EN 
TR 
Technical Cooperation Agreement Between the Republic of Turkey and the Government of Japan
Law on Approval of Technical Cooperation Agreement Between the Republic of Turkey and the Government of Japan (“Law”) is published in the Official Gazette dated December 29, 2021 and numbered 31704. With this Law, the Technical Cooperation Agreement Between the Republic of Turkey and the Government of Japan (“Technical Cooperation Agreement”), signed in Ankara on October 13, 2020, has been approved and entered into force.
As per the statements in the Committee on Foreign Affairs of the Grand National Assembly of Turkey’s Report, the Japan International Cooperation Agency (“JICA”) is the official development aid agency of Japan. With the Agreement signed between Turkey and Japan through the exchange of notes on September 14, 1994, it was foreseen that JICA would open an office in Ankara and carry out its activities with certain privileges and immunities. Within this framework, the Technical Cooperation Agreement was signed to comprehensively regulate the privileges and immunities of some projects that JICA has recently envisaged to carry out in Turkey and to replace the 1994 Agreement. It is considered that the Technical Cooperation Agreement will accelerate the projects of JICA in Turkey.
In addition, Japan closely follows large infrastructure projects such as power plants, bridges, high-speed trains, tunnels, etc. in Turkey. Credit facilities of JICA are used for the projects whose tenders are given to Japanese companies.
The amount of Japanese Official Development Assistance loans provided to Turkey by Japan to date is around US$ 5.7 billion, and important projects such as the Marmaray Bosphorus Tube Crossing Project are among the projects financed with this amount.
As per the Technical Cooperation Agreement, the parties have committed to endeavoring to promote technical cooperation between the countries. It has been stipulated that the Official Notes on the execution of certain technical cooperation programs realized within the scope of the Technical Cooperation Agreement will be accepted between the parties. Based on these Official Notes, separate agreements will be signed between the competent authority of the Republic of Turkey, their respective authorities, and JICA governing the details and procedures of specific technical cooperation programs.
Within the scope of the implementation of the Technical Cooperation Agreement, it is determined that the competent authority for the Republic of Turkey is the Ministry of Foreign Affairs of Turkey, and the competent authority for the Government of Japan is the Ministry of Foreign Affairs of Japan.
The Republic of Turkey authorizes the legal entity of the JICA Office to enter into contracts, acquire and sell out of the movable and immovable property and take legal action.
In the event that JICA provides equipment, machinery, and materials to the Republic of Turkey in the form of a grant, the Republic of Turkey exempts JICA for taxes and other financial obligations, including value-added tax, special consumption tax, and customs duties, as well as import permit and foreign exchange control permit for these products. This equipment, machinery, and materials become the property of the Republic of Turkey when they are delivered to the relevant authorities of the Republic of Turkey at the port of destination including cost, insurance, and freight. These goods would use for the purposes specified in the Official Notes, and the costs of transportation, replacement, maintenance, and repair of these vehicles would be covered by the Republic of Turkey.
Pursuant to the Technical Cooperation Agreement, the Republic of Turkey guarantees that the technical skills and knowledge acquired by Turkish citizens, as well as equipment, machinery, and materials provided within the scope of Japanese technical cooperation, will be used only for the economic and social development of the Republic of Turkey per the purposes and provisions of the Technical Cooperation Agreement.
It is also stipulated that the parties would consult each other on matters arising from or related to the Technical Cooperation Agreement. If any claim arises as a result of the JICA Experts performing their duties or performing their duties, the issue shall be resolved through consultation between the parties, except if the claim arises as a result of gross negligence or willful misconduct by the JICA Experts. Consultation can be initiated at the request of one of the parties. Moreover, these provisions should not be understood as the JICA Experts are exempt from criminal liability.
Finally, it is regulated that the Technical Cooperation Agreement remains in effect for one year and is renewed for the following year unless one of the parties notifies the other in writing of its request through diplomatic channels to terminate the agreement 6 months before the end of the Technical Cooperation Agreement. All provisions of the Technical Cooperation Agreement continue until the continuing programs are completed, regardless of the termination.
Free Trade Agreement Between the Republic of Turkey and Montenegro
Law on Approval of Protocol III Added to the Agreement and the Protocol Replacing the Existing Protocol I Signed on the Free Trade Agreement Between the Republic of Turkey and Montenegro is published in the Official Gazette dated December 29, 2021 and numbered 31704.
The Free Trade Agreement between the Republic of Turkey and Montenegro (“FTA between Turkey and Montenegro”) was signed on November 26, 2008 and entered into force on March 1, 2010. FTA between Turkey and Montenegro aims to increase and develop the economic cooperation between the parties, to raise the living standards of the peoples of the two countries, to gradually eliminate the difficulties and restrictions in the trade of goods, to encourage the harmonious development of the economic relations between the parties through the expansion of mutual trade, to provide the conditions of fair competition in the trade between the parties, contribute to the harmonious development and expansion of world trade by removing trade barriers, to create conditions for further encouragement of investments, especially the development of joint investments in both countries, to encourage the trade of the parties in third-country markets and cooperation between them.
As per the Committee on Foreign Affairs of the Grand National Assembly of Turkey’s Report, with the FTA between Turkey and Montenegro, the exporters in Turkey were provided with the opportunity to compete with the European Union ("EU”) exporters in the Montenegrin market, and the preferential regime regulated in the Montenegro-EU Stabilization and Association Agreement in industrial goods was exactly reflected in the FTA between Turkey and Montenegro. In this framework, customs duties on all industrial products have been mutually reduced to zero. In the section of the FTA between Turkey and Montenegro on agricultural products, mutual concessions were made on a very limited number of products.
Protocol I, which was prepared to improve the agricultural concessions of the FTA between Turkey and Montenegro and will replace the existing Protocol I, and Protocol III, which was prepared for service trade, were signed in Ankara on July 17, 2019.
Within the scope of the amendment on the Protocol I of the FTA between Turkey and Montenegro, which regulates agricultural concessions, Turkey’s concession demands by Montenegro on cheese, zucchini, dried-fresh figs, grapes, grapefruit, apples, oranges, confectionery, chocolate, bakery products, biscuits, pasta, and carbonated beverages, which are important for Turkish exporters, has been met. On the other hand, preferential treatment has been obtained by Turkey for some items such as meat, wheat flour, mushrooms, bush fruits, sage, peach within the tariff quota, and without a quota for essential oils.
With Protocol III on the service trade to be added to the FTA between Turkey and Montenegro, it is aimed to provide a more predictable environment for the service trade providers of the two countries in the provision of services in the other country and to facilitate and increase the service trade between the two countries.
Financing Agreement for IPARD II Assistance for Agriculture and Rural Development
The Presidential Decision No.4972 Concerning the Approval of the Agreement Signed by Exchange of Letters Between the Government of the Republic of Turkey and the European Commission Regarding the Amendment of the 2014-2020 Financing Agreement for IPARD II Assistance for Agriculture and Rural Development under the Instrument for Pre-Accession Assistance IPA II was published in the Official Gazette No. 31704 on December 29, 2021.
In the letter sent by the Director-General of the Directorate-General for Agriculture and Rural Development of the European Commission to the Republic of Turkey’s National IPA Coordinator, it is stated that according to the Decision of the Directorate-General for Agriculture and Rural Development of the European Commission, the implementation of the 2018 budgetary commitment for Turkey under the IPARD II Program has been extended exceptionally until December 21, 2022.
It was indicated that the full commitment of the key personnel of the Republic of Turkey and the plans and commitments included in the action plan submitted was appreciated by the Directorate-General for Agriculture and Rural Development of the European Commission and provided sufficient confidence in the exceptional time extension decision.
Additionally, it is indicated that the following this amendment to the deadline of the budgetary commitment 2018, by extending the de-commitment period from December 31, 2021, to December 31, 2021, the Financing Agreement 2014-2020, last concluded between the European Commission and Turkey on December 17, 2020, will need to be modified accordingly to reflect the new deadline. Within this framework, given that this grant is an act benefitting Turkey, it is suggested that to proceed with an Exchange of Letters between the European Commission and Turkey, and by this Exchange of Letters, no further conclusion of the Financing Agreement is required.
In this context, time was given by the Directorate-General for Agriculture and Rural Development of the European Commission as to inform in writing within four days of receipt of the letter, whether Turkey considers the amendment to the Financing Agreement, currently in force, also as a mutual understanding, and stated that the letter and Turkey’s reply shall constitute an agreement between the Republic of Turkey and the European Commission on behalf of the European Union.
In the reply letter written by the Republic of Turkey’s National IPA Coordinator, the agreement on the amendment to the IPARD II Financing Agreement was confirmed in writing and it was stated that this approval would constitute an Amendment Protocol to the IPARD II Financing Agreement, which shall enter into force on the date the Director-General of the Directorate-General for Agriculture and Rural Development of the European Commission is notified in writing about approval.
Şafak Herdem, Esra Temur, Zeynep Türe
