Supplementary written evidence submitted
by M. Pierre Mirel, Enlargement Directorate, European Commission
RELATIONS BETWEEN
THE EU AND
CYPRUS—UPDATE
1. Performance of the Green Line Regulation
and proposed amendments
The volume of trade crossing the line is increasing
(CYP 86,000 in November; CYP 110,000 in December), but the overall
performance is modest. Between 23 August 2004 (when the Green
Line Regulation became fully operational as regards trade) and
31 December 2004, goods worth approximately
475,000 crossed the line. Meanwhile the main products
are vegetables (38% in total; 50% of the December crossings) followed
by paper (16%) and furniture (10%).
Neither side has taken concrete measures to
improve the operation of the Green Line Regulation. However, the
opening of new crossing points is under discussion.
Taking into consideration the experience gained
since the Green Line Regulation entered into force, the Commission
proposed on 18 November 2004 a number of amendments in order to
further facilitate trade across the line. The proposed amendments
provide for
(1) a procedure which would allow certain
goods (mainly citrus fruit), which are subject to export refunds
or intervention measures and therefore currently excluded from
preferential treatment, to receive preferential treatment following
a decision by the relevant management committee under the common
agricultural policy;
(2) a specific procedure for allowing
movement of live animals and animal products (eg fish and honey)
across the green line;
(3) an increase of the value level for
travellers' allowances: cigarettes, alcohol and other goods (from
30 to
175).
The Commission proposal was discussed in the
Council working group. However, an agreement has not yet been
reached.
2. Aid and trade regulation: state of play
COREPER agreed in substance on the text of the
aid regulation, including entrusting the European Agency for Reconstruction
with the implementation of assistance. The regulation (as well
as entrusting EAR) has already received a positive vote in the
European Parliament.
However, there is a stalemate in the Council,
since the Dutch Presidency had maintained the coupling of the
aid and the trade regulations and as Cyprus remains fiercely opposed
to the direct trade regulation as proposed by the Commission.
The legal dispute has not yet been settled.
It is now up to the Luxembourg Presidency to
unblock these proposals and reach a satisfactory solution.
15 January 2005
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