Cypriot Foreign Minister Optimistic Regarding North-South Trade Deal

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

07 February 2005

Speaking as the Head of the European Commission's Cyprus team, Leopold Maurer commenced his visit to Cyprus last week, Cypriot Foreign Minister, George Iacovu expressed optimism that a resolution will soon be reached regarding the Green Line regulation, which is designed to foster trade between Northern and Southern Cyprus.

Discussions on the matter so far have been stalled by the insistence of the Turkish Cypriot authorities on allowing direct trade between Northern Cyprus and the EU, and the Greek Cypriot government's equally vehement insistence that this should not be permitted.

However, Mr Iacovou suggested that:

"The position of the two sides, the government and the Commission, can be bridged, and I believe with Maurer's presence, these views will converge. So I am optimistic that [the] Regulation will be improved and within a month, a new and improved regulation will be presented to the Council, which will very much serve the interests of Turkish Cypriots."

He went on to add that:

"With the improvement of the Green Line regulation, essentially Turkish Cypriots can export their products to the free areas and from there anywhere else."

A key feature of the revised regulation will be the exemption of northern goods from VAT in the south while on their way to export.

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