Protocol aims to boost trade ties with Turkey
A NEW protocol aims to increase exports and further boost trade and economic cooperation between Turkey and the TRNC.
The protocol was signed at a recent ceremony held at Merit Lefkoşa Hotel by Deputy Prime Minister and Economy and Energy Minister Erhan Arıklı and Turkey’s Trade Minister Mehmet Muş.
Under the agreement, the action plan to be implemented includes 29 activities that will contribute to the “development of the existing economic and commercial relations” between the two countries, including cooperation in various fields such as trade, free zones, industry, customs, health and human resources development.
Representatives of the two countries’ economic organisations, non-governmental organisations and technical delegations also took part in the signing ceremony, which was followed by a roundtable meeting.
Speaking before the signing ceremony, Mr Muş expressed his happiness to be in the TRNC. Underlining that Turkey is working hard to reflect the “brotherhood and cultural ties” between Turkey and the TRNC in commercial and economic relations, Mr Muş noted that the Turkish government’s aim is to “clear a path” for the social and economic development of the TRNC.
Turkey, the “regional base of many international companies with its population of 84 million” is the TRNC’s “gateway to the world” based on its “geographical location and large-scale business market” Mr Muş said.
He said that there are “many different areas of cooperation in the action plan” including improving the customs infrastructure of the TRNC, establishing a “product safety system in line with EU legislation”, fighting “fuel smuggling” and supporting the participation of Turkish Cypriots in international trade shows.
Mentioning that the action plan includes activities that will bring the two countries’ business worlds closer together and increase the export potential of TRNC companies, Mr Muş continued:
“In this context, we discussed
and are in agreement on issues such as preparing an export action plan, taking a more active role in the development of commercial relations of non-governmental organisations, supporting participation in fairs, integrating TRNC companies into digital platforms, providing services to companies in the TRNC by foreign traders and strengthening trade cooperation.”
Mr Muş, in cooperation
with Dr Arıklı, will “closely follow the implementation of the action plan” which he believes will bring a “new dynamism to trade relations”.
Turkey will continue to support the “more effective promotion of the TRNC” globally and will “continue to stand by the TRNC on many issues from infrastructure and superstructure projects to tourism and education”.
Dr Arıklı said that the protocol was signed to “reap the benefits of many issues we have been working on for a long time” and thanked those involved in striking the deal.
The protocol, which he said had been worked on for more than a year, has the “potential to change the destiny of the TRNC”.
“This agreement means hope for the TRNC,” he enthused.
He pointed out that although there were some sectors that “peaked” from time to time they were unable to create a “sustainable economic structure” and that island countries like the TRNC cannot have a “closed economy”.
Indicating that the TRNC meets most of its needs from other countries due to its scarce natural resources, Dr Arıklı said: “The most important factor for cheap and quality production is to provide cheap and high quality inputs.”
The current “protectionist foreign trade regime” in North Cyprus has created a “distorted economic order”, the Deputy PM complained, which “makes a few people rich but causes the state and society to remain weak and poor”.
“It is the general rule of modern economies that there will be no export-oriented growth with an ‘import-import’ policy,” he said.
The TRNC needs to become more economically competitive in order to “stand on its own two feet” and for continuous and stable growth and development.
“If we want to increase TRNC exports, we must first increase its international competitiveness,” Dr Arıklı said.
“In order to increase international competitiveness we have to provide a competitive advantage in all other chains such as production, distribution and marketing.”
He commented that with a decrease in costs, companies’ competitiveness will increase and there will be a rise in exports of goods and services to Turkey and other countries.
Dr Arıklı thanked Mr Muş and his technical delegation, “motherland Turkey”, Turkish President Recep Tayyip Erdoğan and Turkish Vice President Fuat Oktay for their support.