Title
FREE TRADE AGREEMENT BETWEEN THE REPUBLIC OF TURKEY AND THE REPUBLIC OF SINGAPORE
Preamble
The Republic of Singapore and the Republic of Turkey (hereinafter referred to individually as “Singapore” or “Turkey”, respectively, and collectively as “the Parties”);
RECOGNISING their longstanding and strong partnership and their important economic, trade and investment relationship;
DESIRING to further strengthen their economic relationship as part of and in a manner coherent with their overall relations, and convinced that this Agreement will create a new climate for the development of trade and investment between the Parties;
DESIRING to raise living standards, promote economic growth and stability, create new employment opportunities and improve the general welfare and, to this end, reaffirming their commitment to promoting trade and investment liberalisation;
CONVINCED that this Agreement will create an expanded and secure market for goods and services and a stable and predictable environment for investment, thus enhancing the competitiveness of their firms in global markets;
RECOGNISING the need to promote and protect bilateral investments, which will be made with the aim of establishing lasting economic relations, contributing to economic development, and fostering the flow of capital and technology between the Parties, and to increase their economic prosperity,
RECOGNISING the importance of transparency in international trade to the benefit of all stakeholders;
SEEKING to establish clear and mutually advantageous rules governing their trade and investment and to reduce or eliminate the barriers to mutual trade and investment;
RESOLVED to contribute to the harmonious development and expansion of international trade by removing obstacles to trade through this Agreement and to avoid creating new barriers to trade or investment between the Parties that could reduce the benefits of this Agreement;
BUILDING on their respective rights and obligations under the WTO Agreement and other multilateral, regional and bilateral agreements and arrangements to which they are party,
HAVE AGREED as follows:
Body
Chapter 1. OBJECTIVES AND GENERAL DEFINITIONS
Article 1.1. Establishment of a Free Trade Area
The Parties to this Agreement hereby establish a free trade area, consistent with Article XXIV of GATT 1994 and Article V of GATS.
Article 1.2. Objectives
The objectives of this Agreement are to liberalise and facilitate trade and investment between the Parties in accordance with the provisions of this Agreement.
Article 1.3. Definitions of General Application
For purposes of this Agreement, unless otherwise specified:
“Agreement on Agriculture” means the Agreement on Agriculture contained in Annex 1A of the WTO Agreement;
“Agreement on Government Procurement” means the Agreement of Government Procurement contained in Annex 4 of the WTO Agreement;
“Agreement on Preshipment Inspection” means the Agreement on Preshipment Inspection contained in Annex 1A of the WTO Agreement;
“Anti-Dumping Agreement” means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
“Customs Valuation Agreement” means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
“day” means a calendar day;
“DSU” means the Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 of the WTO Agreement;
“GATS” means the General Agreement on Trade in Services contained in Annex 1B of the WTO Agreement;
“GATT 1994” means the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the WTO Agreement;
“Harmonized System” means the Harmonized Commodity Description and Coding System, including all legal notes and amendments thereto (hereinafter referred to as the “HS”);
“IMF” means the International Monetary Fund;
“Import Licensing Agreement” means the Agreement on Import Licencing Procedures contained in Annex 1A of the WTO Agreement;
“measure” means any measure by a Party, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form, and includes measures taken by:
(a) governments and governmental authorities or entities at all levels within its territories; and
(b) non-governmental bodies in the exercise of powers delegated by governments or governmental authorities or entities at all levels within its territories;
“national” means any natural person who is a citizen of a Party within the meaning of its Constitution and its domestic laws;
“natural person of a Party” means a national of Singapore, or of Turkey, according to their respective legislation;
“person” means a natural person or a juridical person;
“Safeguards Agreement” means the Agreement on Safeguards contained in Annex 1A of the WTO Agreement;
“SCM Agreement” means the Agreement on Subsidies and Countervailing Measures contained in Annex 1A of the WTO Agreement;
“SPS Agreement” means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A of the WTO Agreement;
“TBT Agreement" means the Agreement on Technical Barriers to Trade contained in Annex 1A of the WTO Agreement;
“territory” means:
(a) with respect to Singapore, the territory of the Republic of Singapore, as well as the territorial sea, including the airspace above them, and any maritime area situated beyond the territorial sea which has been or might in the future be designated under its national law, in accordance with international law, as an area within which Singapore may exercise rights with regards to the sea, the sea-bed, the subsoil and the natural resources;
(b) with respect to Turkey, the land territory, internal waters, the territorial sea and airspace above them, as well the maritime areas beyond the territorial sea over which it has jurisdiction or sovereign rights for the purpose of exploration, exploitation and preservation of natural resources, pursuant to international law;
“TRIPS Agreement” means the Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1C of the WTO Agreement;
“WIPO” means the World Intellectual Property Organization;
“WTO Agreement” means the Marrakesh Agreement Establishing the World Trade Organization done at Marrakesh on 15 April 1994;
“WTO” means the World Trade Organization.
Chapter 2. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Section 2-A. COMMON PROVISIONS
Article 2.1. Objective
The Parties shall progressively and reciprocally liberalise trade in goods over a transitional period starting from the entry into force of this Agreement in accordance with this Agreement and in conformity with Article XXIV of the GATT 1994.
Article 2.2. Scope
This Chapter shall apply to trade in goods between the Parties.
Article 2.3. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of the GATT 1994, including its Notes and Supplementary Provisions. To this end, the obligations contained in Article III of the GATT 1994, including its Notes and Supplementary Provisions, are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.4. Customs Duty
1. For the purposes of this Chapter, a customs duty includes any duty or charge of any kind imposed on or in connection with the importation or exportation of a good, including any form of surtax or surcharge imposed on or in connection with such importation or exportation.
2. A “customs duty” does not include any:
(a) charge equivalent to an internal tax imposed consistently with Article 2.3 (National Treatment);
(b) duty imposed consistently with Chapter 3 (Trade Remedies);
(c) duties applied consistently with Article 5 of the Agreement on Agriculture and the DSU;
(d) fee or other charge imposed consistently with Article 2.10 (Fees and Formalities Connected with Importation and Exportation).
Article 2.5. Classification of Goods
The classification of goods in trade between the Parties shall be governed by each Party’s respective tariff nomenclature in conformity with the HS and its amendments.
Section 2-B. REDUCTION AND/OR ELIMINATION OF CUSTOMS DUTIES
Article 2.6. Reduction and/or Elimination of Customs Duties on Imports
1. Each Party shall reduce and/or eliminate its customs duties on imported goods originating in the other Party in accordance with the Schedules set out in Annex 2-A (Elimination of Customs Duties).
2. The base rate of customs duties on imports, to which the successive reductions are to be applied under paragraph 1, shall be that specified in the Schedules in Annex 2-A (Elimination of Customs Duties).
3. If at any moment a Party reduces its applied most favoured nation (hereinafter referred to as “MFN”) customs duty rates on imports after the date of entry into force of this Agreement, that duty rate shall apply if and for as long as it is lower than the customs duty rate on imports calculated in accordance with its Schedule in Annex 2-A (Elimination of Customs Duties).
4. Three years after the entry into force of this Agreement, on the request of either Party, the Parties shall consult to consider accelerating and broadening the scope of the reduction and elimination of customs duties on imports. A decision by the Parties in the Joint Committee on such acceleration or broadening shall supersede any duty rate or staging category determined pursuant to their Schedules for that good.
Article 2.7. Elimination of Customs Duties and Taxes on Exports
Neither Party shall maintain or institute any customs duty or tax on or in connection with the exportation or sale for export of goods to the other Party, or any internal taxes on goods exported to the other Party that are in excess of those imposed on like goods destined for internal sale.
Article 2.8. Standstill
Except as provided in Annex 2-A (Elimination of Customs Duties), upon the entry into force of the Agreement, neither Party shall increase any existing customs duty or introduce any new customs duty, on the importation of a good originating in the other Party. This shall not preclude either Party from raising a customs duty to the level established in its Schedule in Annex 2-A (Elimination of Customs Duties) following a unilateral reduction of its applied MFN customs duty rates on imports.
Section 2-C. NON-TARIFF MEASURES
Article 2.9. Import and Export Restrictions
Neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or on the exportation or sale for export of any good destined for the territory of the other Party, in accordance with Article XI of the GATT 1994, including its Notes and Supplementary Provisions. To this end Article XI of the GATT 1994, its Notes and Supplementary Provisions are incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties understand that before taking any measures provided for in subparagraph 2(a) of Article XI of the GATT 1994, the Party intending to take the measures shall supply the other Party with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of supplying such information, the exporting Party may apply measures under this Article on the exportation of the good concerned. Where exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Party intending to take the measures may apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.
Article 2.10. Fees and Formalities Connected with Importation and Exportation
Each Party shall ensure, in accordance with Article VIII of the GATT 1994, including its Notes and Supplementary provisions, that all fees and charges of whatever character (other than customs duties, and measures listed in paragraphs (a), (b) and (c) of Article 2.4 (Customs Duty) imposed on or in connection with importation or exportation of goods are limited in amount to the approximate cost of services rendered, which shall not be calculated on an ad valorem basis, and shall not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.
Article 2.11. Import and Export Licensing Procedures
1. The Parties affirm their existing rights and obligations under the Import Licensing Agreement.
2. The Parties shall introduce and administer any import or export licensing procedures (1) in accordance with:
(a) Paragraphs 1 through 9 of Article 1 of the Import Licensing Agreement;
(b) Article 2 of the Import Licensing Agreement; and
(c) Article 3 of the Import Licensing Agreement.
To this end, the provisions referred to in subparagraphs (a), (b) and (c) of this paragraph are incorporated into and made part of this Agreement. The Parties shall apply those provisions, mutatis mutandis, for any export licensing procedures.
3. The Parties shall ensure that all export licensing procedures are neutral in application and administered in a fair, equitable, non-discriminatory and transparent manner.
4. The Parties shall only adopt or maintain licensing procedures as a condition for importation into its territory or exportation from its territory to the other Party when other appropriate procedures to achieve an administrative purpose are not reasonably available.
5. The Parties shall not adopt or maintain non-automatic import or export licensing procedures unless necessary to implement a measure that is consistent with this Agreement. Any Party adopting non-automatic licensing procedures shall indicate clearly the measure being implemented through such licensing procedure.
6. Each Party shall respond within 60 days to a reasonable enquiry from the other Party regarding: (i) any licensing procedures which the Party intends to adopt or has adopted or maintained; or (ii) the criteria for granting and/or allocating import or export licenses.
Article 2.12. Publication
Each Party shall promptly publish the following information in a non-discriminatory and easily accessible manner, in order to enable interested parties to become acquainted with them:
(a) importation, exportation and transit procedures (including port, airport, and other entry-point procedures) and required forms and documents;
(b) applied rates of duties, and taxes of any kind imposed on or in connection with importation or exportation;
(c) rules for the classification or the valuation of products for customs purposes;
(d) laws, regulations and administrative rulings of general application relating to rules of origin;
(e) import, export or transit restrictions or prohibitions;
(f) fees and charges imposed on or in connection with importation, exportation or transit;
(g) penalty provisions against breaches of import, export or transit formalities;
(h) appeal procedures;
(i) agreements or parts thereof with any country or countries relating to importation, exportation or transit; and
(j) administrative procedures relating to the imposition of tariff quotas.
Article 2.13. State Trading Enterprises
1. The Parties affirm their existing rights and obligations under Article XVII of the GATT 1994, its Notes and Supplementary Provisions and the Understanding on the Interpretation of Article XVII of the GATT 1994, contained in Annex 1-A to the WTO Agreement, which are hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties may request information from the other Party bilaterally as foreseen in subparagraphs 4(c) and 4(d) of Article XVII of the GATT 1994.
Section 2-D. SPECIFIC EXCEPTIONS RELATED TO GOODS
Article 2.14. General Exceptions
1. Nothing in this Chapter prevents the taking of measures in accordance with Article XX of GATT 1994, its Notes and Supplementary Provisions, which are hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. The Parties understand that before taking any measures provided for in paragraphs (i) and (j) of Article XX of GATT 1994, the exporting Party intending to take the measures shall supply the other Party with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties may agree on any means needed to put an end to the difficulties. If no agreement is reached within thirty days, the exporting Party may apply measures under this Article on the exportation of the good concerned. Where exceptional and critical circumstances requiring immediate action make prior information or examination impossible, the Party intending to take the measures may apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.
Chapter 3. TRADE REMEDIES
Section 3-A. ANTI-DUMPING AND COUNTERVAILING MEASURES
Article 3.1. General Provisions
1. The Parties affirm their rights and obligations arising under Article VI of the GATT 1994, the Anti-Dumping Agreement and the SCM Agreement and shall apply anti-dumping and countervailing measures in accordance with the provisions of this Chapter.
2. The Parties, recognising that anti-dumping and countervailing measures can be abused to obstruct trade, agree that:
(a) such measures should be used in full compliance with the relevant WTO requirements and should be based on a fair and transparent system; and
(b) careful consideration should be given to the interests of the Party against which such a measure is to be imposed.
3. For the purpose of this Section, origin shall be determined in accordance with the non-preferential rules of origin of the Parties.
Article 3.2. Transparency and Information Exchange
1. After receipt by a Party’s competent authorities of a properly documented anti-dumping application with respect to imports from the other Party, and at an early appropriate stage before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application.
2. After receipt by a Party’s competent authorities of a properly documented countervailing duty application with respect to imports from the other Party, and at an early appropriate stage before initiating an investigation, the Party shall provide written notification to the other Party of its receipt of the application and afford the other Party the possibility to consult with its competent authorities regarding the application with a view to clarifying the factual situation and to arriving at a mutually agreed solution. The Parties shall endeavour to hold these consultations as soon as possible thereafter.
3. Both Parties shall ensure, immediately after any imposition of provisional measures and in any case before final determination is made, full and meaningful disclosure of all essential facts and considerations which form the basis for the decision to apply measures. This is without prejudice to Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement. Any disclosure shall be made in writing, and allow interested parties sufficient time to make their comments.
4. Each interested party shall be granted the possibility to be heard in order to express their views during trade remedies investigations.
Article 3.3. Lesser Duty Rule
Should a Party decide to impose any anti-dumping or countervailing duty, the amount of such duty shall not exceed the margin of dumping or countervailable subsidies, and it is desirable that the duty be less than the margin if such lesser duty would be adequate to remove the injury to the domestic industry.
Article 3.4. Exclusion from Bilateral Dispute Settlement and Mediation Mechanism
The provisions of this Section shall not be subject to Chapter 17 (Dispute Settlement) of this Agreement.
Section 3-B. COOPERATION IN PREVENTING CIRCUMVENTION
Article 3.5. Areas of Cooperation
1. The Parties will endeavour, within available resources, to cooperate in preventing circumvention of trade remedies. The areas of cooperation are as follows:
(a) forwarding questionnaires and other documents to interested parties;
(b) exchanging information relating to investigations; and
(c) any other possible areas to be mutually agreed by the Parties.
2. Nothing in this Section shall be construed to require the other Party to furnish or allow access to confidential information pursuant to this Chapter the disclosure of which it considers would:
(a) be contrary to the public interest as determined by its laws;
(b) be contrary to any of its laws, including but not limited to, to those protecting personal data or financial affairs and accounts of individual customers of financial institution;
(c) impede law enforcement; or
(d) prejudice legitimate commercial interests, which may include competitive position of particular enterprises, public or private.
3. Where a Party provides information to the other Party in accordance with this Section and designates the information as confidential, the Party receiving the information shall maintain the confidentiality of the information, use it only for the purposes specified by the Party providing the information, and not disclose it without specific written permission of the Party providing the information.
4. Chapter 18 (Institutional, General and Final Provisions) and Chapter 17 (Dispute Settlement) shall not apply to this Section.
Section 3-C. GLOBAL SAFEGUARD MEASURES
Article 3.6. Application of Global Safeguard Measures
1. Each Party retains its rights and obligations under Article XIX of the GATT 1994, the Safeguards Agreement and Article 5 of the Agreement on Agriculture. Unless otherwise provided in this Section, this Agreement does not confer any additional rights or impose any additional obligations on the Parties with regard to measures taken under Article XIX of the GATT 1994 and the Safeguards Agreement.
2. No Party shall apply, with respect to the same good, at the same time:
(a) a bilateral safeguard measure; and