Handing over control of trade

Fact of the day: As a wee little nose-shaped island sitting on the edge of three continents, trade has always been a favourite pastime for locals and foreigners alike. By joining the EU, we will become part of a huge trading bloc with muscle to negotiate with the big boys, like the US and Asia, on an equal footing.

From May 1, Cyprus will adopt all the aspects of the Common Commercial Policy. We will apply all the EU bilateral trade agreements, the common external trade tariff and EU trade defence measures. In general, tariffs will drop from nine to four per cent.

In negotiations with the World Trade Organisation, Cyprus will be represented by the EU, which speaks for all 25 member states. We will adopt all the EU’s multilateral trade commitments and obligations. In effect, we no longer control trading policy, which is not a bad thing, given the limited influence a market of 700,000 citizens could have in trade negotiations, compared to 450 million.

The 10 new member states have already been participating in the EU’s trade decision mechanism since April 2003, including in the WTO talks.

The larger version of the EU after May will account for roughly 18 per cent of world trade and contribute to more than 25 per cent of the world’s GDP. Access to the EU market is made easier for third countries because of the existence of a single market with a uniform set of rules for all 25 members.

A foreign investor in Larnaca will have access to 24 other markets under the same conditions. In effect, enlargement means a single set of trade rules, a single tariff, and a single set of administrative procedures throughout the EU 25.

“Oh heaven, bless this continent of shared values, united in diversity,” I hear our trading partners cry? Maybe, maybe not, depending on which side of the coin they prefer.

But for the average Cypriot on the street, the trade implications of EU enlargement is just a bundle of excitement waiting to happen. We’ve already missed the EU-USA steel and banana wars. Watch this space for the next round… the veggie GMO wars?

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.