HIS MAJESTY THE KING OF THE BELGIANS,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF THE ITALIAN REPUBLIC,
HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG,
HER MAJESTY THE QUEEN OF THE NETHERLANDS, and
THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY, of the one part,
THE PRESIDENT OF THE REPUBLIC OF TURKEY, of the other part,
DETERMINED to establish ever closer bonds between the Turkish people and the peoples brought together in the European Economic Community;
RESOLVED to ensure a continuous improvement in living conditions in Turkey and in the European Economic Community through accelerated economic progress and the harmonious expansion of trade, and to reduce the disparity between the Turkish economy and the economies of the Member States of the Community;
MINDFUL both of the special problems presented by the development of the Turkish economy and of the need to grant economic aid to Turkey during a given period;
RECOGNIZING that the support given by the European Economic Community to the efforts of the Turkish people to improve their standard of living will facilitate the accession of Turkey to the Community at a later date;
RESOLVED to preserve and strengthen peace and liberty by joint pursuit of the ideals underlying the Treaty establishing the European Economic Community;
HAVE DECIDED to conclude an Agreement establishing an Association between the European Economic Community and Turkey in accordance with Article 238 of the Treaty establishing the European Economic Community, and to this end have designated as their Plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS:
Mr Paul-Henri SPAAK, Deputy Prime Minister and Minister for Foreign Affairs;
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY:
Dr. Gerhard SCHRODER, Minister for Foreign Affairs;
THE PRESIDENT OF THE FRENCH REPUBLIC:
Mr Maurice COUVE DE MURVILLE, Minister for Foreign Affairs;
THE PRESIDENT OF THE ITALIAN REPUBLIC:
Mr Emilio COLOMBO, Minister for the Treasury;
HER ROYAL HIGHNESS THE GRAND DUCHESS OF LUXEMBOURG:
Mr Eugene SCHAUS, Vice-President of the Government and Minister for Foreign Affairs;
HER MAJESTY THE QUEEN OF THE NETHERLANDS:
Mr Joseph M. A. H. LUNS, Minister for Foreign Affairs;
THE COUNCIL OF THE EUROPEAN ECONOMIC COMMUNITY:
Mr Joseph M. A. H. LUNS, President in Office of the Council of the European Economic Community and Minister for Foreign Affairs in the Netherlands;
THE PRESIDENT OF THE REPUBLIC OF TURKEY:
Mr Feridun Cemal ERKIN, Minister for Foreign Affairs;
WHO, having exchanged their Full Powers, found in good and due form,
HAVE AGREED AS FOLLOWS:
By this Agreement an Association is established between the European Economic Community and Turkey Article 2
1. The aim of this Agreement is to promote the continuous and balanced strengthening of trade and economic relations between the Parties, while taking full account of the need to ensure an accelerated development of the Turkish economy and to improve the level of employment and the living conditions of the Turkish people.
2. In order to attain the objectives set out in paragraph 1, a customs union shall be progressively establishei in accordance with Article 3, 4 and 5.
3. Association shall comprise:
(a) a preparatory stage;
(b) a transitional stage;
(c) a final stage.
1. During the preparatory stage Turkey shall, with aid from the Community, strengthen its economy so as t enable it to fulfil the obligations which will devolve upon it during the transitional and final stages.
The detailed rules for this preparatory stage, in particular those for aid from the Community, are set out in the Provisional Protocol and in the Financial Protocol to this Agreement.
2. The preparatory stage shall last five years, unless it should be extended in accordance with the condition laid down in the Provisional Protocol.
The change-over to the transitional stage shall be effected in accordance with Article 1 of the Provisional Protocol.
1. During the transitional stage the Contracting Parties shall, on the basis of mutual and balanced obligations:
– establish progressively a customs union between Turkey and the Community;
– align the economic policies of Turkey and the Community more closely in order to ensure the proper functioning of the Association and the progress of the joint measures which this requires.
2. This stage shall last not more than twelve years, subject to such exceptions as may be made by mutual agreement. The exceptions must not impede the final establishment of the customs union within a reasonable period.
The final stage shall be based on the customs union and shall entail closer coordination of the economic policies of the Contracting Parties.
To ensure the implementation and the progressive envelopment of the Association, the Contracting Parties shall meet in a Council of Association which shall act within the powers conferred upon it by this Agreement.
The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure the fulfilment of the obligations arising from this Agreement.
They shall refrain from any measures liable to jeopardize the attainment of the objectives of this Agreement. Title II
Implementation of the Transitional Stage Article 8
In order to attain the objectives set out in Article 4, the Council of Association shall, before the beginning of the transitional stage and in accordance with the procedure laid down in Article 1 of the Provisional Protocol, determine the conditions, rules and timetables for the implementation of the provisions relating to the fields covered by the Treaty establishing the Community which must be considered; this shall apply in particular to such of those fields as are mentioned under this Title and to any protective clause which may prove appropriate.
The Contracting Parties recognize that within the scope of this Agreement and without prejudice to any special provisions which may be laid down pursuant to Article 8, any discrimination on grounds of nationality shall be prohibited in accordance with the principle laid down in Article 7 of the Treaty establishing the Community.
The customs union
1. The customs union provided for in Article 2 (2) of this Agreement shall cover all trade in goods.
2. The customs union shall involve:
– the prohibition between Member States of the Community and Turkey, of customs duties on imports and. exports and of all charges having equivalent effect, quantitative restrictions and all other measures having equivalent effect which are designed to protect national production in a manner contrary to the objectives of this Agreement;
– the adoption by Turkey of the Common Customs Tariff of the Community in its trade with third countries, and an approximation to the other Community rules on external trade.
1. The Association shall likewise extend to agriculture and trade in agricultural products, in accordance with special rules which shall take into account the common agricultural policy of the Community.
2. ‘Agricultural products’ means the products listed in Annex II to the Treaty establishing the Community, as at present supplemented in accordance with Article 38 (3) of that Treaty.
Other economic provisions Article 12
The Contracting Parties agree to be guided by Articles 48, 49 and 50 of the Treaty establishing the Community for the purpose of progressively securing freedom of movement for workers between them.
The Contracting Parties agree to be guided by Articles 52 to 56 and Article 58 of the Treaty establishing the Community for the purpose of abolishing restrictions on freedom of establishment between them.
The Contracting Parties agree to be guided by Articles 55, 56 and 58 to 65 of the Treaty establishing the Community for the purpose of abolishing restriction on freedom to provide” services between them.
The rules and conditions for extension to Turkey of the transport provisions contained in the Treaty establishing the Community, and measures adopted in implementation of those provisions shall be laid down with due regard to the geographical situation of Turkey.
The Contracting Parties recognize that the principles laid down in the provisions on competition, taxation and the approximation of laws contained in Title I of Part III of the Treaty establishing the Community must be made applicable in their relations within the Association.
Each State party to this Agreement shall pursue the economic policy needed to ensure the equilibrium of its overall balance of payments and to maintain confidence in its currency, while taking care to ensure a continuous, balanced growth of its economy in conjunction with stable prices.
Each State party to this Agreement shall pursue a conjunctural policy, in particular a financial and monetary policy, which furthers these objectives.
Each State party to this Agreement shall pursue a policy with regard to rates of exchange which ensures that the objectives of the Association can be attained.
The Member States of the Community and Turkey undertake to authorize, in the currency of the country in which the creditor or the beneficiary resides, any payments or transfers connected with the movement of goods, services or capital, and any transfers of capital or earnings, to the extent that the movement of goods, services, capital and persons between them has been liberalized pursuant to this Agreement.
The Contracting Parties shall consult each other with a view to facilitating movements of capital between Member States of the Community and Turkey which will further the objectives of this Agreement.
They shall actively seek all means of promoting the investment in Turkey of capital from countries of the Community which can contribute to Turkish economic development.
With respect to arrangements for foreign capital residents of all Member States shall be entitled to all the advantages, in particular as regards currency and taxation, which Turkey accords to any other Member State or to a third country.
The Contracting Parties hereby agree to work out a consultation procedure in order to ensure coordination of their commercial policies towards third countries and mutual respect for their interests in this field, inter alia in the event of subsequent accession to or association with the Community by third countries.
General and Final Provisions Article 22
1. In order to attain the objectives of this Agreement the Council of Association shall have the power to take decisions in the cases provided for therein. Each of the Parties shall take the measures necessary to implement the decisions taken. The Council of Association may also make appropriate recommendations.
2. The Council of Association shall periodically review the functioning of the Association in the light of the objectives of this Agreement. During the preparatory stage, however, such reviews shall be limited to an exchange of views.
3. Once the transitional stage has been embarked on, the Council of Association shall adopt appropriate
decisions where, in the course of implementation of the Association arrangements, attainment of an objective of this Agreement calls for joint action by the Contracting Parties but the requisite powers are not granted in this Agreement.
The Council of Association shall consist of members of the Governments of the Member States and members of the Council and of the Commission of the Community on the one hand and of members of the Turkish Government on the other.
The members of the Council of Association may arrange to be represented in accordance with its rules of procedure.
The Council of Association shall act unanimously.
The office of President of the Council of Association shall be held for a term of six months by a representative of the Community and a representative of Turkey alternately. The term of office of the first President may be shortened by a decision of the Council of Association.
The Council of Association shall adopt its rules of procedure.
The Council of Association may decide to set up committees to assist in the performance of its tasks, and in particular a committee to ensure the continuing cooperation necessary for the proper functioning of this Agreement.
The Council of Association shall lay down the terms of reference of these committees.
1. The Contracting Parties may submit to the Council of Association any dispute relating to the application or interpretation of this Agreement which concerns the Community, a Member State of the Community, or Turkey.
2. The Council of Association may settle the dispute by decision; it may also decide to submit the dispute to the Court of Justice of the European Communities or to any other existing court or tribunal.
3. Each Party shall be required to take the measures necessary to comply with such decisions.
4. Where the dispute cannot be settled in accordance with paragraphs 2 of this Article, the Council of Association shall determine, in accordance with Article 8 of this Agreement, the detailed rules for arbitration or for any other judicial procedure to which the Contracting Parties may resort during the transitional and final stages of this Agreement.
This Agreement shall not apply to products within the province of the European Coal and Steel Community. Article 27
The Council of Association shall take all appropriate steps to promote the necessary cooperation and contacts between the European Parliament, the Economic and Social Committee and other organs of the
Community on the one hand and the Turkish Parliament and the corresponding organs in Turkey on the other.
During the preparatory state, however, such contacts shall be limited to relations between the European Parliament and the Turkish Parliament.
As soon as the operation of this Agreement has advanced far enough to justify envisaging full acceptance by Turkey of the obligations arising out of the Treaty establishing the Community, the Contracting Parties shall examine the possibility of the accession of Turkey to the Community.
1. This Agreement shall apply to the European territories of the Kingdom of Belgium, of the Federal Republic of Germany, of the French Republic, of the Italian Republic, of the Grand Duchy of Luxembourg and of the Kingdom of the Netherlands on the one hand and to the territory of the Turkish Republic on the other.
2. The Agreement shall also apply to the French overseas departments so far as concerns those of the fields covered by it which are listed in the first subparagraph of Article 227 (2) of the Treaty establishing the Community.
The conditions for applying to those territories the provisions of this Agreement relating to other fields shall be decided at a later date by agreement between the Contracting Parties.
The Protocols annexed to this Agreement by common accord of the Contracting Parties shall form an integral part thereof.
This Agreement shall be ratified by the Signatory States in accordance with their respective constitutional requirements, and shall become binding on the Community by a decision of the Council taken in accordance with the Treaty establishing the Community and notified to the Parties to this Agreement.
The instruments of ratification and the notifications of conclusion shall be exchanged at Brussels.
This Agreement shall enter into force on the first day of the second month following the date of exchange of the instruments of ratification and the notification referred to in Article 31.
This Agreement is drawn up in two copies in the Dutch, French, German, Italian and Turkish languages, each of these texts being equally authentic.