Address
by the Minister of Energy Mr Yiorgos Lakkotrypis
at
the
Trade Event on the occasion of the visit to Cyprus
of
EU
Commissioner for Trade Mr Karel De Gucht
This
year marks the 10th
anniversary of Cyprus’ accession to the EU, as well as a decade in
which our country has been applying the EU’s common commercial
policy. The policy is one of the main pillars of the Union’s
relations with the rest of the world, as the implementation of a
unified external trade policy has turned the EU into the world’s
leading trade power, giving it a truly dominant role in international
trade. Not surprisingly, Cyprus therefore seeks to take full
advantage of the benefits of being part of the EU’s common
commercial policy, whilst also facing the challenges and fulfilling
the obligations of such a commitment.
In
view of the direct
and indirect impact of international trade on economic growth, the EU
is very active as a global player committed to promote open and fair
trade and to create conditions in which trade can prosper. The Union
is in fact currently negotiating a large number of trade agreements,
namely: the multilateral negotiations under the World Trade
Organisation, the plurilateral negotiations that include those for
the Trade in Services Agreement, and, finally, a considerable number
of bilateral negotiations with third countries, the most important of
which is the ongoing negotiating process with the United States for
the Transatlantic Trade and Investment Partnership agreement.
I
am certain
that during his speech the Commissioner will provide us with more
details regarding the negotiations. After all, these important trade
agreements will effectively create a new environment in which
European and, of course, Cypriot enterprises operate, trade and
compete.
More
than 99% of Cyprus’
companies, and the vast
majority
of European ones, are SMEs. Considering the crucial role of SMEs as a
source of growth and job creation in Europe, the Union’s common
commercial policy should attribute great importance in creating new
opportunities for these companies. Moreover, SMEs also face
disproportionately higher trade barriers than larger
companies which
are difficult to overcome. We therefore support the Commission’s
intention to pay explicit attention to the needs of SMEs in the
ongoing trade negotiations.
Cyprus
is a small market
economy that
inevitably relies
on export driven growth and foreign direct investment to enhance its
productivity and generate growth. We thus welcome efforts to create
new export opportunities, both for goods and services, as well as
efforts for achieving greater transparency and openness in our trade
and investment relations with other countries.
The
recent Russian ban on agrifood exports is negatively influencing
Cyprus exporters, with citrus fruit, fish and vegetables being the
products most seriously affected. The impact of the Russian ban is
being felt more strongly in Cyprus because, in relative terms,
exports to Russia represent a higher percentage than in other member
states. We urge the Commission to actively engage in proposing
appropriate measures towards supporting the affected exporters.
The
prevailing adverse economic conditions, not only in Cyprus but also
in many European countries, have negatively affected the Cyprus SMEs.
The Cyprus Government is taking practical measures to support them
and especially to address their financing requirements. To this
effect, the Government has already decided to provide guarantees for
loans to SMEs utilizing
funds from the European Investment Bank. I am glad to announce that
yesterday, the Council of Ministers has approved further guarantees
to be provided to specific Cyprus banks that are going to implement
this financing scheme.
In
our efforts, the cooperation with,
and the support from, the European Commission is very important and I
would like to thank the Commission and President Barroso for the
establishment of the Support Group for Cyprus as well as Commissioner
de Gucht for his supportive role in the adoption of more flexible
rules for the provision of state aid to SMEs.
While
still on the
way out of the economic recession, the recent return of Cyprus to the
bond markets is a significant milestone which proves that we are on
the right path for re-orienting our economy towards growth. In this
path we have some important assets that we can build upon, such as
the recent natural gas discoveries in our Exclusive Economic Zone.
In
accordance with International Law and the UN
Convention on the Law of the Sea, the Republic of Cyprus exercises
its sovereign rights for exploring and exploiting its natural
resources. The Aphrodite discovery and the new exploration drillings
that will start shortly are very promising indications of Cyprus’
EEZ hydrocarbon potential.
Our
efforts
for monetizing the natural gas resources in our EEZ are fully aligned
with EU’s pressing priorities for strengthening its security of
energy supply. Cyprus, as well as the wider Eastern Mediterranean
region, can play a vital role and can constitute an additional source
and route of natural gas supply for the EU.
Distinguished
guests,
In
closing, I
wish to encourage Cypriot companies to take full advantage of the
opportunities provided by the trade agreements concluded by the
European Union and by the common commercial policy in general.
I
would like
to
take this opportunity and express my sincere appreciation to both the
Cyprus Chamber of Commerce and Industry and the Cyprus Employers’
Association for our close cooperation over the years. I invite the
Cyprus business community to maintain close cooperation with the
Ministry of Energy, Commerce, Industry and Tourism, so that their
particular interests can be better served within the framework of the
EU’s common commercial policy.
My
hope
is that today’s event will contribute positively towards this end
and, as such, I would like to express the Republic of Cyprus’
appreciation to Commissioner De Gucht for his kind participation.
Thank
you for your attention.
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