- Oct 3, 2018
- 3,525
Dışişleri Bakanlığı Ministry of Foreign Affairs | 
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AUTHENTIC COMMUNIQUE OF THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted ŞİFRELEME KORUMASI: KAPLUĞA |
| [Recipient]: Secretary of the Treausry < Odinson > [Sender]: Minister of Finance, Türkiye < AEkinciHMB@tr.gov > [Subject]: Confidential // Proposed Draft v.1 of Trade Agreement |
| Dear Secretary Clark, I write to you on behalf of the Government of the Republic of Türkiye, and at the instruction of Prime Minister Ayşe Çiller, to open formal discussions on the drafting of a trade agreement The Turkish Cabinet recently convened to deliberate on this matter. After a frank and thorough debate, the Cabinet gave its tentative endorsement to the proposal, subject to the successful conclusion of negotiations that would establish mutually acceptable terms. We are mindful of both the opportunities and responsibilities such an arrangement entails, and we are determined to approach this in a spirit of partnership and transparency. In order to provide a concrete starting point for our dialogue, the Government of Türkiye has prepared a draft trade agreement that we believe is fair to both parties and creates the legal and practical framework for the free flow of certain goods, services, and capital between the Turkish and American people. I would be most willing to travel to Washington at your convenience to finalize the agreement and negotiate key provisions directly with you and your team. Should it be preferable, I am equally open to conducting negotiations in Ankara or arranging for virtual meetings between our delegations, so as to expedite progress. Secretary, our governments share a long tradition of cooperation and alliance. Despite the tragedy of our relations in the past decade, the prospect of deepening our economic ties, we believe, will serve not only the serve the economic interest of Americans, but also show that the United States is open for business that is fair and not exploitative. I look forward to your response and to beginning this important work together. With the assurances of my highest consideration, Azmi Ekinci Minister of Finance Republic of Türkiye |
ATTACHMENT FROM THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted ŞİFRELEME KORUMASI: KAPLUĞA |
| TRADE AGREEMENT Republic of Türkiye Council of Ministers (DATE) on the signing, of the Trade Agreement between the Republic of Türkiye, of the one part, and the United States of America, of the other part Having regard to the Trade Agreement between the parties as compliant with the requirements of the Government. Including a review by the Ministry of Government Legislation, deliberation by the State Council, and the International Legal Affairs Bureau, and a formal presentation of the agreement to the national assembly.
Article 1 The signing of the Trade Agreement between Türkiye and the United States is hereby approved by the National Assembly of Türkiye, subject to the conclusion of the said Agreement. Article 2 Türkiye is hereby authorized to designate the person(s) empowered to sign the Agreement on behalf of Türkiye, subject to its conclusion. Article 3 The National Assembly shall conduct its due diligence and fact-finding missions pertaining to the terms of the agreement ahead of the effective date of the trade agreement and the entry into force of the protocols on the resolution Article 4 This Decision shall enter into force on the day of its adoption. Done at Ankara, DATE. For the National Assembly Speaker Özgür Özel RECOGNIZING the need for trade relations as a means of developing longstanding and strong partnerships based on common principles and values of an open market and fair trade; DESIRING to further develop a close 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; 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; REAFFIRMING their commitment to the Charter of the Global Assembly and the principles of cooperation and development; REAFFIRMING their commitment to sustainable development and convinced of the contribution of international trade to sustainable development in its economic, social, and environmental dimensions, including economic development, poverty reduction, full and productive employment, and decent work for all, as well as the protection and preservation of the environment and natural resources; RECOGNIZING the right of the Parties to take measures necessary to achieve legitimate public policy objectives on the basis of the level of protection that they deem appropriate, provided that such measures do not constitute a means of unjustifiable discrimination or a disguised restriction on international trade, as reflected in this Agreement; RESOLVED to promote transparency as regards all relevant interested parties, including the private sector and civil society organizations; DESIRING to raise living standards, promote economic growth and stability, create new employment opportunities, and improve the general welfare through expanding mutual trade and investment; 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 world trade by removing obstacles to trade through this Agreement and to avoid creating new barriers to trade or investment between their territories that could reduce the benefits of this Agreement; DESIRING to strengthen the development and enforcement of labor and environmental laws and policies, promote basic workers’ rights and sustainable development and implement this Agreement in a manner consistent with these objectives; and HAVE AGREED AS FOLLOWS: CHAPTER ONE OBJECTIVES AND GENERAL DEFINITIONS Article 1.1 Objectives 1. The Parties hereby establish a free trade area on goods, services, establishment, and associated rules in accordance with this Agreement. 2. The objectives of this Agreement are:
General definitions Throughout this Agreement, references to: The Parties mean, on the one hand, the Republic of Türkiye (hereinafter referred to as Türkiye), and on the other hand, the United States of America (hereinafter referred to as the United States); The Agreement means the Trade Agreement for Trade and Cooperation between Türkiye and the United States CHAPTER TWO NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS SECTION A Common provisions Article 2.1 Objective The Parties shall progressively and reciprocally lower barriers in trade over specified goods over a transitional period starting from the entry into force of this Agreement, in accordance with this Agreement Article 2.2 Scope and Coverage This chapter shall apply specifically to trade in goods between the Parties as follows. (a) Final manufactured goods produced in Türkiye and/or assembled by companies registered in Türkiye, comprising: Motor vehicles (cars, trucks) and automotive parts & accessories; machinery and mechanical appliances (including computers); electrical machinery and equipment; gems, precious metals and jewellery; textiles and apparel (including hand-woven rugs) (b) Primary goods produced in Türkiye and/or extracted and refined by companies registered in Türkiye, comprising: Mineral fuels and oils (refined petroleum products); precious stones and metals; iron and steel products; plastics and plastic articles (feedstocks and finished items); agricultural commodities (wheat, flour); and borates (c) Final manufactured goods produced in the United States and/or assembled by companies registered in the United States, comprising: Machinery and mechanical appliances (including nuclear reactors and boilers); electrical and electronic equipment; vehicles (other than railway or tramway) and automotive parts; plastics and plastic articles; furniture, lighting and prefabricated buildings; and articles of iron or steel (d) Primary goods produced in the United States and/or extracted and shipped by companies registered in the United States, comprising: Mineral fuels and oils (distillation products); meat and edible meat offal; dairy products; cereals, flour and starch products; wood and articles of wood; copper, aluminum and other base metals; natural rubber and rubber products; and tobacco products Article 2.3 Customs duty 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 of a good, including any form of surtax or surcharge imposed on, or in connection with, such importation. It shall not include any: (a) charge equivalent to an internal tax imposed in respect of the like domestic good or in respect of an article from which the imported good has been manufactured or produced in whole or in part; (b) duty imposed pursuant to a Party’s law consistently with Chapter Three (Trade Remedies); (c) fee or other charge imposed pursuant to a Party’s law consistently with Article 2.10; Article 2.4 Classification of goods The classification of goods in trade between the Parties shall be that set out in each Party’s respective tariff nomenclature, interpreted in conformity with the Harmonized System of the International Convention on the Harmonized Commodity Description and Coding System Elimination of customs duties Article 2.5 Elimination of customs duties 1. Except as otherwise provided by the Agreement, each Party shall eliminate its customs duties on originating goods of the other Party in accordance with section A, article 2.2. 2. Both parties may in, relation to Section A, Article 2.2, apply a quota rate appropriately determined by the parties' trade authorities. The quota base shall be equivalent to the rate of the lowest tariffs applied to the most-favored nation. That duty rate shall apply as regards trade covered by this Agreement if and for as long as the two parties maintain a quota basis for conducting trade under sub-article d of Section A. 3. Five 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 elimination of customs duties on imports between them and expand Section A, Article 2.2. Scope and Coverage. Following such consultations, on the acceleration or broadening of the scope of the elimination of a customs duty on a good shall supersede any duty rate or staging category determined. Article 2.6 Standstill Except as otherwise provided in this Agreement, neither Party may increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party. This shall not preclude either Party from raising a customs duty to the minimum level agreed upon by this agreement following a unilateral reduction. Article 2.7 Administration and implementation of tariff-rate quotas 1. Each Party shall ensure that:
3. Each Party shall make every effort to administer its TRQs in a manner that allows importers to fully utilize TRQ quantities 4. Neither Party may condition application for, or utilization of, TRQ allocations on the re-export of a good. SECTION C Non-tariff measures Article 2.8 National treatment Each Party shall accord national treatment to goods of the other Party that are covered by this agreement. Article 2.9 Import and export restrictions Neither Party may adopt or maintain any prohibition or restriction other than duties, taxes, or other charges 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. Article 2.10 Fees and other charges on imports Each Party shall ensure that all fees and charges of whatever character (other than customs duties and the items that are excluded from the definition of a customs duty under Article 2.3(a), (b) and (d)) imposed on, or in connection with, importation are limited in amount to the approximate cost of services rendered, are not calculated on an ad valorem basis, and do not represent an indirect protection to domestic goods or taxation of imports for fiscal purposes. Article 2.11 Duties, taxes, or other fees and charges on exports Neither Party may maintain or institute any duties, taxes, or other fees and charges imposed on, or in connection with, the exportation of goods to the other Party, or any internal taxes, fees and charges on goods exported to the other Party that are in excess of those imposed on like goods destined for internal sale. SECTION D Specific exceptions related to goods Article 2.12 General exceptions 1. The Parties affirm that their existing rights and obligations under the Charter of the Global Assembly and organ agencies' decisions, which are incorporated into and made part of this Agreement, shall not be considered a renegation on the terms of this agreement should a party be subject to export/import restrictions. 2. 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. SECTION F AEROSPACE INDUSTRY AND PARTS Article 1 General Provisions Recognizing the importance of aerospace products and parts for growth, employment, and trade for both Parties, the Parties confirm their shared objectives and principles, for these products:
Regulatory convergence 1. The Parties recognize the global standards on Harmonization of Aerospace Regulations (hereinafter referred to as the ‘AER.29’), is the relevant international standard-setting body for the products covered by this Annex. Article 3 Market access The United States shall allow on its market the products originating or assembled by companies registered in Türkiye, in accordance with this Agreement: (a) The United States shall accept any product that complies with the requirements listed in this agreement or as mutually recognized by both parties as complying with the corresponding provisions of the applicable American technical regulations; Türkiye shall allow on its market the products originating or assembled by companies registered in the United States, in accordance with this Agreement: (a) Türkiye shall accept any product that complies with the requirements listed in this agreement or as mutually recognized by both parties as complying with the corresponding provisions of the applicable Turkish technical regulations; CHAPTER THREE TRADE REMEDIES SECTION A Bilateral safeguard measures Article 3.1 Application of a bilateral safeguard measure 1. If, as a result of the reduction or elimination of customs duty under this Agreement, originating goods of a Party are being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to a domestic industry producing like or directly competitive goods, the importing Party may adopt measures to safeguard the respective industry/good. 2. The importing Party may take a bilateral safeguard measure which: (a) suspends further reduction of the rate of customs duty on the goods concerned provided for under this Agreement; or (b) increases the rate of customs duty on the goods to a level which does not exceed the lesser of:
Conditions and limitations 1. A Party shall notify the other Party in writing of the initiation of an investigation and consult with the other Party as far in advance of applying a bilateral safeguard measure as practicable, with a view to reviewing the information arising from the investigation and exchanging views on the measure. 2. A Party shall apply bilateral safeguard measures only following an investigation by its competent authorities. 3. Each Party shall ensure that its competent authorities complete any such investigation within one year of its date of initiation. 4. Neither party may apply a bilateral safeguard measure:
Provisional measures In critical circumstances where delay would cause damage that would be difficult to repair, a Party may apply a bilateral safeguard measure on a provisional basis pursuant to a preliminary determination that there is clear evidence that imports of an originating good from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and such imports cause serious injury, or threat thereof, to the domestic industry. The duration of any provisional measure shall not exceed 200 days. The Party shall promptly refund any tariff increases if the investigation does not result in a finding that the requirements of Article 3.1 are met. Article 3.4 Compensation 1. A Party applying a bilateral safeguard measure shall consult with the other Party in order to mutually agree on appropriate trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the safeguard measure. The Party shall provide an opportunity for such consultations no later than 30 days after the application of the bilateral safeguard measure. 2. If the consultations do not result in an agreement within 90 days after the consultations begin, the Party whose goods are subject to the safeguard measure may suspend the application of substantially equivalent concessions to the Party applying the safeguard measure. 3. The right of suspension referred to in the Paragraph shall not be exercised for the first 24 months during which a bilateral safeguard measure is in effect, provided that the safeguard measure conforms to the provisions of this Agreement. SECTION D Anti-dumping and countervailing duties Article 3.5 General Provisions 1. The Parties agree that anti-dumping and countervailing duties should be used in full compliance with the relevant international requirements and should be based on a fair and transparent system as regards proceedings affecting goods originating in the other Party. For this purpose, the Parties shall ensure, immediately after any imposition of provisional measures and in any case before the final determination, full and meaningful disclosure of all essential facts and considerations which form the basis for the decision to apply measures without prejudice. Disclosures shall be made in writing, and allow interested parties sufficient time to make their comments. 2. In order to ensure the maximum efficiency in handling anti-dumping or countervailing duty investigations, and in particular considering the adequate right of defense, the use of English shall be accepted by the Parties for documents filed in anti-dumping or countervailing duty investigations. Nothing in this paragraph shall prevent Türkiye or the United States from requesting a clarification written in Turkish or English if: (a) the meaning of the documents filed is not deemed reasonably clear by the Parties’ investigating authorities for the purposes of the anti-dumping or countervailing duty investigation; and (b) the request is strictly limited to the part which is not reasonably clear for the purposes of the anti-dumping or countervailing duty investigation. 3. Provided that it does not unnecessarily delay the conduct of the investigation, interested parties shall be granted the opportunity to be heard in order to express their views during the anti-dumping or countervailing duty investigations. Article 3.6 Notification 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 no later than 15 days 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 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 a meeting to consult with its competent authorities regarding the application. Article 3.7 Consideration of public interests The Parties shall endeavor to consider the public interests before imposing an anti-dumping or countervailing duty. Article 3.8 Lesser duty rule Should a Party decide to impose an anti-dumping or countervailing duty, the amount of such duty shall not exceed the margin of dumping or countervailable subsidies, and it should be less than the margin if such lesser duty would be adequate to remove the injury to the domestic industry. Article 3.9 Dispute settlement Neither Party may have recourse to dispute settlement for any matter arising under this Section. CHAPTER FOUR TECHNICAL BARRIERS TO TRADE Article 4.1 Affirmation of the principles of technical Barriers to Trade The Parties affirm their existing rights and obligations with respect to each other under the principles on reducing technical barriers to trade which are incorporated into and made part of this Agreement. Article 4.2 Marking and labeling 1. The Parties note that a technical regulation may include or deal exclusively with marking or labeling requirements, and agree that where their technical regulations contain mandatory marking or labeling, they will observe that technical regulations should not be prepared with a view to, or with the effect of, creating unnecessary obstacles to international trade, and should not be more trade restrictive than necessary to fulfill a legitimate objective. 2. In Particular, the Parties agree that were a Party to require mandatory marking or labeling of products: (a) the Party shall endeavor to minimize its requirements for marking or labeling other than marking or labeling relevant to consumers or users of the product. Where labeling for other purposes, for example, for fiscal purposes is required, such a requirement shall be formulated in a manner that is not more trade restrictive than necessary to fulfill a legitimate objective; (b) the Party may specify the form of labels or markings, but shall not require any prior approval, registration or certification in this regard. This provision is without prejudice to the right of the Party to require prior approval of the specific information to be provided on the label or marking in the light of the relevant domestic regulation; (c) where the Party requires the use of a unique identification number by economic operators, the Party shall issue such number to the economic operators of the other Party without undue delay and on a non-discriminatory basis; amd (d) the Party shall remain free to require that the information on the marks or labels be in a specified language. The simultaneous use of other languages shall not be prohibited, provided that, either the information provided in the other languages shall be identical to that provided in the specified language, or that the information provided in the additional language shall not constitute a deceptive statement regarding the product. 3. Notwithstanding this agreement recognizes cultural and religious exceptions covering types of food consumed and ensuring the necessary labels that conform with the religious requirements of the respective communities. Article 4.3 Market access 1. With respect to market access through the cross-border supply of services, each Party shall accord to services and service suppliers of the other Party treatment no less favorable than that provided for under the terms, limitations, and conditions agreed and specified in the specific commitments made by the Parties. 2. In sectors where market access commitments are undertaken, the measures which a Party shall not adopt or maintain either on the basis of a regional subdivision or on the basis of its entire territory, are defined as:
Article 5.1 Rules of interpretation Any arbitration panel shall interpret the provisions referred to in Article 14.2 in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties. Where an obligation under this Agreement is identical to an obligation under the proceeding GATT Agreements, the arbitration panel shall adopt an interpretation which is consistent with any relevant interpretation established in rulings of the Dispute Settlement Body (hereinafter referred to as the ‘DSB’). The rulings of the arbitration panel cannot add to or diminish the rights and obligations provided for in the provisions referred to in Article 14.2. Article 5.2 Arbitration panel decisions and rulings 1. The arbitration panel shall make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue shall be decided by majority vote. In no case shall dissenting opinions of arbitrators be published. 2. Any ruling of the arbitration panel shall be binding on the Parties and shall not create any rights or obligations for natural or legal persons. The ruling shall set out the findings of fact, the applicability of the relevant provisions of this Agreement, and the basic rationale behind any findings and conclusions that it makes. The Trade Committee shall make the arbitration panel rulings publicly available in its entirety unless it decides not to do so. SECTION D General Provisions Article 5.3 List of arbitrators 1. The Trade Committee shall, no later than six months after the entry into force of this Agreement, establish a list of 15 individuals who are willing and able to serve as arbitrators. Each Party shall propose five individuals to serve as arbitrators. The Parties shall also select five individuals who are not nationals of either Party and shall act as a chairperson to the arbitration panel. The Trade Committee will ensure that the list is always maintained at this level. Security exceptions Nothing in this Agreement shall be construed:
Entry into force 1. This Agreement shall be approved by the Parties in accordance with their own procedures. 2. This Agreement shall enter into force 60 days after the date the Parties exchange written notifications certifying that they have completed their respective applicable legal requirements and procedures or on such other date as the Parties may agree. 3. Either Party immediately takes appropriate measures in accordance with international law in case of denunciation of this Agreement not sanctioned by the general rules of international law. Article 5.5 Relation with other agreements 1. The present Agreement shall be an integral part of the overall bilateral relations. 2. The Parties agree that nothing in this Agreement requires them to act in a manner inconsistent with their obligations under the Global Assembly. Article 5.6 Territorial application 1. This Agreement shall be provisionally applied from the first day of the month following the date on which Türkiye and the United States have notified each other of the completion of their respective relevant procedures. 2. In the event that certain provisions of this Agreement cannot be provisionally applied, the Party which cannot undertake such a provisional application shall notify the other Party of the provisions which cannot be provisionally applied. Provided the other Party has completed the necessary procedures and does not object to the provisional application within 10 days of the notification that certain provisions cannot be provisionally applied, the provisions of this Agreement which have not been notified shall be provisionally applied on the first day of the month following the notification. 4. A Party may terminate a provisional application by written notice to the other Party. Such termination shall take effect on the first day of the month following notification. 5. Where this Agreement, or certain provisions thereof, is provisionally applied, the term ‘entry into force of this Agreement’ shall be understood to mean the date of provisional application. Article 5.7 Duration 1. This Agreement shall be valid indefinitely. 2. Either Party may notify in writing the other Party of its intention to denounce this Agreement. 3. The denunciation will take effect nine months after the notification. Article 5.8 Fulfillment of obligations 1. The Parties shall take any general or specific measures required to fulfill their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained. 2. The Agreement shall apply to the territories in that are recognized as part of the United States by the Global Assembly, on the one hand, and to the territories of Türkiye, which are recognized by the Global Assembly on the other hand. 3. These provisions concerning the tariff treatment of goods, this Agreement shall also apply to those areas of the respective parties' customs territory. Article 5.8 Authentic texts This Agreement is drawn up in duplicate in English and Turkish, both languages being equally authentic. |
