AGREEMENT TARGETS TO FACILITATE LIFTING OF ECONOMIC EMBARGOES AND RESTRICTIONS IMPOSED ON TRNC
ANKARA - The ''Customs Union Framework Agreement'' which was signed between Turkey and the Turkish Republic of Northern Cyprus (TRNC) last week targets to get the TRNC economy ready for a comprehensive and lasting compromise and solution within the EU perspective and facilitate lifting of commercial embargoes and restrictions imposed on the TRNC.
Diplomatic sources said on Wednesday that the commercial part of the ''Proposal Package'' that the EU Commission had prepared for the TRNC last month could not been put into practice due to objection of the Greek Cypriot side to the exportation of goods to the EU from the ports and airports in the TRNC, and as a result of it, commercial restrictions and economic embargoes imposed on the TRNC had not been lifted, adding that the framework agreement targeted to facilitate lifting of those restrictions and embargoes.
Sources said that a positive atmosphere had been formed on the island in comparison to the past as a result of the steps that the Turkish Cypriot side had been taking since April, and the Turkish Cypriot side was continuing its good-will proposals with the opinion of easing a comprehensive solution.
The Customs Union Framework Agreement had the intention of getting the Turkish Cypriot economy ready for a comprehensive and lasting compromise and solution within the EU perspective.
In a statement that TRNC President Rauf Denktas made last week, he said that they could sign a similar agreement which included same elements and factors as the agreement with Turkey, also with the Greek Cypriot side, and he made a proposal to the Greek Cypriot administration to this end.
Under the same framework, Turkey states that it envisages to develop commercial relations with southern Cyprus in case embargoes on the TRNC are lifted in parallel to Denktas's proposals for re-opening of Lefkosa international airport for the benefits of both sides under U.N. control.
The agreement was signed by State Minister and Deputy Prime Minister Abdullatif Sener and TRNC State Minister and Deputy Prime Minister Serdar Denktas during the Turkey-TRNC Partnership Council Sixth Meeting in Lefkosa on August 8.
Framework agreement aims to integrate TRNC economy with international economic system especially with the EU by basing on EU norms.
The agreement also aims to provide sustainable economic development in TRNC in order to settle economic balances on sounder foundations, develop trade and investment atmosphere and increase competitive power in TRNC.
The introduction part of the agreement said, ''it was decided to make Customs Union by taking into consideration that arrangements that will be made by taking EU perspective and norms as basis will contribute to development of commercial and economic relations on the island and the region and to settlement of a lasting compromise on the island.''
Sources said that a certain process was foreseen in settlement of Customs Union and underlined that a harmonious arrangement with Customs Union between Turkey and the EU would be made after technical activities and protocols were completed and necessary regulation harmony was provided between the two countries.
The framework agreement said that TRNC would undertake terms of joint customs tariff which Turkey implemented for third countries within the scope of import regime decision within one year after the agreement went into effect and harmonize its customs tariffs accordingly.
The agreement does not foresee a certain timetable for industrial products and processed agricultural products, but a separate arrangement for agricultural products is in question in the agreement. TRNC's total annual export to Turkey is still 15-20 million U.S. dollars while Turkey's exports to TRNC is about 250-300 U.S. million U.S. dollars.
The agreement includes lifting customs tax and some other taxes, trade policies which will be implemented, competition policies and decisions on customs and financial cooperation and formation of ''Customs Union Joint Commission.''
(MS-EÖ-AÖ) 13.08.2003