Cooperation between the Turkish Cypriot Chamber of Commerce and the Government is impeding the implementation of the Green Line Regulation. Relations with EU are at breaking point. The authority of the Chamber of Commerce is being questioned.
Cyprus EU Association at its press statement stated that the Government and the Turkish Cypriot Chamber of Commerce have deliberately impeded the locally produced potatoes to be exported to markets inaccessible from Famagusta port but accessible via the port of Limassol and further more prevented the producers to sell their products at 310 Euro per tone cash payment on delivery and instead be contented with 200 Euro per tone to be paid in an unspecified period of time. In the same press statement it was reiterated that the same perception caused 7,500 tones out of 8,000 tones of lemons not to be harvested and left to rot at orchards. Full text of the statement is as follows:
Cooperation between the Turkish Cypriot Chamber of Commerce and the Government is impeding the implementation of the Green Line Regulation.
Relations with EU are at breaking point. The authority of the Chamber of Commerce is being questioned.
Despite the political expressions that “EU should hold to its promises and isolations be lifted” Turkish Cypriot products are impeded from reaching the markets not accessible from Famagusta port, by Turkish & TRNC policies.
For the past 40 years, Republic of Cyprus has implemented economic embargo on the Turkish Cypriot Community under the pretext and anxiety of that they might upgrade their economy. On the other hand the low volume of the trade going on due to the Green Line Regulation is not allowed to attain its full potential. The aim of the Regulation was to neutralize the effects of the judgement of the ECJ (European Court of Justice). ECJ, on 5 July 1994 ruled that, no product of northern Cyprus could enter the EU markets with accompanying documents issued and stamped by the TRNC authorities. Documents were then stamped by the authorities in north Cyprus with the expectation of political recognition of TRNC.
The Turkish policy of ”lifting of isolations” is still used in pursuit of political recognition of TRNC and consequently obstructing any exports via Limassol port in line with the Green Line Regulation. Turkish Cypriot Chamber of Commerce and the Government have recently successfully, blocked the export of citrus fruit via Limassol port, which was impossible to reach EU markets via Famagusta port, at the expense of 7,500 tones of lemons been left to rot at orchards.
During the past two years, the Government in north Cyprus has been calling the EU “to lift the isolations” so that citrus fruit and potato crops can be exported directly to EU markets in line with the Green Line Regulation. Consequently, the EU Commission had sent experts on several times to analyse the orchards, the soil and the seeds used. The first ever “all clear” reports were issued for this harvest season. This process took two years at a cost of tens of thousands of EUROs and further more, the potatoes produced in north Cyprus were arranged to be transferred to Limassol port by Turkish Cypriot owned trucks without any hindrance. In addition, TRNC Council of Ministers at its meeting of 7 June 2006, approved 25 American Dollars export subsidy per tone with condition that “this decision not to be published in the official gazette” and provided that potato was “exported” to South Cyprus.
Businesspersons, in line with these developments, exchanged contracts with governmental Agricultural Products Institute of TRNC (TÜK) who is keeping the harvest in their warehouses and had
received orders from EU countries like Norway, Greece and England. Meanwhile, applications for the “Accompanying Documents” were made to the Turkish Cypriot Chamber of Commerce for the issue of the necessary documents.
However; the president of the Chamber of Commerce claimed that the potato exports was to be hindered by the Greek Cypriot truck drivers and the certificate of origin that he expressed to have been issued was proved to be untrue by a notary public. Meanwhile a truck full of potatoes was prevented from leaving the TUK warehouse to cross to south Cyprus, by some people among whom were some members of the Executive Board of the Chamber of Commerce.
At this point the TRNC government claimed, “They were not against the sale of the potatoes to south Cyprus but were against the exportation via Limassol port”.
At one hand the Government approved “export subsidy for potatoes exported to South Cyprus” on the other hand Government and the Chamber of Commerce pretending ignorance of the fact that, that special type of potatoes were produced for the European markets only and it could only be exported via Limassol port.
TRNC authorities, with full knowledge that “lifting of the isolations” is an unattainable goal and been unable to suggest any new initiatives, on the other hand having taken the “export subsidy” decision, have blocked the Green Line Regulation on the 23rd of June 2006 by saying that; “that is what Turkey is demanding and is ready to compensate our losses due to the rotting citrus fruits at orchards and the potatoes at the warehouses”. By doing so, the TRNC Government is consolidating the opinion that “in fact, Turkish Cypriot side is not really interested in trade opportunities but are in reality, pursuing the political recognition of TRNC”, under the close monitoring of the foreign missions and the EU representatives in Cyprus.
On this matter, a real chaos and uncertainty is prevailing. Turkish Cypriot farmers, taxpayers and overall the Turkish Cypriot economy is paying the price of this chaos. If potatoes were allowed to be exported to Europe directly, the farmers would have earned 310 Euros per ton but potatoes are rotting at the TUK warehouses and the farmers will be paid 200 Euros per tone in an unspecified period of time to come. No one is now sympathetic towards the TRNC Government’s call of: “EU should hold to its promises and isolation should be lifted”. Following Turkish Cypriot Chamber of Commerce’s latest attitudes, the authority invested in the Chamber by the EU Commission is now under review.
Ali Erel,
President.
