WORLD TRADE  
ORGANIZATION  WT/REG204/1 
19 September 2005 
 (05-4130) 
Committee on Regional Trade Agreements Original:   English 
  
 
INTERIM FREE TRADE AGREEMENT BETW EEN TURKEY AND THE PALESTINE 
LIBERATION ORGANIZATION FOR THE BENEFIT  
OF THE PALESTINIAN AUTHORITY 
 
  The following communication, dated 1 September 2005, is being circulated at the request of 
the Delegation of Turkey. 
 
_______________ 
 
 
INTERIM FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF TURKEY 
AND THE PALESTINE LIBERATION ORGANIZATION 
FOR THE BENEFIT OF THE PALESTINIAN AUTHORITY
∗ 
 
PREAMBLE  
  The Republic of Turkey  and the Palestine Liberation Organization  (PLO) for the benefit of 
the Palestinian Authority (hereinafter “the Parties”),  
 Desirous  to develop and strengthen friendly relati ons, especially in the fields of economic 
cooperation and trade between the Parties and to enhance the scope of mutual trade, 
  Confirming  their intention to participate actively in the process of economic integration in 
Europe and in the Mediterranean Basin expressing th eir preparedness to cooperate in seeking ways 
and means to strengthen this process, 
  Taking into consideration the Agreement Establishing an A ssociation between Turkey and the 
European Economic Community and the Euro-M editerranean Interim Association Agreement 
between the European Community and the Pales tine Liberation Organization for the benefit of 
Palestinian Authority of the West Bank and the Gaza Strip, 
 
 Having  regard  to the experience gained from the c ooperation developed be tween the Parties 
to this Agreement as well as between th em and their main trading partners, 
  Considering  the importance of the links existing be tween Turkey and the Palestinian people 
of the West Bank and the Gaza Strip, and the common values they share, 
  Taking into account the difference in economic and social  development existing between the 
Parties and the need to intensify existing efforts to promote economic and so cial development in the 
West Bank and the Gaza Strip, 
 
                                                     
 
∗ The associated Annexes and Protocols have been  submitted to the Secretariat for consultation by 
interested Members (office 1174). WT/REG204/1 
Page 2  
 
  Considering  the importance of the Middle East peace process leading to a permanent 
settlement based on Security Council Resolutions 242 and 338,   Recognizing  the rights and obligations under the inte rnational agreements which they have 
signed and the importance of the Oslo Agreements, 
 
 Declaring  their readiness to undertake activities with a view to promoting harmonious 
development of their trade as well as to expanding and diversifying their mutual cooperation 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-di scrimination, and a balance of rights and 
obligations, 
  Considering  the membership of Turkey in the Worl d Trade Organization (hereinafter referred 
as “the WTO”) and her commitment to comply w ith the rights and obligations arising from the 
Marrakesh Agreement establishing the WTO, and mindful  of Palestinian Authority’s wish to comply 
with the WTO rules and principles with a view to  constitute a basis for her foreign trade policy, 
  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 c onclude the following Interim Agreement 
(hereinafter referred to as "this Agreement").  
 
CHAPTER I:  GENERAL PRINCIPLES  
 
Article 1 
 
Objectives
 
1. The Parties, by taking into account the Turkey ’s obligations arising from the Customs Union 
with the European Community and the Euro-Medite rranean Interim Association Agreement on trade 
and cooperation between the European Community and Palestine Liberation Organization for the 
benefit of the Palestinian Authority of the West Bank and the Gaza Strip, shall gradually establish a 
free trade area on substantially all their trade betwee n them in conformity with the provisions of this 
Agreement and in conformity with Article XXIV of the GATT 1994 and the other multilateral 
agreements annexed to the Agreement establishing the WTO. 
2. The objectives of this Agreement are: 
(a) to increase and enhance the economic cooperati on and to raise the living standards of 
the Parties; 
(b) to gradually eliminate difficulties and restri ctions 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 compe tition in trade between the Parties;  WT/REG204/1 
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 (e) to contribute by the removal of barriers to  trade, to the harmonious development and 
expansion of world trade; 
(f) to create conditions for further encouragement of investments particularly for the 
development of joint investments in both countries; 
(g) to promote trade and cooperation between the Parties in third country markets. 
 
CHAPTER II:  FREE MOVEMENT OF GOODS  
 
INDUSTRIAL PRODUCTS  
 
Article 2 
 
Scope  
 The provisions of this Chapter shall apply to pr oducts originating in the Parties falling within 
Chapters 25 to 97 of Harmonized Commodity Descr iption and Coding System with the exception of 
the products listed in Annex I  of this Agreement. 
 
Article 3 
 
Abolition Of Customs Duties On Imports And Charges Having Equivalent Effect  
 The Parties shall abolish on the date of entry into force of this Agreement all customs duties 
on imports and any charges having equivalent eff ect on products originating in the Republic of 
Turkey or the West Bank and the Gaza Strip.  
Article 4 
 
Customs Duties Of A Fiscal Nature 
 
 The provisions concerning the abolition of customs duties on imports shall also apply to 
customs duties of a fiscal nature.   
Article 5 
 
Structural Adjustment
 
1. By way of derogation from Articles 3 and the Paragraph 1 of Article 12, the Palestinian 
Authority may take exceptional measures of limited du ration in the form of increased customs duties. 
2. Such measures may only apply to infant industri es, and to sectors undergoing restructuring or 
experiencing serious difficulties, particularly wher e those difficulties entail severe social problems. 
3. Customs duties on imports applicable in the West Bank and the Gaza Strip to products 
originating in Turkey introduced by these measures may not exceed 25% ad valorem  and shall 
maintain an element of preference for products origin ating in Turkey. The total value of imports of the 
products that are subject to these measures may not exceed 15% of total imports  of industrial products 
from Turkey, during the last year fo r which statistics are available.  WT/REG204/1 
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 4. Such measures shall be applied for a period not exceeding five years unless the Joint 
Committee authorizes a longer duration.  
5. The Palestinian Authority shall inform the Jo int Committee of any exceptional measures she 
intends to adopt and, at the request of Turkey, c onsultations shall be held in the Joint Committee on 
such measures and the sectors prior to their appli cation. When adopting such  measures the Palestinian 
Authority shall provide the Joint Committee with a schedule for the abolition of the customs duties 
introduced pursuant to this Article. Such schedul es shall provide for a phasing out of these duties 
starting at the latest two years after their introduc tion, at equal rates. The Joint Committee may decide 
on a different schedule. 
 
BASIC AND PROCESSED AGRICULTURAL PRODUCTS AND FISHERIES  
 
 
Article 6 
 
Scope  
1. The provisions of this Chapter shall apply to  basic and processed agricultural products and 
fisheries originating in the Parties. 
2. The term "basic and processed agricultural pr oducts and fisheries" means for the purpose of 
this Agreement the products falling within Ch apters 1 to 24 of the Harmonized Commodity 
Description and Coding System  and the products listed in Annex I  of this Agreement. 
3. Taking into account the role of agriculture in  their respective economies; the development of 
trade in agricultural products; the high sensitivity of  agricultural products; the rules of their respective 
agricultural policy, the Parties sh all examine in the Joint Committ ee the possibilities of granting to 
each other further concessions in trade in agricultural products.  
Article 7 
 
Exchange Of Concessions  
1. The Parties decided to determine the products wh ich will be subject to preferential treatment 
by the Joint Committee procedure as referred to in Article 43.  
2. In this regard, the Joint Committee is hereby au thorized to meet at the earliest convenience 
upon the entry into force of this Agreement to initiate  the negotiations on concessions in trade of basic 
and processed agricultural products and fish eries and to establish the Annexes of Protocol I  to this 
Agreement. 
Article 8 
 
Sanitary And Phytosanitary Measures  
 The Parties shall not apply their regulations in sanitary and phytosanitary matters as an 
arbitrary or unjustifiable discrimination or a dis guised restriction on trade between them. The Parties 
shall apply their sanitary and phytosanitary measure s within the spirit of the provisions of the GATT 
and the other relevant WTO agreements.     WT/REG204/1 
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 Article 9 
 
Specific Safeguards On Agricultural Products  
1. Notwithstanding other provisions of this Agreem ent, and in particular Article 22, given the 
particular sensitivity of the agricultural products, if imports of products originating in a Party, which 
are the subject of concessions granted under this Ag reement, cause serious disturbance to the markets 
or to their domestic regulatory mechanisms, in the other Party, both Parties shall enter into 
consultations immediately to find an  appropriate solution. Pending such solution, the Party concerned 
may take the measures it deems necessary, in  accordance with the relevant WTO rules. 
2. In the selection of appropriate measures, priority must be given to those least disturbing the 
functioning of this Agreement. The safeguard me asures shall be notified immediately to the Joint 
Committee and shall be subject to periodic consultati ons within that Committee, particularly with a 
view to their abolition as soon as circumstances permit. 
 
COMMON PROVISIONS  
 
Article 10 
 
Classification Of Goods  
 In the trade between the Parties covered by this Agreement, the Parties shall apply their 
respective Customs Tariffs on the classifica tion of goods for imports into them. 
 
Article 11 
 
Basic Duties  
1. For each product the basic rate to which the su ccessive reductions set out in this Agreement 
are to be applied shall be that actually applied rat es that are in the Parties on the day of conclusion of 
negotiations.   
2. If following the entry into force of this Agre ement, any tariff reduction is applied on an 
erga omnes  basis; in particular, reductions resulting fro m the tariff negotiations in the WTO, such 
reduced duties shall replace the basic duties referred to in paragraph 1 as from that date when such 
reductions are applied. 
3. The Parties shall communicate to each other th eir respective applied rates on the day of 
conclusion of the negotiations.  
Article 12 
 
Customs Duties On Imports Or Exports And Charges Having Equivalent Effect  
1. No new customs duties on imports or any other charge having equivalent effect shall be 
introduced in trade between the Parties. 
2. All customs duties on exports and any charges ha ving equivalent effect shall be abolished 
between the Parties upon entry into force of this Agreement. WT/REG204/1 
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 3. No new customs duties on exports or any other charge having equivalent effect shall be 
introduced in trade between the Parties. 
Article 13 
 
Quantitative Restrictions On Imports Or E xports And Measures Having Equivalent Effect
 
1. All quantitative restrictions on im ports or exports or measures ha ving equivalent effect shall 
be abolished between the Parties upon the date of entry into force of this Agreement. 
2. From the date of the entry into force of this Agreement no new quantitative restriction on 
imports or exports or measure having eq uivalent effect shall be introduced.  
Article 14 
 
Internal Taxation  
1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, 
whether directly or indirectly, discrimination betw een the products of one Party and like products 
originating in the other Party.  
2. Products exported to the territory of the Par ties may not benefit from repayment of internal 
taxes in excess of the amount of direct or indirect taxes imposed on them. 
Article 15 
 
Customs Unions, Free Trade Areas, Frontier Trade And Other Preferential Agreements  
1. This Agreement shall not prevent the mainte nance or establishment of customs unions, free 
trade areas or arrangements for cross-border trade of th e Parties with third countries to the extent that 
these do not negatively affect the trade regime and in particular the provisions concerning rules of 
origin 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 
 
Dumping  
 If a Party finds that dumping, within the mean ing of Article VI of GATT 1994 is taking place 
in trade relations governed by this Agreement, it may take appropriate measur es against that practice 
in accordance with Article VI of the GATT 1994 and the WTO Agreement on Implementation of 
Article VI of the GATT 1994 unde r the conditions and in accordance with the procedures laid down 
in Article 22 of this Agreement.  
Article 17 
 
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:   WT/REG204/1 
 Page 7 
 
 
 (a) serious injury to domestic producers or dist urbances 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 th e economic situation of a region; 
the Party concerned may take appropriate measur es under the conditions and in accordance with the 
procedures laid down in Article 22. 
  
Article 18 
 
Re-Export And Serious Shortage
 
 Where compliance with the provisions of the Pa ragraph 2 and 3 of Article 12 and Articles 13 
leads to:  
(a) re-export towards a third country against wh ich the exporting Party to this Agreement 
maintains for the product concerned quantita tive 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 appropr iate measures under the c onditions and in accordance 
with the procedures laid down in Article 22 of  this Agreement. The measures shall be non-
discriminatory and shall be eliminated when c onditions no longer justify their maintenance. 
 
Article 19 
 
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. 
Such prohibitions or restrictions must not, however, constitute a means of arbitrary discrimination or a 
disguised restriction on trade between the Parties. 
 
Article 20 
 
Rules Of Origin And Cooperation Between The Customs Administrations  
1. The Parties agree to apply the harmonized European  preferential rules of origin in the mutual 
trade including all existing and further amendments thereto.   
2. Protocol II  lays down the rules of origin and methods of administrative cooperation. 
   WT/REG204/1 
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 Article 21 
 
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 c onditions laid down within the framework of 
WTO/GATT 1994 and with Articles VIII and XIV of Agreement of International Monetary Fund, 
adopt restrictive measures, whic h shall be of limited duration and may not go beyond what is 
necessary to remedy the balance of payments situa tion. The Party concerned shall inform the other 
Party forthwith of their introduction and submit to th e other Party, as soon as possible, a time schedule 
of their removal. 
 
Article 22 
 
Notifications And Consultations Procedure For The Application Of Measures   
1. Before initiating the procedure for the applica tion of measures set out in this Article, the 
Parties shall endeavour to solve any differences between themselves through di rect consultations, and 
shall inform the other Party thereof. 
2. In the cases specified in Articles 9, 16, 17, 18, 24 and 45, a Party, whic h considers resorting 
to any measures, shall promptly notify the Join t Committee thereof. The Party concerned shall 
provide the Joint Committee with all relevant in formation and give it the assistance required to 
examine the case. Consultations between the Parti es 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 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 Pa rty may adopt the measures it 
considers necessary to remedy the situation.  
4. The measures taken shall be notified immediat ely 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 damage caused by 
the practice or the difficulty in question. Priority sh all be given to such measures that will least disturb 
the functioning of this Agreement.  
5. The measures taken shall be the subject of re gular consultations within the Joint Committee 
with a view to their relaxation, or abolition 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 9, 16, 17, 18, 24 and 45 apply forthwith 
the precautionary measures strictly necessary to reme dy the situation. The measures shall be notified 
without delay to the Joint Committee and consultati ons between the Parties to this Agreement shall 
take place within the Joint Committee.  WT/REG204/1 
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 CHAPTER III:  TRADE-RELATED PROVISIONS  
 
Article 23 
 
Payments And Transfers  
1. Payments relating to trade between the Parties and the transfer of such payments to the 
territory of the Party where the creditor r esides shall be free from any restrictions. 
2. The Parties shall refrain from any currency ex change or administrative restrictions on the 
grant, repayment or acceptance of short and medium-term credits covering commercial transactions in which a resident participates. 
3. No restrictive measures shall apply to transfers re lated to investments and in particular to the 
repatriation of amounts invested or reinvested and of any kind of revenues stemming there from. 
4. It is understood that the provisions in this Article are without prejudice to the equitable, non-
discriminatory application of their respective legi slation in connection with criminal offences and 
orders or judgments in administra tive and ad judicatory proceedings. 
Article 24 
 
Rules Of Competition Concerning Undertakings, State Aid
 
1. The following are incompatible with the proper implementation of this Agreement, in so far 
as they affect trade between the Parties: 
(a) all agreements between undertakings, decisi ons by associations of undertakings and 
concerted practices between undertakings which 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 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 transpar ency in the area of state aid. Upon request by one Party, the 
other Party shall provide in formation on particular individual cases of state aid. 
3. For the purpose of applying the provisions of para graph 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 a pplicable between the Parties. 
4. If the Parties consider that a particular practi ce is incompatible with the terms of the first 
paragraph of this Article, and: 
(a) is not adequately dealt with under the impl ementing rules referred to in paragraph 3 
of this Article, or WT/REG204/1 
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 (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 w ithin 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 ther eto, only be adopted in conformity with the 
procedures and under the conditions laid down by the WTO/GATT 1994 and any other relevant 
instrument negotiated under its auspices whic h are applicable between the Parties.  
6. Notwithstanding any provisions to the contrary ad opted in conformity with this Article, the 
Parties shall exchange informati on taking into account the limitations imposed by the requirements of 
professional and business secrecy. 
Article 25 
 
Intellectual, Industrial And Commercial Property
 
1. The Parties shall grant and ensure adequate effe ctive protection of intellectual, industrial and 
commercial property rights in line with the WTO Ag reement on Trade-Related Aspects of Intellectual 
Property Rights (TRIPs) and other international Ag reements. This shall encompass effective means of 
enforcing such rights. 
2. The Parties shall regularly review the implementation of this Article. If difficulties, which 
affect trade, arise in connection with intellectua l, industrial and commercial property rights, either 
Party may request urgent consultations to find mutu ally satisfactory solutions within the framework of 
the Joint Committee. 
Article 26 
 
State Monopolies  
1. The Parties shall progressively adjust any stat e monopoly of a commercial character so as to 
ensure that by the end of the fourth year follo wing the entry into force of this Agreement, no 
discrimination regarding the conditions under whic h 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 27 
 
Public Procurement  
1. The Parties consider the opening up of the aw ard 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 less  favourable than that accorded to companies of 
any other country.  WT/REG204/1 
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 Article 28 
 
Technical Regulations  
1. The parties shall cooperate in the field of t echnical regulations, standards and conformity 
assessment; and shall take appropriate measures to  promote international solutions and mutual 
recognition arrangements as appropriate to ensure that  this agreement will be applied effectively and 
harmoniously to the mutual interests of all Parties. 
2. The parties agree to hold immediate consultations  in the framework of the joint committee in 
case a Party considers that another Party has taken measures which are likely to create, or have 
created, a technical obstacle to trade, in order to fi nd an appropriate solution in conformity with the 
WTO Agreement on Technical Barriers to Trade. 
3. The extent of the Parties' obligations to notify draft technical regulations shall be applied in 
accordance with the provisions of the WTO Agreemen t on Technical Barriers to Trade. Turkey will 
make its notifications of draft technical regulations to the WTO available to Pa lestine. Palestine shall 
notify draft technical regulations to Turkey. 
 
CHAPTER IV:  ECONOMIC COOPERATION AND TECHNICAL ASSISTANCE 
 
Article 29 
 
Objectives  
1. Having recognised that the Turkish economy is far more advanced than the infant Palestinian 
economy, the Parties agreed upon the need for coopera tion between them to assist the Palestinian side 
on the road to economic development in order to better be able to benefit from this Agreement. 
2. The aim of cooperation shall be to support the Pa lestinian Authority's own efforts to achieve 
sustainable economic and social development. 
3. Turkey shall give priority for providing technical assistance in the primary fields of economic 
cooperation referred in Article 32. 
4. Parties will encourage operations designed to develop cooperation among the countries of the 
region and particularly the ones taking part w ithin the Euro-Mediterranean Partnership.  
Article 30 
 
Scope  
1. Cooperation and technical assistance shall: 
 
(a) focus primarily on infant industries, sectors suffering from internal difficulties, 
undergoing restructuring or affected by the overall process of liberalization of the 
economy of the West Bank and the Gaza Strip. 
(b) focus on areas likely to bring the economies of the Parties closer  together. WT/REG204/1 
Page 12  
 
 (c) focus on capacity building and training programs which would assist in creating the 
necessary institutions and human resources for implementation of this Agreement 
with the Palestinian Authority. 
(d) encourage the implementation of measur es designed to develop intra-regional 
cooperation. 
(e) support joint-ventures, twinning initiatives and joint investments amongst the private 
sector institutions.  
2. The Parties may agree to extend economic coope ration to other areas not covered by the 
provisions of this Chapter. 
Article 31 
 
Methods And Modalities
 
1. In the field of economic cooperation, priority shall be given to the areas raised by the 
Palestinian Authority.  
2. The Parties shall further determine the met hods and modalities for economic cooperation and 
technical assistance, in particular within the work of  the Joint Committee referred in Article 42. In this 
regard, the Joint Committee may decide to establish sub-committees.    
3. Economic cooperation and technical assistance shall be implemented in particular by: 
(a) regular exchange of information and ideas in every sector of cooperation including 
meetings of officials and experts; 
(b) encouragement of reciprocal partic ipation in fairs and exhibitions; 
(c) transfer of advice, expertise and training;  
(d) implementation of joint actions su ch as seminars and workshops;  
(e) technical, administrative and regulatory assistance;  
(f) encouragement of joint ventures;  
(g) dissemination of information on cooperation. 
Article 32 
 
Primary Fields Of Economic Cooperation  
1. The cooperation under the scope of the Agreement shall primarily involve the following fields 
referred in detail between Artic les 33 to 40 of the Agreement: 
(a) Investment promotion and Investment; 
(b) Small and medium-sized enterprises; 
(c) Standardization and conformity assessment;  WT/REG204/1 
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 (d) Industry;  
(e) Agriculture; 
(f) Services; 
(g) Tourism; 
(h) Customs; 
(i) Public procurement. 
2. Parties may decide further to extend the scope of  cooperation on areas of social development, 
transport, information, telecommunication, ener gy, scientific and technological cooperation, 
environment, higher education and regional issues of mutual interest. 
Article 33 
 
Cooperation In Investment Promotion And Investment  
1. The objective of cooperation will be the creation of a favourable and stable environment for 
investment in the West Bank and the Gaza Strip. 
2. The Parties shall aim to promote an attractive and stable environment for reciprocal 
investment. Such promotion should take the form, in particular, of: 
(a) mechanisms for information about and iden tification and dissemination of investment 
legislation and opportunities; 
(b) development of a legal framework conduciv e to investment between the Parties, 
through the conclusion by the Parties of investment promotion and protection agreements, where appropriate, and ag reements preventing double taxation; 
(c) development of simplified administrative procedures. 
3. The Joint Committee shall exam ine possibilities of collaboration in investment promotion 
between the Parties in various sectors of economy. 
Article 34 
 
Cooperation Between Small A nd Medium-Sized Enterprises
 
1. With the view to further enhance trade and econom ic activities, the Parties shall give priority 
to promoting business and investment opportunitie s as well as joint ventures between small and 
medium sized enterprises (SMEs) of the two countries. Within this context, the Parties will:  
(a) change experiences and expertise on entr epreneurship, management, research and 
management centres, quality and production standards; 
(b) provide market information to create investment opportunities; 
(c) send published documents concerning SMEs. WT/REG204/1 
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 2. Turkey shall encourage the Palestinian Author ity's efforts towards capacity building for the 
related private sector institutions.  
Article 35 
 
Cooperation On Standardizati on And Conformity Assessment
 
1. The objective of cooperation will be to narro w the gap in standards and certification. 
2. In practical terms cooperation will take the form of: 
(a) the promotion of use of international standards, guides, recommendations; 
(b) raising the level of conformity assess ment by Palestinian certification and 
accreditation bodies; 
(c) discussing mutual recognition arrangements, where appropriate; 
(d) cooperating in the field of quality management; 
(e) developing structures for the protection of  intellectual, individual and commercial 
property, for standardization and for setting quality standards. 
Article 36 
 
Industrial Cooperation  
 The main aim of industrial cooperation will be to support the Palestinian Authority, in its 
efforts to modernize and diversify industry and, in particular, to create an environment favorable to 
private sector and industrial development by en hancing cooperation between the two Parties' 
economic operators.  
 
Article 37 
 
Cooperation In The Agriculture And Fisheries  
1. Taking into account the importance of cooperati on in agriculture and fisheries towards the 
enhancement of bila teral relations, the Parties determined the following as the desired fields of 
cooperation: 
(a) exchange of scientific and technical information and experiences relating to 
agriculture, forestry, water resources and rural development;  
(b) reciprocal exchange of experts; 
(c) organization of training, seminars, confer ences and meetings, in either of both 
countries;  
(d) establishment of direct joint activities between the respective institutions;  
(e) encouragement of investment and trade on agricultural production, processing and 
marketing in both countries and in other markets.   WT/REG204/1 
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 2. The Parties will also examine the possibility  of concluding a cooperation agreement on 
agriculture. 
Article 38 
 
Cooperation In Services  
 
1. The Parties to this Agreement recognize the growing importance of trade in services. In their 
efforts to gradually develop and br oaden their cooperation, in particul ar in the context of the Euro-
Mediterranean Partnership, they w ill cooperate with the aim of achieving a progressive liberalization 
and mutual opening of their markets for trade in ser vices, taking into account re levant provisions of 
the General Agreement on Trade and Services (GATS)  and multilateral trade negotiations with that 
respect. 
2. The Parties will discuss the means of coopera tion in the area of services at the Joint 
Committee.  
Article 39 
 
Cooperation In Tourism  
 
 Priorities for cooperation shall be: 
 
(a) promoting investments in tourism; 
(b) improving the knowledge of the tourist indus try and ensuring greater consistency of 
policies affecting tourism; 
(c) making tourism more competitive through  support for increased professionalism 
ensuring the balanced and sustainable development of tourism. 
 
Article 40 
 
Cooperation In Customs  
 
1. Customs cooperation is intended to ensure that  the provisions on trade are observed and to 
guarantee fair trading. 
2. It could give rise to the following types of cooperation: 
(a) various forms of exchange of information and training schemes; 
(b) technical assistance provided by experts from Turkish side. WT/REG204/1 
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 3. Without prejudice to other forms of coopera tion provided for in this Agreement, the 
administrative authorities of the Parties will provide each other with mutual assistance on customs matters. 
Article 41 
 
Terms And Conditions For Technical Assistance
 
 The framework of technical assistance will be discussed within th e Joint Committee. The 
terms and conditions of assistance will be determined accordingly. 
 
 
CHAPTER V:  INSTITUTIONAL, GENERAL AND FINAL PROVISIONS 
 
Article 42 
 
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 administrati on 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 possi bility of further removal of the obstacles to 
trade between the Parties. 
3. The Joint Committee may, in acco rdance with the provisions of paragraph 3 of Article 43, 
take decisions in the cases provided for in this Ag reement. On other matters the Joint Committee may 
make recommendations. 
Article 43 
 
Procedures Of The Joint Committee  
1. For the proper implementation of this Agreem ent, 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 decide by consensus. 
3. If a representative in the Joint Committee of a Party to this Agreement has accepted a 
decision subject to reservation of the fulfilment of  constitutional requirements the decision shall enter 
into force, if no later date is contained therein, on the date of the receipt of the written notification 
stating that such requirements have been fulfilled. 
4. The Joint Committee shall adopt its rules of procedure, which shall, inter alia , contain 
provisions for convening meetings and for the designa tion of the Chairman and his/her term of office. 
5. The Joint Committee may decide  to set up such sub-committe es and working groups, as it 
considers necessary to assist it in accomplishing its tasks. 
  WT/REG204/1 
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 Article 44 
 
Security Exceptions  
 Nothing in this Agreement shall prevent the Parties from taking any measures, which it 
considers necessary: 
 
1. to prevent the disclosure of information c ontrary to its essential security interests; 
2. for the protection of its essential security inter ests or for the implementation of international 
obligations or national policies: 
(a) relating to the traffic in arms, ammunition an d 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 
(b) relating to the non-proliferation of biologi cal and chemical weapons, nuclear weapons 
or other nuclear explosive devices; or 
(c) in time of war or other serious interna tional tension constituting threat of war. 
Article 45 
 
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 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 22 of this Agreement. 
Article 46 
 
Dispute Settlement  
1. Either Party may refer to Joint Committee a ny dispute relating to the application or 
interpretation of this Agreement. 
2. The Joint Committee may settle the di spute by means of a decision. 
3. Each Party shall be bound to take measures i nvolved in carrying out the decision referred to 
in paragraph 2. 
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either 
Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a 
second arbitrator within two months. 
5. The Joint Committee shall appoint a third arbitrator.  
6. The arbitrators’ decisions shall be taken by majority vote. WT/REG204/1 
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 7. Each Party to the dispute must take the st eps required to implement the decision of the 
arbitrator. 
Article 47 
 
Evolutionary Clause
 
1. Where either Party considers that it would be u seful and 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 other Party. The Parties may instruct the 
Joint Committee to examine this request and, wher e appropriate, to make recommendations to them, 
particularly with a view to opening negotiations. 
2. Agreements resulting from the procedure referre d to in paragraph 1 will be subject to 
ratification or approval by the Parties to this Agre ement in accordance with their national legislation.  
Article 48 
 
Territorial Application  
 This Agreement shall apply, on the one hand, to  the territories of the Republic of Turkey and, 
on the other hand, to the territory of the West Bank and the Gaza Strip. 
 
Article 49 
 
Amendments  
 Amendments to this Agreement, as well as to its  Annexes and Protocols, shall enter into force 
on the date of receipt of the later written notifi cation through diplomatic channels, by which the 
parties inform each other that all necessary require ments foreseen by their national legislation for the 
entry into force of this Agreement have been fulfilled.  
Article 50 
 
Protocols And Annexes
 
 Protocols and Annexes to this Agreement sha ll form an integral part thereof. The Joint 
Committee may decide to amend the Protocols and Annexes in accordance with the national 
legislation of the Parties. 
 
Article 51 
 
Duration And Denunciation  
1. This Agreement is concluded for an indefinite period of time. 
2. Either party may denounce this Agreement by a written notification to the other Party. The 
Agreement shall terminate on the first day of the seventh month following the date when the other 
Party received the denunciation notice. 
   WT/REG204/1 
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 Article 52 
 
Entry Into Force  
1. This Agreement shall enter into force on the fi rst 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. 
2. IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorized thereto, 
have signed this Agreement. 
3. DONE at ---- day of----- two thousand and four in  duplicate copies in English language. 
 
 For the Republic of Turkey  Palestine Liberation Organization 
for the benefit of the Palestinian Authority 
  
__________