Trade across Cyprus Green Line jumps to EUR 3.8 mln

The total trade value of goods which crossed the Green Line separating the internationally recognised and EU member Republic of Cyprus with the Turkish Cypriots in the occupied areas almost doubled and was about EUR 3,380,805 in the period from 1 May 2006 until 30 April 2007 compared to EUR 1,734,770 to a year ago according to the European Commission.

The Green Line Regulation has been operational since 1 May 2004. It defines the terms under which the provisions of the EU law apply to the movement of goods and persons across the line between the areas of the Republic of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control and the areas in which it does.

 

Crossing at crossing points

The Regulation provides for a stable legal framework for the free movement of Cypriots, other EU citizens and third country nationals who cross the Green Line at the crossing points. According to the available data, 788,823 Greek Cypriots crossed from the government-controlled areas to the northern part of Cyprus and 1,348,215 Turkish Cypriots crossed from the northern part of Cyprus to the government-controlled area during the reporting period. In the first six months of the reporting period, in total 812,756 Turkish Cypriots crossed the Green Line, in the second half of the reporting period this number fell to 535,459, a decrease of more than 30 %. The number of Cyprus Police personnel working directly at the crossing points was raised from 54 (2005) to 61 (2006).

 

Illegal migration across the Green Line

The number of third country nationals crossing the Green Line illegally remains an area of serious concern. The analysis of figures from the Republic of Cyprus Police indicates that, of all those who crossed the Green Line illegally, 36.4% had evidently a Turkish visa in their passports. The Republic of Cyprus Police reported the following main countries of origin of illegal immigrants: Syria (46.3 %) and Iran (9.2 %).

According to the data submitted by the authorities of the Republic of Cyprus the number of illegal immigrants detained after crossing the Green Line increased from 725 in 2002 to 3796 in 2003 and 5287 in 2004 before decreasing again to a level of 5191 in 2005 and 3778 in 2006. In the reporting period 2844 illegal immigrants (more than 97 % of all illegal immigrants detained) are reported by the Cypriot Police to have entered the government-controlled areas across the Green Line, whereas about 2% are reported to have entered via the Eastern Sovereign Base Area and less than 1 % directly into the government-controlled areas.The assessment of the entry route into the government-controlled areas by the Cyprus Police is based on:

According to the Cyprus Police, the majority of illegal immigrants later apply for asylum (the number of asylum seekers increased from 950 in 2002 to 4410 in 2003 and up to 9860 in 2004 before falling to 7746 in 2005 and 4545 in 2006).

The reasons for this decrease in numbers of both third country nationals illegally crossing the Green Line and individuals applying for asylum include:

 

Value of trade

Trade from the government-controlled areas to the northern part of Cyprus amounted to a value of EUR 1,027,688 in the reporting period compared to EUR 442,408 in the previous one according to figures from the Cyprus Chamber of Commerce and Industry. Trade from the government-controlled areas to the northern part of Cyprus therefore more than doubled but still only amounts to around one third of the trade in the opposite direction. The Turkish Cypriot Community applies a licensing system, which, in principle, “mirrors” the restrictions of the Green Line Regulation. They only accept, for instance, goods originating in the government-controlled areas, ask for accompanying documents to be issued by the Cyprus Chamber of Commerce and Industry and do not allow live animals or animal products to cross the Green Line. Some derogations were permitted on an unclear, ad hoc basis.

The figures on the types of traded goods show a limited number of new products crossing the Line into the government-controlled areas. The new types of products did not contribute to a significant increase in the trade.

As in the previous reporting period, vegetables, wooden products and furniture constituted the main groups of products traded.

Trade across the Green Line during the reporting period was with one exception solely for the purpose of intra-island trade. On 30 April 2007, a consignment of aluminium scrap crossed the Green Line and was subsequently shipped on to the United Kingdom. Following a consignment of Cyprus Delights (confectionery) in December 2005, this consignment was only the second example where goods crossed the Green Line and were subsequently subject to an intra-community transaction with another Member State.

Despite the positive developments, many obstacles for trade across the Green Line continue to exist.

Turkish Cypriot commercial vehicles and in particular lorries and buses still cannot move freely through the island. The Republic of Cyprus does not accept roadworthiness certificates of commercial vehicles or professional driving licenses issued by the Turkish Cypriot Community (although it does accept roadworthiness certificates for passenger cars).

The overall conclusion is that the Green Line Regulation continues to provide a workable basis for allowing the passage of goods and people to and from the government-controlled areas of the Republic of Cyprus although the flow of goods remains relatively limited. The Commission will continue to monitor the implementation of the Regulation.