Turkey To Sign Customs Union With New EU Member States

by Lorys Charalambous, Tax-News.com, Cyprus

15 June 2005

The European Union has approved an agreement to adapt its customs union with Turkey to include the ten new member states which acceded to the bloc in May 2004 - including Cyprus.

For Turkey, which is set to sign the protocol imminently, the proposition raises something of a dilemma; the signing of the protocol will possibly open the way for Turkey's EU membership talks in October 2005, but at the same time will mean de facto recognition of Cyprus.

Ankara is expected to make a declaration clarifying that the signing of the protocol does not constitute recognition of Cyprus and that “south Cyprus” does not represent all citizens on the island. Such a unilateral declaration is unlikely to be accepted by the European Commission or the Luxembourg presidency of the EU.

Speaking to the Cyprus Mail, commission sources explained that: “in the context of international agreements certain parties may want to make a declaration. The Commission considers it can only be unilateral, in a separate document, and without jeopardizing the agreement.”

Turkey's signature of the protocol also raises other questions such as Turkey's handing of the requirement to allow Cyprus-flagged ships to dock at its ports.

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