31 Special rules for the Cyprus Green
Line
| (26166)
15147/04
COM(04) 751
| Draft Council Regulation amending Regulation (EC) No. 866/2004 on a regime under Article 2 of Protocol 10 of the Act of Accession
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| Legal base | Article 2 of Protocol 10 and Article 6 of Protocol 3 of the Act of Accession; unanimity
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| Document originated | 18 November 2004
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| Deposited in Parliament | 30 November 2004
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EM of 10 December 2004
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| Previous Committee Report | None; but see (25450) 7174/04: HC 42-xvi (2003-04), para 8 (31 March 2004); and (25640) 8208/04: HC 42-xx (2003-04), para 21 (18 May 2004)
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| To be discussed in Council | 25 January 2005 GAERC
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
31.1 Pending a settlement of the Cyprus problem, Article 1 of
Protocol 10 of the Act of Accession provides that the application
of the EU's acquis will be suspended in those areas in which the
Government of the Republic of Cyprus does not exercise effective
control — that is, the northern part of the island. Article
2 of Protocol 10 states that the Council should define the terms
under which the provisions of EU law should apply to the line
dividing the island (the Green Line).
31.2 Protocol 3 of the Act of Accession puts in place
special arrangements for the Sovereign Base Areas (SBAs).
31.3 In March 2004, the Commission drafted a Regulation
setting out special rules concerning persons, goods and services
crossing the Green Line. This also covered the boundary between
the northern part of Cyprus and the Eastern Sovereign Base Area
(ESBA). We cleared the draft Regulation on 31 March 2004.
31.4 On the 24 April 2004, referendums on the UN
Settlement Plan for Cyprus, the Greek Cypriot community rejected
the Plan, while the Turkish Cypriot community voted in favour.
It was therefore necessary to put a revised Regulation in place
before 1 May 2004 (when Cyprus and the other nine Accession States
joined the Union) reflecting the decision of the 26 April General
Affairs and External Relations Council (GAERC) that post-accession
arrangements should take "due account of the Council's desire
to send a signal of encouragement to the Turkish Cypriot community
that its future rests in a united Cyprus within the European Union".
A revised Green Line Regulation was agreed on 29 April. Although
it was agreed prior to scrutiny, we recognised the unique and
compelling nature of the circumstances and cleared the document
on 18 May 2004.
The revised Regulation
31.5 The Regulation (Regulation (EC) No. 866/04)
covered, among other things, trade, movement of people, Customs,
food safety, taxation and travel facilities. It sought to balance
a clear legal framework facilitating trade and other links between
the two parts of the island and the safeguarding of public and
animal health within the single market. Compared with the first
draft of the Regulation, it significantly extended the range of
products that can be traded across the Green Line. With the exception
of animals and animal products (on food safety grounds), all goods
wholly produced in the north or substantially manufactured there
can cross, as long as they meet EU requirements. The revised
Regulation gave a stronger role for the Commission, which:
- became responsible for authorising
bodies able to certify the origin of goods in the northern part
of Cyprus, in agreement with the Government of the Republic of
Cyprus; and
- acquired the power to change the crossing points
between the Republic of Cyprus and the north of the island and
to change the requirements that apply to the goods crossing, again
with the agreement of the Republic of Cyprus (rather than at the
request of the Republic of Cyprus, as previously required).
31.6 The Minister for Europe (Mr Denis MacShane)
said that the revised Green Line Regulation was in line with
the Government's objective that the Turkish Cypriot community
should not be punished by the Greek Cypriot rejection of the UN
Plan, and that accession by a divided island on 1 May should not
exacerbate the division of the island. He also judged that the
arrangements covering the Green Line would be sufficient to protect
the security of the EU, "including by preventing illegal
immigration and by regulating the flow of goods into the single
market".
The present draft Regulation
31.7 The Minister summarises the present draft Regulation
as follows in his Explanatory Memorandum of 10 December 2004:
"In consideration of the experience
gained since this Regulation entered into force the Commission
proposes to relax a number of rules in order to further facilitate
commerce in certain goods. The proposed amendment provides for
a procedure which would allow certain goods, which are subject
to export refunds or intervention measures and therefore currently
excluded from the tariff-free regime set up in the Line Regulation,
to receive privileged treatment subject to a decision by the relevant
management committee under the common agricultural policy. Secondly,
the proposed amendment provides for a specific procedure for lifting
the prohibition on the movement of live animals and animal products
across the green line on a case by case basis subject to the views
of the standing committee of [sic] Food Chain and Animal Health.
Thirdly, the proposed amendment increases the value and quantitative
levels for traveller's allowances.
"The proposed amendments aim to further
facilitate trade across the green line and to contribute to the
integration of the island, while maintaining EU standards of public
and animal health and consumer confidence, and without disrupting
the proper functioning of EU rules and policies within the single
market."
The Government's view
31.8 The Minister says:
"The Government considers that the current
Green Line Regulation is sufficient to protect the security of
the EU, including by preventing illegal immigration and by regulating
the flow of goods into the single market. But the Government
remains strongly committed to ending the isolation of the Turkish
Cypriot community. In view of the limited trade facilitated so
far by the Green Line Regulation, the Government supports further
proposals to facilitate trade across the Green Line whilst maintaining
EU standards of public and animal health and consumer confidence
and without disrupting the proper functioning of EU rules and
policies within the single market. Increased trade between north
and south will contribute to the integration of the island and
reducing the disparity in economic activity between north and
south."
31.9 He adds that:
"The amendment to this Council Regulation
does not have significant direct financial implications for UK
public expenditure or the EC budget. The current regulation already
imposes additional monitoring requirements on the Sovereign Base
Areas Administration, but the Government considers that this is
consistent with their other activities."
Conclusion
31.10 We have no questions for the Minister and
clear the document. Given the close interest taken by the House
in developments in Cyprus, we considered a short Report appropriate.
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