RESTRICTEDWORLD TRADE
ORGANIZATIONG/STR/Q1/TUR/6
20 May 1999
(99-2043)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Questions posed by the UNITED STATES
concerning the New and Full Article XVII Notification of
TURKEY1
The following communication, dated 14 May 1999, has been received from the Permanent
Mission of the United States.
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Questions
1. It is our understanding that the Government of Turkey recently halted the planned partial
privatization of TEKEL, suspending the sale of tobacco and cigarette factories to foreign companies.
However, we note that alcoholic beverages are the only products that are included in Turkey's
notification of TEKEL.
Given recent developments in the Government of Turkey's privatization plans for TEKEL, we
would appreciate it if Turkey could include trade activities with respect to tobacco and cigarettes in a
revised notification of TEKEL.
2. We also note that Turkey's state trading notification fails to include the activities of TMO
(grains) and TSC (sugar).  In G/STR/N/3/TUR (9 September 1997), Turkey indicated that the
Government had ended all special rights and privileges for the Turkish Grain Board (TMO).
However, we understand that TMO continues to conduct export tenders for wheat, barley, and othergrains in its stocks which it had previously acquired from Turkish farmers.  Please explain the
conditions under which TMO exports and imports grains; define the conditions for exports and
imports by private firms;  and provide relevant statistical data (export and import volumes and values
and national production) for TMO and Turkey.  Regarding TSC, it is our understanding that this entity
continues to fit within the definition of a state trading enterprise as set out in Article XVII and theUnderstanding.  We further understand that TSC receives below market rates for its loans and its
losses are underwritten by GOT (in essence subsidizing sales).  Could Turkey please explain why
TSC was not included in its state trading notification?
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1 G/STR/N/4/TUR