Cyprus-Forum.com

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By Simon Bahceli

PRESIDENT Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat yesterday lent their joint support to a business initiative aimed at bringing the economies of the island closer together.

The project, the brainchild of the Turkish and Greek Cypriot Chambers of Commerce and sponsored by the UNDP, aims at building stronger economic links between the two communities.

“The project aims at reinforcing, fostering and nurturing the economic interdependence between the two communities and contributing to efforts of economic integration,” head of the Cyprus Chambers of Commerce and Industry (KEVE) Manthos Mavrommatis told businessmen gathered at a ceremony to mark the start of the project.

Mavrommatis said he was confident trade would grow between the communities, and pointed to a growing level of business since the crossing points between the two sides opened in 2003.

Turkish Cypriot businessmen agree that greater levels of trade are needed to bring the north of the island into line with the south, which joined the EU in 2004.

“Solution of this long-lasting problem will bring two compatible and competitive economies together following a transition period and will generate the economic potential of the island as a whole,” head of the Turkish Cypriot Chamber of Commerce said.

The two leaders, in giving their support to the venture, told businessmen they believed negotiations for a settlement of the Cyprus problem were largely on track.

“Building confidence is based on the agreement; the agreement is based on confidence. It may seem that we are faced with a dilemma, but Demetris and I are determined to overcome it,” Talat said.

“No one knows better than the business community the opportunities lost because of unnatural and unnecessary restrictions to movement and to personal opportunities,'' Christofias added.

For two Cypriot community leaders to attend such a ceremony and give their joint backing to a cause is unprecedented in modern Cypriot history.

The ceremony at the Goethe Institute in the UN-controlled buffer zone ended with the two Chamber heads and the two leaders signing an agreement to start the project, prompting one member of the Turkish Cypriot Chamber to say, “Let’s hope we see a similar signing in the near future”.

Copyright © Cyprus Mail 2009

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[Tim Drayton]

The biggest barrier to trade across the Green Line is, in my experience, the fact that an invoice raised in the RoC does not count for tax and VAT purposes in the north, and vice versa. Until somebody addresses this fundamental issue, talk about increasing trade volumes will remain just that.

[Sotos]

TCs can register their company with RoC and that problem is solved. It will make other things easier also.

[Tim Drayton]

TCs can register their company with RoC and that problem is solved. It will make other things easier also.

What about somebody like myself who is registered as a self-employed person in the RoC and has the potential to market services to the north?

[YFred]

TCs can register their company with RoC and that problem is solved. It will make other things easier also.

Whats wrong with each one recognising the others bit of bloody sodding paper? is that too much to ask?

[Tim Drayton]

TCs can register their company with RoC and that problem is solved. It will make other things easier also.

Whats wrong with each one recognising the others bit of bloody sodding paper? is that too much to ask?

It is not as simple as just recognising bits of paper. If, for example, I work for a client in the north I am supposed to issue a VAT invoice. In the normal course of things, this would for the client in the north be an input which he/she should be able to offset against his/her own VAT liabilities, or even have it refunded. For this to work, the money would have to flow from one VAT system to the other and there is no mechanism to enable this. In my opinion, until such basic issues are addressed, bigwigs will achieve nothing by attending junkets and speaking earnestly of their desire to see an increase in trade across the Green Line.

[YFred]

TCs can register their company with RoC and that problem is solved. It will make other things easier also.

Whats wrong with each one recognising the others bit of bloody sodding paper? is that too much to ask?

It is not as simple as just recognising bits of paper. If, for example, I work for a client in the north I am supposed to issue a VAT invoice. In the normal course of things, this would for the client in the north be an input which he/she should be able to offset against his/her own VAT liabilities, or even have it refunded. For this to work, the money would have to flow from one VAT system to the other and there is no mechanism to enable this. In my opinion, until such basic issues are addressed, bigwigs will achieve nothing by attending junkets and speaking earnestly of their desire to see an increase in trade across the Green Line.

Isn't that the first stage of the proceedings, followed by the method of making it work. If bankers can do it, how difficult can it be?

[halil]

Talat and Christofias gave support to a joint project by Turkish Cypriot and Greek Cypriot businessmen.

The Turkish Cypriot Chamber of Commerce and the Greek Cypriot Chamber of Commerce and Industry put their signatures under an interdependence project in the economic and commercial fields.

At a joint event, the two chambers expressed their support to the Cyprus peace talks and underlined the need to establish economic and commercial co-operation between the two sides to contribute to reunification.




A courageous step was taken by the Turkish Cypriot Chamber of Commerce and the Greek Cypriot Chamber of Commerce and Industry, in an effort to contribute to the Cyprus peace process and help to establish a common peaceful future.

The Heads of the two chambers put their signatures under a project funded by the United Nations Development Programme which envisages the establishment of economic interdependence between the two sides in Cyprus, thus helping the achievement of reconciliation on the island through economic and commercial co-operation.

The agreement was signed at a special event at the Goethe Institute in the UN-controlled buffer zone last night.

The project is expected to contribute to the reunification of the island by enhancing economic interdependence island-wide and by encouraging co-operation between Turkish Cypriot and Greek Cypriot business partners.

A joint statement issued by the two chambers said `the further we delay the solution, the harder it will be to realize the goal of establishing a common future for Cypriots`.

Urging Talat and Christofias to continue comprehensive negotiations in full determination, the statement expressed the view that economic convergence and sustainable economic development are essential ingredients of a lasting political settlement in Cyprus.

The Chambers also stressed that doing business together is a win-win situation for both sides of the island.

The President added that such co-operation will help dissolving the existing differences between the two sides and prevailing the possible weak points of a settlement.

Pointing to increased globalization in today’s world and the global financial crisis, he stressed that only a united Cyprus can take its rightful place in today’s global world order.

On the negotiation process, Talat said both Christofias and he were strongly committed to overcome the differences although there have been some differing understandings between the two sides on various issues.

Talat added that they do not have the luxury of delaying the solution of the Cyprus problem.

Also speaking at the event, Mr Christofias reminded that both sides have confirmed their desire towards the establishment of a federal Cyprus on a bi-zonal, bi-communal basis with political equality and single sovereignty, as earlier envisaged by the UN resolutions.

Pointing out that a new source of dynamism was created with the re-launch of the talks, Mr Christofias said he was hopeful that the two sides would overcome their differences by maintaining good will.