|The Protocol, referring to the contents of the second stage of the 1972 Cyprus-EEC Association Agreement leading to a Customs Union, was signed in Luxembourg on 19 October 1987. This stage envisages two phases; the first one lasting ten years and the second four or five years. During the course of the first phase Cyprus and the Community should as a general rule abolish the remaining import tariffs at a rate of 9% annually for products that would be included in the Custom's Union. Cyprus will adopt at the same rate the Community's Common External Tariff and will face out quotas from the beginning of the Protocol's implementation. Nearly all Cypriot products in the Agricultural sector intended for export are included in the Customs union - the first phase of the Protocol provides for an improved export regime in EEC markets for these products. Regarding industrial exports, the rules of origin will be abolished immediately for all export of men's and children's garments to the Community. It should be noted that on the basis of the provisions of the Protocol, a significant part of the Cypriot local production, concerning sensitive sectors, will be adequately protected during the course of the transitional period. Finally Cyprus will continue to apply its own Trade Policy for products not covered by the Customs Union. During the course of the second phase, Cyprus will adopt the machinery of the Common Agricultural Policy for agricultural products covered by Customs Union, as well as the relevant rules emanating from the Treaty of Rome, with regard to competition, banning of monopolies etc. The Community for its part will abolish all reference prices, the rules of origin and all other obstacles in the carrying out of trade. Thus, upon completion of the4 Customs Union, all the products covered will be put in free circulation with worth while positive repercussions on Cyprus-EEC trade.|
Source: Department of Postal Services, Republic of Cyprus.