Turkey/Cyprus trade would benefit from a reunited Cyprus
As the leaders of Cyprus’s two communities re-commence their complex negotiations for a settlement to end the island’s longstanding division, a group of economists have calculated that increased trade between Cyprus and Turkey would be one of the main benefits of reunification.
Turkey would increase its exports of goods to Cyprus while Cyprus would profit from increased business with Turkey in services. Turkey would also benefit from a reduction in its current outlays on property litigation and military expenditure, the economists – Özlem Oğuz Çilsal, Praxoula Antoniadou Kyriacou, and Fiona Mullen – have predicted in a paper published by the PRIO (Peace Research Institute Oslo) Cyprus Centre. Opening Turkey’s ports to traffic with the southern part of Cyprus would bring extra income to Turkey’s transport sector.
The largest opportunity, these economists say, would come from opening up Turkey’s potential as an energy hub. As a direct by-product of the Cyprus problem, Turkey has been unable to open the energy chapter in its EU accession negotiations, creating uncertainty that deters foreign investors. A Cyprus settlement would open up prospects of vastly increased foreign interest in investing in Turkey’s energy sector, they predict. Naturally, the economies of both Cyprus and Greece would also benefit. But for all of the reasons cited above, it is as much in Turkey’s interest as that of Cyprus – at least on the economic front -- that a settlement is achieved.
Responsibility for the negotiations lies with the leaders of Cyprus’s two communities. TR PLUS is following the negotiations closely and extends its good wishes for a successful outcome.
