WORLD TRADE
ORGANIZATIONWT/REG116/3
20 July 2001
(01-3638)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND LATVIA
Communication by the Parties
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 Latvia.  The
Agreement applies in respect of the territory to which the customs laws of Turkey and Latvia are
applicable respectively.
The Free Trade Area Agreement between Turkey and Latvia was signed on
16 June 1998 in Riga and entered into force on 1 July 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 GATT 1994.
3. Scope
The free-trade area established by this Agreement provides the framework for future trade
relations between Turkey and Latvia.
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, the Parties agreed to further develop the relations
established by this Agreement, by extending them to the 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, 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 public aid, State monopolies, competition, public procurement and
protection of intellectual, industrial and commercial property rights.
4. Trade Data
See Annex.WT/REG116/3
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II. TRADE PROVISIONS
1. Import restrictions
All customs duties and charges having equivalent effect on imports of industrial products
were abolished on 1 July 2000.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on imports.
Turkey and Latvia granted each other preferential market access for a number of agricultural,
processed agricultural and certain fishery products under tariff quotas.
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.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on exports.
3. Rules of origin
The rules of origin on trade between Turkey and Latvia, defined in Protocol C 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 the
good 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 C.
The rules of origin enables extended cumulation of products between Turkey, Latvia, EU
countries, EFTA countries and Central and Eastern European Countries when the necessary
procedures have been completed.
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), measures relating
structural adjustment (Article 16), re-export and serious shortage (Article 19), provisions concerning
rules of competition and public aid (Article 25), and fulfilment of obligations (Article 32) between the
Parties.WT/REG116/3
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In the case of balance of payments difficulties, Article 26 of the Agreement gives to the
Parties the right of adopting restrictive measures in accordance with the conditions laid down within
the framework of GATT and with the Article VIII of Articles of the Agreement of International
Monetary Fund.
Article 12 of the Agreement prohibits the Parties from applying their regulations in sanitary
and phytosanitary matters as an arbitrary or unjustifiable discrimination between the Parties or a
disguised restriction in the trade between them.
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 GATT, it may take appropriate measures
against this practice in accordance with Article VI of the GATT and the WTO Agreement on
Implementation of Article VI of the GATT 1994 and with its relevant internal legislation, under theconditions and in accordance with the procedures laid down in Article 21.  Through this Article the
conformity with GATT 1994 rules has been provided.
7. Subsidies and State aid
The Agreement evaluates “public aid” issue in the context of distortion of competition.
Against the improper practices of a Party, Article 25 of the Agreement gives the right to the
other Party to take appropriate measures under the conditions and in accordance with the provisions of
Article 21 of the Agreement.  Such appropriate measures may only be adopted in conformity with the
procedures and under the conditions laid down by the WTO/GATT 1994.
The Agreement also sets up appropriate means to ensure transparency in the area of public
aid.
8. Sector-Specific provisions
(a) Agriculture
Under the Agreement, the Parties has declared th eir readiness to foster, in so far as their
agricultural policies allow, the harmonious development of trade in agricultural products and to
discuss this issue periodically in the Joint Committee.  In this framework, the Parties granted each
other the concessions specified in Protocol B to the Agreement to facilitate trade in agricultural and
fishery products.
(b) Services
Turkey and Latvia agreed to seek widening the scope of the Agreement to cover the right of
establishment of firms and the liberalization of serv ices after the entry into force of the Agreement.WT/REG116/3
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9. Other
(a) Cooperation in Customs Administration
A framework was established for cooperation in customs administration with Article 22 and
Protocol C 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 all state monopolies in a
manner of no discrimination regarding the conditions under which goods are procured and marketed
between the nationals of the Parties.
(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 taxes in excess of the amount of indirect or direct taxes on exports.
(d) Protection of Intellectual Industrial and Commercial Property Rights
The protection of intellectual industrial and commercial property is addressed in Article 27
and Annex IV of the Agreement.  The Parties shall ensure adequate and effective protection of
intellectual industrial and commercial property rights in accordance with the international standards.
(e) Payments
According to the Article 24 of the Agreement, Parties undertake to authorize, in freely
convertible currency, in accordance to the provisions of Article VIII of the Agreement of IMF any
payments on the current account of balance of payments to the extent that the transactions underlying
the payments concern movements of goods.
(f) Public Procurement
The Parties consider the opening up of the award of public contracts on the basis of non-
discrimination and reciprocity as/an objective of the Agreement and they will grant each others
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, are abolished with the entry into force of the Agreement.  This, however, will not preclude
prohibitions or restrictions on imports, exports or goods in transit justified on grounds of publicmorality, public policy or public security; the protection of health and life of humans, animals or
plants and environment; the protection of national treasures possessing artistic, historic or
archaeological value; or the protection of intellectual property or the rules relating to gold or silver or
the conservation of exhaustible natural resources.WT/REG116/3
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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” the
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 applied on erga omnes basis, in particular, reductions resulting from the tariff agreementconcluded as a result of the GATT Uruguay Round 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 under Article 29 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/REG116/3
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ANNEX
Imports of Turkey from Latvia, 1997-1999,
by different duty levels according to the Agreement
1997
Agricultural products Industrial products Total imports Duty Rate
 ($) % ($) % ($) %
0 0 0 1,529,992 100 1,529,992 94,1
Less than MFN 000000
MFN 95,455 100 0 0 95 455 5,9
Total 95,455 100 1,529,992 100 1,625,447 100
1998
Agricultural products Industrial products Total imports Duty Rate
(000 $) % (000 $) % (000 $) %
0 0 0 2,616,103 100 2,616,103 99,9
Less than MFN 000000
MFN 1,890 100 0 0 1 890 0,07
Total 1,890 100 2,616,103 100 2,617,993 100
1999
Agricultural products Industrial products Total imports Duty Rate
(000 $) % (000 $) % (000 $) %
0 0 0 1,659,037 100 1,659,037 99,9
Less than MFN 000000
MFN 202 100 0 0 202 0,01
Total 202 100 1,659,037 100 1,659,239 100
Imports of Turkey from Latvia
(US$)
HS CHAPTER 1996 1997 1998 1999
6 0 0 0 202
27 494 0 45,906 0
29 108,706 7,302 0 910
30 0 17,353 0 0
32 4,796 0 13,702 19,673
34 0 0 6 0
35 0 95,455 5,103 0
38 0 12,732 1,890 0
39 77 2,911 196,972 3,564
40 574 0 468 2,400
41 229,361 0 0 20,502
42 0 1,050 17,574 0
44 2,609,807 1,016,615 1,491,934 325,220WT/REG116/3
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HS CHAPTER 1996 1997 1998 1999
48 3,257 339 0 122,408
49 0 0 215 0
51 0 2,656 0 75,809
52 0 125,239 27,006 5,480
53 0 1,250 298,121 0
54 91,411 17,422 265,476 414,944
55 364 0 0 0
56 0 12,042 21,775 0
58 0 4 0 0
60 0 2,327 102 0
61 0 12,406 0 0
62 31,178 5,459 5,402 100
63 0 0 124 0
68 0 0 16,182 0
69 0 0 0 1,325
72 121,940 27,633 9,661 3,834
73 35,574 66,641 0 5,771
75 1,860 12,802 0 0
76 0 0 0 5,616
82 0 8,812 166 0
83 0 0 60,699 480
84 3,625 42,874 54,949 553,934
85 0 91,084 57,167 10,480
86 0 0 0 0
87 183,201 3,590 0 34,833
90 0 39,449 26,241 0
94 0 0 1,152 51,754
TOTAL 3,426,225 1,625,447 2,617,993 1,659,239
Imports from Turkey into Latvia
 (US$)
HS Chapter 1996 1997 1998 1999 2000
06 0 0 0 329 0
07 149 803 0 665,609 11,103
08 960,000 744,430 1,127,605 789,294 883,596
09 3,558 9,230 15,329 15,739 21,269
12 7,486 71,343 0 41,712 19,017
15 0 22,645 11,462 0 74,543
17 87,550 138,915 138,933 65,885 89,559
18 12,069 21,787 36,255 4,488 3,464
19 0 7,937 72,330 53,504 42,976
20 10,981 1,275,388 342,110 1,482,843 1,577,567WT/REG116/3
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HS Chapter 1996 1997 1998 1999 2000
21 3,368 0 0 37,042 0
24 0 43,907 11,504 39,632 38,869
25 5,094 12,513 18,743 0 0
28 0 0 63,688 304,261 600,884
29 83 0 0 0 0
32 8,256 1,144 0 1,263 1,522
33 8,186 18,730 4,643 8,690 23,796
34 60,404 172,974 122,140 337,902 401,846
35 20,334 0 223 485 1,079
36 0 0 24 0 0
37 0 0 2,678 0 0
38 141 0 4,475 0 0
39 48,386 97,043 80,261 38,972 50,042
40 6,662 1,666 3,587 16,077 29,377
41 0 0 1,801 0 1,502
42 24,319 182,274 279,623 291,122 221,061
43 109 579 1,383 113,219 50,968
44 0 610 321 5,381 28
47 0 201 0 0 0
48 29,911 155,438 30,502 8,429 83,172
49 418 178 1,108 4,574 4,576
50 252 1,094 0 0
51 957 444 388 0 0
52 4,355 1,967 1,999 5,204 14,690
53 0 0 0 0 2,172
54 391 10,202 23,116 1,357 77,554
55 3,518 12,172 13,536 352,827 90,382
56 0 203 389 2,752 147
57 0 0 106 707 0
58 2,130 17,490 32,401 45,645 199,303
59 17,278 14,624 186 0 21,796
60 85 456 1,321 3,512 11,121
61 31,569 43,357 59,954 132,010 113,351
62 93,610 208,738 253,370 339,705 327,099
63 7,725 2,781 1,393 21,230 9,740
64 23,514 160,874 209,100 163,572 70,986
65 354 553 465 2,335 597
68 14,917 0 0 0 443
69 0 2,282 10,984 714 22,974
70 2,706 7,024 9,050 71,350 149,333
71 53,715 117,033 221,732 607,453 627,542
72 1,334 0 36,658 62,242 85,595
73 44,855 126,959 166,477 72,857 238,201
74 0 0 1,420 1,468 4,608WT/REG116/3
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HS Chapter 1996 1997 1998 1999 2000
7 5 00000
76 0 1,973 702 1,590 2,314
82 10,183 485 4,685 1,272 6,542
83 89,625 111,353 115,397 146,127 157,862
84 36,019 145,854 525,196 181,193 789,626
85 154,982 448,905 3,252,924 2,388,541 2,189,016
86 0 0 1,606 0 0
87 489,594 6659,278 377,227 2,803,390 3,199,486
90 13,223 3,868 8,258 8,354 21,686
91 505 0 0 454 395
94 4,211 14,298 25,781 35,053 19,603
95 4,186 1,535 14,914 354 0
96 21,658 13,808 19,217 28,162 25,773
97 0 0 67 0 0
Total 2,424,915 11,109,345 7,760,747 11,807,882 12,711,753
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