RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG68/2
24 June 1999
(99-2593)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN TURKEY AND
THE SLOVAK REPUBLIC
Communication from the Parties
The following communication has been received from the Permanent Missions of Turkey and
the Slovak Republic with the request that it be circulated to Members.
_______________
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership, Dates of Signature, Ratification and Entry into Force
The Parties to the Agreement are the Republic of Turkey and the Slovak Republic.  The
Agreement applies in respect of the territory to which the customs laws of Turkey and the Slovak
Republic are applicable respectively.
The free-trade area Agreement between Turkey and the Slovak Republic was signed on
20 October 1997 in Ankara and entered into force on 1 September 1998 after the completion of the
legal internal ratification procedures of the two Parties.
2. Type of Agreement
The Agreement establishes a free-trade area in conformity with the definition set out in
Article XXIV:8(b) of GATT  1994.
3. Scope
The free-trade area established by this Agreement, provides the framework for trade relations
between Turkey and the Slovak Republic.
The provisions of the Agreement apply to industrial and agricultural products falling within
Chapters 1 to 97 of the Harmonized System.  For further development of the relations established by
the Agreement, it contains provisions providing the opportunity of extending these relations to fields
not covered thereby.
In order to ensure the proper functioning of the free-trade area, the  Agreement contains
provisions, inter alia , on state-aid, state monopolies, competition, government procurement and
intellectual property rights.WT/REG68/2
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4. Trade Data
The trade coverage of the Agreement in tota l trade between the Parties is as follows:
Imports of the Slovak Republic from Turkey (1,000 US$)
Year Total Trade Trade Covered % of trade covered
1995 26,778 9,750 36.4
1996 29,693 13,120 44.2
1997 22,341 11,076 49.6
Imports of Turkey from the Slovak Republic (1,000 US$)
Year Total Trade Trade Covered % of trade covered
1995 43,312 40,766 94
1996 23,697 17,328 73
1997 22,433 21,891 98
See also Annex.
II. TRADE PROVISIONS
The Parties, Turkey and the Slovak Republic, mutually exchanged concessions on all
industrial products.  They granted each other preferential market access for a number of products.
1. Import Restrictions
All customs duties and charges having equivalent effect on imports of industrial products
except for those classified as sensitive were abolished on 1 September 1998.  As for the sensitive
products, customs duties and charges having equivalent effect will be gradually eliminated by
1 January 2001.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on imports, according to Article 7.
2. Export Restrictions
Under Article 6, prohibition of new customs duties or charges having equivalent effect on
exports between the Parties is stipulated.  All existing duties and charges having equivalent effect on
exports applied to industrial products are abolished with the entry into force of the Agreement.
The Parties will not introduce new quantitative restrictions and measures having equivalent
effect on exports.
3. Rules of Origin
The rules of origin on trade between Turkey and the Slovak Republic, defined in Protocol 3 of
the Agreement, are based on the sufficient working or processing criteria. In general, origin is
conferred when:WT/REG68/2
Page 3
- the good is wholly obtained or produced in the territory of a Party;
- each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification set out in the specific rule for that good, and
the good satisfies any other applicable requirement set out in that rule, as a result ofproduction occurring entirely in the territory of one or both of the Parties:
- the good is produced entirely in the territory of one or both of the Parties exclusively
from originating materials; or,
- other particular circumstances as set out in Protocol 3.
As stated in the Joint Declaration on Protocol 3, the rules of origin enable extended cumulation
of products between Turkey, the Slovak Republic, EU countries, EFTA countries and Central and
Eastern European Countries when the necessary procedures have been completed.  Until that time,
diagonal cumulation will be implemented in relation with the Slovak Republic.
5. Safeguards
The Agreement permits the application of safeguard measures in the case of dumping
(Article 24), emergency action on imports of particular products (Article 26), measures relating
structural adjustment (Article 27) and re-export and serious shortage (Article 28), state-aid(Article 21), provisions concerning rules of  competition (Article 20) between the Parties.
In the case of  balance of payments difficulties, Article 31 of the Agreement gives to the
Parties the right of adopting restrictive measures in accordance with the conditions laid down within
the framework of GATT 1994 and with Article VIII of the Articles of Agreement of the InternationalMonetary Fund.
The procedure for the application of these measures is laid down in Article 30 of the
Agreement.
6. Anti-Dumping and Countervailing Measures
Article 24 of the Agreement states that if a Party finds that dumping is taking place in trade
with the other Party within the meaning of Article VI of the GATT, it may take appropriate measures
against this practice in accordance with  the Agreement on Implementation of Article VI of the
GATT 1994, under the conditions and in accordance with the procedures laid down in Article 30.
Through this Article  the conformity with GATT 1994 rules has been provided.
7. Subsidies and State-Aid
The Agreement evaluates the “state-aid” issue in the context of distortion of competition.
According to Article 21 of the Agreement, the Pa rties shall ensure transparency in the area of
state-aid, in accordance with the Agreement on Subsidies and Countervailing Measures and the
GATT 1994.
Against the improper practices of a Party, Article 21 of the Agreement gives the right to the
other Party to take appropriate measures.WT/REG68/2
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8. Sector-Specific Provisions
- Agriculture
Under the Agreement, the Parties have declar ed their readiness to foster, on a mutually
advantageous and reciprocal basis, the harmonious development of trade in agricultural products and
to discuss this issue periodically in the Joint Co mmittee.  The conditions of concessions granted in
trade on agricultural products between the Parties are laid down in Protocol 2 to the Agreement.
9. Other
- Cooperation in Customs Administration
A framework was established for cooperation in customs administration, with Article 14 and
Protocol 3 on the definition of the concept of “originating products” and methods of administrative
cooperation between the Parties.
- State Monopolies
Under Article 18 of the Agreement, the Parties agreed to adjust progressively any state
monopoly of a commercial character so as to ensure that by 1 July 1999 no discrimination regarding
the conditions under which goods are procured and marketed exists between the nationals of theParties.
- Internal TaxationAny measures or practice of an internal fiscal nature establishing discrimination between the
products originating in Turkey and the Slovak Republic has been prohibited with Article 15.  This
Article also prohibits repayment of indirect intern al taxation in excess of the amount of indirect or
direct taxes on exports.
- Intellectual Property RightsThe protection of intellectual property is addressed in Article 25.  The Parties shall grant and
ensure adequate, effective and non-discriminatory protection of intellectual property rights including
measures for the granting and enforcement of such rights.
- Payments
According to Article 19 of the Agreement, paymen ts in freely convertible currencies relating
to commercial transactions within the framework of  the Agreement and transfer of such payments to
the territory of the each Party shall be free from any restriction.
In the same Article, it is also stated that any measure concerning current payments taken by
either side connected with the movement of goods shall be in conformity with the conditions laid
down in Article VIII of the Articles of Agreement of International Monetary Fund.
- Public Procurement
The Parties recognize, under Article 22, the liberalization of their respective public
procurement  markets as objective of  the free-trade area Agreement and shall progressively develop
their respective regulations for public procurement. The progress in this field will be reviewed in the
Joint Committee.WT/REG68/2
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III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
This Agreement will not preclude prohibitions or restrictions on imports, exports or goods in
transit justified on grounds of public morality, public order or public security; the protection of health
and life of humans, animals or plants and of the environment; the protection of national treasures
possessing artistic, historic or archeological value; or the protection of intellectual, industrial and
commercial property, or the rules relating to gold or silver or to the conservation of exhaustible
natural resources.
The Agreement allows the Parties to take appropriate measures, with concerns of security, in
the cases specified in Article 17.
2. Accession
There is no provision in the Agreement  allowing other countries to accede to the free-trade
area.
3. Dispute Settlement Procedures
A Joint Committee, which is responsible for the administration of the Agreement and its
proper implementation, has the authority to take decisions on issues mentioned in various Articles of
the Agreement. In the procedure for application of safeguard measures relating to “Dumping”, “Rules
of competition concerning undertakings”, “State-aid”, “Fulfilment of obligations” and “Re-export and
Serious Shortage”, the Joint Committee has also been commissioned actively  as a competentauthority in Article 30 of the Agreement.
4. Relation with Other Trade Agreements
Regarding “basic duties” defined in Article 4, the Agreement envisages any tariff reduction
applied on an erga omnes  basis to be replaced by the former basic duty.
The Agreement stipulates that rights and oblig ations relating to certain matters, namely anti-
dumping measures, balance of payments, state-aid, technical barriers to trade, sanitary and
phytosanitary measures, will be in conformity with  the relevant WTO Agreements.
The Agreement stipulates that measures concerning current payments connected with the
movement of goods and rules on balance of payment difficulties shall be in conformity with
Article VIII of the Articles of Agreement of the International Monetary Fund.
5. Institutional Framework
The Agreement, under Article 33, establishes a Joint Committee which is responsible for
administration of the Agreement and shall meet at least once a year to monitor the implementation of
it.WT/REG68/2
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ANNEX
Turkey – Total Imports from the Slovak Republic
(Thousand US$)
HS Chapter 1995 1996 1997
10 0 1
30 3 0
40 0 1 4
5 0 0 541
10 2,566 6,365 0
22 0 0 1
25 106 0 0
29 1,280 937 457
30 0 0 0
32 52 1 1
33 0 45 0
34 0 1 2
35 0 46 0
37 3 2 0
38 13 53 167
39 650 135 156
40 32 57 1,336
41 102 21 73
42 0 0 1
44 0 0 55
48 2,248 1,161 103
49 0 0 2
51 14 0 0
52 102 0 11
54 11,135 2,041 2,961
55 511 46 120
56 27 0 0
58 0 0 0
59 3 2 0
62 0 0 29
64 0 0 24
68 0 9 1
69 13 221 35
70 41 123 80
71 0 87 0
72 10,436 4,565 4,747
73 670 98 67
76 6,935 258 0
82 22 0 11
83 10 65 0
84 1,599 1,700 4,016
85 205 612 267
87 4,363 4,965 7,039
90 163 29 3
91 0 0 0
94 8 48 105
96 0 0 6
Total 43,312 23,697 22,432
Trade covered 40,746 17,328 21,876
% of coverage 94 73 98WT/REG68/2
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Slovak Republic – Total imports from Turkey (US$)
HS Chapter 1995 1996 1997
01
02
03 58
04
05
06
07 126,703 272,320 108,947
08 4,274,773 6,320,550 4,872,325
09 25,680 66,171 28,834
10 56
11
12 1,457 3,944 23,169
13 64
14
15 45 10,376
16 116,740 97,874
17 418,806 493,899 419,826
18 105,038 38,042 64,091
19 2,751 137,650 199,310
20 48,005 220,970 267,037
21 11,057 38
22 5
23
24 614,647 711,055 1,319,440
25 51,065 73,028 321,425
26 6,044,438 8,037,879 2,434,270
27
28 583,429 837,270 772,969
29 141 4,894
30 6,837,802 1,409,856 1,364,596
31
32 90,558 15,794
33 56 558 96,277
34 319,765 390,967 338,028
35 2,459 249
36 21 74
37 100 10
38 3,755
39 37,593 94,246 103,665
40 9,479 40,996 147,522
41 171,435
42 388,491 328,753 251,108
43 948,962 1,166,901 3,996
44 11,647 1,967 13
45
46 953 295 75
47
48 1,337 3,062 62,138
49 365 1,021 552
50 1,727
51 1,142 4,305 299,351
52 22,935 232,847 77,136
53 659 2,477 371
54 139,019 253,634 471,864
55 728,444 515,666 676,529
56 1,590 1,866 559
57 3,876 3,026 2,959WT/REG68/2
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HS Chapter 1995 1996 1997
58 9,594 68,546 64,033
59 12,322 5,694 123,524
60 31,978 42,614 69,000
61 1,399,971 1,402,520 1,176,933
62 1,644,417 1,703,015 1,597,571
63 45,448 22,008 70,061
64 92,971 15,526 197,167
65 23,650 25,360 26,126
66 45 366 12
67 20 73
68 97,847 31,130 41,271
69 32,233 9,987 13,358
70 11,651 24,885 44,099
71 717,833 1,196,579 1,042,540
72 93,033 265,114 60,547
73 51,337 85,358 593,243
74 296 15 354
75
76 36,781 42,091 191,324
77
78 179
79
80
81
82 920 1,283 24,066
83 258,789 335,050 417,975
84 33,571 274,751 109,873
85 123,979 318,059 672,477
86
87 35,202 1,856,442 412,030
88
89
90 3,109 33,715 209,147
91 831 107 3
92 5
93
94 97,585 18,884 32,385
95 1,294 13,062 59,157
96 61,743 67,747 82,826
97 139
Total 26,777,878 25,693,058 22,340,875
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