WORLD TRADE  
ORGANIZATION   
WT/REG293/2 
14 March 2012 
 (12-1443) 
Committee on Regional Trade Agreements Original: English/ 
 Spanish 
 
 
FREE TRADE AGREEMENT BETWEEN TURKEY AND CHILE 
(GOODS) 
 
Questions and Replies 
 
 
 The following communication, dated 14 March 2012, is being circulated at the request of the 
delegations of Turkey and Chile. 
_______________ 
 
 This document reproduces the questions addressed to the Parties and the responses submitted. 
 
Questions from the delegation of Pakistan 
 1. At the end of implementation Turkey will maintain tariffs on 2,487 lines (15.1% of its 
tariff), related to 4.6% of its imports from Chile.   Chile retains only 131 lines (1.7%) as dutiable.  
Turkey is maintaining a very high percentage of  tariff lines as dutiable compared to Chile.  
Could Turkey explain reasons for this? 
 As regards industrial goods, customs duties on im ports into Turkey of goods originating in 
Chile are abolished upon the entry into force of this  Agreement (Article 17 of the Turkey-Chile FTA). 
 
 Taking into account the sensitivity of the agri cultural sector and its small share in total 
bilateral trade, Turkey granted concessions to Ch ile on selected products, which cover 89.7%  of 
Turkey's agricultural imports by value from Chile in 2010.  In accordance with Article 19 of the 
Turkey-Chile FTA, the Parties will examine in the Joint Committee the possibilities of granting 
further concessions to each other in  trade in agricultural products. 
 2. Table IV.1 reflects that all of Turkey's RTAs are in Goods only.  Pa ragraph 8 states that 
the Parties will commence exploratory talks on tr ade in services and investment no later than 
two years following the entry into force of the Ag reement.  Could Turkey explain why it has so 
far not negotiated any RTA with the se rvices and/or investment component? 
 As is well known, the WTO rules do not prescribe a specific form that Free Trade 
Agreements should take in term s of coverage.  Depending on their economic policy objectives and 
priorities, some Members might opt for an FTA that  is broad and comprehensive in coverage, while 
others might not.   What is important within the WTO context is to ensure the compliance of an FTA with the 
provisions of Article XXIV of the GATT if trade in  goods is covered by the Agreement;  and to 
ensure compliance with Article V of the GATS if  trade in services is included in the coverage. 
  It is true that, so far, Turkey has conclude d FTAs that cover trade in goods only;  however 
Turkey does not preclude at the outset the option of including trade in services in its FTAs.  In any WT/REG293/2 
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  event, without prejudice to the outcome, Turkey w ill commence exploratory talks on trade in services 
with Chile no later than two years after the entry into force of the FTA.  
3. Paragraph 25 states that both the Parties are seeking the possibility to implement an 
electronic system of certification and submission of proof of origin and recognition of electronic 
signatures.  Do the Parties envisage a reduction  in the clearance time through the electronic 
system?  What is the present clearance time an d expected clearance time under the electronic 
system? 
 This will have no effect on the clearance time  but will provide a high level of security and a 
significant cost reduction regarding to keep record s, in both cases, this reduction will benefit to the 
exporters and entities who issue the certificate of origin. 
 
Questions from the delegation of Thailand 
 4. Page 18, item number 4.  Subsidies and State-aid, paragraph 42. 
 There is no reference in the Agreement to subsidies or State-aid. 
 
 The statement "there is no reference in this Agreement to subsidies or State-aid" (paragraph 42) refers to the fact that there is no additional obligations or commitments for the Parties 
under the FTA, in those subjects.  WTO commitmen ts and obligations regarding subsidies keep 
unchanged with the subscription of this FTA. 
 
5. Page 18, item number 3.  Anti-dumping and countervailing meas ures, paragraph 41. 
 While the Parties to this FTA stated under paragraph 41 that they "retain their rights 
and obligations under Article VI of GATT 1994, the WTO Agreement on Implementation of Article VI of GATT 1994 and the WTO Agreemen t on Subsidies and Countervailing Measures, 
and their successors (Article 34)," the Parties stat ed in paragraph 42 that "there is no reference 
in this Agreement to subsidies or State-aid."  Will the subsidies of the Parties to this FTA 
comply with the commitment and obligation under the WTO Agreement? 
 
 Article 34 of the FTA refers to commitmen ts on anti-dumping and countervailing measures 
which are ruled by the WTO Agreement on Subsidie s and Countervailing Measures.  So the reference 
to the WTO Agreement refers to that context. 
 
Questions from the delegation of the United States 
 Goods liberalization 
 6. According to paragraphs 16 and 17, and Annex 1 (Tables AI.1 and AI.2) of the 
Factual Presentation: 
 Chile will eliminate duties on 98.3%  of all tariff lines and 94.3% of imports from 
Turkey under the Agreement.  Though 95.8%  of industrial goods tariffs are duty-free 
by the end of the implementation period, only 84.6% of agricultural tariffs are duty-free 
under the Agreement. 
 
 Turkey will eliminate duties on 84.9% of all tariff lines covering 95.3% of imports from 
Chile under the Agreement.  Though 97.3% of industrial tariffs are duty-free by the end 
of the implementation period, only 22.62 % of agricultural tariff lines are duty-free 
under the Agreement.  WT/REG293/2 
 Page 3 
 
 
  (a) For what reasons did Turkey undertake less liberalization than Chile? 
 FTA negotiations between Turkey and Chile did not only cover preferential regime in 
agricultural goods, but also industrial goods.  Furthe rmore, the agricultural sector is more sensitive 
than industrial sectors in Turkey.  These may expl ain why Turkey undertook less liberalization than 
Chile as regards the concession modalities under the FTA. 
 
(b) How do the Parties explain the highly disproportionate liberalization between 
the industrial and agricultural sectors? 
 Agricultural preferences granted by Turkey to Chile under the Tu rkey-Chile FTA cover 
89.7% of Turkey's agricultural imports by value fro m Chile according to figures of 2010.  This fact 
does not confirm the expression:  "… highly dispropo rtionate liberalization between the industrial and 
agricultural sectors".  Nevertheless, taking into account the sensitiveness of the agricultural sector, 
agricultural preferences granted to Chile by Turk ey are applied according to the following concession 
modalities:  
 (1) 100% MFN reduction on unlimited basis; 
  (2) 100% MFN reduction within tariff quota;   (3) reduced duty (i.e. 50% MFN reduction) on unlimited basis;  and  
 (4) reduced duty within tariff quota. 
 
(c) Could the Parties please explain how their tariff elimination commitments in 
agriculture achieve the "substantially all trade" requirement set out in GATT Article XXIV? 
 The preferences granted by Turkey under the FTA cover 95.5% of Turkey's total import from 
Chile according to figures of 2010.  Hence, the FTA covers substantially all trade set out in 
GATT Article XXIV.  Article XXIV of GATT does not stipulate "substantially all trade" condition to 
be applied on a sector-specific basis.   Furthermore, the Parties will examine in the Joint Committee the possibilities of granting 
further concessions to each other in trade in agricu ltural products in accordance with Article 19 of the 
Turkey-Chile FTA.  
Relationship with other agreements concluded by the Parties 
 
7. Table IV.1 notes that Chile's agreemen ts with Guatemala, Ecuador, Cuba, 
MERCOSUR, Bolivia and Venezuela have not been  notified.  Assuming that each of these 
agreements is in force, could Chile please explain when it expects, in conjunction with these 
trading partners, to notify each ag reement, as required under WTO rules? 
Chile has always been committed to the Tr ansparency Mechanism for Regional Trade 
Agreements.  It is therefore Chile's policy to notif y these agreements as soon as they have entered into 
force, but jointly and in agreement with the count erparties to each of the RTAs it has signed.  
We have contacted the counterparties concerned, and we are still taking the necessary steps to ensure 
that the joint notifications you mention are submitted as soon as possible.  
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