The document summarizes Turkey's restrictive measures on Cyprus and EU maritime transport and free trade since 1987. It discusses how the measures were initially introduced against Cyprus flag vessels calling at Turkish ports but were later extended to all ships with any connection to Cyprus. It outlines the EU legal dimensions, including Turkey's obligations under various EU-Turkey agreements, and how the measures violate principles of free trade. The economic consequences for Cyprus and the EU are also summarized, including estimated losses of over 100 million euros annually for Cyprus' economy across key sectors like shipping registration and ports. Incidents involving denied access to Turkish ports for various EU-linked vessels with Cyprus connections are provided as examples.

1. The Adverse Effects
of the
Turkish Restrictive Measures
on
Cyprus and EU Maritime Transport
and the Free Trade
1

2. Turkish Restrictive
Measures
1987
Turkey introduced restrictive
measures to the Cyprus flag
vessels calling at Turkish
ports
1997
Turkey’s restrictive
measures were extended to
all ships, irrespective of flag,
which had indirect or even
negligible connection with
Cyprus
2

3. Turkish Restrictive
Measures
• selective and discriminatory
• affect shipping engaged in international trade
• violate all commercial principles in shipping
[Council Regulation (EEC) No 4055/86 and No. 4058/86]
• freedom of navigation
• freedom of transit
• freedom of access to ports and harbors
• equality of treatment
3

4. The EU Legal
Dimension
The EC–Turkey Association and Customs Union
(1963 Ankara Agreement and its 1970 Additional Protocol
and Decision No.1/95 of the EC-Turkey Association
Council)
Article 5 of Decision No 1/95:
Quantitative restrictions and measures having equivalent effect
are prohibited. According to the case-law of the European Court
of Justice, measures placing restrictions on means of transport
constitute measures of equivalent effect to quantitative
restrictions on imports.
Article 58 of the 1970 Additional Protocol:
The arrangements applied by Turkey in respect of the Community
in the fields covered by the Protocol (freedom to provide services
and transport are covered, respectively, by Articles 41 and 42 of
the Protocol), shall not give rise to any discrimination between
Member States, their nationals and their companies or firms.
4

5. The EU Legal
Dimension
The EC–Turkey Association and Customs Union
(1963 Ankara Agreement and its 1970 Additional Protocol
and Decision No.1/95 of the EC-Turkey Association
Council)
Article 7 of the 1963 Ankara Agreement:
Contracting Parties must take all appropriate measures to ensure
the fulfillment of the obligations arising from the Agreement and
must refrain from any measures
liable to jeopardize the
attainment of the objectives of the Agreement
Article 9 of the 1963 Ankara Agreement:
Prohibits any discrimination on grounds of nationality
Article 41 of the 1970 Additional Protocol:
The Contacting Parties must refrain from introducing between
themselves
any new restrictions
on
the freedom of
establishment and the freedom to provide services.
5

6. The EU Legal
Community and Dimension
its Member States
Declaration by the European
adopted on 21 September 2005 , following the Declaration made
by Turkey upon signature on 29 July 2005 of the Ankara
Agreement Protocol
Paragraph 3 of the Declaration provides:
“The European Community and its Member States expect full, nondiscriminatory implementation of the Additional Protocol, and the
removal of all obstacles to the free movement of goods, including
restrictions on means of transport . Turkey must apply the Protocol fully
to all EU Member States. The EU will monitor this closely and evaluate
full implementation in 2006. The European Community and its Member
States stress that the opening of negotiations on the relevant chapters
depends on Turkey’s implementation of its contractual obligations to
all Member States. Failure to implement its obligation in full will affect
the overall progress in the negotiations…….” .
The Negotiating Framework for Turkey adopted by the EU on 3 October
2005 makes specific reference to “The fulfillment of Turkey's obligations
under the Association Agreement and its Additional Protocol extending the
Association Agreement to all new EU Member States, in particular those
pertaining to the EU-Turkey customs union”.
6

7. The EU Legal
The General Affairs and External Relations Council’s (GAERC)
Dimension
Conclusions of December 11, 2006 (endorsed by the European
Council on 14/15 December).
“The Council recalls the declaration of the European Community
and its Member States of 21 September 2005 and notes that
Turkey has not fulfilled its obligation of full non-discriminatory
implementation of the Additional Protocol to the Association
Agreement”.
“The Council agrees that the Member States within the
Intergovernmental Conference will not decide on opening
chapters covering policy areas relevant to Turkey’s restrictions
as regards the Republic of Cyprus until the Commission verifies
that Turkey has fulfilled its commitments related to the
Additional
Protocol”.
In parallel, “The Council agrees that the Member States within
the
Intergovernmental
Conference
will
not
decide
on
provisionally closing chapters until the Commission verifies that
Turkey has fulfilled its commitments related to the Additional
Protocol”.
7

8. The EU Legal
Dimension
Turkey’s restrictions to Cyprus and consequently to EU
shipping
appears
every
year
in
the
European
Commission’s Report on Turkey’s Progress towards
accession.
The 2010 Progress Report on Turkey, presented by the European
Commission on 9 November 2010, states that “ ‘ Transport Policy’
is one of the eight chapters covered by the conclusions on
Turkey adopted by the Council (General Affairs and External
Relations) on 11 December 2006 and endorsed by the European
Council on 14/15 December 2006. As long as restrictions remain
in place on the free movement of goods carried by vessels
registered in Cyprus or where the last port of call was in Cyprus,
Turkey will not be in a position to implement fully the Acquis
relating to this chapter” (Chapter 14 on Transport Policy).
8

9. Economic
Consequences
National Dimension
The actual direct annual costs
for the economy of the Republic of Cyprus,
based on 2008 data,
were estimated at 138.5 million EUROS
representing around 1.3% of the GDP
3 important sectors of the national economy of
the Republic of Cyprus were adversely affected:
• The Register of Cyprus ships
• The Cyprus ports industry
• The Cyprus ship management sector
9

10. Economic
Consequences
National Dimension
The Register of Cyprus ships
Annual loss of earnings of 3.5 million
EUROS
Average Growth of the Cyprus fleet
No. of Ships
%
Average growth
1977-1987
6,62
Gross Tonnage
%
Government
Revenue
%
22,09
15,70
Average growth
1988-1997
3,57
4,05
6,57
Average growth
1998-2009
-3,50
-1,44
1,35
10

11. Economic
Consequences
National Dimension
The Cyprus Ports Industry
Annual loss of earnings of 100 million EUROS
• The shipping lines (mainly of EU interests) which were
using the ports of the Republic of Cyprus as their
transshipment hub for the Eastern Mediterranean region,
were obliged to abandon Cyprus and use other
neighboring non Community ports for such operations.
• Certain shipping lines which have been serving the
Cyprus trade for many years, were compelled to change
their schedules accordingly. In the late 1990s, major
lines abandoned Limassol in favor of non Community
ports.
11

12. Economic
Consequences
National Dimension
The Cyprus Ports Industry
TOTAL TEUs IN TRANSIT
450.000
400.000
350.000
300.000
250.000
200.000
150.000
100.000
50.000
0.000
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Series1 205.345273.406272.734221.499228.462298.370245.747234.678420.973256.700 49.510 64.027 68.973 41.132 23.287 27.602 48.774 49.065 59.200 34.383 57.613 33.422
12

13. Economic
Consequences
National Dimension
The Cyprus Shipmanagement Sector
Annual loss of earnings of 35 million EUROS
Total fleet managed from Cyprus represents:
- 25% in terms of vessels
- 25% in terms of gross tonnage
of the world third-party ship management market
Ships managed by a ship management company located in
Cyprus can either be arrested or delayed when calling Turkish
ports, resulting in substantial financial losses for the ship
managers and/or shipowners.
The Turkish restrictive measures seriously affect private and
public interests of the EU, including EU shipowners and EU
shipmanagers based in Cyprus, as well as sea-trade between
the EU and Turkey.
13

14. Economic
Consequences
EU Dimension
Cyprus flag vessels represent
12% of the EU fleet
ey
rk
Tu
e in
rad
t
to
ed
llow
t a Nationality of Ownership of the Cyprus Fleet
no
are
ips
24%
sh
ese
Th
76%
14

15. Economic
Consequences
y
e
Turk
in
rade
t
d to
e
llow
a
No. of
not
are
vessels
ips
h
s
ese
Th
EU Dimension
Gross Tonnage
(millions)
CY flag vessels
1000
20
EU flag vessels managed from Cyprus
400
9
Non-EU flag vessels managed from
Cyprus (90% involve EU interests)
1400
25
2800
54
Total
15

16. Economic
Consequences
EU Dimension
1400 EU flag vessels of around 29 million Gross Tonnage
i.e. 16% of the EU fleet
are not allowed to trade in Turkey
EU Mer chant Fleet 2009
CY flag vessels
12%
Rest of EU flag
vessels
84%
EU flag vessels
managed from
Cyprus
4%
16

17. Economic
Consequences
EU Dimension
1400 Non-EU flag vessels
of around 25 million Gross Tonnage
managed from Cyprus
(out of which 90% involve EU interests)
are not allowed to trade in Turkey
Non - EU Mer ch an t Fleet Man ag ed f r om Cy p r u s ( GT)
Non-EU
I nterests
10%
EU I nterests
90%
17

18. Incidents of the application of the
Turkish Restrictive Measures
since Cyprus accession to the EU
Since Cyprus accession to the EU, a number of incidents of the
application of the Turkish restrictive measures against Cyprus
shipping have been reported.
Turkey applies these restrictive measures to non Cypriot flag
vessels which have an indirect or even negligible connection with
Cyprus.
Most of the incidents involve EU actors and most of them have
strong Community interests (i.e. EU beneficial owners, shipmanagers and charterers of the affected vessels).
The following 9 indicative incidents have been extensively
reported to the EU institutions by the Republic of Cyprus and the
whole issue of Turkey’s restrictions to Cyprus and consequently
to EU shipping has appeared in the European Commission’s
Reports on Turkey’s Progress towards accession for the past 11
consecutive years.
18

19. Incidents of the application of the Turkish Restrictive Measures
since Cyprus accession to the EU
Registered Owners - Managers
Vessel
CAPE BIRD
Port of
destination
/date of call
Flag
- Cargo information - Charterers
Marshall
Owners: Cape Bird Shipping Company Limited
MI
Islands
– Company of German interests
Managers:
Cyprus
Columbia
Shipmanagement
Ltd
Mersin
12/07/2004
Chartered by: Pepsol Petroleo S.A (RYTTSA)
Spain
Carrying unleaded gasoline.
Owners: Highland Shipping S.A. of Panama
HAPPY
BRIDE
Isle of
Man
Managers: Hanseatic Shipping Co. Ltd, Cyprus
Charterers:
B.V.,Netherlands
Unigas
International
Aliaga
27/08/2004
Carrying Vinyl Chloride Monomer (4,008.974
tons)
Vessel previously under the Cyprus flag .
ATLANTIC
CLIPPER
Antigua &
Barbuda
Sold to foreign buyers and deleted from the
Cyprus Register of Ships on 25 August 2004
Istanbul
01/09/2004
Owners: Seychelles Petroleum Company Limited
SEYCHELLE
S
Seychelle
s
– Company of German interests
Managers: Columbia Shipmanagement Ltd
Ceyhan:
18/09/2004
19

20. Incidents of the application of the Turkish Restrictive Measures
since Cyprus accession to the EU
Registered Owners - Managers
Vessel
Flag
- Cargo information - Charterers
Owners: Thesarco Shipping Co S.A. of Piraeus
TRINITY
SIERRA
HANS
SCHOLL.
Cyprus
Liberia
Carrying 26 000 tons of wheat from the port of
Kerch, Ukraine to Barcelona, Spain
Owners: Lohmann Shipping Ltd Liberia-German
Co
Managers: Chemtrans Overseas (Cyprus) Ltd
Port of
destination
/date of call
Bosporus
Straits:
27/08/2004
Dortyol
08/08/2005
chartered by: Maersk Copenhagen and sub
chartered to B.P. Oil International,
ABLE F
Cyprus
PONTOPOR
OS
Greek
GANYMEDES
Cyprus
Carrying cargo of 27.000 metric tons of unleaded
gasoline.
Vessel loaded at Gioia Tauro, Italy carrying cargo
for Mersin, Turkey
Carrying iron from the port of Liverpool, UK to the
port of Karabiga, Turkey. Denied access to the
port due to the fact that the vessel was previously
flying the flag of the Republic of Cyprus
Sailing Yacht owned by: Northshield Shipping Co.
Ltd. Cyprus
Shareholders: Mr Anthony John WATTS and
Mrs Margaret Alice Robertson WATTS, both being
British nationals
Mersin:
22/02/2006
Karabiga:
03/05/2006
Gocek:
29/06/2006
20

21. Negative Effects on
EU Policies and Objectives

Hinders the development of the EU objectives such as the “Motorways of the
Seas” and “Short Sea Shipping”

Hinders free trade between EU ports and Turkey

Weakens the negotiating position of Cyprus and consequently of the EU in
international maritime organisations and other fora

Interests of EU shipowners owning Cyprus flag vessels (76.5% of the Cyprus
fleet) are seriously prejudiced

Interests of EU Shipowners – charterers operating vessels managed from
Cyprus are seriously affected

Reduces the competitiveness of the Cyprus and EU fleet vis-à-vis vessels
registered in third countries trading with Turkey

Incites EU shipowners /charterers trading with Turkey to relocate and reflag
their vessels in third countries

Aggravates the competition problem faced by the European fleet from vessels
registered in third countries
21

22. Thank you!
22