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to treat exports from the whole of Cyprus with preferential status, represented a
significant trade concession by the north's main EU trading partner, but one that is
not considered as significant by leading economists in the north 104 .
The early relative successes in the export market were however achieved (and never
surpassed) before the entry of Polly Peck. As seen below (Figure 5.26) 1980 is the
point at which the trade balance commenced its almost relentless negative slide,
after a period of improving trade balances.
Figure 5.26 Looking for the hand of Polly Peck; exports from northern Cyprus
as a % of imports, 1976-1990.
50% t
35% --
a
25 i
$ 20% --
15%
10%
5%
111
13 Exports as a % of imports
1
|_L—
Source: "Statistical Yearbooks", 1982-1990, "State" Planning Organisation, north Nicosia.
Seemingly despite unfavourable comparisons with the south, the transition
mechanism, the use of "state" and quasi "state" sector organisations to reinvigorate
the economy, utilising export agriculture as the leading sector, proved successful.
Channel 2). Evidence seems to suggest that if Britain had determined a clear, consistent,
unambiguous policy on Cyprus, or at least let its own economic interests prevail over foreign policy
objectives, then British investors in Polly Peck would not have been so easily mislead about Output,
profitability, and growth performance. Foliowing a 1995 European Court Ruling, Customs and
Excise have been forced to differentiate between exports from the two de facto régions.
104 Bicak argues that trade between north Cyprus and the EC has made a negligible contribution to the
its economy. Bicak, H.A. (June) 1990. "The Impact of the EEC on the Economic Structure of the
TRNC. " Leicester University, Department of Economies, PhD thesis.
288