By Ali Erel
President, Cyprus EU Association
We, the founders of the Cyprus EU Association, had designated the “Free Trade” vision and we had lobbied on this subject during our office in the Turkish Cypriot Chamber of Commerce.
Due to the debates on secularism and presidential elections, the political instability and the economic fragility is once again on the agenda of Turkey. Under these conditions, the Turkish Government is afraid of the political repercussions of opening up its ports to south Cyprus. If Turkey does not open up its ports to the Republic of Cyprus by the end of 2006, crisis between Turkey and the EU is inevitable. This sort of crisis will delay a solution in Cyprus and the Turkish Cypriots will suffer in any case.
North Cyprus needs to participate in the economic integration, which is already ongoing between Turkey and south Cyprus, and which is to be formalised soon. Otherwise Turkish Cypriots will be left out and be isolated once again.
— What is “Free Trade”?
We mean achieving free movement of goods and services on the island of Cyprus and to that end harmonization of the laws and regulations, customs rates and standards of north Cyprus to that of the EU very quickly, thus north Cyprus, de-facto achieving the “Customs Union” conditions with the EU and south Cyprus. The ports in north Cyprus should be opened to international traffic, under the EU control and supervision and in accordance to the EU acquis. The goods imported to the north and produced in the north should be able to be sold to south Cyprus and other EU countries, and the goods produced in the south or imported to the south should be able to be sold to the north, thus achieving “the free movement of goods” on the island. The financial aid of 259 million Euro should be used for aforementioned harmonization, infrastructure and increasing the economic competitiveness of the north.
— Free movement of goods, is for the benefit of all parties
“Free Trade” will result in Turkish Cypriots taking part in the already initiated economic integration between Turkey and south Cyprus within the EU market. This will end the closed economy of north Cyprus, which is outside the reach of the international law under present conditions, to slide towards gray and unlawful areas.
The demand for “direct trade”, which is perceived as a demand for recognition of the TRNC and which foresees two separate economies, will cease under these conditions. The economic integration will decrease economic differences and will facilitate interdependence and will create conditions that will make political solution a necessity. As in the model of the EU, first the relatively easier accomplishment of the economic integration will construct the infrastructure of the political solution and the need for a comprehensive settlement.
His Excellency Mr. Kofi Annan has expressed in his recent report that the conditions for the resumption of negotiations for a comprehensive settlement do not exist. Proactive policies are needed for an early solution of the Cyprus problem. If handled creatively, the crisis, which is at our doorstep, can be dealt with such a way that we can come out of the present situation with minimal detriments. We invite all the involved parties to actively contribute to give life to the free trade formulation. The magic formula is to achieve economic integration on the island of Cyprus.
Ali Erel is the former president of the Turkish Cypriot Chamber of Commerce (KTTO).
