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12° Nicosia,
04 December, 2024
 

Green Line regulation boosts trade, but challenges remain

Cyprus Foreign Minister emphasizes reunification goals amid reports of trade restrictions at crossing points

Newsroom

The Green Line Regulation, which defines the legal framework for the movement of goods, people, and services between the government-controlled areas and the northern Turkish-occupied areas of Cyprus, remains a vital tool for the country’s reunification, Foreign Minister Constantinos Kombos emphasized during a parliamentary discussion on Tuesday. While affirming the government’s commitment to fully comply with the regulation, Kombos warned against any amendments, calling them "extremely dangerous" due to potential negative repercussions.

Trade under the Green Line Regulation has grown by 10% from 2022 to 2023, with figures by October suggesting this year could surpass last year’s results. Goods valued at €16 million have been transferred from the Turkish-occupied areas to government-controlled areas, while Greek Cypriot exports to the north amount to approximately €1.5 million.

While trade is actively encouraged, there have been reports that undermine the smooth flow of goods. During last week's Black Friday sales, many shoppers from the occupied areas took advantage of discounts in the government-controlled areas. However, when crossing back into the north, it was reported that "police" were waiting at checkpoints and confiscating commercial products worth over €200. If this is true, it raises questions about how to foster a spirit of cooperation and trade between the two communities. It also raises concerns about whether such incidents could dampen efforts to further boost commerce and stability across the island. If traders and consumers face these kinds of restrictions, it could undermine efforts to further boost commerce and stability across the island.

Kombos highlighted that the regulation, adopted by the EU in 2004 following Cyprus's accession, provides a legal framework for crossings of goods, people, and services across the island. He reiterated that the Republic of Cyprus remains fully aligned with the European Commission and seeks a balance between meeting obligations—such as combatting smuggling and ensuring public health—and using the regulation as a reunification tool.

The minister defended checks at crossing points, explaining that they fulfill Cyprus’s EU obligations and should not be viewed negatively. He also noted a consistent rise in the number of crossings, reflecting the regulation’s growing use.

Kombos acknowledged difficulties in financial transactions, which often lead to reliance on cash, and said efforts are underway to find a solution that respects EU law and banking obligations without undermining the Republic of Cyprus. He pointed to the Turkish ban on cooperation between Turkish and Cypriot banks as a major barrier and suggested lifting it as an effective solution.

With information from CNA

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Cyprus  |  trade  |  business

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