Address By The Chief Negotiator At The 4th EU-Cyprus Intergovernmental Conference (19/5/1999)

Speaking at the EU-Cyprus Intergovernmental Conference in Brussels on 19 May, the Head of the Negotiating Team for Cyprus' Accession to the European Union, Mr George Vassiliou, expressed his satisfaction for the progress achieved so far in the accession negotiations as well as for the closing, for the time being, of the chapters on:

- Consumer and Health Protection

- Customs Union, and

- External (Trade) Relations.

Mr Vassiliou also said the following:

"We are in full agreement that the conclusion of the negotiations on the Agenda 2000 has provided a new impetus to the accession process and we look forward to working closely with the Commission and the member states in order to achieve progress on the remaining Chapters fully realising, of course, that we are now entering more complex Chapters.

We look forward to the Ministerial Meeting when, as expected, Telecommunications will be added to the list of Chapters considered as closed. This is possible after the confirmation of the withdrawal of our request for transitional period of twelve months.

With regard the Chapter on Fisheries we understand fully the importance of the questions raised by some member states and we would like to confirm that it is our intention to work with you in order to address in a satisfactory manner all the issues raised.

I would like now to refer briefly to the Chapters under consideration today:

Company Law

We have considered carefully the EU positions and we have the following remarks to make:

Accounting Law

We understand the position concerning the need to make available to the general public the accounts of every company. This is exactly what we also do in Cyprus with the exception of the special treatment of shipping companies accounts as you have correctly described. In this respect, we have taken into account the fact that shipping companies do not pay any corporation tax either in Cyprus or in most other EU member states. Furthermore, the purpose of providing valuable information in case of accidents or otherwise is fully served through the submission of the accounts to the Central Bank. We will however consider seriously your position on this Chapter and revert at the appropriate moment.

Intellectual Property Rights

On Intellectual Property Rights we have, according to your request, provided further information which we hope answers fully your questions. I would like to point out that we do understand the importance attributed to the protection of Intellectual Property Rights, relevant border controls, training and the need both for strengthening the capacity of the Institutions dealing with copyrights and enhancing cooperation.

Trade Marks

Based on the further explanations supplied we hope we have adequately demonstrated that we fully protect and take into account community trade marks.

Already, very rarely is there any conflict between Community and Cyprus trade marks and it is our intention to implement in a full and satisfactory manner the relevant acquis.

Finally, I would like to repeat our commitment to accede to the Lugano Convention.

Competition

We do realise that for the reasons explained and the need to furnish further information, this Chapter will have to remain open. However, we would like to point out that it is our intention to apply the acquis well before accession because, among other things, this is for the benefit of Cyprus companies.

I would like to stress that as pointed out in the additional information already provided, the Commission for the Protection of Competition was established back in 1990. This is an independent authority entrusted with the Enforcement of the Protection of Competition Law. Presently, we are initiating new legislation aiming to strengthen this body so that we can fully comply with the acquis.

On state aids, we have also provided additional information and we are currently preparing a full inventory of all state aids schemes and giving all other information required. I should point out, however, that state aid in Cyprus is: (a) relatively limited, (b) universally applied, (c) fully transparent.

Responding to the Council's requirement, we are in the process of preparing new legislation provided for the establishment of a separate unit under the Auditor General, an official whose independence is guaranteed by the Constitution.

As far as Cooperatives are concerned, we sincerely believe that the limited support provided by the state is a measure justified by social needs and is compatible with the acquis. However, we have entered into discussions in order to address the issue of the Cooperatives to everyone's satisfaction.

Consumer and Health Protection

As already explained, we attribute great importance to this subject and we are taking steps in order to implement the acquis well before accession since this is to the advantage of our citizens.

We would like to express our satisfaction for the closing of this Chapter and we are confident that the monitoring process will demonstrate the significance we attach to it.

Customs Union

Cyprus has already a Customs Union agreement with the EU which is in operation. We are fully aware of the need to abide with the provisions on evidence of origin, inward processing, remission and repayment of duties, etc. All the provisions specified in the EU's position will be included in the accession treaty.

We also hope that in the near future the Turkish Cypriot stance on EU accession negotiations will change and that they will join us in the process towards accession to the Union.

External Relations

In the context of the EU-Cyprus Customs Union Agreement we have already achieved a high degree of alignment with the EU policies in the field of external relations. We also attach particular importance to full alignment with the Union in the framework of the WTO.

It is also within this spirit that we have lifted all import restrictions on products originating in Turkey despite the fact that that country continues to prohibit Cyprus flagged ships from calling at its ports.

In conclusion, I would like to thank, once more, the Presidency and the member states for their cooperation and assure them that we will do our utmost in order to continue with our harmonization programme and fully comply with the EUs monitoring requirements."