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Cyprus:This Green Line Regulation is seen in red |
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2004-9-2
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Benefits of Cyprus joining the EU has yet to reap in any concrete benefits according to the Turkish Cypriot businessmen. They commented on the Green Line Regulation introduced by the EU in the aftermath of Cyprus’ accession to the bloc on May 1.
Not only was the regulation to kick-starting trade between the Greek and Turkish Cypriot communities after the Greek Cypriot side’s rejection of the UN’s Annan plan to reunite the island last April, but was also supposed to bring the warring communities closer.
Turkish Cypriot Chamber of Commerce president Ali Erel says intra-island trade has so far been ‘almost non-existent’ and blames ‘psychological barriers’ that prevent Greek Cypriots from buying products of Turkish Cypriot origin. He adds that whether or not the measure proves to be a success ‘depends on the people in the south.’
So far, only a handful of products have crossed the Green Line since the government issued a list of measures in mid-August that gave the green light for certain goods produced in the north to cross to the south.
Erel says despite a flurry of enquiries from Turkish Cypriot businessmen on what they are allowed to sell in the south, very few applications have actually been made to the Chamber for a Certificate of Origin – something that must be done before goods are allowed across the 30-year-old cease-fire line.
According to Erel, the only products to go south to date are two truckloads of watermelons, a number of aluminium doors and windows, bottled water, garden soil and scrap paper. But he is hopeful that things could pick up in the future and believes there are markets in the south, particularly for Turkish Cypriot textiles, food and drinks, vegetables, shoes and furniture.
Turkish Cypriot Chamber of Industry chief Salih Tunar agrees that trade between the two communities has got off to a slow start but believes it is natural that bridges will take time to build.
“The communities have been living apart for 40-odd years, so even with the Green Line Regulation it will take a few years till we have normal relations and trade between us.”
“I don’t think Greek Cypriot consumers or businessmen are ready to work with Turkish Cypriots. It’s psychological,” he adds.
Erel and Tunar believe the Green Line Regulation and trade between the north and south are far less important than the prospect of direct trade between the north and the EU.
“Trade between the two communities helps to bring us closer together, but it will not solve our economic problems,” Erel says.
Another thaw in the issue is the consideration of international community of ports in the south as ‘illegal.’ The EU is due to debate measures put forward in July on the possibility of allowing the Turkish Cypriots to export directly from the north. Only if the legally recognised government in the south declares the northern ports legal will a direct trade agreement between the north and the EU be workable.
Observers say the Cyprus government is keen to see the Green Line Regulation work as its success will weaken the Turkish Cypriot side’s argument for direct trade with the EU. They insist Turkish Cypriots can send goods to the south and export them to the EU from Greek Cypriot-controlled ports at Limassol and Larnaca.
Turkish Cypriots, however, argue that such a system would leave them at the mercy of the Greek Cypriot authorities, who they believe do not have their best interests at heart.
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