Direct Trade and Northern Cyprus

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 13:44

http://www.cyprusnewsreport.com/?q=node/2950





It says in this report that talks are planned for June.Is this still so,

Paul.

StGeorgeI


Joined: 27/08/2009
Posts: 973

Message Posted:
17/05/2010 14:02

I heard on the vine that the EU have given the ROC till the end of the year to reach a settlement or it will go to vote and they will vote yes to direct trade!



Interesting times...



G

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/05/2010 14:31

Over the years there has been many things said "on the vine".



Half of which was a load of nonsense and the other half not true.



As i have said many times..........Direct Trade Exists just now

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 14:46

St George,

I have also been told that.

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 14:47

Stubs,

Please elaborate,i must be missing something here,

Paul.

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 14:49

Direct trade actually came to fruition,briefly in 2004 but was then vetoed by Southern Cyprus,

Paul

StGeorgeI


Joined: 27/08/2009
Posts: 973

Message Posted:
17/05/2010 14:56

I didn't say it was gospel Stubs - just something I had heard. This isn't from the ex-pat vine, this is from a friend who works in the Government. Doesn't mean it's 100% fact though.



Also a bit confused by what you said "Direct Trade Exists just now"??



Cheers,

G

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/05/2010 15:00

Paul



What is there to elaborate??



There is trade between companies in the TRNC and other countries.



From experience i can tell you that there is companies from the UK, China, Bulgaria, South Africa and Japan just to name a few who trade directly with TRNC companies. Some of which are very big companies in these countries.



Saying there is no direct trade is an absolute myth



Couple of examples



Most Japanese imported cars are bought "direct" from Japan



Frozen foods bought "direct" from Iceland that is the shop and not the country :D

StGeorgeI


Joined: 27/08/2009
Posts: 973

Message Posted:
17/05/2010 15:08

But they are not brought direct into the TRNC are they - surely they go through Turkey first (That's the country not the animal )? Or am i missing something?



Cheers,

G

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 15:10

Stubs,

Thats just the tip of the iceberg.What about all the embargoes that exist such as Syria and Lebanon.Mabe no direct trade is a myth,but more,alot more direct trade would surely benefit the North as a whole,

Paul.

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 15:13

Stubs,

Why is it then that any oranges that come out of Northern Cyprus always have the Republic of Cyprus label placed on them.The North is unable to trade freely is the crux of this debate i think,

Paul.

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/05/2010 15:34

George



You make a good point although many goods are transported by road and are in transit via several different countries. Let me try and explain the difference



You could make a simliar comparison with the balearic islands where many products are delivered via mainland spain.



However just to avoid confusion just because a product itself does not go direct does not mean that it is not direct trade.



Direct trade involves companies in the TRNC dealing direct with companies in other countries. This happens now. Logistically it is not always possible to have the product also go direct. So do you think if this legislation is passed at the EU that the way that goods move logistically to the TRNC will suddenly change? Of course not!



The company i work for recently had some documents sent via a well known carrier from Malta to Dublin. These documents went via London to Dublin. So does that mean that Malta does not trade direct with Ireland?

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/05/2010 15:47

Paul



As i said there are already some big companies trade direct with companies in the TRNC.



As for the the oranges and the other goods. The difference is these goods including Hellim Cheese, Potatoes etc are produce of Cyprus and come under the green line regulation. As these goods are produced in Cyprus they can be sold direct using the above regulation. There is certain criteria which is required for movement of goods in the EU including certificates of origin even the EU has some crazy regulations (remember the one about bananas being the wrong shape???) These documents also have to be stamped by the Turkish Cypriot Chamber of Commerce to verify that the goods are the produce Cyprus. The Turkish Cypriot Chamber of Commerce would be able to give up to date guidelines on these regulations.



However the main difference in this instance is that the goods are produced in Cyprus.

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 18:36

Stubs,

Take you points, and they are all very valid.But you must agree that Northern Cyprus cannot trade freely in all aspects,and it would be better if the trade ban was lifted totally.This would end some of the logistical nightmatres that are currently taking place,

Paul.

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/05/2010 19:10

Paul



Much of the logistical nightmare will still exist until the volume of business increases. The population of northern Cyprus is what 350,000 or so? What products are not available in Northern Cyprus which would increase the volumes? Not much.



As for trading freely in all aspects, the government makes things so difficult to do any kind of international trading that if anyone was looking to have a base there to do it they will look elsewhere and that includes the South. The taxation laws there are horrific and even worse conditions are place upon you if you are foreign. Dont want to go off on a different tangent however people have huge expectations of what direct trade will bring when realistically it is in existance today. So I'm afraid nothing much will change.

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 19:19

Stubs,

I suppose the fact that the North doesnt have a manufacturing base doesnt help either.One embargoe,if lifted that would create income though would be the introduction of direct flights.But like you say lets not go off on tangents,

Paul.

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
17/05/2010 19:39

Paul



Your right there is very little manufactured in Cyprus and a lot of things are imported.



On direct flights I dont think that there are too many airlines queing up to start flying to Ercan. Many airlines already fly to Paphos or Larnaca and cant see any of them dropping those routes, which are busier, in favour of flying to Ercan.



I have been on numerous CTA flights over the years were there is a handful of people are on the flights from Ercan to UK or vice versa. The leg to and from Turkey is the busiest part on most flights so direct flights would not necessary make it a commercially viable route.



Finally on the direct trade issue some people think its going to be magic wand and everything will change but realistically nothing will change from what it is just now.

bakhyt


Joined: 20/10/2008
Posts: 32

Message Posted:
17/05/2010 21:54

Lifting the embargo will make a big diffrence which is way the south have gone to such pains to stop it , for a start the big tour operators will be able to add the north to its package deals , the south has a lot of outdated hotels , where as here they are building five star hotels like there is no tomorrow , it will also allow sporting events and teams in the north to participate in outside of the trnc.Visibility is the key word

newlad



Joined: 02/03/2008
Posts: 7819

Message Posted:
17/05/2010 22:23

It would seem to make perfect economic sense for embargoes to be lifted.There are still thousands of people who dont know that Northern Cyprus even exists,and see it as Turkey,or an area that you are not allowed to travel to.All the Greek Cypriot propaganda and brain washing that goes on certainly rubs off on a huge amount of people.If the North where to be opened up fully then,in turn the stigma that is attached to Northern Cyprus would be removed.Free to trade and easier travel options,would in my opinion put millions into the coffers of the T.R.N.C.God knows they need it,

Paul.