WT/REG434/2  
 
16 March  2022 
(22-2143) Page: 1/3 
Committee on Regional Trade Agreements  Original: English  
 
 
FREE TRADE AGREEMENT BETWEEN THE UNITED KINGDOM AND TURKEY  
(GOODS)  
QUESTIONS AND REPLIES  
 The following communication, dated 14 March  2022, is being circulated at the request of the 
delegations of  the United Kingdom and Turkey . 
 
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Question s from Brazil  
 
1.1.  Could the parties please explain why the dispute settlement provisions inscribed 
under Chapter 12 are not applicable to Chapter 6 (SPS) of the Agreement? What kind of 
mechanism to sol ve problems on SPS related to the implementation of the agreement and 
remedies are foreseen to the Parties?  
Response from the Parties  
 
 SPS provisions of the UK -Turkey Agreement defined under Chapter 6 are indeed reaffirmation 
of the rights and obligation under WTO SPS Agreement. As the WTO DSB provides necessary 
infrastructure for the resolution disputes arising under the WTO SPS Agreement, SPS Chapter of the 
FTA is not subject to Dispute Settlement under Chapter 12.  
 
1.2.  The review and further nego tiation of the Agreement mentioned in Article 13.2 is 
said to replace, modernise or expand its scope within two years of entry into force. Is 
there an intent to include Chapter 6 (SPS) in the group of provisions applicable to the 
dispute settlement mechani sm in the near future?  
 This issue will be evaluated by the Parties in the future.  
 
Question from Canada  
 
1.3.  Paragraph 4.21: According to the Report: "[t]he Parties agree to consult on opening 
their public procurement markets based on the WTO Government Procu rement Agreement 
(GPA) for future negotiations." This is so because the United Kingdom is a party to the 
GPA, as opposed to Turkey that has the status of an observing member.  
 Could the parties please provide a status update on their discussions to mutuall y 
open their respective government procurement markets?   
 
 As mentioned in the Article 8 of the FTA, the Parties are committed to consult opening of their 
respective government procurement markets. The discussions on mutually opening of the respective 
government procurement markets have not started yet. The Parties will evaluate this issue in the 
future.  WT/REG434/2  
 
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  Question s from the European Union  
 
Provisions on trade in goods  
 
Regulatory provisions of the agreement  
 
Subsidies and state -aid 
 
1.4.  "Paragraph 3.40 : There are no specific provisions on subsidies and State aid in the 
Agreement. The review of the Agreement to be conducted under Article 13.2, does, 
however, envisage a review of subsidies."  
 What is the rationale behind the absence of a subsidy chapter, g iven that subsidies 
could have a negative impact on trade for the parties?   
 
 The agreement transitions existing preferential arrangements from EU -Turkey agreements 
into a bilateral context, providing certainty for businesses. The agreement is the first st ep in 
continuing the strong trading relationship between the UK and Turkey. Subsidies are regulated under 
Article 5.1, which reaffirms the rights and obligations of both the UK and Turkey under the WTO 
SCM Agreement in addition to notification obligations as a precursor to adopting final anti -subsidy 
measures. The agreement is consistent with the rights and obligations of both Parties under separate 
bilateral agreements, such as Association Council Decision 1/95 establishing the Customs Union 
between the EU  and Turkey and the UK -EU Trade and Cooperation Agreement. Recognising their 
potential trade distortive impacts, subsidies will form part of the review of the UK -Turkey Agreement, 
in accordance with the Article 13.2 of the Agreement.  
 
Question s from Indonesia  
 
Provisions on trade in goods  
 
Bilateral safeguards  
1.5.  Paragraph 3.4.2.2  states that t here are no provisions on bilateral safeguards in the 
Agreement . 
a. Could the parties clarify why the UK -Turkey FTA has no bilateral safeguarding 
provisions? Have the safeguard provisions been regulated in the regional 
agreement between the EU and Turkey?  
b. When starting a bilateral safeguard investigation, does the country conducting 
the investigation have to provide notification? If so, please descr ibe the business 
process.  
 Bilateral safeguard measures are applied as emergency actions against increasing level of 
imports, which occurs as a result of trade liberalization by trade agreements. The UK -Turkey FTA is 
a continuity agreement and reflects the  similar concessions existing under the Turkey - EU Customs 
Union. In this regard, the FTA does not provide further liberalization going beyond the Customs 
Union and other related Association Council Decisions. In other words, the FTA does not contain 
bilateral safeguard provisions since no increase of imports is expected as a result of trade 
liberalization by the FTA.  
 
 As the Turkey -UK FTA does not contain provisions on bilateral safeguards, the Parties can not 
apply bilateral safeguard measures to each ot her. 
 
Question s from Japan  
 
Provisions on trade in Goods  
 
Rules of origin  
 
1.6.  Paragraph 3.21: Please explain why PSRs which are not covered by Ankara 
Agreement are also identical with EU -UK Agreement to PSR in this FTA? Is this also due 
to the obligation by Ankara Agreement?  WT/REG434/2  
 
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   Ankara Agreement constitutes the legal basis of the association between Turkey and the EU. 
The Agreement envisages three phases namely, preparation, transition and final periods for  Turkey 's 
integration into the EU. In this  regard, preparation period has started on 1964 when the Agreement 
entered into force. With the Additional Protocol of 1970, preparation period ended and conditions for 
transition period were set. As of 1971, the EU abolished tariff and quantitative barrie rs to its imports 
from Turkey. In return, Turkey set target for gradually abolishment of tariffs for industrial products 
of the EU. At the end of transition period, Customs Union between the EU and Turkey was established 
with the 1/95 Association Council D ecision (ACD) and the bilateral relations have entered into final 
phase. The legal basis of the EU and Turkey trade relations is established under 1/95 ACD.  
 
 According to Article 3 of the 1/95 ACD, "the customs territory of the Customs Union " comprises 
both the customs territories of the EU and Turkey. Hence, the Customs Union establishes a single 
customs territory which definitely covers the Member States and Turkey. Article 54 of the 1/95 ACD 
specifies Commercial Policy and free trade agreements with thi rd countries as areas of direct 
relevance to the functioning of the Customs Union. Therefore, Article 16 of 1/95 ACD requires Turkey 
to negotiate and conclude free trade agreements with the third countries in accordance with the EU 
commercial policy. Accor ding to Article 16.2, the rules of origin contained in these agreements shall 
be identical with ones contained in the agreements of the EU. In this regard, Turkey -UK FTA has 
similar rules of origin provisions with the EU -UK TCA.   
 
1.7.  Paragraph 3.23: In connection with the expanded cumulation with EU, please explain 
the relationship between Turkey's obligation under Ankara Agreement and UK -Turkey 
FTA. Provided that Turkey has obligation to have the same rules of origin as EU, why has 
UK-Turkey FTA expande d cumulation while UK -EU Agreement does not?  
1.8.  Paragraph 3.23: Is there any possibility of reintroduction of diagonal cumulation of 
the materials originated in third Parties other than EU as provided in this Agreement 
before UK -EU Agreement?  
 In pursuit of T urkey 's obligation stemming from Customs Union, the Rules of Origin Protocol 
of the UK -Turkey FTA was revised to reflect the UK -EU TCA rules of origin on March 2021. The first 
Protocol was applicable between 1 January -13 April 2021. The amended version the  Protocol has 
entered into force on 14 April 2021. In accordance with the Article 16.2 of the 1/95 ACD, Turkey will 
follow developments in the EU -UK TCA with regards to the Rules of Origin. The protocol allows for 
bilateral cumulation and cumulation of EU materials.  
 
 The second question (of diagonal cumulation under the UK -EU TCA) does not relate directly 
to the UK -Turkey agreement.   
 
Bilateral safeguards  
 
1.9.  Paragraph 3.37: Could you clarify the reason why UK -Turkey FTA does not provide 
bilateral safeguard m easure?  
 Are there any trade remedies when there are unforeseen increase of import and 
serious damage to the domestic industry caused by it as a result of tariff reduction and 
elimination under UK -Turkey FTA?  
 
 Bilateral safeguard measures are applied as e mergency actions against increasing level of 
imports, which occurs as a result of trade liberalization by trade agreements. The UK -Turkey FTA is 
a continuity agreement and reflects the similar concessions in the Turkey -EU Customs Union. In this 
regard, the  FTA does not provide further liberalization going beyond the Customs Union and other 
related Association Council Decisions. In other words, the FTA does not contain bilateral safeguard  
provisions since no increase in the import is expected as a result of  trade liberalization by the FTA.  
 
 In the FTA, there are no other trade remedies when there are unforeseen increase of import 
and serious damage to the domestic industry caused by it as a result of tariff reduction and 
elimination under the UK -Turkey FTA.  
 
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