Table of Contents
Preamble
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Annex I
Annex II
Table A
Table B
Annex III
Annex IV
Annex V
Annex Via
Annex Vib
Annex VII
Annex VIII
Annex IX
Protocol A
Annex I to Protocol A
Annex II to Protocol A
Protocol B- Rules of Origin
Annex I Introductory notes to the list in Annex II
Annex II List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status
Annex III a Specimens of movement certificate EUR.1 and application for a movement certificate EUR.1
Annex III b Specimens of movement certificate EUR-MED and application for a movement certificate EUR-MED
Annex IV a Text of the invoice declaration
Annex IV b Text of the invoice declaration EUR-MED
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PREAMBLE
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THE STATE OF ISRAEL
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(hereinafter referred to as "Israel") on the one part, and
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THE REPUBLIC OF TURKEY
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(hereinafter referred to as "Turkey") on the other part,
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RECALLING their intention to participate actively in the process of economic integration in Europe and expressing their preparedness to cooperate in seeking ways and means to strengthen this process;
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HAVING regard to the Agreement Establishing an Association between Turkey and the European Economic Community and the Euro-Mediterranean Agreement Establishing an Association between the European Communities and the State of Israel, as well as to Israel's and Turkey's Free Trade Agreements with EFTA States;
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HAVING regard to the experience gained from the co-operation developed between the Parties as well as between them and their main trading partners;
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DECLARING their willingness to take action with a view to promoting harmonious development of their trade as well as to expanding and diversifying their mutual co-operation in the fields of common interest, including fields not covered by this Agreement, thus creating a framework and supportive environment based on equality, non-discrimination, and a balance of rights and obligations,
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RECALLING the mutual interest of Israel and Turkey in the continual reinforcement of the multilateral trading system and considering their capacity as Contracting Parties to GATT/WTO, the provisions and instruments of which constitute a basis for their foreign trade policy;
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RESOLVED to lay down for this purpose provisions aimed at the progressive abolition of the obstacles to trade between Israel and Turkey in accordance with the provisions of these instruments, in particular those concerning the establishment of free trade areas;
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CONSIDERING the respective commitments of the Parties to this Agreement (hereinafter referred to as "the Parties") to free trade and in particular to compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade (GATT) as it results from the negotiations of the Uruguay Round;
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HAVE DECIDED, in pursuance of these objectives, to conclude the following Agreement.
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ARTICLE 1
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Objectives
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1. |
Israel and Turkey shall gradually establish, during a transitional period ending the latest on January 1, 2000, a free trade area in accordance with the provisions of this Agreement and in conformity with those of the GATT 1994 and of other multilateral agreements on trade in goods annexed to the Agreement establishing the WTO, hereinafter referred to as the "GATT".
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2. |
The objectives of this Agreement are:
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a. to promote, through the expansion of reciprocal trade in goods and services, the harmonious development of the economic relations between Israel and Turkey;
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b. to provide fair conditions of competition for trade between Israel and Turkey; |
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c. to contribute in this way, by removal of barriers to trade, to the harmonious development and expansion of world trade; |
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d. to enhance co-operation between Israel and Turkey. |
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ARTICLE 2 |
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Basic Duties |
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1. For commercial exchanges covered by this Agreement, the Israel Customs Tariff shall be applied to the classification of goods for imports to Israel. The Turkish Customs Tariff shall be applied to the classification of goods for imports into Turkey.
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2. For each product listed in Chapter I of this Agreement the basic duty to which the successive reductions set out in this Agreement are to be applied shall be the MFN duties that are applied erga omnes on the date of the entry into force of the Agreement.
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3. If after entry into force of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round and Turkey-EC Customs Union, such reduced duties shall replace the basic duties referred to in paragraph 2 as from that date when such reductions are applied, unless otherwise agreed in this Agreement, its Protocols and Annexes.
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4. Israel and Turkey shall communicate each other their respective basic duties.
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CHAPTER 1
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INDUSTRIAL PRODUCTS
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ARTICLE 3
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Scope
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The provisions of this Chapter shall apply to products originating in Israel and Turkey listed in Chapters 25 to 97 of the Harmonized Commodity Description and Coding System with the exception of the products listed in Annex I. |
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ARTICLE 4 |
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Customs Duties on Imports and Charges Having Equivalent Effect
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1. |
No new customs duties on imports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in trade between Israel and Turkey from the date of entry into force of this Agreement. |
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2. |
Customs duties on imports applicable in Israel to products originating in Turkey which are not listed in Annex II, Annex III and Annex VIII shall be abolished on the entry into force of the Agreement. |
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3. |
Customs duties on imports applicable in Israel to products originating in Turkey which are listed in Annex II shall be gradually reduced in accordance with the timetable provided in that Annex and abolished on January 1, 2000 at the latest.
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4. |
Customs duties on imports applicable in Israel to products originating in Turkey which are listed in Annex III shall be gradually abolished in accordance with the following timetable: |
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-upon the entry into force of the Agreement each duty shall be reduced to 2/3 of the basic duty, |
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-on January 1, 1998 to 1/3 of the basic duty, |
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-on January 1, 1999 the remaining duties shall be eliminated. |
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5. |
Customs duties on imports applicable in Turkey to products originating in Israel other than those products listed in Annex IV, Annex V, Annex VIa, Annex VIb, Annex VII and Annex VIII shall be abolished on the entry into force of this Agreement. |
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6. |
Customs duties on imports applicable in Turkey to products originating in Israel listed in Annex IV and Annex V shall be gradually abolished according to the following timetable: |
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- upon the entry into force of the Agreement duties shall be reduced to 75 % of the basic duty, |
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- on January 1, 1998 to 50 % of the basic duty, |
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- on January 1, 1999 to 25 % of the basic duty, |
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- on January 1, 2000 the remaining duties shall be eliminated. |
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7. |
Customs duties on imports applicable in Turkey to products originating in Israel which are listed in Annex VIa and VIb shall be gradually reduced and abolished in accordance with the timetable provided in that Annex. |
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8. |
Customs duties on imports applicable in Turkey to products originating in Israel which are listed in Annex VII shall be gradually abolished: |
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- upon the entry into force of the Agreement duties shall be reduced to 50 % of the basic duty, |
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- on January 1, 1997 to 25 % of the basic duty, |
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- on January 1, 1999 the remaining duties shall be eliminated. |
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Customs duties on imports applicable in a Party to products originating in the other Party which are listed in Annex VIII shall be gradually abolished: |
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upon the entry into force of the Agreement duties shall be reduced to 2/3 of the basic duty, |
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on 1.1.1998 the remaining duties shall be eliminated. |
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ARTICLE 5 |
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Customs Duties of a Fiscal Nature |
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The provisions of Article 4 shall also apply to customs duties of a fiscal nature. |
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ARTICLE 6 |
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Customs Duties on Exports and Charges Having Equivalent Effect |
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1. |
No new customs duty on exports or charges having equivalent effect shall be introduced in trade between Israel and Turkey. |
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2. |
Upon the entry into force of this Agreement, customs duties on exports and any charges having equivalent effect shall be abolished. |
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ARTICLE 7 |
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Quantitative Restrictions on Imports and Exports and Measures Having Equivalent Effect |
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1. |
No new quantitative restrictions on imports and exports or measures having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in trade between the Parties from the date of the entry into force of this Agreement. |
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2. |
For the purpose of this Agreement "quantitative restrictions and measures having equivalent effect" mean prohibitions or restrictions on imports or exports into Israel from Turkey or into Turkey from Israel made effective through quotas, import licenses or other administrative measures and requirements restricting trade. |
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CHAPTER 2 |
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AGRICULTURAL, PROCESSED AGRICULTURAL AND FISHERY PRODUCTS |
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ARTICLE 8 |
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Scope |
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The provisions of this Chapter shall apply to agricultural, processed agricultural and fishery products originating in the Parties falling within Chapters 1-24 of the Harmonized Commodity Description and Coding System as well as the products listed in Annex I of this Agreement. |
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ARTICLE 9 |
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Exchange of Concessions |
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The Parties declare their readiness to foster, in so far as their agricultural policies allow, the harmonious development of trade in agricultural products and to discuss this issue periodically in the Joint Committee. |
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2. |
In pursuance of this objective Protocol A providing for measures to facilitate trade in agricultural, processed agricultural and fishery products has been concluded between Israel and Turkey. |
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3. |
Israel and Turkey shall progressively establish a greater liberalization of their trade in agricultural products of interest to both Parties. Israel and Turkey agree to examine the possibility of granting each other further concessions within the framework of the Joint Committee. |
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ARTICLE 10 |
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Sanitary and Phytosanitary Measures |
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1.The Parties shall apply the sanitary and phytosanitary measures in accordance with the provisions of the relevant Agreement of GATT. |
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2.The Parties shall not apply their regulations in veterinary, plant health and health matters as an arbitrary or unjustifiable discrimination between the Parties or a disguised restriction in the trade between them. |
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CHAPTER 3 |
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COMMON PROVISIONS |
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ARTICLE 11
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Rules of Origin and Co-operation in Customs Administration
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1.Protocol B lays down the rules of origin and methods of administrative co-operation.
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2. The Parties shall take all appropriate measures, including arrangements regarding administrative co-operation, to ensure that the provisions of Article 4 to 7, 9, 15 and 18 and Protocol B are effectively and harmoniously applied, taking into account the need to reduce as far as possible the formalities imposed on trade and the need to achieve mutually satisfactory solutions to any difficulties arising out of the operation of those provisions. |
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ARTICLE 12 |
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General Exceptions
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Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants and of the environment; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of intellectual, industrial and commercial property, or rules concerning gold or silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between Israel and Turkey. |
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ARTICLE 13 |
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State Monopolies
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1.The Parties shall progressively adjust any state monopolies of a commercial character, so as to ensure that, by the end of the second year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Israel and Turkey. |
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2.The Joint Committee shall be informed about the measures adopted to implement this objective. |
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ARTICLE 14
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Internal Taxation
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1.The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products originating in Israel and like products originating in Turkey. |
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2.Products exported by one Party to the other Party may not benefit from repayment of indirect internal taxation in excess of the amount of indirect or direct taxes imposed on them. |
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If a Party to this Agreement finds that dumping is taking place in trade with the other Party, within the meaning of Article VI of the GATT, it may take appropriate measures against this practice in accordance with the Agreement on Implementation of Article VI of the GATT 1994 and with its relevant internal legislation, under the conditions and in accordance with the procedures laid down in Article 18.
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ARTICLE 16
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Emergency Action on Imports of Particular Products
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Where any product is being imported in such increased quantities and under such conditions as to cause, or threaten to cause:
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a) serious injury to domestic producers of like or directly competitive products in the territory of one of the Parties, or
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b) serious disturbances in any sector of the economy, or
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c) difficulties which could bring about serious deterioration in the economic situation of a region,
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the Party concerned may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 18.
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ARTICLE 17
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Re-export and Serious Shortage
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Where compliance with the provisions of Articles 6 and 7 leads to:
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a) Re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures or charges having equivalent effect; or
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b) a serious shortage, or threat thereof, of a product essential to the exporting Party,
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and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 18. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.
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ARTICLE 18
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Procedure for the Application of Safeguard Measures
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1. |
In the event Israel or Turkey subjects imports of products liable to give rise to the difficulties referred to in Article 16, to an administrative procedure, the purpose of which is to provide rapid information on the trend of trade flows, it shall inform the other Party.
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2. In the cases specified in Articles 15, 16 and 17, before taking the measures provided for therein or, as soon as possible in cases to which paragraph 3 (d) applies, the Party in question shall supply the Joint Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.
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In the selection of appropriate measures, priority shall be given to those which least disturb the functioning of the Agreement.
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The safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodical consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.
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3. For the implementation of paragraph 2, the following provisions shall apply:
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a) as regards Article 15, the Joint Committee shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. If no end has been put to the dumping or no other satisfactory solution has been reached within thirty days of the notification being made, the importing Party may adopt the appropriate measures;
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b) as regards Article 16, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Joint Committee, which may take any decision needed to put an end to such difficulties.
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If the Joint Committee or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within thirty days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen;
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c) as regards Article 17, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Joint Committee.
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The Joint Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within thirty days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned;
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d) Where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Party concerned may, in the situations specified in Articles 15, 16 and 17 apply forthwith such precautionary measures as are strictly necessary to remedy the situation, and shall inform the other Party immediately.
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1. The rights and obligations of the Parties relating to standards or technical regulations shall be governed by the WTO Agreement on Technical Barriers to Trade.
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2.Each Party, upon the request of the other Party, shall provide information on particular cases of standard-related measures.
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3.The Parties shall aim to reduce technical barriers to trade. To this end, the Parties shall conclude when appropriate agreements on mutu | |