Parties meet on expediting EU’s trade measures
A DEAL was struck yesterday on the Green Line regulation, between European Commission official Leopold Maurer and the government, it was reported last night.
Based on the proposals tabled by the government, the transport of goods would be allowed through the government-controlled areas, without the Turkish Cypriots paying VAT to the state.
The tax would be paid to the destination country and products would not have to be registered with the VAT commissioner since they would be shipped to Europe.
Any Turkish Cypriot imports should come through the country’s legal points of entry while the EU regulation would stipulate the trade of fish and manufactured products.
On top of that, it was agreed to increase the number of cigarettes allowed through from the north to two packets and alcohol to one litre.
Individuals would also be allowed to spent up to 135 euros on personal purchases with a special clause ascertaining that this would not be exploited for commercial reasons.
Maurer, who is head of the Commission team for Cyprus, spent yesterday meeting with House President Demetris Christofias, Turkish Cypriot politician Mustafa Akinci, Government spokesman Kypros Chrysostomides and members of the Chamber of Commerce and Industry (KEVE).
The day before he met with United Nations officials, Turkish Cypriot ‘foreign minister’ Serdar Denktash, prime ‘minister’ Mehmet Ali Talat and representatives of the Turkish Cypriot Chamber of Commerce.
Maurer has said his mission was to exchange points of view on the implementation of the Green Line regulation and discuss various technical issues.
The government has said it is willing to make concessions on the regulation to allow as many Turkish Cypriot products as possible to cross over to the south to be exported to EU countries.
President Tassos Papadopoulos gave the order to his negotiating team to ignore any bureaucratic or economic concerns and make it as easy as possible for Turkish Cypriots to trade their goods with the EU via the ports and airports of the south.
According to Turkish Cypriot press, Talat told Maurer during their meeting that the existing Green Line regulation was inadequate and needed changes. He also highlighted the importance of allowing direct trade between the north and the EU.
The government has consistently refused to approve the direct trade regulation proposed by the Commission, though it gave the go-ahead for a proposed financial package worth 259 million euros to go towards assisting Turkish Cypriots.
For the time being, the one regulation is coupled with the other, and unless there is agreement on direct trade, Turkish Cypriots won’t see a cent of the aid.
Chrysostomides yesterday accused Talat of “punishing Turkish Cypriots by not accepting the immediate implementation of the financial package, insisting instead on receiving political gains”.
Maurer was reported in Turkish Cypriot press saying that the two regulations on direct trade and financial assistance were not on the agenda of the Luxembourg EU Presidency, which ends in June, and followed by the UK.
Maurer is due to leave this morning. The government says a “new and improved” regulation on Green Line trade will be fine-tuned and ready for finalisation within a month.
Meanwhile, one firm is already offering consultancy services for those wishing to do trade across the dividing line. The MGC Group of Companies has undertaken to offer consultancy services for the promotion of internal trade between Greek and Turkish Cypriots as is provided for within the relevant EU regulation.
