The COREPER meeting of EU foreign ministers today is expected to insist that Turkey open its ports and airports to EU transport (ie, including that of Cyprus) as part of its implementation of the EU-Turkey customs union.
Meanwhile, the shipping industry is gearing up for a legal battle.
“You can rest assured we are going to take up this unilaterally imposed trade embargo on EU shipping,” Cyprus Shipping Council Thomas Kazakos told the Financial Mirror.
“As far as we are concerned the ban has long stopped being a regional issue between Cyprus and Turkey it has been upgraded to a European issue. … They are banning EU interests.”
The ban means that at the moment, ship management in Cyprus contributes more to the economy than transshipment of goods and container traffic at Cyprus ports has diminished.
“Deadline October 2”
At the moment, Turkey has only signed the protocol that extends its customs union to the new member states but has yet to ratify it. However, the CSC will not wait around for its ratification.
“This is a strict legal issue and this has an expiration date. The expiration date is October 2nd and not the 3rd,” said Kazakos.
Turkey is due to open accession negotiations with the EU on October 3.
“As far as we are concerned we will be officially asking the Cyprus government that if Turkey has not lifted–officially and practically–the ban on Cyprus-flagged ships and Cyprus related ships we will be officially asking the government to refuse to accept even to start the negotiation chapter on transport. … if this sounds like a veto, let it sound like a veto,” he said.
Turkey’s ban in Cyprus ships has even extended to a German-flagged ship whose company has some Cyprus ownership.
A legal battle could see Turkey end up in the European Court of Justice in Luxembourg.
Also in Turkey’s interests
Kazakos adds that it is also in Turkey’s commercial interests to lift the ban. “From personal experience I know that in Turkey that the shipping industry openly admits that the ban is directly affecting its commerical interests. They stand a lot more to gain than to lose,” he said.
“What they will gain is a huge increase in trade between Turkey and the EU or the rest of the world for that matter.”
Director of the Cyprus Department of Merchant Shipping, Sergios Sergiou also emphasises the benefits to both Cyprus and Turkey.
“The lifting of the Turkish embargo will create favourable conditions for the expansion of the Cyprus Registry and the re-establishment of the island as a transhipments hub in the Eastern Mediterranean,” he said, adding that it will be “a positive step” for improving relations between Turkey and Cyprus.
As for benefits to Turkey, Sergiou noted that ship owners who register their ships under Cyprus flag would enjoy the benefits offered by Cyprus without any restrictions on the destinations of their ships.
“Turkish ship owners will have the opportunity to register their ships under Cyprus flag, if they wish so, and enjoy the benefits, share the experience of the Cyprus Shipping Industry and have the chance to expand their enterprises in the Cyprus market,” he said.
Fiona Mullen
