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.