Title
TÜRKİYE-UNITED ARAB EMIRATES COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT
Preamble
PREAMBLE
The Government of the United Arab Emirates (hereinafter referred to as the "UAE") and the Government of the Republic of Türkiye (hereinafter referred to as "Türkiye"); hereinafter being referred to individually as a "Party" and collectively as "the Parties";
RECOGNISING the strong economic and political ties between Türkiye and the UAE, and wishing to strengthen these links through the creation of a free trade area, thus establishing close and lasting relations;
BUILDING on their respective rights and obligations under the "Marrakesh Agreement Establishing the World Trade Organization" (WTO Agreement), done at Marrakesh, Morocco, on 15 April 1994, and other multilateral, regional, and bilateral agreements and arrangements to which they are party;
TAKING INTO CONSIDERATION the "Agreement Establishing an Association between the Republic of Türkiye and the European Economic Community", done at Ankara, Türkiye, on 12 September 1963;
CONSCIOUS of the dynamic and rapidly changing global environment brought about by globalisation and technological progress that presents various economic and strategic challenges and opportunities to the Parties;
DETERMINED to develop and strengthen their economic and trade relations through the liberalisation and expansion of trade in goods and services in their common interest and for their mutual benefits;
DESIRING to further strengthen their economic relationship as part of, and in a manner coherent with, their overall relations, and convinced that the Comprehensive Economic Partnership Agreement (CEPA) between Türkiye and the UAE (Agreement) will create a new climate for the development of trade and investment between the Parties;
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 between the Parties that could reduce the benefits of this Agreement;
CONVINCED that the establishment of a free trade area will provide a more favourable climate for the promotion and development of economic and trade relations, as well as the promotion of transfer of technology between the Parties;
AIMING to facilitate trade by promoting efficient and transparent customs procedures that reduce costs and ensure predictability for their importers and exporters;
DETERMINED to support the growth and development of micro-, small-, and medium-sized enterprises by enhancing their ability to participate in, and benefit from, the opportunities created by this Agreement;
AIMING to establish a clear, transparent, and predictable legal and commercial framework for business planning that supports the further expansion of trade and investment;
DETERMINED to establish a legal framework for strengthening their trade relations;
HAVE AGREED, AS FOLLOWS:
Body
Chapter 1. INITIAL PROVISIONS AND GENERAL DEFINITIONS
Article 1.1. General Definitions
For the purposes of this Agreement:
Agreement means the Comprehensive Economic Partnership Agreement (CEPA) between Türkiye and UAE.
Agreement on Agriculture means the Agreement on Agriculture in Annex 1A to the WTO Agreement;
Anti-Dumping Agreement means the Agreement on Implementation of Article VI of the GATT 1994 in Annex 1A to the WTO Agreement;
Customs authority or customs authorities means:
(a) for Türkiye, the Ministry of Trade; and
(b) for the UAE, the Federal Authority for Identity, Citizenship, Customs, and Port Security.
Customs duty means a duty or charge of equivalent effect imposed on or in connection with the importation of a good, including any form of surtax or surcharge imposed on or in connection with that importation, but does not include:
(a) a charge equivalent to an internal tax imposed consistently with Article II of the GATT 1994;
(b) a measure applied in accordance with the provisions of Articles VI or XIX of the GATT 1994, the Anti-Dumping Agreement, the SCM Agreement, the Safeguards Agreement, Article 5 of the Agreement on Agriculture, or Article 22 of the DSU; or
(c) a fee or other charge imposed consistently with Article VII of the GATT 1994.
Customs value means the value as determined in accordance with the Customs Valuation Agreement;
Customs Valuation Agreement means the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;.
Days means calendar days, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes in Annex 2 to the WTO Agreement;
GATS means the General Agreement on Trade in Services in Annex 1B to the WTO Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement;
GPA means the Agreement on Government Procurement in Annex 4 to the WTO Agreement;
Harmonized System or HS means the Harmonized Commodity Description and Coding System, including its General Rules for the Interpretation, Section Notes, Chapter Notes and Subheading Notes;
Import Licensing Agreement means the Agreement on Import Licensing Procedures in Annex 1A to the WTO Agreement;
Joint Committee means the Joint Committee established pursuant to Article 17.1 (Joint Committee) of this Agreement;
Measure means any measure, whether in the form of a law, regulation, rule, procedure, decision, practice, administrative action, or any other form;
Natural person of the other Party means;
(a) for the UAE: a national of Türkiye,
(b) for Türkiye:
(i) A national of the UAE; or
(ii) A permanent resident of the UAE who is a national of a WTO Member and who holds a valid "Golden Visa".
Originating refers to the origin of a good as defined in accordance with the Chapter on Rules of Origin;
Person unless the context otherwise requires, includes natural and juridical persons;
Safeguards Agreement means the Agreement on Safeguards in Annex 1A to the WTO Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures in Annex 1A to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade in Annex 1A to the WTO Agreement;
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights in Annex 1C to the WTO Agreement;
WCO means the World Customs Organization;
WTO means the World Trade Organization; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh, 15 April 1994.
Article 1.2. Establishment of a Free Trade Area
The Parties hereby establish a free trade area, in conformity with Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article V of the General Agreement on Trade in Services (GATS).
Article 1.3. 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 1.4. Geographical Scope
This Agreement shall apply:
(a) For Türkiye, to the land territory, internal waters, the territorial sea, and the airspace above them, as well as the maritime areas over which it has sovereign rights or jurisdiction for the purposes of exploration, exploitation, and preservation of natural resources, whether living or non-living, pursuant to international law.
(b) For the UAE, its land territories, internal waters, territorial sea, including the seabed and subsoil thereof, and airspace over such territories and waters, as well as the contiguous zone, the continental shelf, and exclusive economic zone, over which UAE has sovereignty, sovereign rights, or jurisdiction as defined in its laws and in accordance with international law.
Article 1.5. Relation to other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the WTO Agreement, including the GATT 1994, GATS, any subsequent agreements within the WTO framework, and other multilateral agreements to which both Parties are party.
2. In the event of any inconsistency between this Agreement and other agreements to which both Parties are party, the Parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.6. Customs Union and Free Trade Areas
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas, arrangements for frontier trade, and other preferential agreements, insofar as they do not have the effect of altering the trade arrangements provided for in this Agreement.
2. When a Party enters into a customs union or free trade agreement with a third party, it shall, upon request by other Party, be prepared to enter into consultations with the requesting Party.
Article 1.7. Regional and Local Government
1. Each Party shall take such reasonable measures as may be available to it to ensure observance of the provisions of this Agreement by the regional and local governments and authorities and by non-governmental bodies in the exercise of governmental powers delegated by central, regional and local governments and authorities within its territory.
2. This provision is to be interpreted and applied in accordance with the principles set out in paragraph 12 of Article XXIV of the GATT 1994 and paragraph 3 of Article I of the GATS.
Article 1.8. Transparency
1. Each Party shall publish or otherwise make publicly available its laws, regulations, and administrative rulings of general application, as well as its respective international agreements which may affect the operation of this Agreement.
2. Without prejudice to Article 1.9 (Confidential Information), each Party shall, within a reasonable period, respond to specific questions and provide, upon request, information to the other Party on matters referred to in paragraph 1.
Article 1.9. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information designated as confidential by the other Party.
2. Nothing in this Agreement shall require a Party to disclose confidential information, the disclosure of which would impede law enforcement of the Party, or otherwise be contrary to the public interest, or which would prejudice the legitimate commercial interests of any economic operator.
Article 1.10. General Exceptions
For the purposes of this Agreement, and wherever applicable, Article XX of the GATT 1994 and its interpretative note and Article XIV of the GATS including its footnotes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 1.11. Security Exceptions
Nothing In this Agreement shall be construed:
(a) to require a Party to furnish any information, the disclosure of which it considers contrary to its essential security interests;
(b) to prevent a Party from taking any action which it considers necessary for the protection of its essential security interests:
(i) relating to fissionable and fissionable materials or the materials from which they are derived;
(ii) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment;
(iii) relating to the supply of services as carried out directly or indirectly for the purpose of provisioning a military establishment;
(iv) taken in time of war or other emergency in international relations; or
(c) to prevent any Party from taking any actions in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
Chapter 2. TRADE IN GOODS
Article 2.1. Scope and Coverage
Except as otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.2. National Treatment and Internal Taxation
Each Party shall accord national treatment to the goods of the other Party in accordance with Article II of the GATT 1994, including its interpretative notes. To this end, Article II of the GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.3. Reduction or Elimination of Customs Duties
1. Except as otherwise provided in this Agreement, including as explicitly set out in each Party's Schedule included in Annex 2-1 (Schedule of Tariff Commitments), neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party.
2. Upon the entry into force of this Agreement, Türkiye shall eliminate or reduce its customs duties applied on goods originating from the UAE in accordance with Annex 2-1A (Schedule of Tariff Commitments) and the UAE shall eliminate or reduce its customs duties on goods originating from Türkiye in accordance with Annex 2-1B (Schedule of Tariff Commitments).
3. Where a Party reduces its most-favoured nation (MFN) applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with Annex 2-1A (Schedule of Tariff Commitments) in the case of Türkiye or Annex 2-1B (Schedule of Tariff Commitments) in the case of the UAE.
Article 2.4. Acceleration or Improvement of Tariff Commitments
1. Upon request of a Party, the other Party shall consult with the requesting Party to consider accelerating, improving, or broadening the scope of the elimination of customs duties as set out in its Schedule of Tariff Commitments in Annex 2-1 (Schedule of Tariff Commitments).
2. Further commitments between the Parties to accelerate or broaden the scope of the elimination of a customs duty on a good (or to include a good in Annex 2-1 (Schedule of Tariff Commitments)) shall supersede any duty rate or staging category determined pursuant to their respective Schedules upon its incorporation into this Agreement.
3. Nothing in this Agreement shall prohibit a Party from unilaterally accelerating or broadening the scope of the elimination of customs duties set out in its Schedule in Annex 2-1 (Schedule of Tariff Commitments) on originating goods. Any such unilateral acceleration or broadening of the scope of the elimination of customs duties will not permanently supersede any duty rate or staging category determined pursuant to their respective Schedules, nor will it serve to waive that Party's right to raise the customs duty back to the level established in its Schedule in Annex 2-1 (Schedule of Tariff Commitments) following a unilateral reduction.
Article 2.5. Classification of Goods and Transposition of Schedules
1. The classification of goods in trade between the Parties shall be that set out in the respective tariff nomenclature of each Party in conformity with the Harmonized System and its legal notes and amendments.
2. Each Party shall ensure that the transposition of its Schedule of Tariff Commitments does not afford less favourable treatment to an originating good of the other Party than that set out in its Schedule in Annex 2-1A or 2-1B.
3. A Party may introduce new tariff splits, provided that the preferential conditions applied in the new tariff splits are not less preferential than those applied originally.
Article 2.6. Import and Export Restrictions
Except as otherwise provided in this Agreement, neither Party may 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, except in accordance with Article XI of the GATT 1994 and its interpretative notes. To this end, Article XI of the GATT 1994 and its interpretative notes are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.7. Import Licensing
1. Neither Party may adopt or maintain a measure that is inconsistent with the Import Licensing Agreement (1), which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. Before applying any new or modified import license, a Party shall publish it in such a manner as to enable the other Party and traders to become acquainted with it, including through publication on an official government internet site. Upon request of the other Party, the Party shall provide information concerning its implementation in a reasonable period of time.
Article 2.8. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of the GATT 1994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.9. Export Subsidies
1. Neither Party shall adopt or maintain any export subsidy on any good destined for the territory of the other Party in accordance with the SCM Agreement and the Agreement on Agriculture.
2. The Parties reaffirm their commitments made in the WTO Ministerial Conference Decision on Export Competition adopted in Nairobi on 19 December 2015, including the elimination of scheduled export subsidy entitlements for agricultural goods.
Article 2.10. Restrictions to Safeguard the Balance-of-Payments
1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance- of-payments purposes.
2. Any such measures taken for trade in goods shall be in accordance with Article XII of the GATT 1994 and the Understanding on the Balance-of-Payments Provisions of the GATT 1994, the provisions of which are incorporated into and made a part of this Agreement, mutatis mutandis.
Article 2.11. Administrative Fees and Formalities
1. Each Party shall ensure, in accordance with Article VII:1 of the GATT 1994 and its interpretive notes and Article 6 of the WTO Agreement on Trade Facilitation, that all fees and charges of whatever character (other than import and export duties, charges equivalent to an internal tax, or other internal charges applied consistently with Article Ifl:2 of the GATT 1994, and measures applied in accordance with Articles VI or XIX of the GATT 1994, the Anti-Dumping Agreement, the SCM Agreement, the Safeguards Agreement, Article 5 of the Agreement on Agriculture, or Article 22 of the DSU) 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 for domestic goods or a taxation of imports or exports for fiscal purposes.
2. Each Party shall promptly publish details and shall make such information available on the Internet regarding the fees and charges it imposes in connection with importation or exportation.
Article 2.12. Non-Tariff Measures
1. Unless otherwise provided, neither Party shall adopt or maintain any non-tariff measure on the importation of any good of the other Party or on the exportation of any good destined for the territory of the other Party, except in accordance with its WTO rights and obligations or with this Agreement.
2. Each Party shall ensure that its laws, regulations, procedures, and administrative rulings relating to non-tariff measures are not prepared, adopted, or applied with a view to, or with the effect of, creating unnecessary obstacles to trade with the other Party.
3. If a Party considers that a non-tariff measure of the other Party is an unnecessary obstacle to trade, that Party may nominate such a non-tariff measure for review by the Subcommittee for Trade established under Article 17.1 (Joint Committee), by notifying the other Party at least 30 days before the date of the next meeting of the Subcommittee for Trade. A nomination of a non-tariff measure for review shall include the reasons for its nomination, how the measure adversely affects trade between the Parties, and, if possible, suggested solutions. The Subcommittee for Trade shall immediately review the measure with a view to securing a mutually agreed solution to the matter. Review by the Subcommittee for Trade is without prejudice to the Parties' rights under Chapter 14 (Dispute Settlement).
Article 2.13. State Trading Enterprises
Nothing in this Agreement shall be construed to prevent a Party from maintaining or establishing a state trading enterprise in accordance with Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994, mutatis mutandis.
Article 2.14. Subcommittee for Trade- Trade In Goods Matters
1. For the purposes of the effective implementation and operation of this Chapter, Subcommittee for Trade established by Chapter 17 of this Agreement will handle, among others, Trade in Goods matters.
2. These matters include the objectives below:
(a) monitoring the implementation and administration of this Chapter;
(b) promoting trade in goods between the Parties, including through consultations on accelerating and broadening the scope of preferential treatment or tariff elimination under this Agreement, and other issues as appropriate;
(c) addressing barriers to trade in goods between the parties, including those related to non-tariff measures, such as import and export restrictions, which may restrict trade in goods between the Parties and, if appropriate, referring such matters to the Joint Committee for its consideration;
(d) providing advice and recommendations to the Joint Committee on cooperation needs regarding trade in goods;
(e) reviewing each Party's implementation of amendments to the Harmonized System to ensure that each Party's obligations under this Agreement are not altered, and consulting to resolve any conflicts between such amendments to the Harmonized System, Annex 2-1 (Schedule of Tariff Commitments), and national nomenclatures;
(f) consulting on and endeavouring to resolve any difference that may arise among the Parties on matters related to the classification of goods under the Harmonized System;
(g) reviewing data on trade in goods in relation the implementation of this Chapter;
(h) assessing matters that relate to trade in goods and undertaking any additional matter that the Joint Committee may assign to it; and
(i) reviewing and monitoring any other matter related to the implementation of this Chapter.
Chapter 3. TRADE REMEDIES
Article 3.1. Scope
1. With respect to Türkiye, the investigating authority will be the Ministry of Trade or its successor.
2. With respect to the UAE, this Chapter shall apply to investigations and measures that are taken by the Ministry of Economy or its successor.
Article 3.2. Anti-Dumping and Countervailing Measures
1. The Parties reaffirm their rights and obligations under the provisions of Article VI and Article XVI of GATT 1994; Anti-Dumping Agreement and SCM Agreement.