Date :
19/04/2016
Republic of Korea and Republic of Turkey Have Taken an Additional Important Step Forward to Augment Their Investment and Economic Relationship
On 14.04.2016, Council of Ministers’ affirming decision regarding ‘‘Agreement on Investment Under the Framework Agreement Establishing a Free Trade Area Between the Republic of Turkey and the Republic of Korea’’ (‘the Agreement’) was published on the Official Gazette
Since the commencement of
political relationship of the respective countries 67 years ago, the economic
relationship has shown a promising rise in the last 10 years. For example, in
2013, total trade has generated a volume of USD 6.1 billion. Indeed, it is safe
to assume that the instruments that were entered into force i.e. ‘‘Framework
Agreement Establishing a Free Trade Area between the Republic of Turkey and The
Republic of Korea’’ and ‘‘Agreement on Trade in Goods between the Republic of Turkey
and The Republic of Korea’’ have devised legal framework of such increase.
It is in this climate that the
Agreement, while substituting and replacing Bilateral Investment Treaty
between Turkey and Korea, it also seem to enhance scope of investment by adding
following elements in its Section B; licenses,
authorizations, permits, and similar rights conferred pursuant to domestic law
as well as turnkey, construction, management, production revenue-sharing, and other
similar contracts. Notably, the Agreement also introduces an article to
maintain a high level of environmental and health measures and not lowering
these standards in order to attract or expand investment from the other Party.
If you would like to have more
information on international trade law or Turkish commercial law, please do not
hesitate to contact us at info@guzeloglu.legal
Author:
Abdülkadir Güzeloğlu
Related News
- Türkiye's 2026 Amendments to the OIZ Implementing Regulation, A Side by Side Comparison for Investors, Pre-Allocation, the 49% Shareholding Rule, Leasing and Surface Rights
- Appointing a Distributor in Türkiye, Exclusivity, Competition Law Limits, Termination and Goodwill Indemnity
- Enforcing Foreign Court Judgments in Türkiye, Reciprocity, Public Policy, Service Defects and Practical Strategy for Foreign Creditors
- Guarantee or Suretyship Under Turkish Law, Why Parent Company and Personal Guarantees Fail and How to Draft Them
- When a Turkish Customer Files for Konkordato, What Foreign Suppliers and Creditors Need to Know
- Protecting Your Investment in Türkiye: Bilateral Investment Treaties, Investor-State Arbitration and Structuring for Treaty Protection
- Special Audits in Turkish Joint Stock Companies: A Practical Tool for Foreign Minority Shareholders
- Challenging Arbitral Awards Made in Türkiye: Annulment Grounds, Time Limits, Enforcement and Waiver Under Turkish Law
- Urgent Interim Relief in Arbitrations Involving Türkiye: Emergency Arbitrators, Tribunal-Ordered Measures and the Role of the Turkish Courts
- Trading with Turkish Companies Under the CISG: Scope, Opting Out, Notice of Non-Conformity, Avoidance and Damages