US investments in Cyprus reach $379 mln

US investments in Cyprus amount to more than $379 mln, US Ambassador in Nicosia Frank Urbancic said, noting that this figure will soon increase substantially as an American energy firm begins exploring for oil and gas off Cyprus’ southwest coast.
Speaking Tuesday at a press conference at the US pavilion of the Cyprus International Fair, Urbancic noted that US exports to Cyprus grew by 73.6% last year.
“For one thing, the weaker dollar played a part. Also, these figures include imports to Cyprus for re-export to other countries, especially precious metals which recorded a phenomenal rise in 2008”, he said.
US Ambassador pointed out that the United States is also a reliable export market for Cyprus, with considerable untapped potential.
He went on to add that many Cypriot products, such as dairy products, salt, and mineral substances have been increasing their sales in the United States in recent years, while others, such as fresh fish hold much potential for growth.
“The owner of a major Cypriot dairy company has told us he can’t keep up with the growing US demand for halloumi (the traditional Cyprus cheese)”, Urbancic said.
He also referred to numerous agreements between Cypriot and US service providers, from accounting firms to Internet providers, which “tie our business communities together”.
Similarly, he added, “several well-known US firms have their regional headquarters here in Cyprus, and many US fast food franchises are very popular on the island.”
“In fact, I am pleased to announce that a company from Limassol is bringing Cinnabon stores to Cyprus, with the first store selling their delicious cinnamon rolls located in the new mall in Limassol”, he said.
The US Ambassador referred to the Science and Technology Cooperation Agreement signed last February between the governments of Cyprus and the US.
“This agreement – incidentally, the first signed by the Obama administration — will strengthen the scientific and technological capabilities of both our countries by providing means for our scientists and technology companies to more easily work together”, Urbancic noted.
Already, he said, the Agreement has led to new collaborations between Cyprus and the United States.
Those collaborations include a partnership with the University of Pittsburgh for the establishment of a world-class medical center in Paphos and a cooperation agreement between the IBM and the Cyprus Institute on the development of supercomputing technologies.
“We believe this is just the beginning”, the US diplomat said, adding “it is clear that our bilateral relationship is very rich and continues expanding on many levels”.
Referring to the US presence at the Cyprus International Fair, he said that among the 14 exhibitors this year are major automotive companies, a leading cosmetics firm, one of the US best- known fitness machine companies, a solar panels manufacturer, and the largest energy company in the world which also happens to be a major investor in the Cypriot economy.
According to data given by the US embassy, Cyprus and the United States enjoy a very close trading and business relationship. Bilateral trade statistics for 2008 and recent years (attached) show that the United States supplied 188.5 million dollars worth of goods to the Republic of Cyprus last year, making up 1.7% of the country’s total imports. These statistics do not include imports of US products which have been manufactured or re-packaged elsewhere in the EU or trans-shipped through another EU port of entry (provided the VAT has already been paid).
The main US exports to Cyprus for the domestic market include data processing equipment, electrical appliances, specialized vehicles, toys, furniture, and optical, measuring or medical equipment. Cyprus imports of U.S. corn have declined considerably in recent years, due to stricter regulations against biotech goods. Additionally, re-exports of US tobacco products through Cyprus to nearby countries, which thrived in the mid- to late-Nineties, are now a thing of the past, since the tobacco companies have found alternative routes for their products.
Regarding Cypriot exports to the US, in 2008 the United States absorbed 11.7 million dollars or 0.7% of the island's total exports. Many Cypriot products, such as dairy products, salt, and mineral substances have increased their sales in the United States in recent years, while others, such as fresh fish hold potential for growth.
Meanwhile, James Carouso, Economic and Commercial Officer Section Chief at the US embassy, said that the US want to raise the consciousness of the people in Cyprus that “the US is a significant market and that we have people that are interested in your products”.
“You have good products, you have good services and trade is a two way street and it's a street that we'd like to widen”, he said.
Replying to questions regarding hydrocarbon reserves’ exploitation on behalf of the US in Cyprus’ exclusive economic zone, Carouso said that several years ago Cyprus issued an international tender for offshore oil-gas exploration.
He added that an American company after negotiations with the Ministry of Commerce Department of Energy was awarded the right to explore in south-west quadrant of the sector and they will begin doing that shortly.