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Relations with the northern part of Cyprus
The purpose of this communication is to put forward measures promoting economic development in the northern part of Cyprus and bringing it closer to the European Union.
Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions of 3 June 2003, "Ways of promoting economic development in the northern part of Cyprus and bringing it closer to the Union" [COM (2003) 325 final – Not published in the Official Journal].
In the absence of an overall settlement to the de facto partition of Cyprus, this communication proposes measures to promote the economy of the northern section of the island and bring it closer to the Union. Two types of measure are identified: financial assistance and trade.
In 2003, EUR 9 million in financial aid to promote economic development is to go to the following projects:
- infrastructure projects in large towns of the northern part of the island;
- grant aid to SMEs;
- preparatory studies for integration of the northern section into the Union once a political solution to the partition of the island has been found;
In 2003 the Commission will step up its information work to bring Northern Cyprus closer to the Union; EUR 3 million will be allocated to the following activities:
- organising seminars on the Community acquis for citizens of Northern Cyprus;
- organising visits by Turkish Cypriot citizens to EU institutions;
- consulting Cypriot authorities to find out how to encourage participation by citizens of the northern section in Community programmes;
- cooperation with Member States;
- support for civil society and social partners of the northern section;
- continuation of the translation of the Community acquis into Turkish.
The communication proposes adoption of a system enabling products from Northern Cyprus to be exported under a preferential tariff system pursuant to the Association Agreement signed between Cyprus and the Union. Since 1994, non-acceptance of certificates issued by the Turkish Republic of Northern Cyprus has prevented exports from this part of the island from benefiting from the preferential customs treatment granted to the rest of Cyprus under the Association Agreement. Under the new system, the Cypriot Chamber of Commerce will be responsible for issuing certificates for the movement of goods produced or obtained in the northern part of the island.