12 February 2009 KTTO delivered its recommendations to Commissioner Olli Rehn

Direct Trade should start; Green Line and Financial Aid Regulations

should be improved

The Turkish Cypriot Chamber of Commerce conveyed its recommendations regarding the Direct Trade, Financial Aid and Green Line Regulations to Commissioner for Enlargement Olli Rehn in a letter prior to the Commissioner’s visit to Cyprus.

Do not delay Direct Trade

Pointing out to the three Regulations proposed by the European Commission to improve the economy of North Cyprus and to prepare the Turkish Cypriots for the EU, KTTO highlighted the fact that the efficiency of the Green Line and Financial Aid Regulations, which are currently in force, is substantially reduced without the Direct Trade Regulation which has still not been adopted by the European Council since 2004. KTTO stressed that the delay in the adoption of the Direct Trade Regulation was slowing down the development of the Turkish Cypriot economy.

Concrete recommendations for the development of the Green Line Regulation (GLR)
KTTO proposed the expansion of the Green Line Regulation to allow sale of goods originating from Customs Union countries to South Cyprus over the Green Line. Currently the Regulation only allows the trade of goods produced in North Cyprus.

Another recommendation put forward by KTTO concerned animal products. KTTO proposed that the approach adopted by the EU to enable the trade of fresh fish under the GLR is extended to all animal products which comply with the EU standards. An amendment brought to the GLR last year had made it possible for fresh fish to be traded from the North to the South upon inspection by the EU’s phytosanitary experts.

KTTO’s letter also called for steps taken towards the facilitation of border-crossings of commercial vehicles in the same manner as they are done in the case of salon vehicles. KTTO believes this will greatly increase the intra-island trade.

Furthermore, KTTO proposed new arrangements in the GLR to enable crossings and trade via the sea. Currently crossings and trade are possible only via the land gates. If this is achieved, crossing points will be expanded to cover ports as well. This will also enable the crossing and trade of boats and vessels produced in the North to the South.



Higher financial support for technical equipment and technological development
KTTO conveyed its support and content to the projects introduced under the implementation of the Financial Aid Regulation; however, indicated that the projects needed to focus more on the tehcnical and techological development of the SMEs in order for the Financial Aid Regulation to bring sustainable long-term results.
SMEs should benefit from EU projects
Another recommendation put forward to Commissioner Rehn by KTTO said the Turkish Cypriot SMEs’ participation in EU projects should not be restricted only to those under DG Enlargement but should be equally extended to various projects in other relevant Directorates.