INTRODUCTION

Turkey appeals from certain issues of law and legal interpretations in the Panel Report, Turkey - Restrictions on Imports of Textile and Clothing Products (the “Panel Report”). The Panel was established to consider a complaint by India regarding quantitative restrictions introduced by Turkey on imports of Indian textile and clothing products.

On 6 March 1995, the Turkey-EC Association Council adopted Decision 1/95, which sets out the rules for implementing the final phase of the customs union between Turkey and the European Communities. Article 12(2) of this Decision states:

In order to apply what it considered to be “substantially the same commercial policy” as the European Communities on trade in textiles and clothing, Turkey introduced, as of 1 January 1996, quantitative restrictions on imports from India on 19 categories of textile and clothing products.

The Panel considered claims by India that the quantitative restrictions introduced by Turkey were inconsistent with Articles XI and XIII of the GATT 1994, and Article 2.4 of the Agreement on Textiles and Clothing (the “ATC”). In the Panel Re-port, circulated on 31 May 1999, the Panel reached the conclusion that the quantitative restrictions were inconsistent with the provisions of Articles XI and XIII of the GATT 1994 and consequently with those of Article 2.4 of the ATC, and rejected Turkey's defence that the introduction of any such otherwise GATT/WTO incompatible import restrictions is permitted by Article XXIV of the GATT 1994.

On 26 July 1999, Turkey notified the Dispute Settlement Body (the “DSB”) of its intention to appeal certain issues of law covered in the Panel Report and legal interpretations developed by the Panel, pursuant to Article 16.4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”), and filed a Notice of Appeal pursuant to Rule 20 of the Working Procedures for Appellate Review (the “Working Procedures”). On 5 August 1999, Turkey filed its appellant's submission. On 20 August 1999, India filed an appellee's submission.