By Jean Christou
TOTAL trade with the US reached over $700 million (£350 million) in 1997 but there is still room for improvement, Commerce Minister Nicos Rolandis said yesterday.
Rolandis was speaking at the opening of the new Cyprus-US Chamber of Commerce in New York, which was inaugurated by President Clerides.
“As far as trade with the US is concerned, there is still considerable room for improvement,” Rolandis said. “Though the total trade reached $735 million and the US became the number one exporter to Cyprus with annual exports reaching $720 million, Cyprus’ total exports to the United States were $15 million, leaving us with a trade deficit.”
The Minister said that 75 per cent of the US exports to Cyprus were re- exported to other countries. “This highlights Cyprus’ unique position as an important transshipment centre in the Eastern Mediterranean,” Rolandis said.
He said the main products re-exported from the island were tobacco, processed foodstuffs, beverages, textiles and chemical products.
“Attracting foreign investment and for that matter US investment is amongst the primary objectives of Cyprus’ development policy…,” Rolandis said.
“The new investment policy creates a more liberal regulatory and administrative regime with simplified procedures for approval.”
The Minister said the main aim of his visit to the US was to explore the possibility of high technology and other large investments by US corporations in Cyprus.
“We have started working on a number of incentives, and if the interest exists, we shall try to make it materialise,” Rolandis said. “The wide knowledge of the markets of Eastern Europe and the Middle East by the Cypriot entrepreneurs combined with the existence of a large number of offshore companies in Cyprus constitutes a substantial advantage for those who wish to use Cyprus as a base for penetrating the markets in the area.”
Thomas Mottley, International Trade Director at the US Chamber of Commerce, said Cyprus has proved to be an excellent base for US companies to conduct their offshore business in the region.
“The feedback we receive from these companies is very positive about the business environment in Cyprus, our government has consistently encouraged US companies to view Cyprus as a good place for their regional presence,” Mottley said.
