CUPRINS - Universitatea George Bacovia

Savvas C. Savvidesto the EEC in the early 1960s it became obvious that Cyprus had to also look for apreferential trading arrangement with this emerging powerful trading block.Over the last forty years, the economic relations of Cyprus with the EUhave been developed within the framework of the Association negotiations in the1960’s that led to the signing of the Association Agreement in 1972 and theCustoms Union Protocol in 1987. The latter brought Cyprus closer to the EEC byabolishing tariffs, quotas and other trade restrictions and adopting the CommonExternal Tariff for imports from third countries.The Republic of Cyprus applied for membership in July 1990. In 1993 theCommission concluded that the application was made in the name of the wholeisland. In the expectation of significant progress in the UN talks for a settlementthe Commission considered Cyprus as eligible for membership 2 . Following arelevant decision of the European Council in Luxembourg (1997), accessionnegotiations started on 30 March 1998. The position of principle of the EU hasalways been the creation of a perspective for the reunification of Cyprus. With itsdecision at the Helsinki summit in December 1999 the EU clearly stated that asolution to the Cyprus problem is desirable but not a precondition for Cyprus’accession 3 . The Republic of Cyprus became a full member of the EU on 1 May2004, together with Malta and the other eight countries of Central and EasternEurope.The negotiation procedures of the EU with Cyprus consisted of twophases: (a) «acquis screening», and (b) «substantive negotiations». The formerrefers to the examination in great detail of the degree to which the body of laws,institutions and procedures of Cyprus (as for any candidate country) comply withthose of the EU, that is, with the acquis communautaire. The second phase refers to4the negotiation of transitional arrangements or derogations. For Cyprus, the acquis2 In its concluding comments, the Commission’s Opinion on the Application of theRepublic of Cyprus for Membership (30/06/1993) states: “Cyprus’ geographical position,the deep-lying bonds which, for two thousand years, have located the island at the veryfount of European culture and civilization, the intensity of the European influence apparentin the values shared by the people of Cyprus and in the conduct of the cultural, political,economic and social life of its citizens, the wealth of its contacts of every kind with theCommunity, all these confer on Cyprus, beyond all doubt, its European identity andcharacter and confirm its vocation to belong to the Community.”3 “The European Council underlines that a political settlement will facilitate the accessionof Cyprus to the European Union. If no settlement has been reached by the completion ofaccession negotiations, the Council’s decision on accession will be made without the abovebeing a precondition.” EU Helsinki Summit—Presidency Conclusions (11/12/199).4 The trade liberalization process has been completed by 1998, the relevant acquis oncompetition policy has been adopted and effectively implemented, and all remaining pricecontrols have been eliminated by the accession date of 1 May 2004. In addition, legal andadministrative restrictions in the entry and exit of firms in the market have all beeneliminated. In particular, all remaining barriers to market access in the sectors of electricity,190