06 04 20 - Turkey could seek international arbitration over customs union

20/04/2006 www.financialmirror.com-Annette Melikian USA

Turkey could attempt to send its obligation to extend the EU customs union to Cyprus as well as other new EU member states to international arbitration, in an effort to prevent a clash with the EU in the autumn.

In September/October the European Commission will give its first opinion on Turkey's progress in accession talks. The main clash will be over its non-extension of the customs union to Cyprus.

Although Turkey signed the Ankara protocol to extend the customs union last year, it has been unwilling to implement it unless trade restrictions on Turkish Cypriots are lifted.

Implementation of the Ankara protocol would mean lifting restrictions on Cypriot vessels and aircraft but does not oblige Turkey to recognise the Republic of Cyprus.

Turkish newspaper Cumhuriyet reported this week that Turkey would seek to take the matter to international arbitration. Presumably if the matter were at an international court, it could not be used as an excuse to suspend negotiations with Turkey.

Moreover, if the court ruled against Turkey, it would be politically easier for Turkey to implement than if it were done in a way that looked like Turkey was doing it ofits own accord.

Turkey is currently facing a rise of nationalism at the same time as renewed insurgency from militant Kurds.

Cyprus government spokesman George Lillikas said that the government is "ready for a series of possible scenarios or possible moves on the part of Turkey or other countries and accordingly there will be action or reaction by us".

He added, "For us there is a clear commitment and obligation on the part of Turkey to adopt and implement the protocol as well as the whole of the acquis communautaire in order for its EU course to proceed. This is the EU position, as noted in the letter of the 25 to Turkey's statement, and we insist on the implementation and execution of its commitments".

V.V