Cyprus could become a commercial hub in the Eastern Mediterranean and achieve its full economic potential following the reunification of the island, Kenneth Hyatt US Deputy Undersecretary for International Trade at the Department of Trade told a gathering of Greek Cypriot and Turkish Cypriot businesspeople.<\/p>\n
Hyatt addressed an event organised by the US Embassy to Cyprus, the Greek Cypriot Chamber of Commerce and Industry and the Turkish Cypriot Chamber of Commerce, the leaders of which noted that a Cyprus settlement would create growth opportunities both to Cyprus and the region.<\/p>\n
\u201cThe United States is committed to seeing Cyprus prosper and achieve its full economic potential. But in order to achieve that important goal, this fundamentally requires a comprehensive settlement of the Cyprus issue. This is our longstanding policy,\u201d Hyatt said in his speech.<\/p>\n
Praising the role of the two Chambers Hyatt, said \u201cthrough their continuous support Cyprus can realize a bi-zonal bi-communal federation that would create the conditions necessary for attracting foreign investment, increase employment and increase jobs.\u201d<\/p>\n
The US Undersecretary said that Cyprus at this point is a small market to the US \u201cbut we do think there is a foundation here on which to build and on which to grow.\u201d<\/p>\n
He said, bilateral trade amounted to $130 million in 2015, with US investment at approximately 2 billion, an increase sevenfold over the last three years largely due to opportunities in energy and banking. \u201cBut there are a number of companies that see opportunities in IT, medical equipment, agricultural products. Cyprus is becoming an increasingly attractive destination in an increasingly complex region,\u201d he said.<\/p>\n
The US official also referred to the belief shared by businesspeople about how attractive the companies see Cyprus to be a commercial hub for the eastern Mediterranean. \u201cAnd I think that`s a strategic opportunity here.\u201d \u201cAnd in an increasingly unstable region, Cyprus is a more appealing commercial venue than it has ever been. That is why the United States strongly believes that this is Cyprus\u2019s moment to develop into an even broader commercial hub in the Eastern Mediterranean, linking economies throughout the region,\u201d he went on to say.<\/p>\n
Hyatt highlighted that one of the key factors behind any company\u2019s decision to do business in a country is stability. \u201cSimply put, reunification would unleash Cyprus\u2019s economic potential by creating the stability and predictability that is necessary for increased bi-lateral trade and investment,\u201d he said.<\/p>\n
He referenced four sectors that would emerge as growth drivers for a post-settlement Cyprus.<\/p>\n
Particularly, he said tourism which counts for about one quarter of Cyprus\u2019s GDP, stands to benefit greatly as a post-settlement tourist industry would be a boon in terms in creating jobs and modernising infrastructure development, whereas the shipping industry \u201coffers much potential for U.S. companies seeking to export shipping-related goods and services, including shipping insurance services, and marine support services for Cyprus\u2019s budding offshore energy sectors.\u201d<\/p>\n
\u201cA settlement,\u201d he added, \u201cwill accelerate trade and shipping between Cyprus and Turkey, significantly expanding the sector\u2019s contribution to the island\u2019s economy.\u201d<\/p>\n
He also referred to science and innovation, but added that the energy sector holds perhaps the most potential.<\/p>\n
Recalling that one US Company has already invested heavily in Cyprus and expressing hope that future discoveries will emerge, Hyatt noted however that \u201cunder the current arrangement, Cyprus\u2019s hydrocarbons sector does not have access to its closest commercial market \u2013Turkey \u2013 which also happens to be one of the fastest growing markets in the G20 and certainly the region.<\/p>\n
The US official also pointed out that post-settlement, Cyprus will present many opportunities, including modernization of the transportation system, upgrade of the ICT sector, and a central location that will allow foreign businesses to be able to properly serve customers throughout the Eastern Mediterranean.<\/p>\n
Concluding Hyatt, said the United States is committed to its relationship with Cyprus, and we\u2019re in it for the long-term.<\/p>\n
On his part, Phidias Pelides, President of the Greek Cypriot Chamber of Commerce and Industry said our Chambers are convinced that a comprehensive solution to the Cyprus problem will bring considerable benefits not only to Cyprus and enhancing the welfare and prosperity of all Cypriots but also to the entire region and geographical area that encompasses Cyprus, Greece and Turkey within an enlarged EU where democratic principles, human rights and fundamental freedoms will be respected.<\/p>\n
Pelides added that a solution will increase the stability and security in the region and will create huge opportunities of cooperation and economic exchanges between Cyprus, Greece and Turkey focusing not only on their own markets but also with other European and Middle Eastern markets in the area.<\/p>\n
A settlement, he added, will create additional opportunities that would consolidated the role of Cyprus as the leading business and services centre in the wider Eastern Mediterranean region, he said, adding that US companies could use Cyprus as their base for the operations in the region.<\/p>\n
On his part, Fikri Toros, referred to recent academic studies which \u201chave shown that the island`s total GDP is expected to rise from just over \u20ac20 billion to approximately \u20ac45 billion by 2035, meaning a total dividend of approximately \u20ac25 billion during the initial twenty years, adding this means a GDP per capita of \u20ac12,000 and an average economic growth rate of 4.5%.\u201d<\/p>\n
He said that specific sectors like tourism will generate additional income of approximately \u20ac550 million euros per annum coupled with \u20ac725 per annum in the construction sector, whereas the financial and insurance services expect to generate a total dividend of \u20ac380 million and professional services sector as whole is expected to generate over \u20ac1 billion. Finally he said the shipping sector is estimated to generate an annual average dividend of \u20ac760 million and higher education is estimated to yield an additional income of \u20ac270 per annum.<\/p>\n
On natural gas resources located in Cyprus EEZ, Toros said a regional cooperation between Israel, Lebanon, Cyprus and Turkey is crucial to exploit these resources in the most commercially viable way. \u201cThis has been proven to be through a pipeline to Turkey with a view to be marketed to Turkey and ultimately in the European markets,\u201d he said.<\/p>\n
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