Northern Cyprus turns to UN to solve trade stalemate

By Andrew Beatty

Date: 23/02/06

Frustrated with the deadlock in EU talks over direct trade and financial support to Turkish Cyprus, the authorities of the self-styled Turkish Republic of Northern Cyprus are once again turning to the United Nations to break the stalemate.

Turkish Cypriots are renewing efforts for the United Nations to adopt a 2004 report by Secretary- General Kofi Annan, which calls on members and international organisations to lift barriers that isolate Turkish Cyprus.

Turkish Cypriots hope the adoption of the report will put pressure on the EU to allow direct trade with the North.

The report was rejected by the Security Council after Russian and Greek Cypriot objections.

Since Cyprus joined the EU in 2004 the EU has struggled to find a consensus on opening direct trade and delivering financial assistance.

The Greek Cypriot authorities say that opening direct trade would constitute de facto recognition.

So far the North has lost an estimated EUR 120 million in EU aid earmarked for 2005-06.

According to Northern Cyprus's representative to the EU, Yalcin Vehit, his government is working to get the Annan Report adopted after positive comments from Russian President Vladimir Putin.

But Vladimir Chizhov, Russia's ambassador to the EU and former special envoy to Cyprus, said that returning to the 2004 report would not be useful.

Now pressure is once again building to improve ties with the self- styled republic.

Statements issued this week indicated Washington might be ready to begin direct trade as a means of off-setting the disparities that exist between the north and south of the island.

Turkish Cyprus, which makes up around 36% of the island, has a gross domestic product per person that is only one-third of Greek Cyprus's.

Talks are expected between Annan and Greek Cypriot President Tassos Papadopoulos next week in Paris, in an effort to restart stalled peace talks.

Greek Cypriots rejected Annan's previous plan for a bi-communal, bi-zonal federation in a referendum on 24 April 2004.

Since the accession of the Greek side to the Union on 1 May 2004, Northern Cyprus has faced legal uncertainty - part of the EU in principle, but with EU laws suspended.

Cyprus has been divided since 1974.

Article reports that Turkish Cypriots were renewing efforts for the United Nations to adopt a 2004 report by Secretary- General Kofi Annan, which called on members and international organisations to lift barriers that isolated the self-styled Turkish Republic of Northern Cyprus. The report had been rejected by the Security Council after Russian and Greek Cypriot objections.