TRADE OVER GREENLINE Does it serve to its purpose

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TRADE OVER GREENLINEDoes it serve to its purpose?
TURKISH CYPRIOT CHAMBER OF COMMERCE

• Derya Beyatli
• Deputy Secretary General

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TURKISH CYPRIOT CHAMBER OF COMMERCE

• VISION Shared destiny of Cypriots as citizens of
  a united Cyprus within the EU
• MISSION To facilitate the reunification of
  Cyprus through economic integration and improving
  contacts

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TWO CLEAR FACTS

• No temporary measures or regulations can replace
  a comprehensive political settlement
• The economic development of north Cyprus will
  facilitate a political settlement

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WE SALUT

• The decision of the European Council to Promote
  the economic development of the Turkish Cypriots
  and bringing them closer to the European Union
• The efforts of the European Commission in
  preparing a three-pillar approach to this end

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THREE-PILAR APPROACH OF THE EUROPEAN COMMISION

• GREENLINE REGULATIONMovement of people, goods
  and services over the greenline
• FINANCIAL AID REGULATION259 million over three
  years
• DIRECT TRADE REGULATIONDirect trade based on a
  quota system with non-preferential origin.

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GREENLINE REGULATION AIMS TO

• Contribute to the overall objective of improving
  the Turkish Cypriot Economy
• Provide for building contacts and cooperation
  between two communities

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How trade over Greenline works

• Originating products
• A buyer in the south
• Application at the chamber
• Checks at the production facilities
• Certificate of origin from the Turkish Cypriot
  Chamber of Commerce

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TRADE IN THE FIRST TWO MONTHS

• 35,214 CYP worth (77) consignments in September
  2004
• 43,775 CYP worth (96) consignments in October
  2004
• 82,000 CYP worth trade in total

9
Problems in application

• Very limited business contacts
• Limited movement of commercial vehicles
• VAT problems
• No provision for services
• No room for flexibility (fish case)
• One certificate for each consignment
• Labelling problems

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What we do about it

• We believe in reciprocity principle and free
  trade, hence we lobby to our authorities to let
  the trade over greenline work both ways
• Good publicity using media on both sides in order
  to inform people
• Business contacts forum on the website
• Proposals for improvement to the EU and the south
  

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An advert in Cyprus Mail
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Cooperation with Cyprus Chamber of
Commerce and Industry

• An invitation to the Turkish Cypriot
  Businesspeople to share their business requests
  with the chamber. The list will then be shared
  with Cyprus Chamber of Commerce and Industry for
  match-making.

13
Close working relations with Member States
Experts

• Two experts from the Customs departments of EU
  Member States based in the Chamber
• Supervision of the whole process
• Advices on unique cases
• Discussions on improvement

14
Cooperation with the customs authorities of the
south

• Proposals for better functioning of trade
• Information sharing
• Consulting on unique cases

15
Some Facts

• Trade slightly increasing, but still negligible
• Only a number of traders (no!)
• Importers are disappointed
• No exports from the south to the Member States
  has taken place yet

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CONCLUSION

• Very good tool for bringing people together
• Only one of the tools of improving the Turkish
  Cypriot Economy
• Need for urgent adoption of DIRECT TRADE and
  FINANCIAL AID Regulations