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| The Negotiation Procedure
: Substantial Negotiations Chapters under Negotiation (Final 5.3.1999) The chapters under negotiation are altogether 29. A further two, entitled "Institutions" and "Other" are noted but are not negotiated. The chapters are presented in turn. The aim is to provide an indication of the stage each chapter has reached and the content of the screening and the negotiations. Detailed information is given only for the chapters for which position papers have been submitted. The information is correct up until 31 January 1999. The chapters are entitled:
Dates: Bilateral screening: 22- 30.7.98. Submission of position paper: December 1998 Substantive negotiations: Began on 21.6.99. Status: This chapter in still under negotiation. Acquis and positions: The free movement of goods is a fundamental feature of the objective of establishing a single market within the EU. Goods produced in member countries and goods imported (once inside the Union) should be able to move freely from one member state to another without impediment. This is achieved not only through the elimination of tariffs and quotas, but by the elimination or harmonization of all measures that may impede internal trade. Such measures are the various technical requirements or standards which exist in the member states. The effort of harmonization of such requirements and standards leads to a general increase in the quality of the goods that the manufacturers are required to produce, to the ultimate benefit of the consumer. For example, with regard to motor vehicles, the requirement by Cyprus that all imported cars comply with EU technical specifications, would result in having in our country cars which are considerably safer and less polluting. Obstacles to internal EU trade may only be introduced by member states where they may be justified for reasons of public morality, public policy, public security or public health, protection of national treasures and of industrial property as well as protection of the consumers and of the environment. Even in such cases, however, there should be no discrimination between goods domestically produced and others, the measures should be appropriate to the dangers faced, and obstacles to trade or movement of goods should be the minimum required in relation to the problem faced. All goods are covered by the acquis under this chapter. For certain goods, specific harmonized provisions apply, while for others the free movement is ensured directly by the general principles included in the EC Treaty. The screening of this chapter was considered under the following:
In all these areas Cyprus accepts the acquis and does not intend to request any transitional period. In general many of the provisions in Cyprus law are in line with the acquis, and legislation aiming at closer alignment with the acquis is being prepared for several sub-headings. New legislation or other measures to ensure full compliance are planned, particularly in the areas of testing, institutional arrangements for supervision, and advertising . There is no national legislation at present for cosmetics, recreational craft, glass and wood in rough, but no problems are envisaged in the transposition of the acquis into national legislation. The main challenge of this chapter is the effective implementation of the acquis , which requires that laboratories and testing centres for each type of goods be available. The acquisition of such infrastructure would be costly, and comparatively more so for a small country like Cyprus. This has led Cyprus to seriously consider hiring services from laboratories and testing centres in other member states.
Dates: Bilateral screening:22 - 23.4.99 Submission of position paper: Not yet submitted. Substantive negotiations: Not yet begun.
(3) Freedom to Provide Services Dates: Bilateral screening: 9 - 10.2.99 Submission of position paper: July 1999. Substantive negotiations: Not yet begun.
Dates: Bilateral screening: 10.12.98. Submission of position paper: May 1999. Substantive negotiations: Not yet begun.
Dates: Bilateral screening: 17 - 18.6.98. Submission of position paper: December 1998 Substantive negotiations : Began on 19.5.99 Status: The chapter remains open Acquis and positions: The aim of the acquis on Company Law is to establish basic minimum rules for companies throughout the EU to follow. The acquis in the Chapter on Company Law breaks down into six areas:
With respect to Company Law the central element of the of acquis relates to transparency, that is the release of information and the publication of accounts, internal management and the operation of companies. In the area of intellectual property rights, and industrial ownership rights, the main features relate to the protection of intellectual property rights, patents and registered trade marks. Cyprus legislation is not yet fully in conformity with the acquis, but progress has been made towards alignment: Cyprus has undertaken the commitment to comply with the acquis before 1 January 2003, both with respect to Company Law and Accounting Directives. With respect to intellectual and industrial property rights, Cyprus legislation is already to a large extent harmonized with the acquis . Full harmonization will be achieved before 1 January 2003.
Dates: Bilateral screening: 15.10.98 Submission of position paper: December 1998. Substantive negotiations: Began on 19.5.99. Status: The chapter remains open. Aquis and positions: The aim of competition policy is to ensure that competitive markets are maintained in order to ensure efficiency and provide protection of consumers from cartels and monopolistic acts. The competition acquis has two main aspects: anti-trust rules and rules on state aid. Anti-trust rules relate to mergers and to agreements between undertakings and they further aim at avoiding the abuse of dominance by undertakings which have a dominant position in the market. As for the rules governing state aid , they impose strict control on aid granted to undertakings by the state or through state resources. During the period prior to accession, the Commission examines, inter alia, whether the Cypriot undertakings are accustomed to operating in an environment that is similar to that of the Community, i.e. competitive. With respect to anti-trust legislation, harmonization in Cyprus is considered to have advanced considerably, and will be completed before accession with the introduction of legislation on the control of mergers and the amendment of the Protection of Competition Law (207/89) to cover enterpises controlled by the state. With respect to state aid Cyprus confirmed its ability to harmonize its policy prior to accession. Whilst at accession it is the European Commission which primarily assumes the responsibility for enforcing the competition rules, national authorities shall however play an important role, because they have certain responsibilities in guaranteeing the full and smooth application of community competition law. Each member state must therefore have a national competition authority, which, in the field of anti-trust policy, cooperates closely with the Commission, and a state aid authority, which co-ordinates the fulfilement of the notification, reporting and information requirements of the acquis. The Cyprus independent Competition Authority is in place since 1990 and it is in the process of having its competence extended and its powers increased. As for the national state aid unit, its creation has been decided and it will be set up, if possible, before the end of the current year.
Dates: Bilateral screening:
Submission of position papers: Not yet submitted. Substantive negotiations: Not yet begun. Status: Acquis screening only partially completed.
Dates: Bilateral screening: 8.7.1998. Submission of position paper: December 1998. Substantive negotiations: Began on 19.4.99. Status: The chapter remains open. Acquis and positions: The acquis with respect to fisheries is divided into four sub-sectors as follows:
Cyprus legislation and policies are in line with the principles of the acquis and consequently no major problems are envisaged with its implementation. It will be necessary, however, that the administrative structures be strengthened. The main difficulty will be the necessary establishment of monitoring mechanisms and the acquisition of the capacity to control large vessels fishing in international waters under the Cyprus flag. For the control of such vessels - a very costly exercise indeed - which are in most cases of foreign beneficial ownership, Cyprus is examining the possibility of concluding an agreement with a member state which already has the necessary operational capacity. Obviously, vessels wanting to take advantage will have to contribute significantly towards the cost of the service.
Dates: Bilateral screening: 16 - 17 .11.98, 17 - 18.3.1999. Submission of position paper: July 1999. Substantive negotiations: Íot yet begun. Acquis and positions: The Chapter covers transport by air, water and overland. A significant part of the acquis consists of regulations, decisions and provisions of the EU Treaty, which will apply directly on the day of accession and do not require an active transposition into national legislation. However, the infrastructure required for their effective implementation will have to be in place by the day of accession. Another part of the acquis consists of directives, which need to be transposed into the legal system of the country concerned. In the air and maritime sectors, a number of conventions, recommendations and standards, adopted by international organisations, have been incorporated into Community law, thus making them legally binding for the member states. A number of technical adaptations to the EC acquis (air transport: market access and technical harmonisation / safety) will be needed at the time of Cyprus’ accession to the EU. Progress is being made so that upon accession Cyprus will possess the capacity to implement the acquis fully.
Dates: Bilateral screening: 30 - 31.3.1999. Submission of position paper: July 1999. Substantive negotiations: Not yet begun. Status : Not yet screened or discussed.
(11) Economic and Monetary Union Dates: Bilateral screening: 21.12.1998. Submission of position paper: May 1999. Substantive negotiations: Not yet begun.
Dates: Bilateral screening: 16.7.1998. Submission of position paper: December 1998. Substantive negotiations: Began on 19.4.99. Status: Further negotiation is not required for the time being. Acquis and positions: The aim of the acquis is to ensure that statistics are prepared on the same basis, and, therefore, allow for comparisons to be made between member states. This is essential for the determination of policies. Cyprus broadly fulfilts the statistical requirements of the international organisations to which it belongs but, despite the ever closer co-operation developed with EUROSTAT in recent years, it still has some way to go to meet the EU system. There are a number of areas in which Cyprus does not at present provide comparable data. In some cases the statistical acquis itself allows for certain derogations, for example concerning the production of a particular good not exceeding a certain threshold of output. As a whole, however, the statistical infrastructure exists and Cyprus authorities are confident that by the date of accession their statistical system will be broadly in line with EU requirements. To ensure that EU statistical requirements are met, the Department of Statistics and Research cooperates closely with EUROSTAT.
(13) Social Policy / Employment Dates: Bilateral screening: 9 - 12.11.98. Submission of position paper: Not yet submitted. Substantive negotiations: Not yet begun. Status: Screening completed.
Dates: Bilateral screening: 8 - 9.12.1998. Submission of position paper: May 1999. Substantive negotiations: Not yet begun. Status: Screening completed.
Dates: Bilateral screening: 19.5.1998. Submission of position paper: MAy 1999. Substantive negotiations: 10.11.1998. Acquis and positions: The acquis in this chapter is very limited and not binding on the Member States. Therefore, it does not require transposition into national law or particular measures for implementation and enforcement. It consists, in general, of industrial policy guidelines established both overall and at the horizontal and sector-specific levels, aiming at increasing the competitiveness of each members state’s industry. The discussions concluded that the industrial policy of Cyprus follows a similar approach to that of the EU. In the last few years a number of steps have been taken towards the direction of harmonization of industrial policy with the acquis with respect to the liberalization of trade. Cyprus does not, therefore, face special problems with respect to the general guidelines on industrial policy of the EU. Special efforts, will, however, be necessary to speed up the drive for research and innovation in industry and improvement of infrastructure with respect to standardization and technical harmonization. As a result of accession, Cyprus industry will be placed under greater competitive pressure owing to further trade liberalization which will take place and the need to adapt to the regulatory regime of the single market. (16) Small and Medium-Sized Undertakings Dates: Bilateral screening: 25.5.98 Submission of position paper: 4.9.1998. Substantive negotiations: 10.11.1998. Status: No further negotiation is required for the time being. Acquis and positions: In recognition of the importance of small and medium sized enterprises in the economy, the main objective is to facilitate the development of such companies. The first ever EU enterprise policy was formulated in 1986, and has since then been extended and strengthened. The main aims of the Small and Medium Enterprise (SME) policy are as follows:
Most of the actions in favour of SME’s are taken at national level, but the EU has a number of instruments which target SME’s. The foundation of EU policy is the Third Multiannual Programme (1997-2000) which supports networks for SME’s, education programmes, assistance to local, national and EU associations, and encourages SME participation in EU programmes. Cyprus has expressed an interest in participation in the programme. No substantive measures for Cyprus’ harmonization with the acquis of this chapter are required.
(17) Science and Research (RTD) Dates: Bilateral screening: 4.5.1998. Submission of position paper: 4.9.1998. Substantive negotiations: 10.11.1998. Status: No further negotiation is required for the time being. Acquis and positions: The aim of the acquis is to encourage science and research and to coordinate regulations for such programmes. The EU basic acquis for science and research consists mainly of international agreements and Council decisions adopting the Framework Programmes for Research, Technological Development and Demonstration, as well as specific programmes. Cyprus has participated in the Fourth RTD Framework Programme, and has applied for full membership of the Fifth RTD Framework Programme. Regarding the international agreements concluded by the European Community as an entity, Cyprus will automatically adopt them on accession. Joint RTD projects with EFTA countries will be possible, however, prior to accession. When Cyprus joins the Fifth RTD Framework Programme, which is envisaged before accession, it will adopt EU binding regulations on dissemination of information and utilization of research results. Cyprus was considered to have internal organizational and coordination structures capable of promoting research, technology and development activities, although they will have to be expanded. Cyprus has accepted the acquis and has not sought any transition period or derogation for this chapter .
(18) Education, Vocational Training and Youth Dates: Bilateral screening: 16.7.1998. Submission of position paper: 4.9.1998. Substantive negotiations: 10.11.1998. Status: No further negotiation is required for the time being. Acquis and positions: Education, training and youth is primarily the competence of the member states. The acquis aims at encouraging better cooperation between the EU and its member states, and between member states, and to ameliorate specific problems such as lack of equality of opportunity, illiteracy, safety in schools, and facilities for minorities . No difficulties are expected by Cyprus. Appropriate legislation is in place and does not conflict with the acquis. As regards children of migrant workers who are EU citizens, all necessary steps will be taken so that, once Cyprus is a member of the Union, they receive education with all the facilities provided in the acquis. In tertriary education also, certain existing discrepancies with regard to fees will be eliminated, so that equal treatment between Cypriot and EU nationals is ensured. Basic structures are already in place to enable participation in EU education, vocational training and youth programmes. Cyprus has participated in the «Socrates» programme since 1997, and in the «Leonardo da Vinci» training programme. Cyprus expressed the intention of renewing its participation in the «Youth for Europe» programme after the completion of the third phase in 1999.
(19) Telecommunications and Information Technologies Date: Bilateral screening: 5.5.1998. Submission of position paper: 4.9.1998. Substantive negotiations: 10.11.1998 and 21.6.1999 Status: No further negotiation is required for the time being. Acquis and positions: The main aim of the acquis is to ensure technical compatibility between different systems, and to encourage competition in the sector. The binding components of the acquis mainly relate to liberalization of service provision in the field of telephony, satellite services, mobile phones and subjects relating to economic supervision of telecommunications and the separation of regulatory from operational functions. With respect to postal services, the binding acquis establishes common rules relating to the provision of universal postal services, the criteria for reserved or non-reserved services, tariff principles and transparency of accounts, quality standards, harmonization of technical standards and the creation of national regulatory authorities. The six subject headings of the acquis cover technical issues, liberalization (that is the encouragement of competition), licencing, access to leased lines, protection of data and privacy, and inter-connection between systems. Cyprus expressed its commitment to comply with the acquis on postal services by 1 January 2003. With respect to telecommunications, however, Cyprus initially sought a transitional period of 12 months (to 31 December 2003) for the full liberalization of the market. The EU Commission maintained that the technical infrastructure of the Cyprus Telecommunications Authority, the level of training of its personnel and the ability of its managerial staff does not justify Cyprus’ request for a transitional period of one year. Furthermore it pointed out that this sector has been fully liberalised within the EU and the new regime has provided better and cheaper services to the public. At the Cyprus-EU intergovernmental conference on 19/4/1999, Cyprus withdrew its request for a transitional period of one year and expressed its readiness for full harmonization by 1.1.2003.
(20) Culture and Audio-Visual Policy Dates: Bilateral screening: 13.5.1998. Submission of position paper: 4.9.1998. Substantive negotiations: 10.11.1998. Status: No further negotiation required for the time being. Acquis and positions: Cyprus’ legislation on television broadcasting is largely in conformity with Community legislation. A new law, (7(1)/1998), relating to the establishment, installation and operation of radio and television stations was introduced on 30 January 1998. This law incorporates the basic provisions of Community legislation. The provisions of the law concerning the Cyprus Broadcasting Corporation, the public broadcaster, have been similarly aligned with Community legislation. The Cyprus authorities intend to be fully harmonized with the acquis before the year 2001. Cyprus is party to the Convention of the Council of Europe on Trans-frontier Television. The EU does not have binding provisions for the cultural sector. Discussion focused on the «Raphael» cultural programme, for which Cyprus expressed interest in participating.
(21) Regional Policy / Structural Instruments Dates: Bilateral screening: 4 - 5.5.1999 Submission of position paper: Not yet submitted. Substantive negotiations: Not yet begun.
Dates: Bilateral screening: 11-12.1.1999, 12-15.2.1999, 23.2.1999. Submission of position paper: July 1999. Substantive negotiations: Not yet begun.
(23) Consumers and Health Protection Dates: Bilateral screening: 29.6.1998. Submission of position paper: 18.12.1998. Substantive negotiations: Began on 19.4.1999. Status: No further negotiation is required for the time being. Acquis and positions: The acquis for the chapter on consumers’ and health protection aims at protecting consumers from dangerous products, misleading advertising, and unscrupulous selling practices. The acquis is composed of 14 directives covering consumer protection including product safety, unfair terms, price indications, etc. It also comprises a Community system of information on home and leisure accidents (EHLASS) and three Commission decisions on a consumer committee and scientific committees. On-the-spot checks in the veterinary field carried out by Commission experts in the member states and in third countries complete the acquis for the chapter. The Commission especially valued the high degree of harmonization achieved by Cyprus. Cyprus accepts the acquis with respect to this chapter and considers that there should be no implementation problems. Complete harmonization is envisaged in two or three years.
(24) Cooperation in Justice and Home Affairs Dates: Bilateral screening: 10 - 12.3.1999 Position paper: Not yet submitted. Substantive negotiations: Not yet begun. Status: Not yet screened or discussed.
Dates: Bilateral screening: 8 - 9.10.1998 Position paper: Submitted on 18.12.1998. Substantive negotiations: Began on 19.5.1999. Status: No further negotiation is required for the time being. Acquis and position: The acquis refers to the effective protection and control of external borders. It includes customs tariffs, trade preferences, quotas, tariff suspensions and other customs related legislation, much of which is derived from international conventions or agreements. The aim is the adoption of the EU’s common external tariff and customs provisions. Effective implementation of the acquis requires computerization and electronic coordination of customs services. Under the Association Agreement signed in 1972 and the Customs Union Protocol signed in 1987 between Cyprus and the European Community (see section on Cyprus-EU: Brief History), all customs duties on goods referred to in the Protocol were eliminated between Cyprus and the Community by the end of 1997. In addition, as from 1.1.1998 the Common Customs Tariff has been applied by Cyprus for industrial products covered by the Protocol and a number of agricultural products, which originate in third countries. The Combined Nomenclature in respect of the coding structure of the tariff has been adopted since March 1988. Cyprus will eliminate the remaining customs duties vis-a-vis the EU for all products not referred to in the Protocol of 1987 and will fully adopt the Common Customs Tariff upon accession. The Cyprus Customs legislation is already to a large extent compatible with the EU legislation. Full approximation will be achieved within the framework of gradual adaptation of the Customs Code. Cyprus considers that there should be no major implementation problems. Cyprus expressed the willingness to apply the acquis fully and stated that a transitional period or derogation is not required.
Dates: Bilateral screening: 21 - 22.9.98 Submission of position paper: 18.12.1998. Substantive negotiations: Began on 19.5.1999 Status: No further negotiation is required for the time being. Acquis and positions: The acquis in this chapter covers the Community’s economic and trade relations with third countries as well as co-operation and assistance. The acquis consists mainly of Community legislation, which is directly binding on the member states and so does not require transposition into national law. Competence in the field of external relations is shared between the Community and the member states. Cyprus’s external trade relations are primarily governed by the Association Agreement signed in 1972 and the Customs Union Protocol signed in 1987 between Cyprus and the European Communtiy. Consequently, Cyprus is in the process of alignment with the acquis in the field of external relations and considers that there should be no major implementation problems. However, considering both the Community’s competence in the field of external relations and the need for member states to have a common external commercial policy, Cyprus may have to negotiate amendments to some of its present agreement, with third countries in order to bring them in line with the Community policy. Furthermore, it must avoid, from now on, including in new agreements any provisions which would not be in line with the said policy. The administrative infrastructure is being prepared for the obligations following accession. Cyprus expects to be able to apply the full acquis upon accession, at which time it will also apply to join the European Economic Area.
(27) Common Foreign and Security Policy (CFSP) Dates: Bilateral screening: 9.6.1998 Submission of position paper: 4.9. 1998. Substantive negotiations: 10.11.1998. Status: The chapter has been considered and remains open for further discussion. Acquis and positions: The acquis in this chapter mainly relates to inter-governmental cooperation. The Common Foreign and Security Policy (CFSP) aims at safeguarding the common values, interests, independence and integrity of the Union, its security, the preservation of peace, and the development of democracy, the rule of law and respect for human rights and fundamental freedoms. The acquis is implemented through cooperation of member states, and the taking of positive or negative measures (i.e. sanctions). Often such negative measures are applied for a limited time and may not be applicable by the time of accession . Owing to the nature of this chapter no transposition into national law or technical adaptations requiring the provision of information by the applicant countries are necessary. Cyprus has accepted the acquis for this chapter, and is willing to participate in the anticipated dynamic expansion of the EU’s role in the world. The objectives of the EU with respect to Common Foreign and Security Policy are shared by Cyprus, which has the legal and administrative framework for implementation of the CFSP and for active participation within this policy. Every effort will be made, in the meantime, for the greatest possible alignment of Cyprus with the CFSP, and for the closer cooperation with the European Union within international organizations and fora. The Western European (WEU) is considered under the CFSP as an integral part in the development of the Union relating to security. The WEU provides the Union operational capability. This capabality refers notably to humanitarian and rescue tasks, peacekeeping and combat forces in crisis management. Cyprus is both willing and able to develop further its relations with the Western European Union and will seek appropriate status within the WEU upon accession.
Dates: Bilateral screening: 17.5.1999. Submission of position paper: Not yet submitted. Substantive negotiations: Not yet begun.
(29) Financial and Budgetary Provisions Dates: Bilateral screening: 29.6.1999. Submission of position paper: Not yet submitted. Substantive negotiations: Not yet begun. Status: Not yet screened or discussed.
This chapter is not under negotiation at the present stage.
This chapter is not under negotiation at the present stage. |
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