Turkey And Palestine Sign Free Trade Agreement

The agreement was signed by Turkish State Minister Kursad Tuzmen and Palestinian National Economy Minister Maher Al-Masri.

In accordance with the agreement, industrial products will be exempt from customs duties and there will be no double taxation.

Speaking at the signing ceremony, Tuzmen said that he believed both Turkish and Palestinian businessmen would make mutual investments after the agreement which had been prepared with the aim to increase level of prosperity of both countries.

Noting the agreements envisaged cooperation in several sectors from agriculture to industry and from enhancement of infrastructure of quality to tourism, Tuzmen said the agreement also envisaged extension of technical assistance to Palestine if it was seen necessary.

Stressing that they wanted to strengthen both Turkey's and Palestine's ties with other countries, Tuzmen said that they wanted to open the Turkish market which had a 140 billion U.S. dollars of trade volume to Palestine and supply goods which Turkey needed from Palestine and send goods and services which were needed in Palestine.

Tuzmen said, ''under the arrangements between Palestine and Israel, there is the principle of free movement of goods between these two countries while considerable amount of Turkish products are sold to Palestinians through Israeli mediators. Our Palestinian friends told us that the amount is at least 120 million U.S. dollars. They say it would increase in 2004.''

Stressing that the agreement would consolidate friendship and cooperation between Turkey and Palestine, Tuzmen said that signing of the agreement which was an important part of the Barcelona process that aimed to formation of a free trade zone among the European and Mediterranean countries ahead of the Fourth Europe-Mediterranean (EUROMED) Trade Ministers Conference that would start on Wednesday was actually a message to the countries in the region.

Meanwhile, Palestinian National Economy Minister al-Masri said that the agreement would reinforce friendship between Turkey and Palestine and strengthen the bilateral economic relations.

Noting that also agreements with the Arab countries would contribute to economic development in the Middle East, Masri said they aimed to provide economic integration in the Middle East by making use of Turkey's experiences, adding that Turkey's European Union membership would improve relations between the Middle East and the EU and be in favor of the region.

Syrian Economy and Foreign Trade Minister Ghassan al-Rifai was also in attendance at the signing ceremony.

What will Turkey get?

TURKEY’S BILATERAL FREE TRADE AGREEMENTS

TURKEY'S FTA'S

According to the provisions of the Association Council Decision dated 6 March 1995, Turkey shall align itself progressively with the preferential customs regime of the EU, which rests on the sets of autonomous regimes and preferential agreements1, within five years starting from 1.1.1996. Article 16 of the Association Council Decision No:1/95 and its Annex 10 set the rules and modalities of the alignment and also provide that Turkey will take the necessary measures and negotiate agreements on a mutually advantageous basis with the countries concerned. Turkey gives priority to the adaptation of preferential agreements concluded between the EU and the third countries in which reciprocal trade provisions have been sought. Within the context of the Association Council Decision, Turkey stated that the priority will be given to the following preferential agreements: Israel, Hungary, Bulgaria, Poland, Romania, Slovakia, Czech Republic, Estonia, Latvia, Lithuania, Morocco, Tunisia, Egypt.

In this respect, the Free Trade Agreement between Turkey and the EFTA States which was signed in 1991 was the first step on the way to the adoption of the preferential regimes of the EU. Turkey concluded FTA Agreements with Israel in March 1996, with Hungary in January 1997, with Romania in April 1997, with Lithuania and Estonia in June 1997, with the Czech and the Slovak Republics in July 1997, with Slovenia in May 1998, with Latvia in June 1998, with Bulgaria in July 1998, with Poland in October 1999, with Macedonia in September 1999, with Croatia in March 2002 and with Morocco in April 2004.

Free Trade Agreements entered into force on 1 May 1997 with Israel, on 1 February 1998 with Romania, on 1 March 1998 with Lithuania, on 1 April 1998 with Hungary, on 1 July 1998 with Estonia, on 1 September 1998 with Czech and Slovak Republics, on 1 January 1999 with Bulgaria, on 1 May 2000 with Poland, on 1 June 2000 with Slovenia, on 1 June 2000 with Latvia and finally on 1 September 2000 with Macedonia.

On the other hand, FTA negotiations still continue with Egypt, Faroe Islands, Palestine and Tunisia. Draft texts of agreements have been sent to Jordan, Malta, South Africa and Mexica.

Admittance to the EU.

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