Title
FREE TRADE AGREEMENT BETWEEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE REPUBLIC OF TURKEY
Preamble
PREAMBLE
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, (hereinafter referred to as "the United Kingdom")
OF THE ONE PART, and THE REPUBLIC OF TURKEY (hereinafter referred to as "Turkey")
OF THE OTHER PART (hereinafter each individually referred to as a "Party" or collectively as "the Parties"),
RECOGNISING their longstanding and strong partnership, their important economic, trade and investment relationship and the necessity to ensure continuity of the existing bilateral trade preferences;
DESIRING to further strengthen their economic relationship as part of and in a manner coherent with their overall relations, and convinced that the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and the Republic of Turkey (hereinafter 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 by liberalising and expanding mutual trade;
SEEKING to establish clear and mutually advantageous rules governing their trade and to reduce or eliminate the barriers to mutual trade;
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;
BUILDING on their respective rights and obligations under the Marrakesh Agreement Establishing the World Trade Organization, done at Marrakesh on 15 April 1994 and other multilateral, regional and bilateral agreements and arrangements to which they are party;
RECOGNISING the importance of sustainable development, including urgent action to protect the environment and combat climate change and its impacts, and the role of trade in pursuing these objectives, consistent with rules and principles under multilateral environmental agreements to which they are party, including the United Nations Framework Convention on Climate Change (UNFCCC);
RECOGNISING the importance of trade facilitation in promoting efficient and transparent procedures to reduce costs and to ensure predictability for the trading communities of the Parties;
IN VIEW OF the Agreement establishing an Association between the European Economic Community and Turkey, signed on 12 September 1963, the Additional Protocols to and Decisions made under it relating to trade;
RECOGNISING the importance of transparency in international trade to the benefit of all stakeholders;
DETERMINED to establish a legal framework for strengthening their trade relations;
HAVE AGREED as follows:
Body
Chapter 1. GENERAL DEFINITIONS AND INITIAL PROVISIONS
Article 1.1. Objectives
1. The Parties hereby establish a free trade area on goods and associated rules in accordance with this Agreement and consistent with Article XXIV of the GATT 1994.
2. The objective of this Agreement is to preserve preferential conditions relating to trade between the Parties, which resulted from the bilateral trading arrangements between the European Union and Turkey, and to provide a platform for further trade liberalisation and facilitation of trade between them.
Article 1.2. General Definitions
For the purposes of this Agreement and unless otherwise specified:
Agreement means the Free Trade Agreement between the United Kingdom of Great Britain and Northern Ireland and the Republic of Turkey;
Agreement on Agriculture means the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement;
Anti-dumping Agreement means the Agreement on Implementation of Article VI of the GATT 1994, contained in Annex 1A to the WTO Agreement;
customs authority or customs authorities means:
(a) for Turkey, the Ministry of Trade;
(b) for the United Kingdom, Her Majesty's Revenue and Customs (HMRC) and any other authority competent for customs matters;
customs duty means a duty or charge of equivalent effect 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 that importation or exportation, 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 GATT 1994, contained in Annex 1A to the WTO Agreement;
day means calendar day, including weekends and holidays;
DSU means the Understanding on Rules and Procedures Governing the Settlement of Disputes, contained in Annex 2 to the WTO Agreement;
enterprise means any entity constituted or organised under applicable law, whether or not for profit, and whether privately or publicly-owned or controlled, including any corporation, trust, partnership, sole proprietorship, joint venture, or similar organisation;
existing means in effect on the date of entry into force of this Agreement;
GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement;
good of a Party means a domestic good as it is understood under the GATT 1994 or such a good as the Parties may decide, and includes an originating good of a Party;
GPA means the Agreement on Government Procurement contained in Annex 4 to the WTO Agreement, as amended by the Protocol Amending the Agreement on Government Procurement, done at Geneva on 30 March 2012;
Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including all legal notes and amendments thereto developed by the WCco;
legitimate objective has the same meaning as under Article 2.2 of the TBT Agreement;
measure includes a law, regulation, rule, procedure, decision, administrative action, requirement, practice or any other form of measure by a Party;
originating has the meaning given in the Protocol on Rules of Origin and Origin Procedures;
person unless the context otherwise requires, includes natural and legal persons;
Safeguards Agreement means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement;
Sanitary or phytosanitary measure means any measure referred to in paragraph 1 of Annex A to the SPS Agreement;
SCM Agreement means the Agreement on Subsidies and Countervailing Measures, contained in Annex 1A to the WTO Agreement;
SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement;
TBT Agreement means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement;
territory means the territory where this Agreement applies as set out under Article 1.33
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained 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 on April 15, 1994.
Article 1.3. Territorial Application
This Agreement shall apply:
(a) for Turkey, 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 United Kingdom, to:
(i) the territory of the United Kingdom of Great Britain and Northern Ireland including its territorial sea and airspace;
(ii) all the areas beyond the territorial sea of the United Kingdom, including the sea-bed and subsoil of those areas, over which the United Kingdom may exercise sovereign rights or jurisdiction in accordance with international law;
(iii) the Bailiwicks of Guernsey and Jersey and the Isle of Man (including their airspace and the territorial sea adjacent to them), territories for whose international relations the United Kingdom is responsible, as regards:
(aa) Chapter 2 (National Treatment and Market Access);
(bb) Chapter 3 (Customs Administration and Trade Facilitation);
(cc) Chapter 6 (Sanitary and Phytosanitary Measures);
(dd) Protocol on Rules of Origin and Origin Procedures; and
(iv) any territory for whose international relations the United Kingdom is responsible and to which this Agreement is extended.
Article 1.4. Territorial Extension
On exchange of written notifications in accordance with Article 13.3(1), or at any time afterwards, this Agreement, or specified provisions of this Agreement, may be extended to any territories for whose international relations the United Kingdom is responsible, as may be agreed between the United Kingdom and Turkey.
At any time after this Agreement is applied to a territory for whose international relations the United Kingdom is responsible in accordance with paragraph 1, the United Kingdom may provide written notice to Turkey that this Agreement, or specified provisions of this Agreement, shall no longer apply to a territory for whose international relations the United Kingdom is responsible. The notification shall take effect six months after the giving of written notice.
Article 1.5. Relation to Multilateral Agreements
The Parties affirm their rights and obligations with respect to each other in accordance with the WTO Agreement, including the GATT 1994, GATS and its successor agreements and other multilateral agreements to which both Parties are party.
Chapter 2. NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS
Article 2.1. Objective
The objective of this Chapter is to liberalise trade in goods in accordance with the provisions of this Agreement and in conformity with Article XXIV of the GATT 1994.
Article 2.2. Scope
This Chapter applies to trade in goods between the Parties, unless otherwise provided for in this Agreement.
Article 2.3. National Treatment
Each Party shall accord national treatment to the goods of the other Party in accordance with Article I of the GATT 1994, including its interpretive notes, and to this end Article III of the GATT 1994 and its interpretive notes are incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.4. Classification of Goods
For the purposes of this Agreement, the classification of goods in trade between the Parties shall be governed by each Party's respective tariff nomenclature in conformity with the Harmonized System and its legal notes and amendments.
Article 2.5. Rules of Origin
1. The Parties agree to apply preferential rules of origin in trade between them.
2. The Protocol on Rules of Origin and Origin Procedures lays down the rules of origin and related methods of administrative cooperation.
Article 2.6. Elimination of Customs Duties on Industrial Goods
1. Unless otherwise provided for in this Agreement, each Party shall eliminate all customs duties on originating industrial goods of the other Party.
2. For the purpose of this Article, industrial goods are defined as those products falling within Chapters 25 to 97 of the Harmonized System, with the exception of those products listed in Annex 2-A.
Article 2.7. Elimination of Customs Duties on Agricultural Goods
1. Unless otherwise provided for in this Agreement, each Party shall reduce or eliminate customs duties on originating agricultural goods of the other Party in accordance with Annex 2-B.
2. For the purpose of this Article, agricultural goods are defined as those products falling within Chapters 1 to 24 of the Harmonized System, and also any additional products listed in Annex 2-A.
Article 2.8. Export Duties, Taxes and other Charges
1. Neither Party shall adopt or maintain any duty, tax, fees or other charges of any kind imposed on the export of goods to the territory of the other Party, unless the duty, tax, fee or charge is also applied to like goods destined for domestic consumption.
2. For the purpose of this Article, fees and other charges of any kind shall not include fees or other charges imposed in accordance with Article 2.9.
Article 2.9. Fees and Charges
1. Each Party shall ensure, in accordance with Article VIII of the GATT 1994 and its interpretative notes, that all fees and charges within the scope of subparagraph 1(a) of Article VIII of the GATT 1994, imposed by that Party on, or in connection with, importation or exportation are limited to the amount of 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 for fiscal purposes.
2. Each Party shall promptly publish all fees and charges it imposes in connection with importation or exportation, including any updates or changes to such fees and charges, in such a manner as to enable governments, traders and other interested parties, to become acquainted with them.
Article 2.10. Import and Export Restrictions
Unless otherwise provided forin this Agreement, neither Party shall adopt or maintain any prohibition or restriction on the importation of any good of the other Party or 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 interpretive notes are incorporated into and made part of this Agreement mutatis mutandis.
Article 2.11. Data Sharing on Preference Utilisation
1. For the purposes of monitoring the functioning of this Agreement and calculating preference utilisation rates, each Party shall, upon request of the other Party, annually exchange import statistics starting one year after the entry into force of this Agreement. The Joint Committee may review the process and content of this data exchange.
2. The exchange of import statistics shall cover data pertaining to the most recent year available, including value and, where applicable, volume, at the tariff line level for imports of goods of the other Party benefitting from preferential duty treatment under this Agreement and those that received non-preferential treatment.
Chapter 3. CUSTOMS AND TRADE FACILITATION
Article 3.1. Scope
1. This Chapter shall apply to the matters relating to each Party's customs legislation, other trade-related laws and regulations and general administrative procedures related to trade, including their application to goods traded between the Parties, as well as the cooperation between the Parties.
2. This Chapter shall be implemented by each Party in accordance with its laws and regulations. Each Party shall use its available resources in an appropriate way to implement this Chapter.
Article 3.2. Definitions
For the purposes of this Chapter:
"Agreement on Trade Facilitation" means the Agreement on Trade Facilitation annexed to the Protocol Amending the Agreement establishing the World Trade Organization (decision of 27 November 2014);
"SAFE Framework" means the SAFE Framework of Standards to Secure and Facilitate Global Trade, adopted at the June 2005 World Customs Organisation Session in Brussels and as updated from time to time; and
"WCO Data Model" means the library of data components and electronic templates for the exchange of business data and compilation of international standards on data and information used in applying regulatory facilitation and controls in global trade, published by the WCO Data Model Project Team from time to time.
Article 3.3. Objectives and Principles
1. The objectives of this Chapter are as follows:
(a) promoting trade facilitation for goods traded between the Parties while ensuring effective customs controls, taking into account the evolution of trade practices;
(b) ensuring transparency of each Party's customs legislation and other trade-related laws and regulations and consistency thereof with applicable international standards;
(c) ensuring predictable, consistent, transparent and non-discriminatory application of each Party's customs legislation and other trade-related laws and regulations;
(d) promoting simplification and modernisation of each Party's customs procedures and practices;
(e) further developing risk management techniques to facilitate legitimate trade, while securing the international trade supply chain; and
(f) enhancing cooperation between the Parties in the field of customs matters and trade facilitation.
2. The Parties recognise the importance of customs and trade facilitation in the evolving global trading environment and will put in place customs arrangements that, where practicable, make use of all available facilitative arrangements and technologies.
3. The Parties affirm their rights and obligations under the Agreement on Trade Facilitation.
4. The Parties recognise that customs and international trade instruments and standards applicable in the area of customs and trade, such as the substantive elements of the following instrument and standards, should be taken into consideration for their import, export and transit requirements and procedures:
(a) the International Convention on the Simplification and Harmonization of Customs Procedures, done at Kyoto on 18 May 1973 as amended by the Protocol of Amendment to the International Convention on the Simplification and Harmonization of Customs Procedures of 18 May 1973, done at Brussels on 26 June 1999;
(b) the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on 14 June 1983 as amended by the Protocol of Amendment to the International Convention on the Harmonized Commodity Description and Coding System on 24 June 1986;
(c) the Customs Convention on the ATA Carnet for the Temporary Admission of Goods, done at Brussels on 6 December 1961;
(d) the Convention on Temporary Admission, done at Istanbul on 26 June 1990;
(e) the SAFE Framework; and
(f) the WCO Data Model.
5. The Parties recognise that legislation and other trade-related laws and regulations shall be non-discriminatory, and customs procedures shall be based upon the use of modern methods and effective controls to achieve the protection and facilitation of legitimate trade.
6. The Parties recognise that their customs procedures shall be no more administratively burdensome or trade restrictive than necessary to achieve legitimate objectives and that they should be applied in a manner that is predictable, consistent and transparent.
7. In order to ensure transparency, efficiency, integrity and accountability of operations, each Party shall:
(a) review and simplify requirements and formalities wherever possible with a view to facilitating the rapid release and clearance of goods;
(b) consider the further simplification and standardisation of data and documentation required by customs authorities and other agencies in order to reduce the time and costs thereof for traders or operators, including small and medium-sized enterprises; and
(c) ensure that the highest standards of integrity is maintained, through the application of measures reflecting the principles of the relevant international conventions and instruments in this field.
8. The Parties shall seek to reinforce their cooperation with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives set out in this Chapter.
Article 3.4. Transparency and Publication
1. Each Party shall, as appropriate, provide for regular consultations between border agencies and traders or other interested parties within its territory.
2. Each Party shall, in accordance with its laws and regulations, ensure that new or amended laws and regulations of general application related to customs and trade facilitation issues are published or information on them made otherwise publicly available, as early as possible before their application, in order to enable traders and other interested parties to become acquainted with them.
3. Paragraphs 1 and 2 shall not apply to:
(a) changes to the rates of customs duties;
(b) measures that have a relieving effect;
(c) measures the effectiveness of which would be undermined as a result of compliance with paragraphs 1 and 2;
(d) measures applied in urgent circumstances; or
(e) minor changes to domestic law and legal system.
4. Each Party shall promptly make publicly available, in a non-discriminatory and easily accessible manner including online, its laws, regulations, general administrative procedures and guidelines, related to customs and trade facilitation issues. These include:
(a) importation, exportation and transit procedures (including port, airport, and other entry point procedures), required forms and documents;