WORLD TRADE  
ORGANIZATION   
WT/REG294/2 
13 November 2012 
 (12-6257) 
Committee on Regional Trade Agreements Original:  English 
  
 
FREE TRADE AGREEMENT BETWEEN TURKEY AND JORDAN (GOODS) 
 
Questions and Replies 
  
 The following communication, dated 8 November 2012, is being circulated at the request of 
the delegations of Turkey and Jordan. 
_______________ 
 
 This document reproduces the questions addressed to the Parties and the responses submitted. 
 
Question from the delegation of Colombia 
 
1. With regards to paragraphs 9 through 14 of  the Factual Presentation drafted by the 
Secretariat, Colombia would like to know how th e Parties to this Agreement understand that 
the requisites set forth in Arti cle XXIV of the GATT 1994, in particular, the requirement of 
eliminating duties and other restrictive regulation with respect to substantially all trade, is 
fulfilled by the Agreement.  
Response from the delegation of Turkey 
 
 According to GATT XXIV:8, a free-trade ar ea means a group of two or more customs 
territories in which the duties and other restrict ive regulations of commerce are eliminated on 
substantially all the trade between the constituent terr itories in products originating in such territories. 
  In this sense, the Association Agreemen t between Turkey and Jordan envisages an 
establishment of a free trade area between the Parties on substantially all their trade over a transitional 
period lasting a maximum of 15 years starting from date of entry into force of this Agreement in 
conformity with Article XXIV of the GATT 1994.  In this respect, Turkey abolished the customs 
tariffs on all industrial products originating in Jordan  on the date of entry into force of the Agreement 
and Jordan will abolish those tariffs in seven year s upon the Agreement's entry into force.  On the 
other hand, the Parties exchanged concessions on selected agricultural products as an initial 
liberalization process.  
 
 As a result of the concessions provided by th e Agreement, Turkey's 97.5% of total imports 
from Jordan became duty free upon the Agreement's entry into force and Jordan's 86.2% of total 
imports from Turkey will become duty free in seven y ears upon the Agreement's entry into force.  In 
terms of total lines, Turkey's 82% of total lin es from Jordan became duty free upon the Agreement's 
entry into force and Jordan's 89% of total lines fro m Turkey will become duty free in seven years after 
the Agreement enters into force.  In this regard, "substantially all trade" requirement has been met. 
 Response from the delegation of Jordan 
 
 The FTA Agreement between Turkey and Jord an covers all industrial goods except limited 
number of products excluded for social and health  reasons.  According to Article two of the WT/REG294/2 
Page 2  
 
  Agreement the two Parties will reach a free trade ar ea within a transitional period of a maximum of 
12 years beginning from the date of entry into force,  that means Jordan and Turkey will reach a free 
trade area in the year 2022. 
 
Questions from the delegation of the European Union 
 Provisions on trade in goods 
Import duties and charges, and quantitative restrictions  
Tariff rate quotas 
 
2. According to Article 15 of the Agreement (Internal Taxation), the Parties commit 
themselves to apply any internal taxes and othe r charges and regulations in accordance with 
Article III of the GATT 1994 and other relevant WT O Agreements.  Paragraph 2 of this Article 
establishes that the exporters shall not benefit fr om refunds of internal indirect taxation, which 
exceeds the amount of indirect taxation that has be en directly or indirectly imposed on products 
exported to the territory of one of the Parties. 
 Could the Parties clarify how the mechanis m foreseen in Paragraph 2 is put in place?  
 
 No response provided from the delegation of Turkey. 
 Response from the delegation of Jordan 
  Jordan has only one subsidy programme which is  the "Partial or Total Exemption of Exports' 
Profits from Income Tax" governed by Law No. 57 of  1985 and its amendments.  The latest statistics 
regarding this programme is published in the WTO website Document No. G/SCM/N/243/JOR dated 
4 July 2012.   
 
 Any other benefits for exporters are carried out in accordance with Jordan commitments to 
the WTO.  
 
Regulatory Provisions of the Agreement 
Subsidies and State-aid 
 3. According to Article 26, paragraph 1, the righ ts and obligations of the Parties in respect 
of subsidies shall be governed by Articles VI  and XVI of the GATT 1994, the WTO Agreement 
on Subsidies and Countervailing Measures and the WTO Agreement on Agriculture. 
 Paragraph 2 of the same Article states that in the case of practices incompatible with 
paragraph 1 of this Article, such appr opriate measures may, where the WTO/GATT 1994 
applies thereto, only be adopted in conformi ty with the procedures and under the conditions 
laid down by the WTO/GATT 1994 and any ot her relevant instrument negotiated under its 
auspices which are applicable between the Parties.   Paragraph 3 of the same Article states that  each Party shall ensure transparency in the 
area of state aid.  Upon request by one Part y, the other Party shall provide information on 
particular individual cases of state aids.   While paragraphs 1 and 2 refer generically to subsidies, paragraph 3 refers exclusively 
to state aids.  Against this background: 
 
(a) Could the Parties clarify which is, in each country, the legal framework 
governing the granting of State aids, if any?   WT/REG294/2 
 Page 3 
 
 
    No response provided from the delegation of Turkey. 
 Response from the delegation of Jordan 
  The legal framework governing the granting of stat e aid /subsidies in Jordan is the:  "National 
Production Protection Law No. (21) For the year 2004, and the "Anti-Dumping and Anti-Subsidies 
Regulation No. (26) For the year 2003, on which both had regulated the contents and elements 
material for granting Subsidies in compliance with the provisions of the SCM Agreement. 
 
(b) Could the Parties clarify whether transparen cy in the area of state aids is only 
implemented providing specific information on individual cases or whether there 
are other instruments in place? In th is case, please clarify which ones. 
  No response provided from the delegation of Turkey. 
 Response from the delegation of Jordan 
   Transparency in the area of state aids is implemented on individual cases.  
(c) Could the Parties clarify why paragraph 3 on transparency is specifically and 
only addressed to state aids measures and not to subsidies in general? 
  No response provided from the delegation of Turkey. 
 
Response from the delegation of Jordan 
  The rights and obligations of the Parti es under the WTO Agreement on Subsidies and 
Countervailing Measures and the WTO Agreement on Agriculture allow within their articles 
transparency subject matter.  Provision of transpar ency separately is essential for both subsidies and 
state aids concerns. 
 
Government procurement 
 
4. According to Article 29, on public Procuremen t, the Parties agree on the objective of a 
progressive liberalization of public procurement.  
 Could the Parties explain whether they have  already adopted specific measures/pieces of 
legislation aiming at a progressive liberalization of public procurement?  
 No response provided from the Parties. 
 
Other 
Economic and technical co-operation 
 
5. Title II of the Agreement (Articles 30-39) deals with economic and technical 
co-operation between the Parties.  Turkey will prioritize technical co-operation for Jordan in 
the primary fields of economic co-operation (industry, agriculture, services, transportation, 
SMEs and trade development). 
(a) Could Turkey indicate what industries would benefit most from this 
co-operation?  
  No response provided from the delegation of Turkey. WT/REG294/2 
Page 4  
 
  (b) Could Turkey clarify whether the Parti es have already put in place specific 
measures for promoting business and investment opportunities between SMEs of the two countries?  Is there any data available? 
  No response provided from the delegation of Turkey. 
 Questions from the delegation of the United States 
 Goods liberalization 
 
6. According to Tables III.1A and III.1B and Anne x I Tables AI.1 and AI.2 of the Factual 
Presentation:  
- Turkey eliminates duties on 82.0% of all ta riff lines covering 97.5% of imports from 
Jordan under the Agreement.  However, thou gh 95.2% of industrial tariffs are duty-
free, only 16.3% of agricultural tariff lines are duty-free under the Agreement.   
 - Jordan eliminates tariffs on 88.9% of all ta riff lines covering 86.2% of imports from 
Turkey under the Agreement.  However, though 96.7% of industrial goods are duty-
free, only 37.7% of agricultural lin es are duty-free under the Agreement.   
 
(a) How do the Parties explain the dispro portionate liberalization between the 
industrial and agricultural sectors for Turkey?  For Jordan? 
Response from the delegation of Turkey 
 
 Regarding bilateral trade between Turkey a nd Jordan in the year 2011, the agricultural 
products and the industrial products consist of approximately 15% and 85% of the total bilateral trade 
respectively.  Taking into account sensitivity of th e agricultural sector and its small share in total 
bilateral trade, the Parties preferred to liberalize mainly  their industrial sector.  In this respect, Turkey 
abolished the customs tariffs on all industrial products originating in Jo rdan on the date of entry into 
force of the Agreement and Jordan will abolis h the customs tariffs on all industrial products 
originating in Turkey in seven years except the pro ducts listed in List A.  The Parties will establish a 
free trade area on substantially all their trade between them in a maximum of 12 years starting from the entry into force of this Agreement.  On th e other hand, Parties exchanged concessions on selected 
agricultural products as an initial liberalization process.  
 
 Article 12 of the Agreement states that "taking into account the role of agriculture in their 
respective economies, the development of trade in ag ricultural products between the Parties, the high 
sensitivity of agricultural products and the rules of th eir respective agricultural policy, the Parties shall 
examine in the Joint Committee the possibilities of granting further c oncessions to each other in trade 
in agricultural products".  Moreover, it is also possible to grant further concessions if the Parties 
consider that it would be useful and in the interest  of the economies of the Pa rties.  In that sense, 
progressive liberalization for the agricultural products in the future may be provided. 
 Response from the delegation of Jordan 
  The Agricultural sector is a very important and a highly sensitive sector for both countries, so concessions were made within the FTA, taking into account that we agreed to examine the Agreement 
to exchange further concessions in  this sector in the future. 
  WT/REG294/2 
 Page 5 
 
 
  (b) Could the Parties please explain ho w their minimal tariff elimination 
commitments in agriculture achieve the "substantially all trade" requirement set out in GATT Article XXIV?  
Response from the delegation of Turkey 
 
 According to GATT XXIV:8, a free-trade area  means a group of two or more customs 
territories in which the duties and other restrict ive regulations of commerce are eliminated on 
substantially all the trade between the constituent terr itories in products originating in such territories. 
  In this sense, the Association Agreemen t between Turkey and Jordan envisages an 
establishment of a free trade area between the Parties on substantially all their trade over a transitional 
period lasting a maximum of 12 years starting from date of entry into force of this Agreement in conformity with Article XXIV of the GATT 1994.  In this respect, Turkey abolished the customs 
tariffs on all industrial products originating in Jordan  on the date of entry into force of the Agreement 
and Jordan will abolish those tariffs in seven year s upon the Agreement's entry into force.  On the 
other hand, the Parties exchanged concessions on selected agricultural products as an initial 
liberalization process.    As a result of the concessions provided by th e Agreement, Turkey's 97.5% of total imports 
from Jordan became duty free upon the Agreement's entry into force and Jordan's 86.2% of total 
imports from Turkey will become duty free in seven y ears upon the Agreement's entry into force.  In 
terms of total lines, Turkey's 82% of total lin es from Jordan became duty free upon the Agreement's 
entry into force and Jordan's 89% of total lines fro m Turkey will become duty free in seven years after 
the Agreement enters into force.  In this regard, "substantially all trade" requirement has been met. 
 Response from the delegation of Jordan 
  According to Article 2 of the Agreement, tari ff elimination will be implemented gradually in 
a transitional period lasting a maximum of 12 year s starting from the entry into force of this 
Agreement.  The Agreement entered into force on 1 March 2011, and the free trade area between the 
two countries will be reached in the year 2022.  
 The Agreement includes elimination of tariffs  implemented on some agricultural products, 
including processed agricultural products, and there are a very limited number of agriculture products 
subject to a quota system and partial reduction on tariffs;  it is worth mentioning that the two Parties 
will examine the Agreement to include additi onal agricultural products in the future. 
 Relationship with other agreements concluded by the Parties 
 
7. Table IV.1 indicates that Jordan has in fo rce agreements with Israel and Agadir.  When 
does it expect, in conjunction with its partn ers, to notify these agreements as required under 
WTO rules?   
 
 Jordan and its partners are cons idering notifying the agreements. 
 
__________