US embassy cable - 04ANKARA5816

UNCLAS ANKARA 005816 
 
SIPDIS 
 
STATE FOR EUR/SE, EUR/ERA 
DEPT PLEASE PASS USTR FOR LERRION 
USDOC FOR ITA/MAC/DDEFALCO 
 
E.O. 12958: N/A 
TAGS: PREL, ETRD, TU, CY 
SUBJECT:  TURKEY EXTENDS CUSTOMS UNION TREATMENT TO CYPRUS 
 
 
1. The GOT Cabinet on September 30 approved an amendment to 
the customs union agreement with the European Union to 
include new EU member states, including the Republic of 
Cyprus.  Note:  The decision refers to "Cyprus" rather than 
the "Republic of Cyprus".  End Note.  President Sezer 
approved the decision and it was published in the State 
Gazette on October 2 - several days prior to publication of 
the European Commission report on Turkish accession.  The 
same day, MFA issued an announcement on this subject, which 
is reproduced below.  The customs union is limited to trade 
in industrial goods.  See septel for further details. 
 
2. Begin text MFA announcement: 
 
October 2, 2004 PRESS RELEASE 
 
Article 3 of Decision 1/95 of the Turkey-EC Association 
Council taken on 22 December 1995 on the completion of the 
Customs Union stipulates that the Customs Union be applied 
on Turkey's territory on the one hand, and on the Community 
customs territory on the other. 
 
In view of the accession of 10 new Member States (Cyprus, 
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, 
Poland, Slovakia, Slovenia) to the EU on 1 May 2004, The 
Turkish Government has decided to include all new EU members 
in the scope of the Council of Ministers Decree No. 
2002/4616 of 3 September 2002 which specifies, as far as 
Turkey's internal legislation is concerned, the countries to 
which the Turkey-EU Customs Union applies. This decision 
makes it possible for goods imported to Turkey from the new 
Member States to be treated under the Customs Union regime. 
 
This decision is an administrative act emanating from our 
relations with the EU as well as reciprocal legal 
obligations under the Customs Union. Our views and position 
as outlined in our press statement issued on 1 May 2004 and 
forwarded through official channels to the EU and its member 
states remain valid. The amendment of our internal 
legislation as such does not imply in any way the 
recognition of the Greek Cypriot administration by Turkey. 
 
In the same vein, the Greek Cypriot administration is 
equally obliged according to its Treaty of Accession with 
the EU to provide Customs Union treatment to goods coming 
from Turkey. In essence, the Greek Cypriot administration 
has abrogated all restrictions against goods from Turkey 
through a decree published on 11 December 1998. The EU 
Commission has given written confirmation that the Greek 
Cypriot administration is accepting the free circulation 
under the Customs Union of goods from Turkey as of 1 May 
2004. 
 
Turkey remains committed to its special relationship with 
the Turkish Republic of Northern Cyprus, and its obligations 
emanating from this special relationship. 
 
Unfortunately however, the EU is yet to fulfil its 
commitments with a view to ending the isolation of the 
Turkish Cypriots. The EU Commission has carried out its 
responsibility by proposing the two draft Regulations on 
financial assistance and direct trade on 7 July 2004. Turkey 
appreciates the Commission's efforts. However, the Member 
States could not yet finalize these positive but first 
steps. It is expected that the political decision taken on 
26 April 2004 by the EU-15 foreign ministers be put into 
effect by the EU-25. 
 
Turkey wishes to stress once more that it is due time to 
stop imposing on the Turkish side, which has demonstrated 
clearly its will for a solution, restrictions it does not in 
any way deserve. 
 
End text MFA announcement. 
Edelman#