Türkiye

The EFTA States signed a modernised and expanded Free Trade Agreement in Sauðárkrókur, Iceland, on 25 June 2018. The Agreement entered into force on 1st October 2021 and replaces the existing one.

The modernised EFTA-Türkiye FTA covers trade in goods (industrial products as well as fish and marine products and processed agricultural products), trade in services, the protection of intellectual property rights, government procurement, competition, and trade and sustainable development. In addition, updated bilateral agricultural agreements between the individual EFTA countries and Türkiye continue to form part of the instruments creating the free trade area.

The Agreement consists of 10 Chapters and 21 Annexes. The Agreement covers the following main subjects:

• Trade in Goods
• Rules of Origin
• Trade Facilitation
• Sanitary and Phytosanitary Measures (SPS)
• Technical Barriers to Trade (TBT)
• Trade Remedies
• Trade in Services
• Protection of Intellectual Property (IPR)
• Government Procurement
• Competition
• Trade and Sustainable Development
• Institutional Provisions
• Dispute Settlement

Trade in Goods

Industrial Goods and Fish and marine products

The Agreements provides for the abolishment of all customs duties on imports and exports of industrial products, including fish and other marine products, originating in an EFTA State or in Türkiye. Already under the existing Agreement, all industrial products originating in the EFTA States enjoy duty-free access into Türkiye since 1 January 1999. Industrial products originating in Türkiye have benefited from duty-free access to the EFTA States as of entry into force of the existing Agreement on 1 April 1992.

Agricultural products

The Agreement provides for tariff concessions on processed agricultural products, as covered by Annex III. Trade in basic agricultural products is covered in three bilateral agricultural agreements negotiated between the respective EFTA State Iceland, Norway and Switzerland/Liechtenstein and Türkiye. While the bilateral agriculture agreements between Norway and Türkiye, as well as Iceland and Türkiye will remain in force, the bilateral agriculture agreement between Switzerland and Türkiye was also modernised and will replace the existing bilateral agriculture agreement upon into force of the modernised EFTA-Türkiye FTA. These bilateral agriculture agreements form part of the instruments establishing the free trade area. They provide for substantial concessions on both sides, while taking into account the respective sensitivities.

Rules of Origin

The rules of origin (Annex I) are governed by the Regional Convention on Pan-Euro-Mediterranean rules of origin. This allows for accumulation of materials originating in the EFTA States, Turkey and the other “Pan-Euro-Med” member countries once the respective agreements are in place between the parties concerned.

Trade Facilitation

The Agreement contains detailed provisions on trade facilitation (Annex VI), including some “WTO +” elements.

Sanitary and Phytosanitary Measures (SPS)

The Agreement includes provisions on sanitary and phytosanitary measures (article 2.11) building on the relevant WTO Agreements.

Technical Barriers to Trade (TBT)

The Agreement includes provisions on technical regulations (article 2.12) building on the relevant WTO Agreements.

Trade Remedies

The Agreement includes provisions on trade remedies (Articles 2.17-2.19), namely subsidies and countervailing measures, anti-dumping and global safeguard measures, building on the relevant WTO Agreements.

Trade in Services

Chapter 3 closely follows the WTO General Agreement on Trade in Services (GATS) approach. It covers trade in all services sectors under all four modes of supply. Separate annexes on recognition of qualifications of service suppliers (Annex X), movement of natural persons supplying services (Annex XI), electronic commerce (Annex XIII), telecommunication services (Annex XVI), co-productions (Annex XV), financial services (Annex XVI), health services (Annex XVII), tourism and travel services (Annex XVII) and international road transport and logistics services (Annex XIX) complement the chapter with additional disciplines specific to those sectors. The Parties’ lists of specific commitments and exemptions from most-favoured-nation (MFN) treatment are contained in Annexes XII and IX, respectively. Those lists shall be reviewed periodically with the aim to further liberalise trade in services between both sides.

Protection of Intellectual Property (IPR)

The provisions on protection of intellectual property rights (Chapter 4 and Annex XX) cover, inter alia, trademarks, copyrights, patents and geographical indications, and include provisions for the enforcement of intellectual property rights and cooperation among the Parties. They are based on the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) and provide for a high level of protection, taking into account the principles of most-favoured-nation treatment and national treatment.

Government Procurement

The Agreement also includes provisions on public procurement (Chapter 5) aiming in particular at ensuring transparency, as well as including a review clause.

Competition

In Chapter 6, the Parties recognise that anti-competitive business practices have the potential to undermine the benefits of liberalisation arising from the Agreement. They highlight the importance of cooperation and consultations regarding issues relating to competition law enforcement. Furthermore, the Chapter provides the Parties with the possibility to take appropriate measures if an anti-competitive practice continues to affect trade, despite previous cooperation and consultation. Priority shall be given to such measures that will least disturb the functioning of this Agreement.

Trade and Sustainable Development

The Parties recognise that economic development, social development and environmental protection are interdependent. In Chapter 7 they reaffirm their commitment to multilateral environmental and labour agreements and principles and undertake to uphold levels of protection while recognising the right of each Party to establish its own level of environmental and labour protection. Arbitration procedures do not apply to this chapter.

Institutional Provisions

Chapter 8 establishes a Joint Committee to supervise and administer the Agreement and to oversee its further development. The Joint Committee, which normally meets every two years, may modify the Agreement or consider and propose amendments, as provided for in the Agreement.

Dispute Settlement

Chapter 9 sets out the rules and procedures applying with respect to the avoidance or settlement of any disputes that may arise between Parties concerning the interpretation or application of the Agreement.

For EFTA-Turkey trade statistics, see EFTA Trade Statistics Tool