movements of goods.WT/REG61/1
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Article 25
Rules of Competition concerning Undertakings, Public Aid
1. The following are incompatible with the proper functioning of this Agreement, insofar as they
affect trade between Turkey and Lithuania:
(a) all agreements between undertakings, decisi ons by associations of undertakings and
concerted practices between undertakings wh ich have as their object or effect the
prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of dominant position in the territories of Turkey or
of Lithuania as a whole or in  a substantial part thereof;
(c) any public aid which distorts or threaten s to distort competition by favouring certain
undertakings or the production of certain goods.
2. Each Party shall ensure transp arency in the area of public aid, inter alia , by reporting annually
to the other Party on the total amount and the di stribution of the aid gi ven and by providing, upon
request, information on aid schemes.  Upon request  by one Party, the other Party shall provide
information on particular individual cases of public aid.
3. If Lithuania or Turkey considers that a particul ar practice is incompatible with the terms of the
first paragraph of this Article, and;
(a) is not adequately dealt with under the agr eements referred to in paragraph 4 of the
Record of Understanding;  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.
4. In the case of practices incompatible with paragraph 1(c) of this Article, such appropriate
measures may, where the WTO/GATT 1994 applies ther eto, only be adopted in conformity with the
procedures and under the conditions laid dow n by the WTO/GATT 1994 and any other relevant
instrument negotiated under its auspices wh ich are applicable between the Parties.
4. Notwithstanding any provisions to the contrary adopted in conformity with paragraph 4 of the
Record of Understanding, the Pa rties shall exchange information taking into account the limitations
imposed by the requirements of professional and business secrecy.
Article 26
Balance of Payments Difficulties
When either Party is in a serious balance of pa yment difficulties, or under threat thereof, Turkey
and Lithuania as the case may be, may in accord ance with the conditions laid down within the
framework of WTO/GATT 1994 and with Article VIII of  Articles of Agreement of the International
Monetary Fund, adopt restrictive measures, which shall be of limited duration and may not go beyond
what is necessary to remedy the balance of payments situation.  Either Party, as the case may be, shallWT/REG61/1
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inform the other Party forthwith and present to the other Party, as soon as possible, of a time schedule of
their removal.
Article 27
Protection of Intellectual Property
1. The Parties shall grant and ensure protection of intellectual property rights on a
non-discriminatory basis, including measures for the grant and enforcement of such rights.  The
protection shall be gradually improved on a level corresponding to the substantative standards of the
multilateral agreements specified in Annex VI by 1 January 2001 at the latest.
2. For the purpose of this Agreement "intellect ual property protection" includes in particular
protection of copyright, neighbouring rights, trade marks, geographical indications, industrial designs,
patents, topographies of integrated circuits, as well as undisclosed information (know-how).
3. The Parties to this Agreement may conclude further agreements exceeding the requirements of
this Agreement in conformity with TRIPS Agreement.
4. The Parties shall co-operate in matters of intellectual property.  They shall hold, upon request of
a Party, expert consultations on these matters, in particular on activities relating to the existing or to
future international conventions on harmonization, administration and enforcement of intellectual
property and on activities in international organizati ons, such as the World Trade Organization, WIPO,
as well as on relations of Parties with third countries in matters concerning intellectual property.
Article 28
Public Procurement
1. The Parties consider the opening up of th e 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 Agreemen t, both Parties shall grant each other's companies
access to contract award procedures a treatment no le ss favourable than that accorded to companies of
any other country.
3. The Joint Committee, acting in accordance with Ar ticles 30 and 31, shall periodically examine
the practical modalities for the implementation of pa ragraphs 1 and 2 above.  The Joint Committee shall
lay down the necessary scope, timetable and rules as soon as possible, taking into account the solutionsagreed upon within the WTO/GATT 1994.
Article 29
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 any 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/REG61/1
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3. The Joint Committee may, in accordance with the provisions of paragraph 3 of Article 30, take
decisions in the cases provided for in this Agreem ent.  On other matters the Joint Committee may make
recommendations.
Article 30
Procedures of the Joint Committee
1. For the proper implementation of this Agr eement, the Joint Committee shall meet at an
appropriate level whenever necessary but at least on ce a year.  Either Party may request that a meeting
be held.
2. The Joint Committee shall act by common agreement.3. If a representative in the Joint Committee of a Party has accepted a decision subject to the
fulfilment of constitutional requirements the decision sha ll 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 , contain
provisions for convening meetings and for the desi gnation of the Chairman and his term of office.
5. The Joint Committee may decide to set up such sub-committees and working parties as it
considers necessary to assist it in accomplishing its tasks.
Article 31
Security Exceptions
Nothing in this Agreement sha ll prevent a Party to it from taking any measures which it
considers necessary:
(a) to prevent the disclosure of information c ontrary to its essential security interest;
(b) for the protection of its essential secu rity interest 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 out directly orindirectly for the purpose of supplying a military establishment;  or
(ii) relating to the non-proliferation of biological and chem ical weapons, nuclear
weapons or other nuclear explosive devices;  or
(iii) in time of war or other serious international tension constituting threat of war.WT/REG61/1
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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 Pa rty has failed to fulfil an obligation under this
Agreement, the Party concerned may take the appropriate measures under the conditions and in
accordance with the procedures laid down in Article 21.
Article 33
Evolutionary Clause
Where either Party to this Agreement considers th at it would be useful in the interest of the
economies of the Parties to develop the relations established by this Agreement by extending them tofields not covered thereby, it shall submit a reasoned request to the other 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 refe rred 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 other than those referred to in paragraph 3 of Article 29, which
are approved by the Joint Committee shall be submitte d to the Parties for acceptance and shall enter into
force if accepted by the Parties.
Article 35
Protocols and Annexes
Protocols 1, 2, and 3, and Annexes I to VI of this Agreement shall form an integral part thereof.
The Joint Committee may decide to amend the Protocols and Annexes.
Article 36
Expiration
Each Party may denounce this Agreement by means of a written notification to the other Party.
This Agreement shall cease to apply six months after the date of such notification.
Article 37
Entry into ForceWT/REG61/1
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This Agreement shall enter into force on the first day of the second month following the date on
which the Parties have notified each other through diplomatic channels, that their internal legal
requirements for the entry into force of  this Agreement have been fulfilled.
IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorized thereto,
have signed this Agreement.
DONE at Vilnius, this 2nd day of June 1997 in duplicate copies in the Turkish, Lithuanian and
English languages, all texts being equally authentic.  In case of divergence the English text shall prevail.
For the Republic of Turkey For the Republic of LithuaniaWT/REG61/1
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Record of Understanding
1. Before the entry into force of this Agreemen t, the Parties shall ex change their respective
Customs Tariffs as referred to in Article 2.
2. In case either Party agrees with the European Union to accelerate the reduction of tariffs or the
removal of the quantitative restrictions, the Partie s shall consult about the terms and conditions of
extending such liberalization to each other in conj unction with changes in their reduction schedule for
sensitive products.
3. The Parties agree, that if after the entry into fo rce of this Agreement the provisions of the Rules
of Origin of the Europe Agreement concluded between the European Communities and their MemberStates, on the one part, and the Re public of Lithuania on the other pa rt, are amended, the provisions of
Protocol 3 to this Agreement shall be amended accordingly.
The Parties shall include in an exchange of letters  the provisions and the date of entry into force
of the amended Protocol D to this Agreement, which will be identical to the amended provisions and thedate of entry into force under the European Agreement referred to above.
The provisions of Protocol 3 concerning Poland, the Czech Republic and Slovak Republic shall
be applicable after concluding free trade agreements by Turkey with these countries and changing of
letters between Hungary and Turk ey about implementation thereof.
4. For the purpose of applying the provisions of pa ragraph 1 of Article 25 to this Agreement the
Parties will take measures in conformity with the procedures and under the conditions laid down in their
respective Agreements with the Eu ropean Communities.  In case of any change in those procedures
and/or conditions these changes will be applicable between the Parties.
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