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| MEPs Clarify Northern Cyprus's Trade Status |
by Lorys Charalambous, Tax-News.com, Cyprus
Wednesday, October 20, 2010
European Union trade with the northern part of Cyprus should be governed directly by EU single market and customs union rules, and not by the EU's rules for international trade, a European Parliament committee has concluded.
Possible trade with the northern part of Cyprus based on article 207 of the Lisbon Treaty on international trade would wrongly imply that it is not part of the EU, said the Legal Affairs Committee on Monday.
The Committee noted that the EU has always considered Cyprus to have joined
the EU as a whole, but upon accession by Cyprus in 2004, EU legislation was
"temporarily suspended" in the areas not under the effective control
of the government of the Republic of Cyprus.
The Legal Affairs Committee shares the opinion of the EU Parliament's legal
service that the northern territory of Cyprus is also fully part of EU customs
territory. MEPs reiterated that the Union should not seek to regulate its internal
arrangements for the movement of goods among member states on the basis of the
common commercial policy, as proposed in 2004 by the Commission, because this
would “imply that de facto the line separating the territory of Cyprus
would be tantamount to an external border of the Union.”
“We need to keep things simple. It is difficult to draft a regulation
on the basis of external action and trade policy because Cyprus as a whole is
already a member of the EU,” commented rapporteur Kurt Lechner.
MEPs approved with 18 votes in favour, 5 against and one abstention the
proposal of the rapporteur to adopt Protocol 10 of the Accession Treaty of Cyprus
to the EU as the correct legal basis of the regulation.
The EU Council
must now unanimously back any new proposal from the European Commission involving the lifting of the suspension of internal market and
customs rules in northern Cyprus, which despite being under the control
of Turkey is not recognized as Turkish territory by the EU. Needless to say, it is an impossibility that Cyprus will agree to such a thing, so the EP, as usual, has wasted its time and the taxpayers' money in promoting useless regulations.
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