38 Special rules for the Cyprus Green
Line
| (26730)
11274/05
COM(05) 320
| Commission Communication: "Report on the implementation of Council Regulations (EC) 866/2004 of 29 April 2004 and the situation resulting from its application"
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| Legal base | — |
| Document originated | 14 July 2005
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| Deposited in Parliament | 21 July 2005
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EM of 1 September 2005
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| Previous Committee Report | None; but see (25460) 7174/04: HC 42-xvi (2003-04), para 8 (31 March 2004); (25640) 8208/04: HC 42-xx (2003-04), para 21 (18 May 2004) and (26166) 15147/04: HC 38-iii (2004-05), para 31 (12 January 2005)
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| Discussed in Council | To be determined
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
38.1 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). Protocol 3 of the
Act of Accession puts in place special arrangements for the Sovereign
Base Areas (SBAs).
38.2 In March 2004, the Commission drafted a Regulation
setting out special rules concerning persons, goods and services
crossing the Green Line. To ensure its effectiveness, this also
covered the boundary between the northern part of Cyprus and the
Eastern Sovereign Base Area (ESBA). The previous Committee cleared
the draft Green Line Regulation (GLR) on 31 March 2004. But while
the Turkish Cypriots voted in favour of the UN Settlement Plan
for Cyprus in the 24 April referendums, the Greek Cypriots rejected
it. 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 determination 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 Regulation was agreed
on 29 April and cleared by the previous Committee on 18 May 2004.
The revised Regulation covers, among other things, trade, movement
of people, Customs, food safety, taxation and travel facilities.
It seeks 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 extends
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 may cross, as long as they meet EU requirements.
38.3 There was another revision, (cleared by the
previous Committee in January 2005) which made the Commission
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 gave it 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).
The Commission Communication
38.4 The Commission is obliged to report to the Council
annually on the effectiveness of implementation of the Regulation,
the numbers of persons and goods crossing the Line, obstacles
to trade and potential future amendments to further facilitate
trade across the Line. This first report covers 1 May 2004 to
30 April 2005 and says that the GLR is fully operational, providing
a stable legal framework for the free movement of people across
the Line and strengthening the links between the two communities.
But illegal immigration is still a cause for concern; the volume
and value of goods crossing the line continues to be limited by
various obstacles to free movement (e.g. the Republic of Cyprus
does not accept the roadworthiness certificates of commercial
vehicles from the north, so they cannot circulate freely in the
south); and there was no reported trade between the northern part
of Cyprus and other EU Members States via the Line. The opening
of two further crossing points would have a positive effect (one,
at Zodhia, was agreed on 31 August). Preparations are under way
to include, subject to Community approval and controls, certain
citrus fruits, honey and fish.
The Government's view
38.5 In his Explanatory Memorandum of 1 September,
the Minister for Trade, Investment and Foreign Affairs in the
Foreign and Commonwealth Office (Mr Ian Pearson) says:
"The government agrees that the Green Line
Regulation provides a stable legal framework for the movement
of people and goods across the Green Line and that illegal immigration
remains an area of concern. However, we also remain strongly committed
to ending the isolation of the Turkish Cypriot community and note
the limited trade facilitated so far by the Regulation. We would
therefore encourage further amendments to the Regulations that
further facilitate trade between the two communities. We do not,
however, believe that the Regulation alone is enough to end the
economic isolation of the Turkish Cypriots. We will therefore
continue to work with the European Commission and member states
to agree alternatives to end the Turkish Cypriots' isolation,
through financial assistance and direct trade between the Turkish
Cypriots and the rest of the EU.
"The government sought assurance from the
EU that EU standards would not be compromised by the accession
of 10 new member states in 2004, including Cyprus. UK Ministers
will continue to insist that the appropriate EU standards must
be met for any goods crossing from north Cyprus into the single
market, including for new products that may be traded if the Commission
proposals to extend the scope of the GLR come to fruition."
38.6 The reference at the end of the Minister's first
paragraph is to two separate draft Regulations, cleared by the
previous Committee: one to provide €259 million of aid
to the north, and the second to create the means for preferential
direct trade between the north and EU Member States. While
there is technical agreement on the text of the aid Regulation,
the question of its linkage to the trade Regulation remains unresolved,
attempts at a compromise having so far been unproductive.
Conclusion
38.7 We have no questions to put to 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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