REPORT FROM THE COMMISSION TO THE COUNCIL Twelfth report on the implementation of Council Regulation (EC) No 866/2004 of 29 April 2004 and the situation resulting from its application covering the period 1 January until 31 December 2015
Date: 2016-08-04
Institutions: European Commission, Secretariat-General
Subjects: Cyprus, Türkiye, United Kingdom, accession to the European Union, border control, economic consequence, foreign national, illegal migration, trade policy

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 4.8.2016  COM(2016) 494 final   REPORT FROM THE COMMISSION TO THE COUNCIL Twelfth report on the implementation of Council Regulation (EC) No 866/2004 of 29 April 2004 and the situation resulting from its application covering the period 1 January until 31 December 2015 {SWD(2016) 281 final}  
 
 
REPORT FROM THE COMMISSION TO THE COUNCIL 

Twelfth report on the implementation of Council Regulation (EC) No 866/2004 of 29 
April 2004 and the situation resulting from its application covering the period 1 January 
until 31 December 2015 

Council Regulation (EC) No 866/2004 on a regime under Article 2 of Protocol No 10 to the 
Act of Accession1 (hereafter Green Line Regulation, GLR) entered into force on 1 May 2004. 
It  defines  the  terms  under  which  provisions  of  EU  law  apply  to  the  movement  of  persons, 
goods and services across the Line between the areas of the Republic of Cyprus in which the 
government  does  not  exercise  effective  control  and  the  areas  in  which  it  does.  In  order  to 
ensure  the  effectiveness  of  these  rules,  their  application  was  extended  to  the  boundary 
between these areas and the UK Eastern Sovereign Base Area (ESBA).2 

This report covers the period 1 January – 31 December 2015. 

During the reporting period, the Commission amended Annex I to the GLR introducing two 
new crossing points in Deryneia and Lefka-Apliki3. 

The Commission has maintained a constructive dialogue with the relevant  authorities of the 
Republic of Cyprus, the Sovereign Base Area (SBA) Administration on the implementation of 
the Regulation, as well as with the Turkish Cypriot Chamber of Commerce (TCCoC).  

1. 

1.1. 

CROSSING OF PERSONS 

Crossing at authorised crossing points 

The Regulation  provides a stable legal framework for the free  movement of Cypriots, other 
EU  citizens  and  third  country  nationals  who  cross  the  Green  Line  (hereafter  "the  Line")  at 
authorised  crossing  points.  There  was  an  increase  in  the  number  of  Turkish  Cypriots  and  a 
slight decrease in the number of Greek Cypriots crossing in 2015 compared to previous years.  

According  to  data  from  the  Republic  of  Cyprus,  534,879  (previous:  589,906)  crossings  by 
Greek  Cypriots  and  189,027  crossings  by  Greek  Cypriot  vehicles  (previous:  200,562)  were 
noted  from  the  government-controlled  areas  to  the  northern  part  of  Cyprus  and  1,055,130 
(previous: 927,141) crossings by Turkish Cypriots and 382,621 crossings by Turkish Cypriot 
vehicles  (previous:  346,495)  from  the  northern part  of  Cyprus  to  the  government-controlled 
areas during the reporting period4. 

The number of EU citizens other than Cypriots and third country nationals crossing the Line 
decreased  significantly.  According  to  data  from  the  Republic  of  Cyprus  Police  (hereafter 

1 

2 
3  

4 

OJ L 161, 30.04.2004, p.128. Regulation as last amended by Council Regulation (EU) No 685/2013 of 
15 July 2013, OJ L 196, 19.7.2013, p. 1- known as the "Green Line" Regulation. 
See 3rd recital of the Green Line Regulation. 
Commission Implementing Regulation (EU) 2015/1472 of 26 August 2015, OJ L 225, 28.8.2015, p. 3-
4. 
The authorities of the Republic of Cyprus do not keep records for the return of Greek Cypriots to the 
government-controlled areas or the return of Turkish Cypriots to the northern part of Cyprus. 

2 

 
 
                                                            
CYPOL), during the reporting period 491,860 crossings took place by EU citizens other than 
Cypriots and by third country nationals (previous: 732,856). 71% of these crossings (351,299) 
occurred at the Ledra Street crossing point which continued to account for the vast majority of 
crossings by non-Cypriots (primarily tourists).  

The CYPOL figures mentioned above, however, do not include data on persons and vehicles 
crossing  from  the  northern  part  of  Cyprus  at  the  Pergamos  and  Strovilia  crossings  points.5 
The  ESBA  reports  that 115,335  (previous:  108,893)  Greek  Cypriots  crossed  to  the northern 
part  of  Cyprus  and  389,412  (previously:  273,607)  Turkish  Cypriots  crossed  the  Line  in  the 
other  direction,  while  258,810  EU  citizens  other  than  Cypriots  and  third  country  nationals 
crossed in both directions, through the crossing points situated within the ESBA.  

In 2015, the number of CYPOL personnel working directly at the crossing points decreased to 
69  (72 in 2014). 

The figures gathered by the Turkish Cypriot community indicate an increase in the number of  
crossings  by  Greek  Cypriots  (i.e.  907,329)  and  an  increase  in  the  number  of  crossings  by 
Greek  Cypriot  vehicles  (i.e.  313,498)  from  the  government-controlled  areas  to  the  northern 
part of Cyprus. They also indicate an increase in the number of crossings by Turkish Cypriots 
(i.e. 1,589,339) and an increase in the number of crossings by Turkish Cypriot vehicles in the 
other  direction  (i.e.  642,043).  There  were  1,164,131  foreign  nationals  crossing  from  the 
government-controlled areas to the northern part of Cyprus.  

No incidents concerning crossings were reported in 2015. However, to date Turkish Cypriot 
busses carrying EU citizens are still not permited by the authorities of the Republic of Cyprus 
to cross into the government-controlled areas. 

During  the  reporting  period,  the  authorities  of  the  Republic  of  Cyprus  have  introduced 
enhanced controls at the crossing points in light of the global security situation.  

Although  not  falling  under  the  scope  of  the  Green  Line  Regulation,  certain  requirements  to 
cross into the northern part of Cyprus via the Green Line have been abolished as an unilateral 
Confidence  Building  Measure  (CBM)  in  May  2015  decided  by  the  Turkish  Cypriot 
community.  

With  UNFICYP  support,  the  practice  of  religious  worship  continued  to  be  facilitated  as 
mentioned in the January 2016 UNSG report6. Religious leaders and worshippers continued to 
benefit from easier crossing possibilities in both directions. 

1.2. 

Irregular migration across the Green Line and asylum 

CYPOL  figures  for  2015  indicated  an  increase  in  the  number  of  migrants  that  irregularly 
crossed  the  Line  coming  from  the  northern  part  of  Cyprus  into  the  government-controlled 
areas.  Their  number  amounted  in  2015  to  1,290,  while  in  2014,  2013  and  2012  it had  been 

5 
6  

The GLR does not contain reporting obligations for this traffic. 
Report of the Secretary-General on UNFICYP [S/2016/11] of 6 January 2016. 

3 

 
 
                                                            
respectively 970, 1,043 and 1,2657. As a probable reason for the increase, CYPOL indicates 
asylum seekers coming from Syria.  

The  countries  of  origin  with  the  highest  number  of  apprehended  irregular  migrants  after 
having  crossed  the  Line  were  Syria  (757),  Pakistan  (111),  Somalia  (63),  India  (50)  and 
Georgia (38). 

Out  of  these  1,290  irregular  migrants,  1,049  persons  (81%)  applied  for  international 
protection in the Republic of Cyprus, the majority of them being Syrians (745). 

Irregular  migrants  are  normally  apprehended  during  controls  along  the  Line  and  at  airports 
when  seeking  to  leave  Cyprus  or  at  police  stations  when  requesting  for  international 
protection.  

CYPOL's  assessment  of  the  fact  that  they  arrived  into  the  government-controlled  areas  by 
irregularly  crossing  the  Line  is  based  on  the  same  criteria  as  in  previous  years,  primarily 
through pieces of information included in their documents, statements by migrants and other 
forms of evidence.  

Based on this assessment, almost all the migrants apprehended in the government-controlled 
areas, after having irregularly crossed the Line, had previously arrived into the northern part 
of Cyprus coming from the Turkish territory.  

The Turkish Cypriot community informed the Commission that in the northern part of Cyprus 
efforts are being made to prevent irregular migration. According to the information received, 
in 2015, 3,181 persons8 were refused entry into the northern part of Cyprus and 642 persons9 
apprehended  within  the  northern  part  of  Cyprus,  were  returned  to  the  territory  of  Turkey, 
which had been the last place they had visited before arriving to the island. 

Representatives  from  the  two  communities  meet  regularly  within  a  bi-communal  Technical 
Committee on Crime and Criminal Matters (TCCCM) under UN auspices. As an extension to 
this committee, the two communities continue to actively use the previously established ‘Joint 
Communications Room’, which provides a forum for the exchange of information on criminal 
matters. 

CYPOL described co-operation with other relevant governmental departments and the ESBA 
administration as very good.  

Eastern Sovereign Base Area (ESBA) 

7 

8 
9 

In order to have a comprehensive view of the irregular migration flows across the Green Line it would 
be useful to have also information on the number of persons that tried to cross the Green Line but were 
refused  entry  into  the  government-controlled  areas.  However  this  information  is  not  available  as  the 
Republic of Cyprus does not keep official statistics on this category of persons. 
Nationals of Syria: 1,802, of Turkey: 325, of Iraq: 184, of Iran: 136, of Turkmenistan: 76. 
Nationals  of  Turkey:  233,  of  Syria:  82,  of  Turkmenistan:  36,  of  the  Republic  of  Moldova:  41,  of 
Nigeria: 15. 

4 

 
 
                                                            
Overall,  irregular  migration  from  the  northern  part  of  Cyprus  via  the  ESBA  has  slightly 
decreased.  In  2015,  7  irregular  migrants  were  apprehended  after  having  crossed  the  Line 
irregularly10.  1,353  persons  were  not  allowed  to  cross,  the  vast  majority  being  Turkish 
citizens. Other foreign nationals were from Russia, the USA, Syria and Iran who arrived via 
the northern part of Cyprus.11 These persons were directed to the Agios Dhometios crossing 
point for processing as per the Republic of Cyprus' entry requirements. 

Sovereign Base Area (SBA) officers continue to describe their cooperation with the Republic 
of Cyprus as excellent.  

Away  from  the  crossing  points,  the  SBA  Police  conducts  irregular,  risk-based,  intelligence-
led  patrols  to  counter  irregular  migration.  These  patrols  are  supplemented  by  patrols  from 
SBA Customs and military assets.  

Several  "unauthorised  crossing  points"  in  or  near  the  village  of  Pergamos  used  by  local 
residents  and  farmers  are  particularly  difficult  to  control.  As  mentioned  in  previous  reports, 
these "unauthorised crossing points" remain an area of concern and a suitable solution in line 
with Article 5 (2) of Protocol No 3 to the 2003 Act of Accession should be found.12 The SBA 
has stated that staff can rapidly be deployed to the areas of the unauthorised crossing points in 
case of need.  

2. 

CROSSING OF GOODS 

Value of trade 

2.1. 
Pursuant to Art 8 of the Commission Regulation (EC) No 1480/200413, the Turkish Cypriot 
Chamber of Commerce (TCCoC) as well as the authorities of the Republic of Cyprus reported 
on  a  monthly  basis  on  the  type,  volume  and  value  of  goods  for  which  accompanying 
documents  were  issued.  Both  report  on  goods  having  crossed  to  the  government-controlled 
areas through the crossing points of  Pergamos and Strovilia under the authority of the SBA 
Administration. 

According to the TCCoC, the total value of goods for which accompanying documents were 
issued  amounted  to  EUR 3,933,918  (previous:  EUR 3,911,189).  Those  figures  indicate  a 
slight  increase  of  0.58%  of  the  overall  value  of  goods  for  which  accompanying  documents 
were issued compared to 2014.  

According to reports provided by the Republic of Cyprus, the total trade value of goods with 
to 
accompanying  documents  which  crossed 
EUR 3,619,736  (previous:  EUR  3,520,045).  The  increase  has  been  notable  for  plastic 

increased  by  2.8% 

the  Line  slightly 

10   

11 
12 
13 

These  7  irregular  migrants  intercepted  within  the  ESBA  were  handed  over  to  the  authorities  of  the 
Republic  of  Cyprus  and  added  to  the  overall  number  of  persons  that  irregularly  crossed  the  Line  and 
whose breakdown by nationality is provided in SWD(2016) 281, Table VII.  
Nationals of Turkey: 484, of Russia: 65, of USA: 60, of Syria: 38, of Iran: 31. 
OJ L 236, 23.09.2003, p. 940. 
Commission Regulation (EC) No 1480/2004 of 10 August 2004, OJ L 272, 20.8.2004, p. 3. 

5 

 
 
                                                            
products, building materials/articles of stones and raw metal scrap. Stakeholders mention the 
stabilisation of the economic situation as the main factor leading to this increase.  

Although not covered by the scope of the GLR, trade from the government-controlled areas to 
the northern part of Cyprus increased by around 5.4%, from EUR 1,246,930 in 2014 to EUR 
1,314,271 in 2015 according to figures from the Cyprus Chamber of Commerce and Industry 
(CCCI). Trade from the government-controlled areas to the northern part of Cyprus represents 
36.3% of the trade in the opposite direction (35.4% in 2014).  

The  Turkish  Cypriot  community  continues  to  apply  a  trade  regime  which  in  principle 
"mirrors"  the  restrictions  of  the  GLR.  However,  this  regime  is  not  always  consistently 
applied,  making  it  difficult  to  establish  sustainable  trade  relations.  Protection  of  local 
businesses is openly stated by Turkish Cypriot stakeholders as the main reason. 

2.2. 

Type of goods 

In  2015,  plastic  products  was  the  most  traded  item,  followed  by  fresh  fish  and  building 
materials/articles of stone.14  

New products such as textile were introduced. All the trade across the Line was intra-island 
and there was no export registered to other EU Member States or third countries. 

2.3. 

Irregularities 

During the reporting period, no cases of irregularities were reported. 

However,  the  Republic  of  Cyprus  wrote  to  the  Commission  enquiring  on  the  origin  and 
amounts  of  fruit  and  vegetables  traded  across  the  Green  Line.  The  Commission  raised  this 
matter with TCCoC, which confirmed that the amounts traded are effectively produced in the 
northern part of Cyprus. 

2.4. 

Obstacles and difficulties concerning the movement of goods 

Obstacles to trade across the Line continue to persist and this is, in view of the Commission 
and Turkish Cypriot operators, a reason for the limited level of trade.  

As mentioned in previous reports15, the issue of Turkish Cypriot commercial vehicles crossing 
to  the  government-controlled  areas  is  still  not  solved  and  to  date,  no  Turkish  Cypriot 
commercial  vehicles  above  7.5  tonnes  can  cross  the  Line  unless  they  have  fully  acquis-
compliant  documents  issued  by  the  Republic  of  Cyprus.  The  authorities  of  the  Republic  of 
Cyprus  have  informed  the  Commission  that  they  put  in  place  dispositions  to  facilitate 
obtaining roadworthiness certificates and professional driving licences for Turkish Cypriots. 
The  Commission  is  convinced  that  a  solution  to  the  issue  would  significantly  contribute  to 
increasing  the  level  of  trade  as  it  would  ease  the  transport  of  goods.  It  would  furthermore 
strengthen the contact between Cypriot economic operators thus contributing in an important 

14 
15  

SWD(2016) 281, Table IV.  
See  for  instance  the  ninth,  tenth  and  eleventh  annual  report  on  the  implementation  of  the  Council 
Regulation EC No 866/2004 and the situation resulting from its application.  

6 

 
 
                                                            
manner to enhancing trust between both communities. The Commission has been informed by 
the Republic of Cyprus that a solution is being foreseen. 

As reported in previous years, the authorities of the Republic of Cyprus still do not allow the 
crossing of processed food products due to concerns raised by health services regarding the 
production  process  in  the  northern  part  of  Cyprus.  The  Commission  continues  as  reported 
previously to believe that under the Green Line Regulation there are no grounds to carry out 
checks  of  premises  in  the  northern  part  of  Cyprus  to  assess if  the  production  takes  place  in 
line with Union rules16. Whilst the authorities of the Republic of Cyprus may take samples of 
the  products  for  further  analysis  in  line  with  the  application  of  the  Green  Line  Regulation, 
they  should  not  prevent  all  processed  food  from  crossing.  As  for  commercial  vehicles,  the 
Commission  has  been  informed  by  the  Republic  of  Cyprus  that  a  solution  for  this  issue  is 
being foreseen.  

As in previous years, Turkish Cypriot traders have continued to report difficulties in having 
their products stocked in shops and advertising their products and services in the government-
controlled areas which hinders trade. Traders continue to report on a reluctance among Greek 
Cypriots to purchase Turkish Cypriot products. In addition, it was mentioned that traders from 
both  communities  are  faced  with  many  administrative  problems  when  wanting  to  enter  into 
business with the other community. The economic operators from both sides need to be free 
to engage in trade relations, based on their business requirements.  

In  2015  the  Commission  received  complaints  from  Turkish  Cypriot  producers  about  the 
alleged  refusal  by  the  relevant  authorities  of  the  Republic  of  Cyprus  to  allow  trade  of 
materials, notably plastics, for contact with food. The Commission raised the issue with the 
the  authorities  of  the  Republic  of  Cyprus  and  was  informed  that  they  apply  the  same 
requirements to these products as they do to processed foods.    

2.5. 

Smuggling of goods 

The smuggling of goods remains widespread, reflecting the geographical pattern of the Line. 
Control  operations  take  place  in  areas  near  the  Line  in  order  to  tackle  seasonal  issues  in 
particular such as the transport of game/wild birds or fire crackers (also via the ESBA) to the 
government-controlled areas.  

In  2015,  the  Republic  of  Cyprus  conducted  2,689  seizures (previous:  2,627).  In  2015,  there 
has  been  an  increase  in  the  quantities  of  hand  rolling  tobacco  and  cigarettes  seized  by  the 
Republic  of  Cyprus:  244,457  cigarettes  and  399,283  gr.  of  hand  rolling  tobacco  (previous: 
140.029 cigarettes and 370.794 gr., respectively). It was reported that for most, this smuggling 
consists of small quantities. The smuggling is due to the price differentials and the higher tax 
of  the  Republic  of  Cyprus  on  tobacco  products.  Other  items  seized  include  mainly  goods 
violating intellectual property rights, agricultural as well as animal and dairy products. There 

16  

Tenth annual report on the implementation of the Council Regulation EC No 866/2004 and the situation 
resulting from its application.  

7 

 
 
                                                            
was one criminal case filed in the district court for smuggling. For the majority of the reported 
cases, an administrative penalty is imposed. 

In  2015,  there  was  a  decreased  level  of  detection  of  goods  within  the  ESBA.  351  seizures 
were operated in 2015 (previous: 452) and as previously, cigarettes and hand-rolling tobacco 
were the most seized items.   

Concerning  the  traditional  supply  of  the  Turkish  Cypriot  population  of  the  village  of  Pyla, 
located  in  the  Buffer  Zone  (Art  4  (10)  GLR),  the  quantities  of  construction  materials,  fish, 
cigarettes etc. are monitored and recorded by the ESBA administration.  

Facilitation of trade 

2.6. 
The Commission continues to seek ways of enhancing trade across the Line.17  

In  July  2015  the  Commission  adopted  a  Proposal  to  the  Council  to  amend  the  Green  Line 
Regulation to establish  the  manner in  which the control mechanism for goods covered by a 
name  registered  under  Regulation  (EU)  No  1151/2012  would  be  applied  in  the  areas  of  the 
Republic  of  Cyprus  in  which  the  Government  of  the  Republic  of  Cyprus  does  not  exercise 
effective  control18.  The  proposal  is  based  on  the  Common  Understanding  on  a  temporary 
solution for Halloumi/Hellim, to be implemented pending the reunification of Cyprus, reached 
under the guidance of President Juncker during his visit to Cyprus on 16 July 201519. At the 
end of the reporting period, the proposal is pending in the Council.  

The TCCoC continued to express a general interest in the lifting of the prohibition of trade in 
all live animals and animal products to the extent that these products would comply with EU 
rules and regulations, including dairy products. Currently, the Commission is scrutinising the 
request to authorise trade of farm fish. The Republic of Cyprus has repeatedly expressed its 
willingness  to  examine  the  possibility  of  expanding  the  list  of  goods  that  can  cross  to  the 
government-controlled areas 

The Commission encourages economic operators to take advantages of business opportunities 
and welcomes the intense efforts undertaken by the Chambers of Commerce.  

In the framework of an EU funded project, the Turkish Cypriot Chamber of Commerce and 
the  Cyprus  Chamber  of  Commerce  and  Industry  are  implementing  the  project  "Leading  by 
Example".  This  programme  provides  young  Greek  Cypriots  and  Turkish  Cypriots  with  the 
possibility of an internship in a company on the other side of the Green Line. The project aims 
at contributing to the dialogue, trust, cooperation, and reconciliation between civil societies, 
including the business communities, throughout Cyprus.  

In  the  framework  of  this  project,  the  Chambers  also  organised  a  bi-communal  High  Level 
Event in July 2015 with the participation of both  leaders, who shared their vision for a post 

17  

18  
19  

In 2011 the Commission lifted the obligation that potatoes traded across the Line must be grown 
directly from certified seed potatoes.   
COM/2015/0380 final - 2015/0165 (NLE). 
http://europa.eu/rapid/press-release_MEX-15-5402_en.htm 

8 

 
 
                                                            
settlement  economy  of  Cyprus,  and  explained  that  a  comprehensive  solution  will  bring 
economic  benefits  to  both  communities  on  the  island,  contributing  to  the  stability  in  the 
region. 

2.7. 

Union  goods  taken  back  to  the  areas  under  the  effective  control  of  the 
Government  of  the  Republic  of  Cyprus  after  passing  through  the  areas  which 
are not under its effective control. 

The  Republic  of  Cyprus  authorities have  reported  that  6,280  items  have  been  taken back  to 
the government-controlled  areas after having  passed  through the non government-controlled 
areas. It has been mentioned that these crossings run smoothly and that most of the movement 
takes place to/from the Kato Pyrgos-Karavostasi and Astromeritis-Zhodia crossing points. 

3. 

CONCLUSIONS 

As stated in previous reports, the control of the Line at the authorised crossing points by the 
authorities  of  the  Republic  of  Cyprus  and  the  SBA  and  efforts  deployed  are  satisfactory 
despite budgetary constraints. The number of persons irregularly crossing the Line increased 
and the situation needs to be monitored carefully. The Commission also continues to call on 
the SBA Administration to find a suitable solution to address the issue of the "unauthorised" 
crossing points. 

The Commission continues to consider that stability, predictability and legal certainty of the 
requirements  at  the  crossing  points,  as  well  as  the  free  movement  of  EU  citizens,  are  of 
paramount importance. 

During the reporting period, the Commission amended Annex I to the GLR introducing two 
new  crossing  points  in  Deryneia  and  Lefka-Apliki.  The  opening  of  the  new  crossing  points 
will be financially supported by the Commission.    

In 2015, the value of trade across the Line increased slightly by 2.8% up to EUR 3,619,736 
from  EUR  3,520,045  according  to  Republic  of  Cyprus,  while  the  value  of  goods  for  which 
accompanying  documents  were  issued  by  TCCoC  increased  slightly  by  0.58%  from 
EUR 3,911,189 to  EUR 3,933,918.  Plastic products were  the  most  traded item,  followed by 
fresh  fish  and  building  materials/articles  of  stone.  Despite  the  slight  increase  in  2015,  the 
overall  scale  of  the  trade  remains  at  a  low  level,  in  part  due  to  the  specific  scope  of  the 
Regulation itself, and is substantially lower than the EUR 6,151,989 figure of the peak period 
of trade in 2008.  

The  Cyprus  Chamber  of  Commerce  and  Industry  and  the  Turkish  Cypriot  Chamber  of 
Commerce continued their close cooperation and advocacy towards a solution to the Cyprus 
issue, which in their views, will bring economic benefits to both communities. 

During the reporting period, certain obstacles to trade remained. Turkish Cypriot commercial 
vehicles above 7.5 tonnes and processed foods continue not to be authorised to cross by the 
authorities  of  the  Republic  of  Cyprus.  The  Commission  was  informed  by  the  Republic  of 
Cyprus that a solution to these issues is being foreseen.  

9 

 
 
Overall,  and  while  the  Green  Line  Regulation  continues  to  provide  a  workable  basis  for 
allowing the passage of persons and goods to and from the government-controlled areas of the 
Republic of Cyprus, the Commission  continues to  be concerned that trade is  at a low level. 
The  Commission  considers  that  removing  the  abovementioned  obstacles  to  trade  shall  help 
significantly  increase  trade  across  the  Green  Line.  The  Commission  hopes  that  the  positive 
climate in the current round of settlement negotiations and the work of the two Chambers to 
enhance contacts between the two business communities leads to increased economic ties. 

Against this background, the Commission relies on the effective cooperation of the Republic 
of  Cyprus  and  the  SBA  to  ensure  effective  implementation  of  Council  Regulation  (EC)  No 
866/2004. The Commission will continue to monitor the implementation of the Regulation. 

10