WORLD TRADE  
ORGANIZATION  WT/COMTD/67 
5 August 2008 
 (08-3711) 
Committee on Trade and Development  
  
 
   
 
 
FACTUAL PRESENTATION 
 
Egypt-Turkey Free Trade  
Agreement 
(Goods) 
 
Report by the Secretariat 
 
 
  
This report, prepared for the consider ation of the Egypt-Turkey Free Trade 
Agreement, has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties.  The report has been drawn up in accordance with the rules and procedures contained in the Decision for a Transparency Mechan ism for Regional Trade Agreements 
(WT/L/671). 
 
 Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel: +41 22 739 5422). 
  WT/COMTD/67 
Page iii 
 
   
  TABLE OF CONTENTS  
Page  
I. TRADE ENVIRONMENT 1  
A. MERCHANDISE TRADE  1  
II. TREATY CHARACTERISTIC ELEMENTS 4  
A. BACKGROUND INFORMATION  4  
III. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 4  
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  4  
1. General provisions 4  
2. Liberalization of tariff lines and trade 5  
(a) Egypt's liberalization schedule 6  
(b) Turkey's liberalization schedule 8  
B. RULES OF ORIGIN  9  
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  11  
D. REGULATORY PROVISIONS OF THE AGREEMENT  12  
1. Standards 12  
(a) Technical barriers to trade 12  
(b) Sanitary and phytosanitary measures 12  
2. Safeguard mechanisms 12  
(a) Global Safeguard Measures 12  
(b) Structural Adjustment 12  
(c) Restrictions to safeguard balance of payments 12  
3. Anti-dumping 13  
4. Subsidies, state-aid and countervailing measures 13  
5. Other regulations 13  
(a) Customs-related procedures 13  
(b) Government Procurement 13  
(c) Rules on Competition 13  
(d) Other 14  
IV. PROVISIONS AFFECTING TRADE IN GOODS 14  
A. INTELLECTUAL PROPERTY  14  
B. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  14  
C. INSTITUTIONAL PROVISIONS OF THE AGREEMENT  14  
1. Exceptions and reservations 14  
2. Accession 14  WT/COMTD/67 
Page iv  
 
  Page  
3.
 Institutional framework 14  
4. Dispute settlement 15  
5. Relationship with other agreements concluded by the 
Parties 15  
ANNEX I 17 
ANNEX II 21 
 
  WT/COMTD/67 
Page 1 
 
   
  EGYPT-TURKEY FREE TRADE AGREEMENT (GOODS) 
Factual Presentation by the Secretariat  
I. TRADE ENVIRONMENT 
1. The Free Trade Agreement (FTA) between Egypt and Turkey (hereafter "the Agreement") is 
Egypt's third bilateral FTA and Turkey's el eventh bilateral regional trade agreement1 notified to the 
WTO.  While similar in terms of population size, th e countries have different economic structures.  In 
2006, manufactures accounted for 81.2% and fuel s and mining products for 8% of Turkey's 
merchandise exports, while for Egypt manufactures  accounted for 30.4% and fuels and mining 
products for 54% of merchandise exports.   
2. Egypt's GDP was US$107.5 billion in 2006, while  that of Turkey reached US$402.7 billion.2  
With total merchandise exports of US$13.7 billion and imports of US$20.6 billion, Egypt ranked in 
2006 as the 69th top exporter and the 63rd top importer;  with merchandise exports of US$85.5 billion 
and imports of US$139.6 billion, Turkey ranked as the 34th top exporter and the 22nd top importer in 
that year.3  The two economies showed similar average trade/GDP ratios in 2004-2006 with Egypt's 
ratio 69.6 and Turkey's 62.7. 
A. MERCHANDISE TRADE  
3. Developments in recent years in global and in tra-Party merchandise trade are presented in 
Charts I.1 and I.2.  Over the period surveyed (1999-2006), Egypt has run a consistent trade deficit 
with Turkey. 
4. On the basis of 2006 data from the United Nati ons' Comtrade database, Turkey is Egypt's 
14th largest trading partner in terms of imports, acco unting for 1.9% of Egypt's imports, and ranks 10th 
for Egypt's exports (2.6% of Egypt's exports).  Egypt is Turkey's 46th largest trading partner in terms 
of imports, accounting for 0.3% of Turkey's imports, and its 28th for exports, accounting for 0.8% of 
Turkey's exports. 
5. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2004-06, is shown in Chart I.3, on the basis of HS section product categories. 
6. Three product categories – base metals, machinery, and minerals - accounted for 55% of 
Egypt's imports from Turkey in the period 2004-2006 ;  textiles and vehicles accounted for a further 
17.9%.  Turkey's three largest export product categor ies – textiles, base metals, and machinery - made 
up 45.7% of its total exports in 2004-2006 and acc ounted for 50.9% of Egypt's imports from Turkey.4 
7. Three product categories – minerals, vegetables, and chemicals - accounted for 46.6% of 
Turkey's imports from Egypt in the period 2004-2006.  Egypt's three largest export product categories 
– minerals, base metals, and tex tiles - made up 70.7% of its tota l exports in the period 2004-2006 and 
accounted for 36.6% of Turkey's imports from Egypt. 
                                                      
1 Including its customs union with the European Communities. 
2 WTO Statistics Database, Trade Profiles. 
3 WTO Statistics Database, Trade Profiles. 
4 Imports not classified are not taken into account. WT/COMTD/67 
Page 2  
 
  0.02.55.07.510.012.515.017.520.022.525.0
1999 2000 2001 2002 2003 2004 2005 20060.00.10.20.30.40.50.60.70.80.91.0US$billion US$billionChart I.1 - Egypt: Merchandise imports from and exports to world 
and Turkey, 1999-2006
Source: UNSD, Comtrade database.Imports from Turkey
Exports to TurkeyTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
0102030405060708090100110120130140
1999 2000 2001 2002 2003 2004 2005 20060.00.10.20.30.40.50.60.70.80.91.01.11.21.31.4US$billion US$billionChart I.2 - Turkey: Merchandise imports from and exports to world 
and Egypt, 1999-2006
Source: UNSD, Comtrade database.Imports from Egypt
Exports to EgyptTotal imports
Total exportsLeft hand scale: Right hand scale:
 
  WT/COMTD/67 
 Page 3 
 
 
  Chart I.3
Egypt and Turkey: produc t composition of merchandise trade, annual 
average (2004-06)
Egypt's imports from Turkey Turkey's imports from Egypt
 Source:  UNSD, Comtrade database.Per cent
Total:  US$422.4 million Total:  US$304.6 million
Total:  US$17.9 billion Total: US$117.6 billion
Total:  US$10.8 billion Total:  US$74 billionEgypt's global exportsTurkey's global exportsEgypt's global imports Turkey's global importsOther
5.7
Machinery  
18.4Other 
2.1
Prepared foods 4.0Other 
3.3
Machinery
18.7Chemicals 
8.1Plastics 5.5Other
9.5
Minerals
14..4Machinery
14.8
Chemicals 
8.0Textiles 2.8
Base metals 11.2Plastics 4.7
Minerals
55.5Other 
7.0Other 
8.0
Textiles 23.4
Base metals 8.4Prepared foods  3.4
Base metals 11.3Minerals 3.3
Machinery 
11.0Vehicles  
10.1Textiles 
9.9
Minerals 9.9Pearls 3.5
Base metals 
9.3Plastics 4.8Base metals 22.6
Vegetables 7.4
Chemicals 2.7
Plastics 3.0 Plastics 2.9Fats and oils 2.4
Vegetables 4.5Vegetables 10.7
Stone, cement 2.3
Textiles 6.8Vegetables 6.5Minerals 
20.4
Animals 3.4Vehicles 8.0Base metals 3.6
Minerals 14.0
Vehicles 4.0Textiles 5.4
Vehicles 8.4Stone, cement 2.3
Chemicals 7.0
Vegetables 13.6Chemicals 12.6Textiles 
12.6Plastics 8.9Machinery 2.2
Articles of wood 3.4Pulp of wood 2.1Not classified 
22.1Prepared foods 2.0
Not classified 
12.8Not classified 
19.8
Not classified 
10.1Not classified 
19.8
 
 WT/COMTD/67 
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  II. TREATY CHARACTERISTIC ELEMENTS 
 
A. B
ACKGROUND INFORMATION  
8. The Free Trade Agreement was signed by the Arab Republic of Egypt and the Republic of 
Turkey on 27 December 2005 and entered into force on 1 March 2007.  The Agreement is of an 
indefinite duration. 
9. The Agreement was notified to the WTO by the Parties on 5 October 2007 under 
paragraph 4(a) of the Enabling Clause.  The text is available, together with its Annexes, on the 
following official website:  
http://www.tas.gov.eg/English/Trade%20Agreeme nts/Countries%20and%20Reg ions/Europe/Turkey 
 10. The Agreement is composed of 6 Chapte rs containing 39 Articles, as follows: 
Box II.1:  Table of cont ents of the Agreement  
Chapter I Industrial Products 
Chapter II Basic Agricultural, Processe d Agricultural and Fishery Products 
Chapter III Common Provisions Chapter IV State Monopolies, Competition Rules, Payments and Other Economic Provisions 
Chapter V Trade in Services 
Chapter VI Institutional and Final Provisions 
11. The Agreement contains three protocols contai ning the following:  abolition of customs duties 
and charges having equivalent effect on imports;  exchange of concessions in basic agricultural, 
processed agricultural and fishery products;  the de finition of the concept of "originating products" 
and methods of administrative c ooperation (rules of origin).   
12. The Agreement provides for the gradual establishm ent of a free trade area between the Parties 
within a transition period not exceeding twelve years starting from the entry into force of the 
Agreement, i.e. by March 2019.  However, in the case of Egypt, tariff elimination on certain industrial 
goods is scheduled to take place on 1 January 2020.  Duty reductions take place on the date of entry 
into force of the Agreement and on  1 January in the following years. 
III. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
13. The Parties agree to abolish customs duties, qua ntitative restrictions, and charges or measures 
having equivalent effect, on imports of i ndustrial goods in accordance with Protocol I.5  No new 
customs duties or quantitative restrictions on imports  of industrial products, and charges or measures 
having equivalent effect, may be introdu ced or increased (Articles 4 and 6).   
14. In the case of Turkey, the Agreem ent provides for the elimination of duties on imports of all 
industrial goods originating in Egypt upon the date of entry into force.  In the case of Egypt, the 
Agreement contains four lists of industrial products subject to libe ralization according to different 
                                                      
5 Industrial goods are defined by the Parties as those falling within Chapters 25-97 of the Harmonized 
System with the exception of products listed in Annex I of the Agreement (which are treated as agricultural 
products under the Agreement).    WT/COMTD/67 
 Page 5 
 
 
  timetables.  List 1 provides for the progressive e limination of duties by 1 January 2008;  List 2 
provides for a 10% reduction in duties as of 1 Janua ry 2008, with annual 15% reductions thereafter 
until the elimination of duties on 1 January 2014;  List 3 provides for a 5% reduction of duties 
beginning on 1 January 2010, followed by a further 5% reduction in the following year and subsequent reductions of 15% until the elimination of duties on 1 January 2017;  and list 4 provides 
for a 10% reduction in duties as of 1 January 201 1, followed by 10% annual reductions until the 
elimination of duties on 1 January 2020. 
15. The Parties agree to exchange concessions on cer tain basic agricultural,  processed agricultural 
and fishery products in accordance with Protocol II.  Tables A and B to this Protocol list the products 
where preferential treatment has been granted by  Egypt and Turkey, respectively.  In both cases 
concessions are in the form of reductions or, in so me cases, elimination of in-quota duties on a limited 
number of agricultural products (see Annex II for furthe r details).  In Article 10.3, the Parties agree to 
the progressive liberalization of trade in agricultura l products and to review progress in this regard 
during the annual meeting of the Joint Committee.
6 
16. The basic duty to which successive reductions a pply is the MFN applied duty in force as of 
1 January 2005.  If a Party reduces its MFN rate afte r January 2005, the tariff elimination schedule of 
that Party shall apply to the reduced rate (Article 2). 
2. Liberalization of tariff lines and trade7 
17. The elimination of tariffs applicable between  the Parties is detailed in the corresponding 
Parties' schedules.  Tariff elimination started on 1 March 2007, from the base rates applied in January 
2007.8 
18. The overall tariff elimination under the Agreem ent is depicted in Tables III.1A and III.1B 
below.9  In the case of Egypt, 8.9% of total tariff lines were already MFN duty-free in 2007.10  A 
further 30.1% of tariff lines became duty-free for im ports from Turkey in 2008;  in terms of imports 
from Turkey for the period 2004-2006, these figures amount to 33.8% and 20.7%, respectively.  By 
the end of Egypt's implementation period in 2020, a total of 86.8% of tariff lines, amounting to 95% 
of 2004-2006 imports are to be duty-free.  
19. In the case of Turkey, 23.6% of tariff lines were already duty-free on an MFN basis in 2007.11  
A further 58.5% of tariff lines were liberalized as of  the entry into force of the Agreement, resulting in 
a liberalization of 82.1% of tariff lines and a co rresponding 83.4% of trade in terms of Turkey's 
imports from Egypt in 2004-2006. 
                                                      
6 According to the Parties, as of June 2008 no further liberalization of agricultural products has taken 
place. 
7 Unless otherwise specified, all statistics, tables and charts contained in this document have been 
prepared on the basis of data  provided by the Parties. 
8 According to Egypt, given that its tariff was modified in 2007, tariff elimination is based on its MFN 
rates for 2007. 
9 Tariff lines containing in-quota duties are excluded from all the tariff-related calculations.  Lines 
subject to specific duties are taken into account in the number of lines liberalized where relevant, but are not 
included in the tariff analysis. 
10 Egypt's tariff is composed of 5,679 tariff lines at the HS (2007) 8-digit level.  Eleven of these lines 
are subject to specific duties, the rest are ad valorem . 
11 Turkey's tariff is composed of 18,253 tariff lines at the HS 12-digit level. Thirty lines are subject to 
specific duties, 113 and 151 respectively to compound and mixed rates and the rest are ad valorem .  For the 
lines subject to compound and mixed duties, the ad valorem  component was used in the calculation of tariff 
averages.  The Secretariat has adjusted the tariff received originally which consisted of  12,228 lines (mostly at 
the HS 10-digit level) to match it to the MFN tariff which is at the HS 12-digit level.   WT/COMTD/67 
Page 6  
 
  Table III.1A 
Egypt:  Tariff elimination commitments under the Agree ment and corresponding average trade values for 2004-2006 
Duty phase-out period Number of 
lines % of total lines in Egypt's 
tariff schedule Value of Egypt's imports 
from Turkey (2004-2006) 
in million US$ % of Egypt's total imports 
from Turkey  
2004-2006 
MFN duty free (2007) 505 8.9 140.6 33.8 
2008 1,709 30.1 86.0 20.7 
2014 1,081 19.0 95.4 22.9 
2017 1,610 28.4 57.9 13.9 
2020 23 0.4 15.9 3.8 
Remain dutiable 751 13.2 20.7 5.0 
Total 5,679 100.0 416.4 100.0 
Source:  WTO Secretariat based on data provided by Egypt. 
Table III.1B 
Turkey:  Tariff elimination commitments under the Agree ment and corresponding average trade values for 2004-2006 
Duty phase-out period Number of 
lines % of total lines in 
Turkey's tariff schedule Value of Turkey's imports 
from Egypt (2004-2006) 
in million US$ % of total Turkey's 
imports from Egypt  
2004-2006 
MFN duty free (2007) 4,312 23.6 93.7 31.5 
2007 10,675 58.5 154.5 51.9 
Remain dutiable 3,266 17.9 49.7 16.7 
Total 18,253 100.0 297.9 100.0 
Source:  WTO Secretariat based on data provided by Turkey. 
(a) Egypt's liberalization schedule 
20. The base rates used by Egypt for implementin g its tariff liberalization scheme included 
505 tariff lines which were already duty free before the entry into force of the Agreement.  As can be 
seen from Chart III.1, liberalization takes place prim arily in 2008, 2014 and 2017.  All of the tariff 
lines liberalized in 2008 contain MFN rates of 10% or  less, while lines subject to higher tariffs are 
liberalized in 2014 or 2017.  Six tariff lines subject  to MFN duties of more than 50% are freed from 
duties in 2020.  The 13.2% of lines which remain subject to duties have a range of 2 to 3,000%. 
21. With respect to agricultural products, Egypt's concessions are in the form of reductions, or 
elimination of duties subject to quotas in the fo llowing products: hazelnuts, figs, cherries, dried 
apricots, soy bean oil, sunflower oil, maize oil, margarine, sugar confectionery, chocolate, pasta, 
bread, cucumbers, nuts, fruit juices and active yeast s.  The preferential in-quota duty applies from 
entry into force of the Agreement (see Annex II).12 
22. Table III.2 shows Egypt's trade liberalization commitments under the Agreement at the 
HS 8-digit level organized by HS section product categories.  None of the tariff lines falling in 
HS Sections I-IV (agricultural products) are liber alized under the Agreement.  All but 60 lines in 
HS Sections V-XXI (industrial products) are liberal ized under the Agreement according to different 
timetables. 
 
                                                      
12 According to Egypt, there is no WTO quota on these products.  WT/COMTD/67 
 Page 7 
 
 
  0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,00020072008200920102011201220132014201520162017201820192020Chart III.1
Egypt's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Egypt.Number of duty-free lines (cumulative)
Duty-free <10% <20% <30% MFN is: <40% >50%
 
Table III.2 
Egypt: Tariff elimination under th e Agreement, by HS section 
Number  of duty-free lines  HS section and description  MFN 
average 
% Total no. 
of lines  MFN 
duty-free 
2007  2008 2014 2017 2020 Remain 
dutiable  
I  Live animals and animal products 8.6 237 59     178 
II  Vegetable products 4.5 271 36     235 
III  Animal or vegetable fats and oils 6.3 73 10     63 
IV  Prepared food etc. 208.1 224 9     215 
V  Minerals 2.9 155 4 109 25 17   
VI  Chemical and products 8.0 846 45 550 141 74  36 
VII  Plastics and rubber 7.1 240 22 67 108 43   
VIII  Hides and skins 11.7 86  6 39 25  16 
IX  Wood and articles 10.8 85  31 17 37   
X  Pulp, paper etc. 10.0 157 1 34 80 42   
XI  Textile and textile articles 15.4 877 47 13 155 654  8 
XII  Footwear, headgear 26.4 58    58   
XIII  Articles of stone 12.3 148 1 10 65 72   
XIV  Precious stones, etc. 9.9 58 7 13 25 13   
XV  Base metals and  products 8.7 620 19 173 160 268   
XVI  Machinery 6.2 940 193 486 106 152 3  
XVII  Transport equipment 15.1 174 11 56 56 31 20  
XVIII  Precision equipment 7.5 262 35 120 77 30   
XIX  Arms and ammunition 16.1 24 6  10 8   
XX  Misc. manufactured articles 17.6 137  40 16 81   
XXI  Works of art, etc. 25.0 7  1 1 5   
Total 17.0 5,679 505 1,709 1,081 1,610 23 751 
Note:  In-quota tariff lines are excluded. 
Source:  WTO estimates based on data provided by Egypt. WT/COMTD/67 
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  (b) Turkey's liberalization schedule 
23. The base rates used by Turkey for implemen ting its tariff liberalization scheme included 
4,312 tariff lines which were alread y duty free before the entry into fo rce of the Agreement.  Turkey's 
liberalization schedule does not foresee transition peri ods, thus all tariff elimination is implemented 
on entry into force of the Agreement.  This results  in an additional 10,675 lines becoming duty free in 
March 2007 of which over 90%  have a base rate of 10% or less.  The base rate for the remaining 609 
tariff lines ranges from 10 to 74% including 21 lines with specific duties.  The 3,266 tariff lines 
excluded from tariff elimination have tariff rates ra nging from 1- 225% (including 482 lines which are 
subject to specific duties). 
24. With respect to agricultural products, Turkey's concessions are in the form of reductions, or 
elimination of duties subject to quotas on the following products: fish, live plants, cut flowers, various 
edible vegetables, fruits, spices, oil seeds, rice, gr oundnuts, sugar confectionary, chocolate, pasta, 
bread, preserved vegetables, fruit juices and active yeasts.  The preferential in-quota duty applies from entry into force of the Agreement (see Annex II).
13 
0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15,0002007Chart III.2
Turkey's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Turkey.Number of duty-free lines (cumulative)
Duty-free <10% <20% <30% MFN is: <=50% Non ad valorem duty >50%
 
25. Table III.3 shows Turkey's trade liberalizati on commitments under the Agreement at the 
HS 12-digit level organized by HS section product categories.  Of the 18,253 tariff lines forming 
Turkey's tariff schedule, 4,312 were already dut y-free on an MFN basis in 2007;  an additional 
10,675 lines were liberalized upon entry into force of  the Agreement resulting in 82.1% of Turkey's 
tariff on imports from Egypt being duty-free in 2007.  The remaining 3,266 lines, accounting for 17.9% of Turkey's tariff schedule are subject to ta riffs and cover mostly agricultural products falling 
under HS Sections I to IV with some produc ts under HS Sections VI and XVIII- XX. 
                                                     
 
13 According to Turkey, no WTO quota is granted by Turkey on these products.  WT/COMTD/67 
 Page 9 
 
 
  Table III.3 
Turkey:  Tariff elimination under the Agreement, by HS section 
HS section and description  MFN average 
% Total No of 
lines  MFN duty-
free  
2007  Number of 
duty-free lines 
2007  Remain 
dutiable 
I  Live animals and animal products 73.3 916 106  810 
II  Vegetable products 30.4 835 79 22 734 
III  Animal or vegetable fats and oils 21.8 201 20  181 
IV  Prepared food etc. 47.3 1,113 75  1,038 
V  Minerals 0.9 465 310 155  
VI  Chemical and products 4.4 3,213 818 2,360 80 
VII  Plastics and rubber 4.4 570 121 449  
VIII  Hides and skins 3.0 225 60 165  
IX  Wood and articles 1.7 349 203 143 3 
X  Pulp, paper etc. 0.0 476 476   
XI  Textile and textile articles 7.9 3,023 104 2,919  
XII  Footwear, headgear 7.6 205 3 202  
XIII  Articles of stone 3.8 447 51 396  
XIV  Precious stones, etc. 1.0 104 73 31  
XV  Base metals and products 3.9 1.904 637 1,267  
XVI  Machinery 2.1 2,635 760 1,875  
XVII  Transport equipment 5.0 469 57 412  
XVIII  Precision equipment 2.0 679 263 324 92 
XIX  Arms and ammunition 2.3 34 5  29 
XX  Misc. manufactured articles 2.6 376 77  299 
XXI  Works of art, etc. 0.0 14 14   
Total 11.6 18,253 4,312 10,675 3,266 
Note: In-quota tariff lines are excluded. 
Source:  WTO estimates based on data provided by Turkey. 
B. RULES OF ORIGIN  
26. Disciplines regarding rules of origin and admi nistrative co-operation on products covered by 
the Agreement are set out in Protocol III.  The scheme is part of the Pan-European-Mediterranean 
cumulation system.  Articles 2-15 of Protocol III d eal with the rules of origin themselves, while 
Articles 16-38 relate to other customs-related issues. 
27. The basic requirements for a product to be c onsidered originating (Articles 2 and 6 of 
Protocol III) are:  
(a) the product is wholly obtained in one of the Parties14;  or 
(b) the non-originating materials incorporated in a product have undergone sufficient working or 
processing in the Parties, according to specific requirements. 
28. There are no regime-wide rules of origin, but a list of specific criteria that non-originating 
materials should meet so that the final product acqui res originating status, as contained in Annex II.  
                                                      
14 This concept applies to mineral products extracted from their soil or seabed;  vegetable products;  
live animals born and raised in the Party;  products from live animals in the Party;  products obtained from 
hunting of fishing in the Party;  products of sea fishing and other products taken from the sea outside the territorial waters of Turkey or of Egypt by their vessels ;  products made aboard factory ships;  used articles fit 
only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;  waste and 
scrap resulting from manufacturing operations conducted in  the Parties;  products extracted from marine soil or 
subsoil outside the Parties' territorial waters provided that  they have sole rights to work that soil or subsoil;  and 
goods produced using the aforementioned products. WT/COMTD/67 
Page 10  
 
  In most cases, origin is granted if the working or processing carried out on non-originating materials 
results in a change in tariff classification (CTC) on an  HS basis, at the heading level (CTH 4-digit).  
This rule requires changes from either "any head ing except that of the product" or from a specific 
heading or material, as is the case in prepared f oodstuffs, wood and wood pu lp, textiles, footwear, 
articles of stone and plaster, pearls and base metals.  In some cases, materials from the same heading 
may be allowed, normally within a certain lim it (some petroleum products, chemicals, plastics, 
machinery, and miscellaneous manufactured articles).  In a few cases, there are some headings from which the product cannot be manufactured.  
29. An import content test (MC) can also be provided either to supplement the CTH (for some 
prepared foodstuffs, wood pulp, base metals , machinery, transport equipment and measuring 
instruments, and musical instruments) or as a st andalone rule (for some vegetables, prepared 
foodstuffs, chemicals, plastics, footwear, machin ery and mechanical appliances, transportation 
equipment, measuring instruments, arms and ammunition, and furniture);
15  in the case of chemicals, 
plastics, machinery and mechanical  appliances, transportation equipm ent, measuring instruments, and 
furniture the MC test is offered as an alternative criterion;16  the permissible limit for non-originating 
materials is normally 40 %, but di fferent thresholds may apply (rang ing from 20 to 50%).  A technical 
test or process rule, requiring that some production pr ocesses take place in the territory of the Parties, 
is required for some minerals, chemicals, plastics,  wood, textiles, hides and skins, glass products and 
base metals.  In the case of textiles and glass products,  the technical test is offered as an alternative 
rule in combination with an import content test.  Rules requiring certain materials to be obtained in 
the territory of the Parties (wholly obtained rules)  are used for many processed agricultural products.  
30. Paragraphs 1 and 2 of Articles 3 and 4 provide for diagonal cumu lation with the participants 
of the Pan-Euro-Mediterranean protocol on rules of origin provided that there is a regional trade 
agreement (RTA) in place, in accordance with GATT Article XXIV,  between the countries involved 
in the acquisition of the originating status and the coun try of destination and that the rules of origin in 
such agreements are identical to those in this Agreement.17   
31. Article 6 of Protocol III provides for an "absorption principle" - i.e. when a non-originating 
material acquires originating status by mee ting the corresponding processing requirement, this 
material is considered to be 100% originating once incorporated into a final product. 
32. The "tolerance rule" in Article 6.2 provides that non-originating materials which would 
otherwise not be accepted may, nevertheless, be used provided that (i) their value does not exceed 
10% of the ex-works price of the product, and (ii)  any of the percentages given in the list for the 
maximum value of non-originating materials are not  exceeded.  This rule applies to all products 
except textiles and clothing (HS Chapters 50-63).18 
33. Article 7 lays down a list of insufficient working or processing operations carried out in the 
territory of the Parties that do not confer origin, whether or not the product meets the tolerance rule.  
Article 8 defines the unit of qualification to be used when determining classification using the 
HS nomenclature;  Articles 9-11 deal with how certain materials (accessories, spare parts or tools, 
sets, and neutral elements) are to be treated or valued when determining the origin of the goods. 
                                                      
15 The MC requirement establishes the maximum value of non-originating materials allowed in the 
final product, expressed as a percentage of the ex-works price of the product. 
16 Column 3 of Annex II to Protocol III describes the specific rule. When an alternative rule appears in 
column 4, either rule can be applied. 
17 The signatories to the Pan-Euro -Mediterranean Protocol on rules of  origin are Algeria, Egypt, 
European Communities, Faroe Islands , Iceland, Israel, Jordan, Lebano n, Morocco, Norway, Switzerland 
(including Liechtenstein), Syria, Tunisia, Turkey, and the West Bank and Gaza Strip. 
18 Special "tolerance rules" apply to certain textile products made of a mixture of materials (see notes 5 
and 6 of Annex I to Protocol III).  WT/COMTD/67 
 Page 11 
 
 
  34. Articles 12-13 of Protocol III establish that outward processing outside the 
Pan-Euro-Mediterranean area is not allowed unless ce rtain conditions are fulfilled.  These conditions 
allow retention of originating status provided that it can be demonstrated that the returning goods are 
the same as those exported and that they have  not undergone any opera tion beyond that necessary to 
preserve them in good condition;  with respect to th e latter a tolerance rule of 10% of the ex-works 
price of the end product applies.   Non compliance with these conditions will result in the loss of 
originating status.  The provisions on outward processing do not apply to  textile products in 
HS Chapters 50-63.  Articles 13 and 14 deal, respectively, with the transport of goods through countries outside the Pan-Euro-Mediterranean area and goods sent for exhibitions. 
35. Article 15 provides for a no-drawback rule of customs duties applicable to non-originating 
materials used in products benefiting from prefer ential treatment and having obtained originating 
status in any of the countries that are part of  the Pan-Euro-Mediterranean  area.  The drawback 
prohibition only applies when products have ob tained originating status on the basis of 
Pan-Euro-Mediterranean diagonal cumulation.  Th e Parties are permitted partial drawback on 
non-originating materials used in industrial products :  for textiles and clothing (HS Chapters 50-63), a 
10% rate of customs charge may be retained, while for other industrial products a 5% rate of customs 
charge may be retained.  These provisions apply until 31 December 2009 and may be reviewed by 
common accord of the Parties. 
Box II.3:  Rules of Origin: Basic Features at a Glance 
• No regime-wide rules of origin 
• Specific rules common to both Parties apply to products covered in the Agreement 
• Product specific criteria: 
− Wholly obtained or entirely produced goods 
− In general, CTC at the heading levels 
− MC rules used, either alone or as supplementary rules 
− Two alternative rules for many products 
− Process rules used in certain cases 
• Cumulation: 
− Diagonal under the Pan-Euro-Mediterranean cumulation system 
− Bilateral cumulation between Egypt and Turkey 
• Absorption principle 
• Tolerance rule at a maximum of 10%.  Diffe rent rule applies to textiles and clothing. 
• No duty drawback on agricultural products.  Partial drawback on industrial goods until 
December 2009 
• Outward-processing not authorized. 
C. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
36. Article 7 of the Agreement provides for the elimination of all customs duties or charges 
having equivalent effect on exports of industrial products in trade between the Parties and prohibits 
the introduction of any new such duties from the date of  entry into force of the Agreement.  Similarly, 
Article 8 provides for the elimination of all quan titative restrictions or measures having equivalent 
effect on exports of industrial products in trade be tween the Parties and prohibits the introduction of 
any new quantitative restrictions from the date  of entry into force of the Agreement.    
37. Article 17 allows the Parties to take appropria te measures, in cases where compliance with the 
provisions of Articles 7 and 8 leads to situations of  re-export or serious shortages that cause, or are 
likely to cause, major difficulties for the exporting Party.   In the event of such difficulties, the Party is 
to inform the Joint Committee which may take any d ecision needed to remedy the difficulties.  If a 
decision has not been taken within thirty days of the matter being referred to it, the exporting Party WT/COMTD/67 
Page 12  
 
  may apply appropriate measures on the export of the product concerned.  The measures must be 
non-discriminatory and be eliminated when conditions no longer justify their maintenance.  
38. There is no provision in the Agreement for the elimination and prohibition of customs duties 
and quantitative restrictions on e xports of agricultural products. 
39. Article 12 provides that products exported to the Parties may benefit from repayment of 
internal taxes but not in excess of the amount of direct or indirect taxes imposed on them. 
D. R
EGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Technical barriers to trade 
40. In Article 27 the Parties reaffirm their existi ng rights and obligations with respect to each 
other under the WTO Agreement on Technical Barriers to Trade  and agree to strengthen their 
cooperation in the field of technical regulations, st andards and conformity assessment, with a view to 
increasing the mutual understanding of their resp ective systems and facilitating access to their 
respective markets.  
(b) Sanitary and phytosanitary measures 
41. In Article 11, the Parties agree to apply th eir sanitary measures within the rules and 
procedures of the GATT 1994 and other relevant WTO agreements. 
2. Safeguard mechanisms 
(a) Global Safeguard Measures 
42. According to Article 16, the Parties retain th eir rights and obligations under Article XIX of 
GATT 1994 and the WTO Agreement on Safeguards.   
(b) Structural Adjustment 
43. Article 14 provides for Egypt to take exceptional measures of limited duration in the form of 
increased duties in the case of infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems.  Customs duties applicable on imports into Egypt introduced by these measures may not exceed 
25% ad valorem  and should maintain an element of prefer ence for products originating in Turkey.  
The total value of imports of the products subj ect to these measures may not exceed 20% of total 
imports of industrial products from Turkey during the l ast year for which statistics are available.  Such 
measures may be applied for a period not exceeding five years unless a longer duration is authorized 
by the Joint Committee and shall cease  to apply at the latest on the expiry of the transitional period.  
No measures can be introduced in r espect of a product if more than three years have elapsed since the 
elimination of all duties and quantitative restrictions  or changes or measures having equivalent effect 
concerning that product.   
(c) Restrictions to safeguard balance of payments 
44. In accordance with Article 19, where either Party is in serious balance of payments 
difficulties or under threat thereof, they may a dopt restrictive measures in accordance with the  WT/COMTD/67 
 Page 13 
 
 
  WTO Agreement and with Articles VIII and XIV of the Articles of Agreement of the International 
Monetary Fund. 
3. Anti-dumping  
45. The Parties may take appropriate measures against anti-dumping in accordance with the 
WTO Agreement on the Implementation of Article VI of the GATT 1994  (Article 15). 
4. Subsidies, state-aid and countervailing measures 
46. In Article 23, the Parties reaffirm that their ri ghts and obligations in respect of subsidies are 
governed by Articles VI and XVI of the GAT T 1994, the WTO Agreement on Subsidies and 
Countervailing Measures  and the WTO Agreement on Agriculture.   In Article 25, the Parties agree to 
progressively adjust any state monopoly of a co mmercial character so as to ensure that no 
discrimination regarding the conditions under whic h goods are procured and marketed will exist 
between nationals of the Parties, by the end of th e fifth year following the entry into force of the 
Agreement, i.e. by December 2011. 
5. Other regulations 
(a) Customs-related procedures 
47. Customs procedures related to rules of origin ar e detailed in Titles V and VI of Protocol III;  
Title V (Articles 16-31) details the administrative qu estions and disciplines regarding proof of origin.  
Proof of origin is to be issued by the exporting au thorities at the request of the exporter.  Different 
certificates (EUR.1 or EUR-MED) apply depending on the type of cumulation applied (whether 
bilateral or diagonal) to obtain originating status.  Title VI (Articles 32-36) lays down the 
arrangements for administrative co-operation to be followed by the Parties’ customs authorities, in 
particular with respect to mutual assistance, veri fication of proof of origin, resolution of disputes, 
penalties, and free zones. 
(b) Government Procurement 
48. In Article 26, the Parties agree on the objective of a progressive liberalization of public 
procurement.  The Joint Committee is to hold cons ultations on the implementation of this objective.19 
(c) Rules on Competition 
49. Article 22 lays out the practices relating to rules of competition which are incompatible with 
the proper functioning of the Agreement which in clude all agreements between undertakings, 
decisions by associations of undertakings an d concerted practices between undertakings which 
prevent, restrict or distort competition;  abuse by  one or more undertakings of dominant position in 
the territories of the Parties as a whole or in a s ubstantial part thereof;  and any public aid which 
distorts or threatens to distort competition by favouring certain undertakings or the production of 
certain goods.  The Joint Committee will adopt the necessary rules for the implementation of these 
rules within five years of the entr y into force of the Agreement.   
50. In order to ensure transparency in the area of public aid, the Parties agree to report annually to 
each other on the total amount and the distribution of aid given, and by providing, upon request, 
information on aid schemes. 
                                                      
19 According to the Parties, no consultations have been held thus far. WT/COMTD/67 
Page 14  
 
  (d) Other 
51. In Article 29 the Parties recognize the aim of achieving gradual liberalization and the opening 
of their markets for trade in services in accordance  with the provisions of the GATS, taking into 
account ongoing work under the auspices of the WTO.   They agree to review relevant services sectors 
and consider further liberalization of trade in servi ces, taking into account international developments. 
IV. PROVISIONS AFFECTING TRADE IN GOODS 
A. I
NTELLECTUAL PROPERTY  
52. In Article 24, the Parties agree to grant and ensure adequate, effective and non-discriminatory 
protection and enforcement of intellectual property rights.  Furthermore they agree to accord each 
other national treatment no less favourable that that  accorded to their own nationals and to nationals 
of any other State.  Exceptions to national treatment  must be in accordance with the provisions of the 
WTO Agreement on Trade-Related Aspects of Intell ectual Property Rights (TRIPS Agreement), in 
particular Articles 3, 4 and 5.  Upon request of eith er Party, the Parties agree to review the provisions 
of this Article with a view to furt her improve the levels of protection.20 
B. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
53. There are no sector-specific provisions in the Agreement. 
C. INSTITUTIONAL PROVISIONS OF THE AGREEMENT  
1. Exceptions and reservations 
54. Article 18 incorporates general exceptions simi lar to those found in Article XX of the 
GATT 1994 into the Agreement.  Article 32 contains  security exceptions similar to those found in 
Article XXI of the GATT 1994. 
2. Accession 
55. There is no provision in the Agreement for the accession of third parties. 
3. Institutional framework 
56. Articles 30-31 deal with the administration of the Agreement;  in particular, they establish a 
Joint Committee responsible for the administration of the Agreement and its proper implementation.  
The Committee may take decisions in cases pr ovided for in the Agreement and make 
recommendations on any other matter.  It is also  mandated to serve as the forum for Parties' 
consultations and to keep under review the possibilit y of further removal of obstacles to trade between 
the Parties.  The Committee meets whenever necessary at the request of the Parties, but at least once a 
year;  it acts by common agreement. 
57. No general review of the Agreement is foreseen; however, Article 35 provides for an 
evolutionary clause through which the Parties may en ter into negotiations with a view to extending 
trade relations to areas not currently covered by th e Agreement.  Any agreement resulting from such a 
process will be subject to ratification or approval by  Parties in accordance wi th their internal legal 
procedures. 
                                                      
20 According to the Parties, no revision of  these provisions has taken place thus far.  WT/COMTD/67 
 Page 15 
 
 
  4. Dispute settlement 
58. Article 34 sets out the procedures that apply to the settlement of disputes between the Parties 
regarding questions of interpretation or applica tion of the Agreement.  The Joint Committee may 
settle the dispute by means of a deci sion.  In the event that the disput e is not settled by decision, either 
Party may notify the other of the appointment of an arbitrator.  The second Party shall then appoint a 
second arbitrator within two months.  The Joint Committee is responsible for appointing a third 
arbitrator.  Arbitrators' decisions are taken by ma jority vote.  The Parties are required to take the 
necessary steps to implement th e arbitrators' decision.  
5. Relationship with other agreements concluded by the Parties 
59. In the Preamble to the Agreement, the Par ties take into consideration the rights and 
obligations stemming from the GATT 1994 and the WTO. 
60. The Agreement does not prevent the mainte nance or establishment of customs unions, 
free-trade areas or arrangements for frontier trade with third countries to the extent that such 
agreements do not negatively affect the trade regime  and in particular the provisions concerning rules 
of origin provided for in the Agreement (Article 13). 
61. Table IV.1 lists the RTAs, notified and non-notified to the GATT/WTO and in force, to 
which Egypt and Turkey are parties.   
Table IV.1   
Egypt and Turkey:  Participation in other RTAs (notified and non-notified in force)  
GATT/WTO Notification Partner / Agreement  Date of entry 
into force  Type of  
agreement  Year  WTO Provision  
EGYPT      
EFTA 01.08.07 Goods  2007 GATT Art. XXIV 
European Communities 01.06.04 Goods 2004 GATT Art. XXIV 
Pan-Arab 01.01.98 Goods 2006 GATT Art. XXIV 
COMESAa 08.12.94 Goods 1995 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
Agadir 06.07.06 Goods Not notified  
Iraq 16.08.01 Goods Not notified  
Jordan 01.01.99 Goods Not notified  
Lebanon 05.03.99 Goods Not notified  
Libya 26.04.07 Goods Not notified  
Morocco 26.04.99 Goods Not notified  
Palestinian Authority 28.12.99 Goods Not notified  
Syria 01.12.91 Goods Not notified  
Tunisia 15.03.99 Goods Not notified  
TURKEY      
Albania 01.05.08 Goods 2008 GATT Art. XXIV 
Syria 01.01.07 Goods 2007 GATT Art. XXIV 
Morocco 01.01.06 Goods 2006 GATT Art. XXIV 
Tunisia 01.07.05 Goods 2005 GATT Art. XXIV 
Palestinian Authority 01.06.05 Goods 2005 GATT Art. XXIV 
Croatia 01.07.03 Goods 2003 GATT Art. XXIV 
Bosnia and Herzegovina 01.07. 03 Goods 2003 GATT Art. XXIV 
FYROM 01.09.00 Goods 2001 GATT Art. XXIV 
Israel 01.05.97 Goods 1998 GATT Art. XXIV 
Table IV.1 (cont'd)WT/COMTD/67 
Page 16  
 
  GATT/WTO Notification Partner / Agreement  Date of entry 
into force  Type of  
agreement  Year  WTO Provision  
European Communities 01.01.96 Goods 1995 GATT Art. XXIV 
EFTA 01.04.92 Goods 1992 GATT Art. XXIV 
PTN 11.02.73 Goods 1971 Enabling Clause 
ECO Signed 17.07.03 
not implemented Goods 1992 Enabling Clause 
a Egypt signed the COMESA Agreement on 29.6.1998. 
Note:  COMESA:  Common Market for Eastern and Southern Africa. 
 EFTA:  European Free Trade Area. 
 GSTP:  Global System of Trade Preferences. 
 PTN:  Protocol relating to Trade Negotiations among developing countries. 
Source: WTO Secretariat. 
 
  WT/COMTD/67 
 Page 17 
 
 
  ANNEX I 
Indicators of Trade Liberalization under the Agreement  
62. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Tables AI.1 (Egypt) and AI.2 
(Turkey), by agricultural (WTO definition), non- agricultural and total products.  Applied MFN duty 
rates in 2007 serve as a comparison. 
63. In 2007 Egypt's (unweighted) average MFN rate was 17.0%;  the tariff applied to agricultural 
products is more than six times higher than that applied to non-agricultural products.  Only 8.9% of 
Egypt's tariff lines are duty-free at an MFN level.  On entry into force of the Agreement, Turkey's 
exporters enjoyed an absolute margin of pr eference of 1.1% on non-agricultural products vis-à-vis  the 
prevailing average MFN tariff in 2007;  no liberaliz ation of agricultural goods is scheduled under the 
Agreement.  By the end of the transition period in 2020, the average tariff faced by Turkey's exporters 
on all products is set to be 9.0%, with the shar e of duty-free tariff lines increasing to 86.8%.   
Table AI.1 
Egypt:  Indicators of MFN tariff rates and preferential rates for imports from Turkey 
ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 17.0 18.7 8.9 63.1 72.8 13.2 10.0 10.9 8.2 
Turkey 2007 16.1 17.7 8.9 63.1 72.8 13.2 8.9 9.7 8.2 
 2008 15.7 25.7 39.0 63.1 72.8 13.2 8.4 14.7 43.0 
 2009 15.4 25.3 39.0 63.1 72.8 13.2 8.1 14.2 43.0 
 2010 14.9 24.5 39.0 63.1 72.8 13.2 7.5 13.2 43.0 
 2011 14.4 23.6 39.0 63.1 72.8 13.2 6.9 12.2 43.0 
 2012 13.4 22.0 39.0 63.1 72.8 13.2 5.8 10.1 43.0 
 2013 12.4 20.3 39.0 63.1 72.8 13.2 4.6 8.1 43.0 
 2014 11.4 27.1 58.0 63.1 72.8 13.2 3.4 9.8 65.0 
 2015 10.6 25.3 58.0 63.1 72.8 13.2 2.5 7.3 65.0 
 2016 9.8 23.5 58.0 63.1 72.8 13.2 1.7 4.8 65.0 
 2017 9.1 67.5 86.4 63.1 72.8 13.2 0.8 35.5 97.8 
 2018 9.1 67.4 86.4 63.1 72.8 13.2 0.8 34.9 97.8 
 2019 9.1 67.3 86.4 63.1 72.8 13.2 0.8 34.3 97.8 
 2020 9.0 69.3 86.8 63.1 72.8 13.2 0.7 42.6 98.2 
a  WTO Definition. 
Source:  WTO Secretariat estimates based on data provided by Egypt and the WTO-IDB. 
64. Turkey's average applied MFN rate in 2007 was 11.6%;  the average applied tariff on 
agricultural products was almost ten times higher than  that applied to non-agricultural products.  
Duty-free tariff lines account for 23.6% of all tariff lines.  Egypt's exporters enjoyed an absolute 
margin of preference of 4.3% for non-agricultural goods vis-à-vis  the prevailing average MFN tariff in 
2007 and no reduction in the average applied tariff on agricultural goods.  Overall, Egypt's exporters 
enjoyed an absolute margin of preference of 3.6% vis-à-vis the prevailing average applied MFN tariff, 
as well as an increase to 82.1% in the share of Turkey's duty-free lines.   WT/COMTD/67 
Page 18  
 
  Table AI.2 
Turkey: Indicators of MFN tariff rates a nd preferential rates for imports from Egypt 
ALL PRODUCTS Agricultural productsa Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2007 11.6 15.2  23.6  47.6  54.6  12.7  5.0 6.7  25.8  
Egypt 2007 8.0 44.9 82.1  47.6  55.1 13.5 0.7  13,.1  94.9  
a  WTO Definition. 
Note: in quota rates are excluded;  ad valorem  components of mixed and compound rates are included in the calculations. 
Source:  WTO Secretariat estimates based on data provided by Turkey; TPR database. 
65. Table AI.3 shows the market access opportunities in  Turkey for Egypt's top 25 exports, which 
in 2004-2006 accounted on average for 62.1% of Egypt 's global exports.  The table shows at which 
year all HS 12-digit tariff lines corresponding to the product definition (i.e. applying to the 6-digit 
HS code used to capture the volume of trade) will become duty-free in Turkey. 
66. Egypt's top 25 exports cover a total of 181 HS 12-digit tariff lines.  Five of Egypt's top 
25 exports (which account for 16 HS 12-digit lines a nd 11.1% of Egypt's average global exports in the 
period 2004-06) already benefit from zero MFN duties in Turkey's market, and a further 16 products (accounting for 128 tariff lines and a further 46.5% of  Egypt's average global exports) gain immediate 
duty-free access.  Four products (rice, orang es, potatoes and cane mo lasses), accounting for 
35 HS 12-digit lines and 4.6% of Egypt's average gl obal exports remain subject to duties ranging from 
19 to 54% in Turkey.  The margin of preference granted to Egypt by Turkey under the Agreement 
varies from 0 to 15 percentage points. 
Table AI.3 – Market access opportunities un der the agreement for Egypt's top 25 exports 
Access Conditions to Turkey's import markets 
MFN (2007) Egypt's top export products in 2004-2006 
Number of tariff lines 
HS number and description of the product  Share in global 
exports (%)  Avg. 
applied rate
(%) Duty-
free Dutiable  Duty-free 
in 2007 Remain 
dutiable 
271019 Other petroleum oils and oils obtained 
from bituminous minerals (other than 
crude)  8.5 3.7  61 61  
271011 Light oils and preparations 8.5 4.7  16 16  
271099 Other waste oils other than those 
containing  polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs) or polybrominated biphenyls 
(PBBs) 8.5 3.5  1 1  
271091 Petroleum oils and oils obtained from 
bituminous minerals, other than crude 
containing PCBs, PCTs or PBBs 8.5 3.5  1 1  
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 6.0 0.0 2    
100630 Semi-milled or wholly milled rice, 
whether or not polished or glazed 2.7 45.0  16  16 
520100 Cotton, not carded or combed. 2.7 0.0 2    
721420 Other bars and rods of iron or non-alloy 
steel  containing indentations, ribs, 
grooves or other deformations produced 
during the rolling process or twisted after rolling 2.0 15.0  7 7  
Table AI.3 (cont'd)  WT/COMTD/67 
 Page 19 
 
 
  Access Conditions to Turkey's import markets 
MFN (2007) Egypt's top export products in 2004-2006 
Number of tariff lines 
HS number and description of the product  Share in global 
exports (%)  Avg. 
applied rate
(%) Duty-
free Dutiable  Duty-free 
in 2007 Remain 
dutiable 
390110 Polyethylene having a specific gravity 
of less than 0.94 1.7 6.5  4 4  
721911 Flat rolled products of stainless steel, of 
a thickness exceeding 10 mm 1.5 2.0  2 2  
252310 Cement clinkers 1.4 1.7  1 1  
252329 Portland cement, other 1.1 1.7  2 2  
710812 Gold, other unwrought forms 0.9 0 1    
630291 Bed linen, table linen, of cotton 0.9 12.0  1 1  
271112 Propane 0.8 1.8 1 5 5  
251511 Marble, travertine, crude or roughly 
trimmed 0.8 0 5    
760110 Aluminium, not alloyed 0.8 6.0  1 1  
080510 Oranges 0.7 54.0  15  15 
610910 T-shirts, singlets and other vests, of 
cotton 0.7 12.0  1 1  
270400 Coke and semi-coke of coal, of lignite 
or of peat, whether or not agglomerated; retort carbon. 0.7 0 6    
070190 Other potatoes, fresh or chilled, other 
than seed. 0.7 19.3  3  3 
732690 Other articles of iron or steel 0.7 2.7  10 10  
271290 Micro-crystalline petroleum wax, slack 
wax, ozokerite, lignite wax, peat wax, 
other mineral waxes, and similar products obtained by synthesis or by other processes 0.5 1.3 1 11 11  
170310 Cane molasses 0.5 31.5  1  1 
680221 Marble, travertine and alabaster 0.4 1.7  4 4  
Total of above  62.1  18 163 128 35 
Source:  WTO estimates based on data provided by Turkey and UNSD, Comtrade data. 
67. Table AI.4 shows the market access conditions in Egypt for Turkey's top 25 exports, which in 
2004-2006 accounted for 29.9% of its global exports a nd a total of 39 HS-8 digit lines.  One product 
is duty-free on an MFN basis in Egypt's market.  In 2014, four products, accounting for seven tariff lines and 2.5% of Turkey's global exports become  duty-free.  In 2017, 14  products, accounting for 
17 tariff lines and 20.8% of Turkey's global exports become duty-free.  In 2020, a further three products accounting for ten tariff lines and 3.5% of Tu rkey's global exports become duty-free.  Three 
products – shelled hazelnuts, tobacco, and other fruits  and nuts – remain dutiable.  The margin of 
preference granted to Turkey by Egypt under the Agreement varies from 2 to 56 percentage points. 
Table AI.4 – Market access opportunities und er the agreement for Turkey's top 25 exports 
Access Conditions to Egypt's import markets 
MFN (2007)  Turkey's top export products in 2004-2006  
Number of tariff 
lines  Duty-free in 
HS number and description of the 
product  Share in 
global 
exports (%)  Average 
MFN applied 
rate  
(%) Duty-
free Dutiable 2008 2014 2017 2020 Remain 
Dutiable 
721420 Other bars and rods of iron, 
containing indentations, ribs, 
grooves or other deformations  3.3 5.0  1   1   
852812 Televisions, colour 3.2 17.5  2 1  1   
610910 T-shirts, singlets, of cotton 3.0 30.0  1   1   
Table AI.4 (cont'd) WT/COMTD/67 
Page 20  
 
  Access Conditions to Egypt's import markets 
MFN (2007)  Turkey's top export products in 2004-2006  
Number of tariff 
lines  Duty-free in 
HS number and description of the 
product  Share in 
global 
exports (%)  Average 
MFN applied 
rate  
(%) Duty-
free Dutiable 2008 2014 2017 2020 Remain 
Dutiable 
870421 Motor vehicles, g.v.w. not 
exceeding 5 tonnes 1.9 20.0  2   2   
620462 Women's or girls' suits, of 
cotton 1.5 30.0  1   1   
870323 Other vehicles, of a cylinder 
capacity exceeding 1,500 cc but not exceeding 3,000 cc 1.5 56.25  4    4  
711319 Articles of jewellery, of other 
precious metal, whether or not 
plated or clad with precious 
metal 1.4 10.0  1   1   
080222 Hazeln uts or filberts, shelled 1.3 5.0  1     1 
870332 Motor cars, of a cylinder 
capacity exceeding 1,500 cc but not exceeding 2,500 cc 1.2 56.25  4    4  
620342 Trousers, of cotton 1.1 30.0  1   1   
611020 Jerseys, pullovers, of cotton 1.1 30.0  1   1   
271011 Light oils and preparations 0.8 5.0  2 1 1    
611592 Panty hose, tights, of cotton 0.8 20.0  2  1 1   
870210 Motor vehicles for the transport 
of ten or more persons, with compression-ignition internal 
combustion piston engine  0.8 40.0  1   1   
630260 Toilet linen and kitchen linen, 
of terry towelling or similar terry fabrics, of cotton 0.7 30.0  1   1   
870322 Motor cars, of a cylinder 
capacity exceeding 1,000 cc but not exceeding 1,500 cc 0.7 25.0  2   1 1  
841821 Refrigerators, compression-type 0.7 30.0  2   2   
680291 Marble, travertine and alabaster 0.7 10.0  1   1   
271019 Other petroleum oils and oils 
obtained from bituminous minerals other than light oils and preparations 0.6 5.0  2 1 1    
840999 Other parts suitable for use 
solely or principally with the engines of heading 84.07 or 84.08 0.6 2.0  1  1    
610990 T-shirts, singlets, of other 
textile materials 0.6 30.0  1   1   
720711 Semi-finished products or iron 
or non-alloy steel, of rectangular (including square) cross-section, the width measuring less than twice the thickness 0.6 0.0 1       
240110 Tobacco, not stemmed/stripped 0.6 L.E 6.1 
per K.N  1     1 
200819 Fruits, nuts and other edible 
parts of plants, other, including mixtures 0.6 20.0  1     1 
870899 Parts and accessories of motor 
vehicles of headings 87.01 to 
87.05, other parts and 
accessories 0.5 6.0  2 1 1    
Total of above 29.9  1 38 4 5 17 9 3 
Source:  WTO estimates based on data provided by Eg ypt, WTO-IDB and UNSD, Comtrade data.  WT/COMTD/67 
 Page 21 
 
 
  ANNEX II 
Agricultural concessions under the Egypt -Turkey Agreement  
Table AII.1  
Egypt's agricultural concessions on imports originating from Turkey 
TRQs on entry into force 
(2007) CN Code Product Description  
Quota 
(Tonne) In-quota 
duty % Average 
MFN 2007 
0802.21 5 
0802.22 Hazelnuts or filberts (Corylus spp) 2,000 0 
5 
0804.20 Figs 500 0 10 
0809.20 Cherries (including sour cherries) 500 0 5 
0813.10 Dried apricots 500 0 10 
1507.90.91 Soya-bean oil, semi-refined in bulk 10,000 0 2 
1512.11 Crude sunflower or safflower oil 0 
1512.19.91 Sunflower seed oil, semi-refined in bulk 20,000 0 
2 
1515.21 Crude maize (corn) oil and its fractions 10,000 0 0 
1517 Margarine; edible mixtures or preparati ons of animal or vegetable fats or oils 
or of fractions of different fats or oils of  this chapter, other than edible fats or 
oils or their fractions of heading 1516 1,000 0 15 
1704 Sugar confectionery (incl uding white chocolate), not containing cocoa 2,000 25.5 30 
1806 Chocolate and other food prepara tions containing cocoa 1,000 13.6 16 
1902 Pasta, whether or not cooked or stuffe d (with meat or other substances) or 
otherwise prepared, such as spaghe tti, macaroni, noodles, lasagne, gnocchi, 
ravioli, cannelloni; couscous, whether or not prepared 1,000 25.5 30 
1905 Bread, pastry, cakes, biscuits and ot her bakers’ wares, whether or not 
containing cocoa; communion wafers, em pty cachets of a kind suitable for 
pharmaceutical use, sealing wafers, rice paper and similar products 1,000 21.5 25.3 
2001.10 Cucumber and gherkins, prepared or pr eserved by vinegar or acetic acid 1,000 17 20 
2008 Fruit, nuts and other edible parts of pl ants, otherwise prepared or preserved, 
whether or not containing a dded sugar or other sweetening matter or spirit, not 
elsewhere specified or included 500 15.2 17.9 
2009 Fruit juices (including grape must) and vegetable juices, unfermented and not 
containing added spirit, whether or not containing added sugar or other 
sweetening matter 500 16.7 19.1 
2102.10 Active yeasts 3,000 8.5 10 
Table AII.2  
Turkey's agricultural concessions on  imports originating from Egypt 
TRQs on entry into force 
(2007) CN Code Product Description  
Quota 
(Tonne)  In-quota 
duty %  Average MFN 2007 
Chapter 3 Fish and crust aceans, molluscs a nd other aquatic  invertebrates (excl. 0301) Unlim ited 50% of MFN 
rate 0-37.5% + Mass Housing 
Fund as % of CIF value  
(7--35%) 
0602 Other live plants (including their roots), cuttings and slips; mushroom 
spawn (excl. 0602.90.91, 99) Unlimited 0 3.9a 
0603 Cut flowers and flower buds of a kind suitable for bouquets or for 
ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared 15 0 46.8 
0701.90 Other potatoes, fresh or chilled 400 0 19.3 
0703.20 Garlic, fresh or chilled 100 0 49.5 
Table AII.2 (cont'd)WT/COMTD/67 
Page 22  
 
  TRQs on entry into force 
(2007) CN Code Product Description  
Quota 
(Tonne)  In-quota 
duty %  Average MFN 2007 
0705 Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled 19.5 
0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible 
roots, fresh or chilled 36.9 
0709 Other vegetables, fresh or chilled (excl. 0709.90.31, 39) 19.5b 
0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
(excl. 0710.80.10) 19.5 
0711 Vegetables provisionally preserved (for example, by sulphur dioxide gas, in 
brine, in sulphur water or in other preservative solutions), but unsuitable in 
that state for immediate consumption (excl. 0711.20, 40) 5-36 
0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further 
prepared 600 0 
19.5c 
0804.10 Dates, fresh or dried 5000 0 25 
0804.50 Guavas, mangoes and mangosteens, fresh or dried 1000 0 45 
0810.10 Strawberries, fresh 200 0 50 
0909 Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries 100 0 30 
0910 Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other 
spices 100 0 30 
1006.20 Husked (brown) rice 30000 0 36 
1006.30 Semi-milled or wh olly milled rice, whether or not polished or glazed   10000 22.5 45 
1202 Groundnuts, not roasted or otherwise cooked 500 0 20-32.4 
1704 Sugar confectionery (including white chocolate), not containing cocoa 2000 85 % of 
MFN rate (*) 6.2-9.1% + amount paid to 
the fund in €/100 kg/net as 
agricultural component 
(72.74 – 94.3 Tl) 
1806 Chocolate and other food preparations containing cocoa 1000 85 % of 
MFN rate (*) 8-15.4% + amount paid to 
the fund in €/100 kg/net as 
agricultural component (68.4 
–106.68 Tl) 
1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or 
otherwise prepared, such  as spaghetti, macaroni, noodles, lasagne, gnocchi, 
ravioli, cannelloni;  couscous, whether or not prepared 1000 85 % of 
MFN rate (*) 6.4-8.3% + amount paid to 
the fund in €/100 kg/net as 
agricultural component 
(10.67 – 50.89 Tl) 
1905 Bread, pastry, cakes, biscuits and other bakers’ wares, whether or not 
containing cocoa; communion wafers, empty cachets of a kind suitable for 
pharmaceutical use, sealing wafers, rice paper and similar products 1000 85 % of 
MFN rate (*) 3.8-10.1% + amount paid to 
the fund in €/100 kg/net as 
agricultural component 
(37.91-93.89 Tl) 
2001.10 Cucumber and gherkins, prepared or preserved by vinegar or acetic acid 1000 33 39 
2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, 
whether or not containing added sugar or other sweetening matter or spirit, 
not elsewhere specified or included 500 50 58.5 
2009 Fruit juices (including grape must) and vegetable juices, unfermented and 
not containing added spirit 500 50 58.5 
2102.10 Active yeasts 3000 85% of MFN 
rate (*) 12% + amount paid to the 
fund in €/100 kg/net as 
agricultural component 
(12.47 – 59.4 Tl) 
a For 0602.90.91 and 0602.90.99 the MFN rate is 19.5%. 
b For 0709.90.40 the MFN rate is 5%. c
 For 0712.90.11 and 0712.90.19 the MFN rate is 11.7%. 
(*) For products falling under the HS Codes 1704, 1806, 1902, 1905 and 2102.10 the ad valorem  duties will be abolished and 
 reductions will be made from the duties on the agricultural component.  
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