Greek Cypriots Announce Fresh Initiatives To Boost Turkish Cypriot Trade

NICOSIA, July 30 (AFP) - Turkish Cypriot buses, trucks and taxis will be allowed to cross the UN-patrolled Green Line dividing the island under a new initiative announced by the Greek Cypriot leadership Friday to boost trade and travel between the two communities.
Communications Minister Haris Thrassou said public service vehicles coming over was part of a series of unilateral initiatives to encourage freight and passenger traffic between government-held areas and the breakaway north.
The measures include allowing Turkish Cypriot truck drivers to transport goods from the north. Previously only Greek Cypriots could provide such transport.
In addition, tourist buses and coaches, as well as taxis belonging to Turkish Cypriots, will be able to cross the Green Line dividing the island for the past 30 years.
Licences will be issued to those vehicles that meet minium road safety requirements.
The move is viewed as a pre-emptive strike by the Greek Cypriot leadership to avert a clash with Brussels which is seeking to open direct trade links with the north to help lift it out of economic isolation.
Cyprus joined the European Union on May 1 still a divided island, after Greek Cypriots rejected a UN reunification plan in a referendum the previous week, nullifying a large vote in favour among Turkish Cypriots.
The EU has been trying to honour a pledge to reward the Turkish Cypriots for their backing for the UN blueprint.
Brussels has already earmarked 259 million euros (320 million dollars) in economic aid, and is proposing ending an embargo on Turkish Cypriot goods -- allowing the north to export its produce to the EU under preferential terms.
Also part of the trade package is exempting Turkish Cypriots from registering or paying Value Added Tax (VAT) if they sell their goods directly to Greek Cypriot consumers.
They would remain exempt from paying tax if sales revenue does not exceed 9,000 Cypriot pounds (20,000 dollars) a year.
Furthermore, Greek Cypriot goods or EU imports making their way north will have a zero VAT rating for Turkish Cypriot consumers.
"The zero rating of VAT means that Turkish Cypriots can buy products from Greek Cypriots or imported goods without paying 15 percent VAT (the maximum rate in Cyprus)," Commerce Minister George Lillikas told a news conference here.
"This will help develop economic and trade ties between Greek and Turkish Cypriots which is our aim," he added.
Authorities say they will also make it easier for Turkish Cypriots wanting to export their goods to Europe via the southern ports of Larnaca and Limassol. Brussels would need to approve the proposals.
Earlier this month, the Greek Cypriot leadership announced it was ready to implement a reciprocal military pullback from the Green Line to help ease tensions.
It also proposed that double the number of checkpoints be opened along the UN-manned ceasefire line to allow an increased flow of people and goods.
The breakaway Turkish Republic of Northern Cyprus (TRNC) was proclaimed in 1983 on territory seized by the Turkish army in 1974, when Ankara invaded the island's northern third following a Greek Cypriot coup in Nicosia aimed at unification with Greece.
Ankara, which hopes to obtain in December a date to start accession negotiations with the EU, is pushing hard for Europe to end Turkish Cypriot isolation. Turkey -- the only state to recognize the TRNC -- has criticised the EU for not keeping its promise to Turkish Cypriots.