WORLD TRADE  
ORGANIZATION  WT/REG203/1 
19 September 2005 
 (05-4125) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN TURKEY AND TUNISIA 
 
  The following joint communication, dated 1 Se ptember 2005, is being circulated at the 
request of the Delegations of Turkey and Tunisia. 
 
_______________ 
 
 
THE ASSOCIATION AGREEMENT ESTABLISHING A FREE TRADE AREA BETWEEN 
THE REPUBLIC OF TURKEY AND THE REPUBLIC OF TUNISIA
∗ 
 
PREAMBLE  
 
 The Republic of Turkey  and The Republic of Tunisia  (hereinafter referred to as “the Parties” or 
“Turkey” and “Tunisia” where appropriate);   Desirous  to develop and strengthen the existing friendly relations, especially in the fields of 
economic co-operation and trade, with an aim to contribute to the progress of economic co-operation 
between the two countries and to increase th e scope of mutual trade exchanges; 
 
 Confirming  their intention to participate actively in the process of economic integration in 
Europe and in the Mediterranean Basin expressing their preparedness to co-operate in seeking ways 
and means to strengthen this process;  
 Taking into consideration  the Agreement establishing an Association between Turkey and the 
European Economic Community and Euro-Mediterra nean Agreement establishing an Association 
between the European Communities and their Me mber States and the Republic of Tunisia; 
  Having  regard  to the experience gained from the co- operation developed be tween the Parties 
to this Agreement as well as between th em and their main trading partners; 
 
 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 co-operation 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 discrimin ation, and a balance of rights and obligations; 
 
 Referring  to the mutual interest of the Partie s in the continual reinforcement of the 
multilateral trading system and considering that the provisions and instruments of the General 
Agreement on Tariffs and Trade 1994 (hereinafter referred to as “GATT 1994”) and the World Trade 
Organisation (hereinafter referred to as “WTO”) c onstitute a basis for their foreign trade policy; 
 
                                                     
 
∗ The associated Annexes and Protocols have been  submitted to the Secretariat for consultation by 
interested Members (office 1174). WT/REG203/1 
Page 2  
 
  Considering  the rights and obligations of the Parties stemming from the GATT 1994 and the 
WTO;  Resolved  to lay down for this purpose provisions aimed at progressive abolition of the 
obstacles to trade between the Parties in accordan ce with the provisions of this Agreement, in 
particular those concerning the establishment of free trade area; 
 
 Believing  that development of trade and cooperation in the economic and technical fields is 
one of the main elements of rapid development strategies of both countries;   Have Decided , in pursuance of these objectives, to conclude the following Agreement 
(hereinafter referred to as “this Agreement”). 
 
Article 1 
 
Objectives
 
 The objectives of this Agreement are: 
 
(a) to increase and enhance the economic co-ope ration between the Parties to raise the 
living standards of the population of the two countries; 
(b) to gradually eliminate difficulties and r estrictions on trade in goods, including 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; 
(e) to create conditions for further encouragement of investments particularly for the 
development of joint investments in both countries; 
(f) to promote trade and co-operation between the Parties in third country markets. 
  
TITLE I:  FREE MOVEMENT OF GOODS 
 
Article 2 
 
 The Parties shall gradually establish a free trade area on substantially all their trade between them in a transitional period lasting a maximum of ni ne years starting from the entry into force of this 
Agreement in accordance with the prov isions of this Agreement and in  conformity with Article XXIV 
of the GATT 1994 and the other multilateral agreemen ts on trade in goods annexed to the Agreement 
establishing the WTO.  
 
Article 3 
 
Basic Duties And Classification Of Goods
 
1. In 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.  WT/REG203/1 
 Page 3 
 
 
 2. For each product the basic duty to which successive  reductions set out in this Agreement are 
to be applied shall be the Most Favoured Nation (MFN) duty that was in force in the Parties on 
1 January 2004. 
3. If, after 1 January 2004, any tariff reduction is applied on an erga omnes  basis, in particular, 
reductions resulting from the tariff negotiations in the WTO, such reduced duties shall replace the 
basic duties referred to in paragraph 2 as from th at date when such reductions are applied. 
4. The Parties shall communicate to each other their respective basic duties. 
 
CHAPTER I:  INDUSTRIAL PRODUCTS 
 
Article 4 
 
Scope  
 The provisions of this Chapter shall apply to pr oducts originating in the Parties falling within 
Chapters 25 to 97 of Harmonised Commodity Descrip tion and Coding System with the exception of 
the products covered by the definition specifi ed in Article 11 (2) of this Agreement. 
 
Article 5 
 
Customs Duties On Imports And Charges Having Equivalent Effect  
1. From the date of entry into force of this  Agreement no new customs duties on imports or 
charges having equivalent effect shall be introduced , nor shall those already applied be increased in 
trade between the Parties.  
2. Customs duties and charges having equivalent effect on imports shall be abolished in 
accordance with the provisions of Protocol I to this Agreement. 
Article 6 
 
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 7 
 
Customs Duties On Exports And Charges Having Equivalent Effect
 
 Without prejudice to the provisions of the GATT 1994: 
 1. From the date of the entry into force of th is Agreement no new customs duties on exports or 
charges having equivalent effect shall be introduced in trade between the Parties. 
  2. All customs duties on exports and any charges having equivalent effect shall be abolished 
between the Parties upon entry into force of this Agreement.   
 WT/REG203/1 
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 Article 8 
 
Quantitative Restrictions On Imports And Measures Having Equivalent Effect
 
 Without prejudice to the provisions of the GATT 1994: 
 
1. From the date of the entry into force of this Agreement no new quantitative restriction on 
imports or measure having equivalent effect sha ll be introduced in trade between the Parties.  
2. All quantitative restrictions on imports and measures having equivalent effect shall be 
abolished between the Parties upon the date of  entry into force of this Agreement. 
Article 9 
 
Quantitative Restrictions On Exports And Measures Having Equivalent Effect  
 Without prejudice to the provisions of the GATT 1994: 
 1. From the date of the entry into force of this Agreement no new quantitative restriction on 
exports or measure having equivalent effect sha ll be introduced in trade between the Parties.  
2. All quantitative restrictions on exports and an y measures having equivalent effect shall be 
abolished between the Parties upon the date of  entry into force of this Agreement. 
Article 10 
 
Technical Regulations
 
1. The rights and obligations of the Parties in r espect of technical regulations, standards and 
conformity assessment shall be governed by the WTO Agreement on Technical Barriers to Trade. 
2. The Parties shall strengthen their co-operation in  the field of technical regulations, standards 
and conformity assessment, with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets, thereby preparing the ground for mutual 
recognition agreements. The Parties shall consult eac h other in the Association Committee in view of 
the implementation of the objective set out in this Article. 
3. Without prejudice to paragraph 1, the Parties agree to hold immediate consultations in the 
framework of the Association Committee where either  Party has taken measures which are likely to 
create, or have created an obstacle to trade, in orde r to find an appropriate solution in conformity with 
the WTO Agreement on Technical Barriers to Trade. 
 
CHAPTER II:  BASIC AGRICULTURAL, PROCESSED AGRICULTURAL  
AND FISHERY PRODUCTS 
 
Article 11 
 
Scope
 
1. The provisions of this Chapter shall apply to  basic agricultural, processed agricultural and 
fishery products originating in the Parties.  WT/REG203/1 
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 2. The term "basic agricultural, processed agricu ltural and fishery products” (hereinafter called 
“agricultural products”) means for the purpose of th is Agreement the products  covered by the WTO 
definition of agricultural products as well as fish and fishery products and products falling under the 
tariff headings of 3302 10 29 and 4501.   
 
 
Article 12 
 
Exchange Of Concessions  
1. The Parties to this Agreement shall mutually a llocate concessions set forth in Protocol II in 
accordance with the provisi ons of this Chapter. 
2. Taking into account the role of agriculture in  their respective economies; the development of 
trade in agricultural products between the Parties;  the high sensitivity of agricultural products; the 
rules of their respective agricultu ral policies, the Parties shall ex amine in the Association Committee 
the possibilities of granting to each other further concessions in trade in agricultural products.  
3. In pursuance of this objective, Protocol II providing for measures to facilitate trade in 
agricultural products has been concluded between the Parties. 
Article 13 
 
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 measures within the ru les and procedures of the GATT 1994 and the other 
relevant WTO agreements.  
Article 14 
 
Specific Safeguards
 
 Notwithstanding other provisions of this Agreem ent, and in particular Article 21, 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 Agreement, cause or thr eaten to cause serious 
disturbance to the markets or to their domestic regul atory 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. 
 
CHAPTER III:  COMMON PROVISIONS 
 
Article 15 
 
Internal Taxation  
1. The Parties commit themselves to apply any inte rnal taxes and other charges and regulations 
in accordance with Article III of the GATT 1994 and other releva nt WTO Agreements. WT/REG203/1 
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 2. Exporters may not benefit from repayment of internal taxation in excess of the amount of 
direct or indirect taxation imposed on products e xported to the territory of one of the Parties. 
Article 16 
 
Trade Relations Governed By Other 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 in this Agreement. 
2. Consultations between the Parties shall ta ke place within the Association Committee 
concerning agreements establishing customs unions or free trade areas and, where appropriate, on 
other major issues related to their respective trade policies with third countries. Such consultations 
shall take place so as to ensure that account is taken of  the mutual interests of the Parties stated in this 
Agreement. 
 
Article 17 
 
Structural Adjustment  
1. Exceptional measures of limited duration which derogate from the provisions of Article 5 
may be taken by Tunisia in the fo rm of increased customs duties. 
2. These measures may only concern infant i ndustries, or certain sectors undergoing 
restructuring or facing serious difficulties, particularly where these difficulties produce important 
social problems. 
3. Customs duties applicable on imports into T unisia to products originating in Turkey 
introduced by these measures may not exceed 25% ad valorem  and shall maintain an element of 
preference for products originating in Turkey. The total value of imports of the products, which are 
subject to these measures, may not exceed 20% of to tal imports of industrial products from Turkey as 
defined in Article 4, during the last y ear for which statistics are available.  
4. These measures shall be applied for a period not  exceeding five years unless a longer duration 
is authorized by the Association Committee. They shal l cease to apply at the latest on the expiry of the 
transitional period. 
5. No such measures can be introduced in respect of a product if more than three years have 
elapsed since the elimination of all duties and quantitative restrictions or charges or measures having 
an equivalent effect concerning that product. 
6. Tunisia shall inform the Association Committe e of any exceptional measures she intends to 
take. At the request of Turkey, consultations sh all be held in the Association Committee on such 
measures and the sectors to which they apply before  they are applied. When taking such measures 
Tunisia shall provide the Association Committee with  a schedule for the elimination of the customs 
duties introduced under this Article. This schedul e shall provide for a phasing out of these duties 
starting at the latest two years after their introduc tion, at equal rates. The Association Committee may 
decide on a different schedule. 
7.   WT/REG203/1 
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 Article 18 
 
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 rules established by agreements related to 
that Article and under the conditions and in accordan ce with the procedures laid down in Article 21 of 
this Agreement.   
Article 19 
 
Safeguard Measures
 
1. Where any product is being imported into either  of the Parties in such increased quantities, 
each Party retains its rights and obligati ons under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguard Measures. This Agre ement does not confer any additional rights or 
obligations on the Parties with regard to safeguard measures. 
2. Notwithstanding provisions of paragraph 1 of th is Article, the procedures laid down in Article 
21 shall apply with regard to safegua rd measure taken by any Party.  
Article 20 
 
Re-Export And Serious Shortage  
 Where compliance with the provisions of Article 7 and 9 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 21 of  this Agreement. The measures shall be non-
discriminatory and shall be eliminated when c onditions no longer justify their maintenance. 
 
Article 21 
 
Notifications And Consultations Procedure  
1. Before initiating the procedure for the applicati on of the measures mentioned in Articles 14, 
18, 19, 20, 25, 26 and 47 set out in this Article, the Parties shall endeavour to solve any differences 
between themselves through direct consultations , and shall inform the other Party thereof. 
2. In these cases specified in paragraph 1 of this Arti cle, a Party which is considering to resort to 
a measure shall promptly notify the Associati on Committee thereof. The Party concerned shall 
provide the Association Committee with all relevant  information and give it the assistance required to 
examine the case. Consultations between the Parties sh all take place without delay in the Association 
Committee with a view to finding  a commonly acceptable solution.  WT/REG203/1 
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 3. If, within one month of the matter being referr ed to the Association 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 Association Committee in the matter, the concerned Party may adopt the 
measures it considers necessary to remedy the situation.  
4. The measures taken shall be notified immediatel y to the Association Committee. They shall 
be restricted, with regard to their extent and to th eir 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 Association 
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 cas es of Articles 14, 18, 19, 20, 25, 26 and 47 apply 
forthwith the precautionary measures strictly necessary to  remedy the situation. The measures shall be 
notified without delay to the Association Committee  and consultations between the Parties to this 
Agreement shall take place with in the Association Committee. 
Article 22 
 
Rules Of Origin And Co-operation Between The Customs Administrations 
 
1. Protocol III lays down the rules of origin and methods of administrative co-operation. 
2. The Parties agreed to apply the actual harmonised preferential rules of origin in the context of 
the System of Pan-Euro-Med Cumulatio n of Origin in the mutual trade. 
 
CHAPTER IV:  STATE MONOPOLIES, COMPETITION RULES,  
PAYMENTS AND OTHER ECONOMIC PROVISIONS 
 
Article 23 
 
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 Association Committee shall be informed about the measures adopted to implement this 
objective. 
Article 24 
 
Payments  
 Any payment arising from trade of goods, services and rights to non material goods between 
the Parties shall be made in convertible curre ncy, in accordance with the respective national 
legislation of the Parties.   WT/REG203/1 
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Article 25 
 
Rules Of Competition Concerning Undertakings  
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; 
2. 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. 
3. 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 2 
of this Article, or 
(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 within the Association Committee or after thirty 
working days following referral for such consultation.  4. 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 26 
 
Subsidies
 
1. Any state aid which distorts or threatens to distort competition by favouring certain 
undertakings or the production of certain goods is incompatible with the proper implementation of 
this Agreement.    
2. The rights and obligations of the Parties in  respect of subsidies shall be governed by 
Articles VI and XVI of the GATT 1994, the WT O Agreement on Subsidies and Countervailing 
Measures and the WTO Agreement on Agriculture. 
3. In the case of practices incompatible with pa ragraph 1 of this Artic le, 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 wh ich are applicable between the Parties. WT/REG203/1 
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 4. 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 aids.  
Article 27 
 
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 the Articles of Agreement of International 
Monetary Fund, adopt restrictive measures, which shall be of limited duration and may not go beyond 
what is necessary to remedy the balance of paymen ts situation. The Party concerned shall inform the 
other Party forthwith of their introduction and present to the other Party, as soon as possible, a time 
schedule of their removal.  
Article 28 
 
Intellectual, Industrial And Commercial Property Rights
 
1. The Parties shall provide suitable and effectiv e protection of intellectual, industrial and 
commercial property rights in line with Agreement on Trade-Related Aspects of Intellectual Property 
Rights (TRIPs) and other international Agreements.   
2. Implementation of this Article shall be regul arly assessed by the Parties. If difficulties which 
affect trade arise in connection with intellectual,  industrial and commercial property rights, either 
Party may request urgent consultations to find mutually satisfactory solutions. 
Article 29 
 
Public Procurement  
1. The Parties consider the opening up of the aw ard of public contracts on the basis of non-
discrimination, transparency and recipr ocity, 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.    
TITLE II:  ECONOMIC AND TECHNICAL CO-OPERATION 
 
Article 30 
 
Objective
 
1.  The Parties will exert all necessary efforts to  develop Economic, Scientific, Technical and 
Commercial Co-operation between the two sides. 
2. The Parties will promote and facilitate continu ously the enhancement a nd diversification of 
trade exchanges and economic and technical co-o peration between their economic establishments, 
enterprises, organisations and institutions within  the framework of their respective rules and 
regulations as well as their international obligations.   WT/REG203/1 
 Page 11 
 
 
 3. Turkey shall give priority for providing Tunisia with technical assistance in the primary fields 
of economic co-operation referred in Article 33. 
4. The Parties will encourage operations designed to develop co-operation among the countries 
of the region and particularly the ones taking part  within the Euro-Mediterranean Partnership.  
Article 31 
 
Scope  
 
1. Co-operation and technical assistance shall:  
(a) focus primarily on infant industries, sectors suffering from internal difficulties or 
affected by the overall process of the liber alisation of trade between Turkey and 
Tunisia. 
(b) focus on areas likely to bring the economies of the Parties closer together. 
(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 Tunisia. 
(d) encourage the implementation of measur es designed to develop intra-regional 
co-operation. 
(e) support joint-ventures, twinning initiatives and joint investments amongst the private 
sector institutions.  
2. The Parties agree to extend economic co-operation to other areas not covered by the 
provisions of this Chapter such as and not inclus ive to irrigation, transportation, communication, 
higher education, touris m and other services, deve lopment and planning. 
Article 32 
 
Methods And Modalities  
 
1. The Agreements concluded between  the Parties in the fields of the economic, commercial, 
technical and scientific co-operation shall be implem ented without prejudicing the provisions of this 
Agreement. 
2. The Parties shall further determine the met hods and modalities for economic co-operation and 
technical assistance; in particular within the work of the Association Council referred in Article 40. In 
this regard, the Association Council may decide to establish sub-committees.    
3. Economic co-operation and technical assistance shall be implemented in particular by:  
(a) regular exchange of information and ideas in every sector of co-operation including 
meetings of officials and experts; WT/REG203/1 
Page 12  
 
 (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 and establishment of joint ventures;  
(g) dissemination of information on co-operation; 
(h) exchange of information in economic , scientific and technical field; 
(i) granting scholarships in various fields of  technical and scientific co-operation. 
4. Projects relating to economic, scientific and technical cooperation applications shall be 
arranged by individual programs, ag reements and contracts which will be concluded between the 
participating companies and establishments of th e Parties in accordance with their respective 
legislation in force. 
5. The matters relating to the providing of expert , advisor and other technical persons by the 
Parties shall be arranged by individual protocols to  be concluded between the competent authorities of 
the Parties. 
 
Article 33 
 
Primary Fields Of Economic Co-operation
 
 The co-operation under the scope of this Agre ement shall primarily involve the following 
fields referred in detail between Articles 34 to 39 of the Agreement: 
 
(a) Industry; 
(b) Agriculture; 
(c) Services; 
(d) Small and medium-sized enterprises; 
(e) Trade development; 
(f) Investment promotion. 
Article 34 
 
Industrial Co-operation  
 The main aim of industrial co-operation will be to support Tunisia, in its efforts to modernize 
and diversify industry and, in particular, to creat e an environment favourable to private sector and 
industrial development by enhanc ing co-operation between the two Parties' economic operators.  
   WT/REG203/1 
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 Article 35 
 
Co-operation In Agriculture And Fisheries  
 Taking into account the importance of co-opera tion in agriculture and fisheries towards the 
enhancement of bila teral relations, the Parties determined the following as the desired fields of 
co-operation: 
 
(a) exchange of scientific and technical inform ation and expertise re lating 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 activiti es between the respective institutions; 
(e) encouragement of investment and trade on agricultural production, processing and 
marketing in both countries and in other markets.  
Article 36 
 
Co-operation 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 co-operation, in particular 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 WTO-General Agreement on Trade in Services (GATS) and multilateral trade negotiations with 
that respect.  2. The Parties will discuss the means of co-operati on in the area of services at the Association 
Council.  
Article 37 
 
Co-operation Between Small And 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) exchange expertise on entrepreneurship , management, research and management 
centers, quality and production standards; 
(b) provide market information to create investment opportunities; 
(c) furnish published documents concerning SMEs. 
2. Turkey shall support Tunisia's efforts towards ca pacity building for the related private sector 
institutions.  WT/REG203/1 
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 Article 38 
 
Trade Development
 
 Trade co-operation shall primarily focus on: 
 
(a) developing, diversifying and increasing trade between them and improving the 
Parties’ competitiveness on domestic, re gional and international markets; 
(b) the updating of Tunisian laboratories, leading eventually to the conclusion of mutual 
recognition agreements for conformity assessments; 
(c) enhancing co-operation in customs and origin  matters including vocational training in 
the customs field; 
(d) ensuring technical support for intellectual, industrial and commercial property and for 
standardization and quality in Tunisia; 
(e) finding ways to bring about a significant improvement in education and training, 
including vocational training; 
(f) establishment of lasting links between speci alist bodies on the Parties’ territories in 
order to pool and exchange experience and methods; 
(g) drawing up appropriate trade developm ent strategies and creation of a trade 
environment supportive of competitiveness; 
(h) capacity building and development of human  resources and professional skills in the 
field of trade and support services in both the public and private sector; 
(i) exchanges of information on market requir ements know-how and technology transfer 
through investment and joint-ventures; 
(j) development of private sector in particular small and medium-size enterprises 
engaged in trade; 
(k) establishment, adaptation and strengthening of organizations concerned with the 
development of trade and support services; 
(l) regional co-operation for the development of  trade and trade-related infrastructure 
and services in third countries; 
(m) exchange of information and expertise for the reinforcement of national organizations 
involved in enforcement and protecti on against counterfeiting and piracy. 
Article 39 
 
Investment Promotion  
 The Parties recognize the importance of promo ting investment and technology flows between 
them as a means for achieving economic growth and de velopment. Co-operation in this respect shall 
include: 
   WT/REG203/1 
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 (a) appropriate means of identifying investme nt opportunities and information channels 
on investment regulations; 
(b) the provision of information on the Parties’ measures promoting investment abroad 
(technical assistance, financial suppor t, investment insurance, etc.); 
(c) the planning and implementation of de velopment projects, including for the 
participation of foreign investors. 
 
TITLE III:  INSTITUTIONAL AND FINAL PROVISIONS 
 
Article 40 
 
Establishment Of The Turkey-Tunisia Association Council  
 An Association Council is hereby established whic h as a rule shall be headed by Ministers in 
charge of foreign trade and meet at least once a year  in accordance with the c onditions laid down in its 
rules of procedure. 
Article 41 
 
Duties Of The Association Council  
 The Association Council shall review the pr ogress made in the implementation of this 
Agreement. It shall also examine any major issues arising within the framework of this Agreement 
including its economic and social impact and any ot her bilateral or international issues of mutual 
interest. 
 
Article 42 
 
Procedures Of The Association Council  
1. The Association Council shall consist of official s, public and private sector representatives of 
both Parties.  
2. The Association Council shall establish its rules of procedure. 
3. The Association Council shall, for the purpose of  attaining the objectives of this Agreement, 
have the power to take decisions in the cases provided for therein. 
4. The decisions taken shall be binding on the Par ties that shall take the measures necessary to 
implement the decisions taken. The Association Council may also make appropriate 
recommendations. 
5. The Association Council may upon necessity establish working groups or bodies for the 
implementation of the Agreement. 
6. It shall draw up its decisions and recommendati ons by agreement between the two Parties.  
 
 WT/REG203/1 
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 Article 43 
 
Establishment Of The Association Committee
 
1. Subject to the powers of the Association C ouncil, an Association Committee is hereby 
established which shall be responsible fo r the implementation of the Agreement. 
2. The Association Council may delegate to the Asso ciation Committee, in full or in part, any of 
its powers.  
Article 44 
 
Procedures Of The Association Committee
 
1. The Association Committee shall meet at an appropriate level whenever necessary upon the 
request of the Parties, but at least once a y ear alternatively in Turkey and Tunisia.  
2. The Association Committee shall estab lish its rules of procedure. 
3. The Association Committee shall have the power to take decisions for the implementation of 
the Agreement as well as in the areas in which the Council has delegated its powers to it. 
4. It shall draw up its decisions by agreement between the two Parties. These decisions shall be 
binding on the Parties that shall take the meas ures necessary to implement the decisions taken. 
Article 45 
 
Security Exceptions  
 Nothing in this Agreement shall prevent a Party from taking any measures which it considers 
necessary to its essential security interests as long as these measures are consistent with Article XXI 
of the GATT 1994.  
Article 46 
 
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 47 
 
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.  WT/REG203/1 
 Page 17 
 
 
 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 21 of this Agreement. 
Article 48 
 
Dispute Settlement  
1. Either Party may refer to the Association Counc il any dispute relating to the application or 
interpretation of this Agreement. 
2. The Association Council may settle th e dispute by means of 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 if it not being possible to settle th e 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 Association Council shall appoint a third arbitrator. 
6. The arbitrators’ decisions shall be taken by majority vote. 
7. Each Party to the dispute shall take the step s required to implement the decision of the 
arbitrators. 
 
Article 49 
 
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 Association Council may 
instruct the Association Committee to examine th is request and, where 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 50 
 
Amendments  
 Amendments to this Agreement, as well as to its  Annexes and Protocols, shall enter into force 
on the date of receipt of the latter 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 these amen dments, have been fulfilled. 
 
 
  WT/REG203/1 
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 Article 51 
 
Protocols And Annexes
 
 Protocols and Annexes to this Agreement shall fo rm an integral part thereof. The Association 
Council may decide to amend the Protocols and An nexes in accordance with the national legislation 
of the Parties. 
 
Article 52 
 
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. 
Article 53 
 
Entry Into Force  
1. This Agreement shall enter into force on the fi rst day of the second month, following the date 
of the receipt of the latter written notification th rough diplomatic channels, by which the Parties 
inform each other that all necessary requirements fo reseen by their national legislation for the entry 
into force of this Agreement, have been fulfilled. 
2. Upon its entry into force, this Agreement sh all replace the following Agreement between the 
Parties:   
 “Accord Commercial et de Cooperation Economiq ue et Technique entre le Gouvernement de 
la Republique de Turquie et le  Gouvernement de la République Tunisienne (signed on 15 July 
1992).” 
 
  IN WITNESS WHEREOF the undersigned plenipot entiaries, being duly authorised thereto, 
have signed this Agreement.   DONE in Tunis, on November 25th, 2004, in two originals each in the Turkish, Arabic and 
English languages, all texts being equally authentic. In case of any di vergence in the interpretation of 
this Agreement, the English text shall prevail.    For the Republic of Turkey   For the Republic of Tunisia 
 
 Kür şad TÜZMEN    Mondher ZENAIDI 
 State Minister     Minister of Commerce and Handicrafts  
 
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