Brussels, 15/07/2005 (Agence Europe) - The Turkish Cypriot Chamber of Commerce (KKTO) wrote to the British Presidency on Thursday with a suggestion of how to end the deadlock on the Direct Trade Proposal for Northern (Turkish-speaking) Cyprus and the European Union, unveiled by the European Commission a year ago. The Proposal is being blocked by Cyprus (Southern Cyprus) because it amounts to recognition of the self-proclaimed Turkish Republic of Northern Cyprus.
The KKTO suggests dropping talk of direct trade between Northern Cyprus and the EU, and establishing a free trade package to massively increase the incipient trade between North and South Cyprus based on the Greenline Regulation. It suggests setting up a free trade zone incorporating the entire island of Cyprus, the European Economic Area and Turkey, taking account of the planned extension of the Turkey-EU customs union to Cyprus.
The Greenline's 'inefficiency and insufficiency' are well-known, points out KKTO in its open letter to the UK's Permanent Representation to the EU. Insufficient because commercial vehicles (taxis and lorries) cannot cross the border, and neither can animal products and equipment needed for services, argues KKTO, noting that a series of quotas and health regulations are blocking trade in citrus fruit and potatoes, North Cyprus' main exports, in theory authorised by the Greenline Regulation. KKTO argues that the Direct Trade Proposal unveiled by the European Commission would not have a significant impact because it is based on the same principles as the Greenline Regulation, namely two detached economies.
KKTO moots a free trade package to extend the Greenline Regulation to all products from Northern Cyprus without verifying rules of origin, allowing trade from all parts of Cyprus, without distinction, to the European Economic Area. KKTO also calls for the re-opening of ports in the North, to be managed under the EU acquis (regulations). In return, Turkey would allow access to Greek Cypriot ships.
KKTO also calls for the release of the EUR 259 mil promised by the EU to Northern Cyprus, currently blocked along with the Direct Trade Proposal.