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The Turkish Cypriot Chamber of Commerce, or KTTO, which has intensified lobbying efforts regarding direct trade with the EU, is riding on hopes that the European Parliament’s involvement in the decision-making process will help draw focus to the substance instead of the political matters of the Cyprus dispute.


The Turkish Cypriot NGO is lobbying Brussels to implement promising regulation that would allow northern Cyprus to trade directly with EU members. The European Parliament’s say regarding trade issues was strengthened after the Lisbon Treaty went into effect in December 2009.

No member of the international community recognizes northern Cyprus except Turkey, but because the KTTO was founded in 1958, before the establishment of the Republic of Cyprus, it has been designated by the EU Commission as the body responsible for certifying that goods originate from northern Cyprus. If the regulation passes, goods from northern Cyprus would be eligible for free circulation within the community customs territory.

The Lisbon Treaty introduces qualified votes, instead of unanimous decisions on certain issues, including trade. Before Lisbon, the direct trade proposal had been stuck at the EU Council due to the Greek Cypriot blockade.

The KTTO, which has intensified efforts and has drafted a position document regarding the direct trade regulation, is riding on the hopes that the European Parliament’s involvement in decision-making procedures will help draw focus to the substance instead of its political matters caused by the Cyprus dispute.

"The adoption of the direct trade proposal will not end the sanctions imposed on northern Cyprus but rather will promote trade between northern Cyprus and EU member states, which will increase the competitiveness of Turkish Cypriot products and thus help bridge the economic gap with Greek Cyprus," Kemal Baykallı, international relations and communication director of the KTTO, told the Hürriyet Daily News & Economic Review on Thursday.

There have been concerns that the provision for direct trade could result in the political upgrade of northern Cyprus, thus discouraging Turkish Cypriots from seeking a political settlement.

Baykallı said the claims were unfounded, adding that direct trade regulations would actually contribute to the reunification of Cyprus.

"The easing of the economic isolation on Turkish Cypriots through direct trade does not aim to and will not automatically bring any further political recognition to northern Cyprus," he said.

"It is a fact that the wider the economic gap between the two sides and the longer it lasts, the higher the burden of a solution will be, and this will serve to de-motivate the Greek Cypriots instead," he said. "A more developed Turkish Cypriot economy will convince the Turkish Cypriots about the benefits of a solution, and will give the Greek Cypriots an incentive to reach a solution."

The KTTO is now in constant contact with European parliamentarians and has based its campaign on the slogans, "Trade is what brought the EU together;" "Trade is what will bring Turkish Cypriots and the EU together;" "Trade is what will bring Cyprus together. Cyprus needs the Direct Trade Regulation NOW!"

Which parliament committee?

With the shift of the direct trade regulation to the European Parliament's agenda, the current dispute with Greek Cypriots centers on which parliamentary committee should deal with the proposal, Mualla Çıraklı, the Brussels representative of the KTTO, told the Daily News.

"We suggest the direct trade should be taken up by the European Parliament's international trade committee, while the Greek Cypriots argue it should be discussed at either the legal affairs committee or the internal market committee. The Greek Cypriots are attempting to draw the issue onto the political platform," she said.

If direct trade is considered by the European Parliament as a matter of legal affairs or the internal market, Greek Cypriots will have the right to veto the regulation based on their agreement with the EU, which considers the north as "an area not under the control of Republic of Cyprus."

The issue is now at the European Parliament's conference of presidents, which will decide which parliamentary committee should take up the regulation.

"There is a long process ahead. The committee will be defined and that committee will appoint a special rapporteur. We have restricted means and what we are trying to do is lobby at the European Parliament and update the parliamentarians on the direct trade issue," said Çıraklı.

About direct trade

Turkish Cypriots, who overwhelmingly voted in favor of a United Nations-backed peace plan, the Annan Plan, in a 2004 referendum, were left out in the cold when the majority of Greek Cypriots voted the reunification proposal down. Despite their rejection, Greek Cypriots joined the EU one week after the vote. The EU now considers Cyprus as an EU territory but whose legislation is not valid in the north due to the division of the island.

In an effort to end Turkish Cypriot isolation, however, the EU offered two proposals. First, it adopted the Green Line legislation aimed at facilitating trade between the northern and southern parts of Cyprus.

Later, the EU Commission drafted a second, more comprehensive package comprised of financial assistance for Turkish Cypriots and direct preferential access for Turkish Cypriot goods to EU territory. Because of the Greek Cypriot blockade, however, the package had to be decoupled. A 259 million-euro financial aid regulation was adopted in 2006, yet no progress has been made on the direct trade promise.

Having remained untouched since 2004 due to the Greek Cypriot veto in the EU Council despite the efforts of many term presidencies, northern Cyprus has high hopes that it may finally secure the right to direct trade thanks to the Lisbon Treaty.

http://www.hurriyetdailynews.com/n.php? ... 2010-05-13