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Cyprus Foreign Trade
At the beginning of the 1990s, the "TRNC" traded with
more than
sixty countries around the world. Among these trading
partners were
members of the EC, countries of the Middle East, the
United States,
Japan, and numerous other countries in Africa and Asia.
Lack of
recognition of the "TRNC" and the economic and political
blockade
imposed by the Republic of Cyprus made it difficult for
the "TRNC"
to establish direct and regular sea and air links with
countries
other than Turkey. The blockade could be circumvented,
however, by
trading through international companies.
The Turkish Cypriot economy suffered from a chronic
trade
deficit. During the 1980s, imports often exceeded imports
by
margins of three and four to one, and in some years, 1989
for
example, the ratio was even worse (see
table 20,
Appendix). More
than half the imports were of manufactured goods; the
Turkish
Cypriot economy had a small manufacturing sector. Foods,
fuels, and
chemicals accounted for most of the remaining imports.
Turkey was by far the main source of imports (see
table 21,
Appendix). In the late 1980s, Turkey supplied roughly
two-fifths of
total imports. Countries of the EC supplied one-third,
half of
which came from Britain. The Far East was the source of
most of the
remainder.
The most important customer for Turkish Cypriot goods
in the
late 1980s was Britain, which took about two-thirds
notably citrus
fruits and vegetables. The other EC countries bought a
much smaller
share, and Turkey accounted for 12 to 17 percent between
1986 and
1989. The Middle East fluctuated widely in its share of
Turkish
Cypriot exports, buying 10.2 percent in 1986 and 3.6
percent in
l988. The Far East purchased virtually no Turkish Cypriot
goods.
The government attempted to stimulate trade by various
means,
including liberal tax concessions and the free exchange of
foreign
currency. The establishment of a free port and zone at
Famagusta in
late 1977 was another government initiative to boost
foreign trade.
To make business in the free port attractive to investors,
the
government exempted income from activities there from
corporate and
income taxes. Imports into the free port and zone were
also exempt
from duties and tolls. Import duties elsewhere in the
"TRNC" could
be onerous. Furthermore, profits and capital from the free
port and
zone could be repatriated without limit. In addition to
these
highly competitive concessions, the area's infrastructure
was
suitable for all kinds of manufacturing, processing, and
construction activities.
* * *
The Republic of Cyprus and its ministries, departments,
and
banks publish a variety of statistical reports that
provide useful
economic information, usually with a one- to two-year time
lag.
Particularly relevant are the Annual Reports of the
Central
Bank of Cyprus, the Economic Reports of the
Department of
Statistics and Research, Ministry of Finance; the
Annual
Reports of the Cyprus Telecommunications Authority and
of the
Cyprus Electricity Authority; and the special reports of
the Cyprus
Development Bank on issues such as "Consumption
Expenditures in
Cyprus" and "The Cyprus Economy."
Other noteworthy reports and studies include reports
from the
International Trade Administration of the United States
Department
of Commerce (prepared by the American Embassy in Nicosia),
which
summarize major economic trends, especially those
pertinent to the
United States economy. The Economist Intelligence Unit's
Country
Report: Lebanon, Cyprus and Country Profile:
Lebanon,
Cyprus offer quarterly and annual analyses,
respectively, of
economic and political trends in Cyprus. A monograph by
John Hudson
and Marina Dymiotou-Jensen, Modelling a Developing
Country,
gives, among other things, a brief and expert account of
the
government's planning process.
The sources most readily available for those wishing to
know
more of the economy of the "TRNC" are published by Europa
Publications Ltd. The Europe World Year Book and
The
Middle East and North Africa, for example, will
provide much
basic information. North Cyprus Almanack, published
by K.
Rüstem and Brother in London, treats a number of aspects
of the
Turkish Cypriot economy. The State Planning Organisation
of the
"TRNC" publishes annual comprehensive economic statistics.
These
are available at "TRNC" offices around the world. (For
information
and complete citations,
see
Bibliography.)
Data as of January 1991
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