Cyprus

1) REFERENCES

Commission Opinion COM(93) 313 finalCommission Report COM(98) 710 finalCommission Report COM(1999) 502 finalCommission Report COM(2000) 702 finalCommission Report SEC(2001) 1745Treaty of Accession to the European Union [Official Journal L 236 of 23.09.2003]

2) SUMMARY

In its July 1993 Opinion, the Commission considered that Cyprus' accession to the European Community would not have a major impact on typically Mediterranean products. This view is confirmed by the November 1998 report and is also a consequence of the small size of the agriculture sector in Cyprus. However, the progress made by Cyprus in preparing for the integration of its agriculture and agriculture policy into the common agricultural policy should be noted.

The October 1999 Report endorses the steps taken by Cyprus in agricultural legislation with a view to its future integration into the common agricultural policy and highlights the need to create administrative structures. Although some progress has been made in the area of fisheries, many provisions on the fishing fleet are still missing. Institutional structures also need to be strengthened with a view to implementing a fisheries policy.

The November 2000 Report underlines that despite the adaptation of some pieces of Cypriot legislation to the Community acquis, major efforts still need to be made particularly regarding market organisations. As regards fisheries, the application of the legislation has improved and infrastructures have been strengthened. No progress has been made on market policy.

The November 2001 Report shows that the work towards legislative alignment in the agricultural sector is continuing.

Cyprus has generally made progress in fisheries in terms of inspection and control, the strengthening of administrative capacity, resource management and structural measures. A fishing boat register has been created and the country has continued to reduce the number of deep sea fishing boats. In addition, a satellite monitoring system has been established.

COMMUNITY ACQUIS

The purpose of the Common Agricultural Policy (CAP) is to maintain and develop a modern agricultural system offering the farming community a fair standard of living and ensuring a reasonably priced food supply for consumers while guaranteeing the free circulation of goods throughout the European Community.

The Common Fisheries Policy includes common market organisations, structural policy, agreements with third countries, management and conservation of fish resources, and scientific research in support of these activities.

EVALUATION

Agriculture

In 2000, agriculture accounted for 3.8% of gross value added compared with 4.2% in 1999. Agriculture's share of total employment went from 9.5% in 1999 to 9.2% in 2000. Agricultural production decreased by 4.9% compared with 1999.

The agricultural budget in 2001 was increased by nearly EUR 40 million in comparison with the year 2000 (EUR 119.75 million against EUR 80.5 million). In terms of commercial trade, the trade surplus in favour of the European Union increased from EUR 152.3 million in 1999 to EUR 233.9 million in 2000.

• Horizontal issuesNo measure relating to the implementation of the European Agricultural Guidance and Guarantee Fund (EAGGF) or to the quality policy has been adopted. Legislation must be formulated for the quality policy particularly regarding designations and the certification of geographical indications. An organisation with responsibility for geographical indications, designations of origin and certificates of specific character must be created in addition to an inspectorate. The Integrated Administration and Control System (IACS) is continuing to be developed.In relation to budgetary matters, some adaptations are needed for alignment of the multiannual Strategic Development Plans with the acquis.Regarding direct payments for cereals, the Cypriot authorities have been encouraged to adopt legislation enabling land parcels to be identified. They are asked to provide both farmers and the administration with the experience necessary for the administration of a direct payment scheme.
• Common market organisationsProgress has been made following the adoption of legislation on production as well as on quality and marketing standards for fruit, vegetables, eggs and poultry. However, work has to continue towards the creation of producer organisations for fresh fruit and vegetables.A law on carcass classification, price collection and reporting for bovine and pig meat is being considered in Parliament.In the wine sector regulatory measures must be taken for legislation to be implemented. Rules affecting the wine market, wine growing potential and wine designations have yet to be aligned with the acquis.The State monopoly over olive products is in the process of being abolished, but this is not the case for dairy products.Cyprus must continue to do away with its monopolies and to adapt its legislation in the other sectors covered by the common market organisations.
• Rural development and forestryCyprus is continuing its process of legislative alignment in relation to authorisation, internal audit, execution of payments and support for young farmers.Monitoring agencies and a code of good agricultural practice need to be established.The administrative capacity for implementation of the acquis in the area of rural development will have to be strengthened.
• Veterinary and phytosanitary issues and food safetyTransposition of the acquis is still only partial in relation to these issues.No progress has been made with the directive on fees for veterinary inspections.The law on veterinary pharmaceutical products was adopted and the animal nutrition law was amended in 2001.The animal identification and registration system should be established as soon as possible.Food processing establishments must be upgraded.In the context of the Geographical BSE Risk Assessment, Cyprus is in group III.

Alignment with the acquis is continuing in relation to plant health particularly in relation to pesticides. Border inspection posts need to be provided with laboratories and the capacity of veterinary services reinforced.

A strategy for food safety was adopted in April 2001.

Fisheries

This sector accounts for about 4% of total value added in the agriculture sector. Between 1991 and 1996, production increased by 4.5% per year but is still not sufficient to cover national consumption.

As regards resource management, inspection and controls, the fisheries legislation adopted in June 2000 has been modified to regulate the granting of fishing licences to fleets active outside territorial waters. The allocation of fishing licences will from now on conform to the Community acquis. Inspection capacities have been strengthened. The aquaculture sector is regulated by an Act of June 2000. As regards state aids, the Cypriot government subsidises fleets fishing in international waters of the Mediterranean.

Cyprus' implementation of the acquis regarding fisheries has made considerable progress. However, work still needs to be done, particularly as regards the application of trading standards and the recognition of producer organisations. The policy of reducing the number of deep sea fishing boats must be maintained.

On an international level, Cyprus is in the process of ratifying specific UN and FAO agreements. It has also approved the creation of the General Fisheries Commission for the Mediterranean.

Last updated: 15.03.2002