Cyprus Shipping Industry shiping Management

Question: Discuss about the Cyprus Shipping Industry shipping Management. Answer: Introduction Cyprus is known as one of the largest shipping industries in the world. They hold the position of 10th largest fleet industry in the world. From early 1963, it has implemented their significant purposes towards the social, political and economic development in the shipping industry. The government has implemented different policies, which has attract the shipping entrepreneurs. It strongly influenced the high-quality services and standards of safety. The country has a developed legal system, which effectively works for the civil services, good labor relations, the banking system, developed telecommunication and air links for setup their shipping business. Cyprus has a high level of professionalism in the legal and accounting sectors, which helps to conduct with the business. There are several economic advantages available in the Cyprus shipping industry, which help to make the business strong. The European entrepreneurs of local companies have been provided several facilities, which include favorable tax, annual tonnage tax, ship registration costs, international business enterprises, enough availability of local employees, low operation and construction costs. The shipping industry operates the international fleets with almost 1857 ocean going vessels. It is one of the major ship management centers, which control around 60 ship management companies in Cyprus. It is established in the Eastern Mediterranean countries, which is located in the center of three continents of Asia, Africa and Europe. The industry is based on the tonnage tax system, which helps the charter vessels exempted from income tax. It automatically pays the taxes through the tonnage tax system but those shipping are not entitled to capital gain by selling the vessels or transferring the goods. In the year of 1987, Turkey introduced their restrictive measures to the Cyprus flag vessels at the Turkish ports. Before the establishment of the international shipping relation, Turkey has refused to recognize the government of the Republic of Cyprus due to the inter-communal violence that commenced in December 1963. It was ended by the participation of Turkish Cypriot, which was governed by the Cypriot Government. After the situation was managed, Turkey restricted the measures of the shipping industry and extends all ships for connecting with Cyprus (Carter et al. 2015). Discussion In the international maritime center, the Cyprus Shipping Centre makes their antique and strong quality of tonnage and most successful export service with over 130 shipping companies. Cyprus has built the most exceptional maritime infrastructure and high level of expertise, which not only make the impacts in the trade system but also works in the industries of the ship brokering, surveying and maritime insurance. They also offer 24/7 support and emergency service. The Cyprus Flag is considered as one of the highest quality flags, which ranked at the top of the Port State Control Agreement. The Cyprus Shipping Chamber (CSC) helps in the development of the shipping industry and effectively works with Department of Merchant Shipping (DMS) (Goldman 2016). Cyprus effectively works on different international sectors, which include the International Labour Organization (ILO), International Maritime Organization (IMO) and the European Maritime Safety Agency (EMSA). The shipping industry has very attractive operational and legislative shipping frameworks, which helps them to gain advantages in the international and domestic shipping industry. Therefore, within and outside of EU, this shipping industry has developed their international shipping management center (Carter et al. 2015). There are several advantages have been found which help Cyprus to become one the strongest international maritime centers. The advantages are: It is part of the European Union and European Monetary Union member state The Department of Liberal Foreign Direct Investment Regime has allowed and helped the country with 100% foreign participation in every shipment sectors (Ulusoy 2016) The country has not set any exchange control Movements of foreign currency without any exchange policy The tonnage tax which is approved by the EU along with tax incentives The companys operating costs are lower than other shipping industries Modern and efficient legal, accounting and banking services in the companies Several signatory international maritime conventions The Tonnage Tax Regime is one of the best parts in Cyprus, which helps to manage the ship charters, qualifying ship owners and quality ship. They are exempted from income tax on their shipping activities, which include: The disposal by the shipping company for their share The dividends amount which is paid from the profits Disposal of the qualifying ship while rendering the ship management process The interest of share or disposal of qualifying ship The bank interest which earned according to their working capital and shipping revenue where it pays expenses out of the qualifying activities The Cyprus Shipping Management system offers the best services with a long-term and deep commitment to the shipping industry. They offer 24/7 services for recognized as one of the strong record of accomplishment of service. They offer several numbers of services, which include Tax Advisory Compliance Services, Assurance Services, Advisory Services, Global Compliance and reporting and Transaction Advisory Services (Stylianou 2017). The Cyprus shipping management holds the largest Crew management center with 130-ship management, ships owning, and shipping-related companies for operating with the international shipping management system. Greek Cypriot has already added their business with Cyprus in their ship owning, ship management, and shipping-related industries. For providing best services, they have expanded their services in various parts of the European regions, which help to develop their shipping industry to build the long-term business (Ulusoy 2016). Cyprus has a huge source of highly educated personnel, which helps the company with highest benefits in the shipping management system. This shipping industry provides great opportunities for retaining highly trained workforce and helps to face the economic challenge (Goldman 2016). Cyprus Shipping industry provides best global contender for cooperate with 23 countries along with the labor supplying countries. Cyprus is recognized as one of the strongest Global Contenders. The Government of this country has jointly worked with the shipping industry associations such as introduced Cyprus Union of Ship-owners and Cyprus Shipping Chamber (Goldman 2016). Maritime Cyprus is one of the significant conferences which was launched in 1989 for attract 800 shipping executive from around the globe in every corner. This conference helped Cyprus to meet their position in the international shipping management for the establishment of International policy and global shipping trends. Cyprus has made the contribution of amount CYP170 million, which includes 2% of GDP in overall contribution. About 3500 people are employed in this industry, which is almost 2% of the total gainfully employed population (Carter et al. 2015). Cyprus is one of the members of United Nation. They have been collaborated with Council of Europe, International Monetary Fund, Commonwealth of Nations and World Bank. The General Agreement on Tariffs and Trade (GATT) and the Multilateral Investment Guarantee Agency Agreement (MIGA) are signed by Cyprus for maintenance of foreign relations on shipment. The country followed a non-aligned foreign policy where they mainly grew trade relations with Israel, European Union and Greece (Ulusoy 2016). The non-alignment was introduced by Makarios III, the first President of the independent Republic of Cyprus. However due to extreme pressure, an inter-communal rivalry was formed between Turkey and Greece for the non-aligned movement. However, in 2004 Cyprus is became one of the high profile members of the non-aligned movement and entered into the European Union (Stylianou 2017). After the Greek sponsored of coup d'tat and the Turkish invention, Makarios had secured their shipment policies only with the legitimate government. Therefore, for such disposal by Turkey, it is recognized as Turkish Republic of Northern Cyprus, which is established in 1983. After the crisis in Turkey, the country has withdraw the Turkish forces and secured their Island according to the terms of the constitutional and territorial settlement (Ulusoy, 2016). Turkey refused to obey the Government of the Republic of Cyprus. Cyprus ceased to exist due to the inter-communal violence, which occurred in December 1963 where Turkey refused and ended the opportunities to participate in the Cypriot government. Cypriot government full military invasion captured in the Northern part of the island by Turkish military forces and declared their Independence in November 1983 as the Turkish Republic of Northern Cyprus (TRNC). It is only represents Turkey (Goldman 2016). After the independence, Turkey refers to the Republic of Cyprus government and Greek Cypriot administration of Southern Cyprus. After the declaration of independence, the country wanted to negotiate the terms with turkey over the resolution of the Cypress problems and Turkey government and insists to refer the negotiations terms of the shipping business. However, due to the negative impact on Turkey, the European Union had not accepted the accession of the negotiation term. Turkey also re fused to allow Cypriot flagships to access in Turkish ports, which is one of the issues between the two countries (Carter et al. 2015). The Turkish invasion of Cyprus is also known as K?br?s Bar Harekt?, which was occurred due to the Turkish military invasion of the island of Cyprus. In the year of 1974, the Turkish force has been invaded and captured almost 3% of the island. The Greek military force was also captured and collapsed and after the ceasefire, it became the United Nations Buffer Zone in Cyprus. A year later, in 1975 almost 60,000 Turkish Cypriots was displaced from the south to the north. However, the Turkish military force has been ordered to protect the Turkish-Cypriot minority on the island who has suffered cruelty by the Greek-Cypriots (Cid 2016). However, the European Commission of Human Rights came to help the Greek-Cypriots where they found that the Turkish army repeatedly rapes women of all ages, humiliates hundreds of people, acted savage and tortured them. They were also became cruel with women, pensioners and children in relation to the detention by the Turkish forces, along with robbery and l ooting on an widespread scale, by Turkish Cypriots and Turkish troops (Goldman 2016). In the year of 1983, when the United Nations General Assembly passed the resolution of withdrawal of all occupation forces from Cyprus which form new conflicts with the Turkish Cypriots. In this situation, they declared independence of Turkey. In the year of 1997, the Republic of Cyprus came for a settlement with Turkey about the negotiations. In 1999, EU declared Turkey as the member of EU membership and passed the resolution by the Helsinki European Council (Stylianou 2017). However, the Turkish embargo is still in their force but they have developed their relationship with Cyprus and EU. Several provisions have been introduced which affects the relationship between EU ports and Turkey which are in relation to the carriage of goods by sea and all other operations through the sea trade. The overall application of EU Turkey Customs Union Agreement along with its extension to Cyprus is going to lead towards the lifting of the Turkish restrictive measures against Community shipping and Cyprus itself, with very positive economic effects for the country , regional and Community shipping (Cid 2016). In recent reports, it has been found that the Turkish President Recep Tayyip Erdogan has assured about their support towards the UN-sponsored peace talks regarding the Cyprus issues. In the joint declaration, they have decided to make the negotiations and reunite with the island in a federation (Turkish Republic of Northern Cyprus, 2018). The economic gap between the southern and northern regions took the initiative for compromising or settlement of the conflicts. While the invention in Turkey, the presence of Turkish military helps to provide the safety towards the Turkish Cypriot until Greek Cypriot and Turkish Cypriot came for the settlement (Sirkeci and Cohen 2016). Various protocols have been entered upon between the Republic of Turkey and the TRNC for the purpose of regulating the economic relations and existing trade. In the year of 1975, the Trade and Payment Protocol has been signed helps to strengthen the trade and economic relations between both the countries. In 1997, a Partnership Council was formed between Turkey and TRNC regarding the financial and economic issues. In 1998, State Aids in Investments, an agreement was signed between them, which followed to the establishment the trade relation between Turkey and TRNC. In 2000, the economic development programs were introduced and signed another Economic and Financial cooperation protocol for the maintenance of Turkeys financial and technical support (Turkish Republic of Northern Cyprus, 2018). Conclusion The Turkish Invasion has caused several negative impacts on the trade business with EU. Due to such conflicts, the EU ship managers and EU ship owners refused to accept the terms of sea-trade between the EU and Turkey. It mostly affected the Cyprus port industry in the shipping lines, which is one of the imports transshipment hubs for the Eastern Mediterranean region. However, the Government of the Republic of Cyprus has expressed their great shipment business with Turkey but there are some issues still can be found between the two countries. Cyprus ports competitiveness have been influenced considerably over the last few year. Several actions have been taken through the restrictive measures of turkey. Several actions have been taken for the removal of discriminatory and arbitrary restriction against Cyprus-related shipping and free trade (Turkish Republic of Northern Cyprus, 2018). An enormous reduction is presented by the transit trade through Cyprus ports caused by the Turkish embargo. Therefore of the embargo, the decrease of transit trade with respect to the Cyprus ports along with its effects on Cyprus economy is accountable for a yearly loss of profit of around 100 million. However, The Republic of Turkey has always supported Turkish Cypriot while they negotiate with the terms for settlement, which will protect them on the island. The Turkish Cypriot side has been found with proactive policies and constructive while processing on the negotiations. They always took initiatives for the solution of the Cyprus problem and tried to collaborate with Turkey for reached appropriate negotiation process. Reference Carter, J., Irani, G. and Volkan, V.D. eds., 2015. Regional and ethnic conflicts: Perspectives from the front lines. Routledge. Cid, M., 2016. The history of Cyprus and its geostrategic importance during the Cold War. Revista de Estudos Internacionais, 8(1), pp.117-134. Goldman, M., 2016. Turkey, Cyprus, and the Turkish Republic of Northern Cyprus. Kavussanos, M.G. and Visvikis, I.D. eds., 2016. The International Handbook of Shipping Finance: Theory and Practice. Springer. zer, Y., 2016. Turkey and the European Union: processes of Europeanisation. Routledge. Salem, N., 2016. Cyprus: a regional conflict and its resolution. Springer. Sirkeci, I. and Cohen, J.H., 2016. Cultures of migration and conflict in contemporary human mobility in Turkey. European Review, 24(3), pp.381-396. Stergiou, A., 2016. TurkeyCyprusIsrael relations and the Cyprus conflict. Journal of Balkan and Near Eastern Studies, 18(4), pp.375-392. Stylianou, A., 2017. An investigation into how Greek Cypriots throughout the Hellenic diaspora have been affected by the missing persons of Cyprus from the 1974 Turkish invasion. Modern Greek Studies (Australia and New Zealand). Ulusoy, K., 2016. The Cyprus Conflict: Turkeys Strategic Dilemma. Journal of Balkan and Near Eastern Studies, 18(4), pp.393-406. Turkish Republic of Northern Cyprus. (2018). Relations with Turkey - Turkish Republic of Northern Cyprus. [online] Available at: https://mfa.gov.ct.tr/foreign-policy/relations-with-turkey/ [Accessed 8 Jan. 2018].