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Port of Famagusta is already running, so what does the Finnish proposal offer?(Turkish Daily News Via Thomson Dialog NewsEdge) What does the Finnish proposal offer, since the Port of Famagusta is already operational? This is the main question on the minds of Turkish Cypriot organizations involved with the functioning of the port. Representatives from three organizations have all emphasized that the port is active and running, with ships docking there every day. To date, ships from 33 countries have docked at the port, including those from European Union member states, including the United Kingdom, Finland, Belgium, Denmark, Sweden, Greece, the Netherlands and more. Exports and imports from the port increased significantly following the referendum on the Annan plan in 2004, although the gap between imports and exports remains huge as the EU maintains high customs taxes on the north. However, with the recent Finnish proposals, the status of the port is again being discussed, with significant opposition from almost all parties involved in its operation. In 2005, total exports and imports at the port were around 1.4 million tons, of which 1.2 million were imports. Imports at the port from EU countries amounted to $258 million in 2004, while exports to the EU totaled $17 million. There were $147 million in imports from countries outside the EU, and exports to non-EU countries equaled $15 million. Imports from Turkey were $784 million, and $34 million worth of goods were exported there. The main exports leaving from the port are agricultural products such as citrus fruits and potatoes as well as clothing, whereas imports are mainly industrial products, construction materials and automobiles. Finnish proposal offers nothing: When asked for a comment on the possible content of the Finnish proposal and the authority the proposal might give to the EU or the United Nations, Cyprus Turkish Businessmen's Association board member Huseyin Kayalp rejected any type of external control on the port. "As you can see, the Famagusta Port is an actively functioning port. This became more obvious after the referendum in 2004 with the skyrocketing economy, particularly in the construction sector. The port tripled its flow of traffic in 2005 over 2003." Kayalp also highlighted the international activity at the port by pointing out two ships unloading, one from the UK and the other from Russia. "As is obvious, this port is not closed. The EU and the Finnish presidency are not doing us a favor by proposing to open it. The issue is only about a letter written by the Greek Cypriot authorities to the International Maritime Organization saying that the port is not under their control, but this does not prevent the port from running." There is a double standard: The main problem concerning the Port of Famagusta is that it cannot export to the EU under the same conditions that imports come in from the EU. When I reminded Kayalp of this fact, he said the port had been a totally open port vis-a-vis the EU until a decision in 1994 by the European Court of Justice. "After that judgment an extra 14 percent tax was imposed on products going to the EU from the Famagusta Port. This is a huge obstacle when exporting potatoes and citrus fruit; however, I believe that using the lifting of this tariff as a present to the north and as a tool to gain authority over the port is not a correct approach." Kayalp also pointed out that the same products that are highly taxed when entering the EU flow freely to the south, without additional taxes, according to Green Line regulations. "All are EU countries. Isn't this a double standard for the Famagusta Port?" asked Kayalp. He also pointed out that they are striving for reductions in taxes on the port's operations and that the extra taxes on exports to EU countries have almost been negated. Kayalp also pointed out that 100 million of 259 million euros in EU aid will consist of imports from the EU, according to the EU. "These imports to the north can only enter the country through the Port of Famagusta or Ercan Airport. So actually the EU is giving this aid knowing that imports directly from the EU will be going through Famagusta. Therefore, with the EU's willingness to export these products through the port in Famagusta, what does the Finnish proposal offer that is different?" Kayalp pointed out that tourism is crucial for the Turkish Cypriot economy and that airline flights are the most secure way to transport tourists to the Turkish Republic of Northern Cyprus (KKTC). "Therefore, we should demand proposals regarding Ercan Airport from the EU, not about the Port of Famagusta." Advert from supporters' platform: We asked Erdem Yusufoglu, a Shipping Agencies Union board member, about a recent advertisement sponsored by the Supporters for Famagusta Port Platform, which consists of the Turkish Cypriot Port Workers, the Shipping Agencies Union, transportation unions and the Bus Companies' Union. The advert shows a ship from Finland that docked recently at the port and asks when a direct flight to Ercan Airport will be available. Yusufoglu said they wanted to make the world aware that ships from any country in the world can dock directly at Famagusta. "This port is open. And Finnish companies are in direct trade with northern Cyprus through the Port of Famagusta. We wanted everybody to see that," he pointed out. Regarding claims from the south that Turkish products were passing into the south, Yusufoglu said monitoring according to Green Line regulations in the north is running well and that the Greek Cypriot claims are the exception and must concern smuggled products. An EU office but not an EU administration "We are against the Finnish proposal," said Altun Avvari, the chairman of the Cyprus Turkish Port Workers Company, which depends on Law 6/76, regulating loading, unloading and storage operations involving ships that dock at Turkish Cypriot ports. "The Supporters for Famagusta Port Platform along with four NGOs is against the proposal. First of all, we believe that Varosha should be part of a comprehensive solution and also because the proposal does not offer much, as the Port of Famagusta is already active and running." When asked if he thinks exports will skyrocket and if the necessary documents would be obtained with EU observation at the port, he said this should take place without the Varosha condition, as was promised by the EU according to a regulation passed by the Council of Ministers. Avvari said an EU office is imperative for the north in order to test and approve Turkish Cypriot products and make them easier to export into the EU. "They implemented this practice for potatoes at the Port of Limassol, so why not for other products? We import all sorts of products from the EU and export our products to the south, in line with Green Line regulations, so, why not export them [to the EU] with the same conditions?" The Supporters for Famagusta Port Platform, of which Avvari's organization is a part, intensely opposed the Green Line regulations for exporting Turkish Cypriot products through Limassol. When asked about their opposition, Avvari said it would create political problems for the north if this were to be realized. "We reacted to that development with the Supporters for Famagusta Port Platform because this is a game the EU and the United Nations are playing with the Turkish Cypriots. There is nothing related to exportation in the Green Line regulations. Port workers are paid 1/10 of what their Greek Cypriot counterparts receive. Prices are a bit more expensive in the north due to freight charges, but not workers' salaries. This situation would create a political disadvantage for the north, as the south would advance the utilization of Limassol in order to be able to call the isolation 'imaginary'." He also said their opposition to exporting from Limassol was heard throughout Europe and has received a reaction. ECJ decision of 1994: The fact that shipments are more expensive from EU countries points to the isolation of the Famagusta Port. Avvari said that after the 1994 European Court of Justice decision, the EU started imposing taxes on imports originating from the port and sought a special document from EU authorities to allow Turkish Cypriot products into EU borders. "There is no sign from the EU on their promises for lifting the isolationist policy. The taxes and the demands for the document continue despite these promises. The Famagusta Port has been open for 32 years; throughout that period vessels from 33 countries have docked there. Our basic problem is related to obstacles erected in the way of our exports. We are able to import like all other countries. Nonetheless, we should note that the port has become more active since the 2004 referendum, with increases in both exports and imports." When asked about Greek Cypriot claims that products coming through Famagusta are passing to the south, Avvari said that would be against the Green Line regulations, which allow only products produced in the north to cross the Green Line. "Only raw materials can come through the Famagusta Port," he said. One of his colleagues jumped in here to tell an anecdote about the Greek Cypriot attitude towards the port. He said the Greek Cypriot side is so against any product coming from the port passing to the south that they recently rejected imports from the Cyprus Telecommunications Authority that had come through Famagusta. "Telephone operators coming from Romania were turned back at the border and went back to Romania from this port," he said Copyright 2006 Turkish Daily News. Source: Financial Times Information Limited - Middle East Intelligence Wire. |