The European Union (EU) and Cyprus entered into an Association Agreement in 1972 which aimed to strengthen their economic and political relations. The agreement is still in force today and has undergone numerous revisions throughout the years.
The EU-Cyprus Association Agreement is built upon the principles of free trade and the promotion of economic cooperation between the two parties. It provides for the gradual liberalization of trade in goods and services and establishes a framework for cooperation in areas such as agriculture, fisheries, transport, energy, and tourism.
One of the key features of the agreement is the establishment of a customs union. This means that Cyprus is part of the EU`s customs territory and applies the same customs duties and trade policies as the EU. This has resulted in the removal of most tariffs between the two parties, providing Cypriot businesses with greater access to the EU market.
In addition, the agreement contains provisions that aim to improve the business environment in Cyprus. It encourages the protection of intellectual property rights, the promotion of fair competition, and the elimination of technical barriers to trade.
The EU-Cyprus Association Agreement also includes a chapter on political cooperation. This chapter outlines the objectives and principles of EU-Cyprus relations and establishes a framework for dialogue and cooperation in areas such as human rights, democracy, and the rule of law.
Since its entry into force, the EU-Cyprus Association Agreement has been subject to periodic revisions and updates. The most recent revision, concluded in 2014, aimed to deepen economic integration between the EU and Cyprus and to align Cypriot legislation with EU standards and regulations.
This agreement has had a significant impact on the development of the Cypriot economy. The EU is Cyprus` largest trading partner, accounting for around 50% of its total trade. The agreement has also facilitated the flow of foreign investment into Cyprus, with many EU companies choosing to establish operations in the country.
In conclusion, the EU-Cyprus Association Agreement is a vital component of the economic and political relations between the EU and Cyprus. Its provisions have contributed to the growth and development of the Cypriot economy and have further strengthened the relationship between the two parties.