Cyprus is an island in the Eastern Mediterranean. With a surface area of 9,240 sq. km (roughly one seventh of Tasmania), it is the third largest island in the Mediterranean. Cyprus has a coastline of 648 km, and is home to 847,000 people (2015). The capital is Nicosia.
The Republic of Cyprus joined the European Union on 1 May 2004, with the EU customary law (acquis communautaire) suspended in the northern part of the island administered by the Turkish Cypriots (see below). Cyprus adopted the Euro in 2008. As of November 2016, Cyprus was not yet part of the Schengen Area. Cyprus held the Presidency of the Council of the European Union once, in the second half of 2012. There are six members of the European Parliament from Cyprus.
Since Cyprus gained independence from the UK in 1960, there have been frictions between Greek and Turkish Cypriots. In 1974, Turkish troops landed in Cyprus eventually occupying the northern part of the island. In 1975, Turkish Cypriot authorities unilaterally declared the area to the north the 'Turkish Federated States of Cyprus'. This was renamed in November 1983 the 'Turkish Republic of Northern Cyprus (TRNC)'.
Australia supports the sovereignty and territorial integrity of the Republic of Cyprus and recognises the Republic as the only legitimate authority on the island. Australia does not recognise the 'TRNC', nor does any country other than Turkey.
Australia has a High Commission in Nicosia. The Republic of Cyprus maintains a High Commission in Canberra.
International links between Australia and Cyprus are characterised by a common British institutional inheritance, membership of the Commonwealth and Australia's long-standing support of UN efforts to find a just and permanent solution to the Cyprus problem. The Australian Government urges all parties to continue ongoing constructive efforts aimed at resolving the Cyprus dispute.
Australian police officers have served as part of the UN Peace Keeping Force in Cyprus (UNFICYP) continuously since 1964, making a valuable contribution to the maintenance of peace and stability on the island. In 2015, the Australian Government extended the deployment of the contingent for a further two years until 2017.
To mark the occasion of the fiftieth anniversary of Australia's continuous contribution to the civilian policing component of UNFICYP, President Anastasiades wrote to then Prime Minister Abbott in April 2014 to thank Australia for its contribution and pay tribute to those who served.
The Cyprus Academic Dialogue (CAD), is an Australian initiated non-government organisation aimed at promoting bi-communal thinking and dialogue about the hoped-for reunification of Cyprus. The first set of dialogues in July 2009 has been followed by a range of influential activities and events, including major conferences and round table discussions. In June 2016, CAD hosted a public event with both Cypriot leaders present to discuss their ongoing efforts to negotiate Cyprus's reunification.
Trade and investment
Trade between Australia and Cyprus is small, due to a combination of distance, lack of direct freight linkages, and the small size of the Cypriot market. Cyprus' accession to the EU also resulted in loss of markets for lamb and beef. However, Australia has successfully established a foothold in such niche markets as wine, processed foodstuffs and pharmaceuticals. In recent years Australian companies have also made progress into Cyprus' commercial renewable energy and water markets.
In 2015-16, the value of total merchandise trade was almost $28 million with imports from the Republic of Cyprus making up more than $24 million of this total. Australia's largest export items were manufactured tobacco, beef, coffee and substitutes and perfumery and cosmetics. Major import items from Cyprus were cheese and curd, medicaments, and telecommunications equipment and parts. In 2015, Australia's exports of services to the Republic of Cyprus grew 16.7 per cent to $14 million, while imports of services from Cyprus grew 2.1 per cent to $241 million.
(Note: Positions indicated in the list below were held at the time of the visit)
- 2013: Parliamentary delegation led by President of the Senate, the Hon John Hogg;
- 2012: Governor-General, H.E. Ms. Quentin Bryce AC;
- 2012: Speaker of the House of Representatives, the Hon Peter Slipper MP;
- 2012: Minister for Infrastructure and Transport, the Hon Anthony Albanese MP;
- 2012: Minister for the Arts, the Hon Tony Burke MP.
- To Australia
- 2012: Parliamentary delegation led by the President of the House of Representatives H.E. Mr. Yiannakis Omirou;
- 2011: Minister of Foreign Affairs, Dr Erato Kozakou-Marcoullis representing the President of Cyprus at the Commonwealth Heads of Government Meeting in Perth;
- 2011: President, H.E. Mr. Demetris Christofias visited Australia under the Guest of Government program.
Community and educational links
The strength of the bilateral relationship between Australia and Cyprus stems from the ties developed by Cypriot migration to Australia.
The 2011 Census recorded 18,070 Cyprus-born people in Australia, with more than 22,000 Australians claimed Cypriot ancestry. Beginning in the mid-twentieth century, Cypriot migration to Australia occurred predominantly in three waves: during the nineteenth century gold rushes; between 1924 and 1964; and after the 1974 Turkish intervention.
Educational and cultural links in the areas of the antiquities and archaeology remain strong. Australian academics have been working on the island since the 1930s and both the Nicholson Museum at the University of Sydney and the Ian Potter Museum of Art at the University of Melbourne house some of the most extensive archaeological collections outside Cyprus. Scientific and academic links between Cypriot institutes and the CSIRO and Australian universities have developed strongly in recent years. Focus has predominantly centered on solar energy and water treatment research.
The Republic of Cyprus is a unitary presidential representative republic. The current President Nicos Anastasiades (of the centre-right Democratic Rally Party - DISY), was elected in February 2013. The next presidential elections are due in 2018. The President appoints the Council of Ministers, who may not be members of the House of Representatives. The unicameral House of Representatives consists of 80 members, elected by a form of proportional representation for a five year term. Fifty-six seats are occupied by Greek Cypriots, with the remaining 24 reserved for representatives of the Turkish Cypriot community (although not occupied since 1963).
At the last parliamentary elections held in May 2016, DISY and AKEL (left-wing Party of the Progressive Working People, formerly known as the Communist Party) were confirmed as the dominant blocks, albeit suffering a slight loss, securing 18 and 16 seats respectively. DIKO (centre-right Democratic Party) secured 9 seats. The Social Democrats (EDEK) won 3 seats, the new Solidarity Party won 3 seats. The Ecologists and Environmentalists won 2 seats. The National Popular Front (ELAM) won 2 seats. The next parliamentary elections are due in 2021.
The GDP of the Republic of Cyprus is estimated to be US$19.9 billion and GDP per capita at US$23,425 for 2016. The EU, as a bloc, is the Republic of Cyprus' principal merchandise export destination and import source. In 2015, the proportion of Cyprus' merchandise trade with its EU partners was 67 per cent.
The economy has been a priority for President Anastasiades and the process of adjusting economic settings has been ongoing. The government is pressing ahead with economic reforms and maintains a prudent budgetary posture. Following several years of contraction, GDP grew a modest 1.5 per cent in 2015 and is forecast to grow 2.8 per cent in 2016. However, significant economic challenges lay ahead, including tackling high unemployment (12.0 per cent in September 2016), reducing excessive levels of non-performing loans in the banking system, moving ahead with the privatisation process as well as public sector reforms. These reforms are critical to cementing the recent improvements to public finances and restoring sustained economic growth.
The 'Turkish Republic of Northern Cyprus' has a mixed presidential/parliamentary system with political power shared between the 'President' and 'Prime Minister'. The 'President' is elected for a five-year term and has the power to propose legislation or return it to the 50-seat 'National Assembly'. On 26 April 2015, Mustafa Akinci was elected as the new leader of the Turkish Cypriot community with 60 per cent of the vote, defeating incumbent Dervis Eroglu who polled almost 40 per cent.
At the 'TRNC parliamentary elections' held in July 2013, the Republican Turkish Party (CTP) won 21 seats, the National Unity Party (UBP) 14 seats, the Democratic Party (DP) 12 seats and the Communal Democratic Party 3 seats. On 2 September, Őzkan Yorgancioglu – the President of the CTP, was sworn in as the tenth 'prime minister' leading a coalition between the leftist CTP and the centrist DP. Yorgancioglu resigned from his positions following the 2015 'presidential elections,' in which the CTP had performed badly. His 'administration' was replaced in July 2015 by a grand coalition of the centre-left CTP and centre-right UBP. It was headed by the new 'prime minister' Omer Kalyoncu of the CTP, until his 'administration' was replaced in April 2016 by a coalition of UBP and DP. It is headed by the new 'prime minister' Huseyin Ozgurgun of the UBP. Currently CTP hold 20 seats, UBP 18 seats, DP 5 seats. TDP 3 seats and 4 seats are held by independents. The next 'general election' is scheduled for April 2018.
Economic growth in northern Cyprus tends to be volatile, given its relative isolation, over-large public sector, reliance on the Turkish Lira, and small market size. Per capita incomes in the north are, on average, 50 per cent less than those in the area under the control of the Republic of Cyprus. This gap has narrowed, due to economic growth in the Turkish Cypriot community and the economic crisis in the Greek Cypriot community. GDP in the 'TRNC' is estimated to be around US$1.5 billion due to stringent policing of restrictions on its external economic activity.
The 'TRNC' is heavily dependent on Turkey for credits, grants and trade, and to fund a range of subsidies. Reliance on the Turkish Lira also means there is no effective local control over monetary policy. Exports are thin, and likely to remain so due to limited direct trade with the EU and other markets. As well as fiscal transfers from Turkey, the economy has been sustained by real estate and construction, tertiary education services, tourism, gambling and related services. The local authorities see tourism development as a major hope, but the lack of direct air-links to potential markets is a major constraint and tourist numbers are quite low. Over the past several years, private sector economic activity has been in decline.
Last updated November 2016