Canada and Cyprus relations
Canada and Cyprus enjoy close bilateral relations through our shared membership in:
- the United Nations
- the Organisation for Security and Co-operation in Europe
- La Francophonie
- the Commonwealth
Canada supports a negotiated solution to the Cyprus question that is acceptable to both sides, and was a major contributor to the United Nations Peacekeeping Force in Cyprus (UNFICYP) when it was formed in early 1964. Before the withdrawal, in 1993, of the bulk of the Canadian peacekeepers in Cyprus, over 25,000 Canadian soldiers served in the peacekeeping force - 28 of whom lost their lives while deployed.
Trade and investment
While the commercial relationship between Canada and Cyprus is modest, Canada has improved its already good commercial relations with the Cypriots. In 2016, bilateral merchandise trade with Cyprus was $21.8 million. Canadian exports increased by 122.7% to $17.9 million, while imports remained stable at $3.9 million. No data is available for services flows.
Cyprus is exploring deposits of natural gas in its exclusive economic zone. Opportunities may therefore exist not only in the development of natural gas and subsequent pipelines, but also in the possible development of a natural gas infrastructure in Cyprus. Other commercial opportunities also include offshore oil and gas, mining, two-way education promotion, and niche opportunities like the construction of casinos in Cyprus.
The Cypriot government often promotes tenders to improve infrastructure in the sectors of electricity (power stations and power lines), roads, and management and consultancy services. As such, there is good potential for Canadian firms to partner in these local projects.
The Canada-Cyprus Tax Convention for the Avoidance of Double Taxation was signed on May 2, 1984.
In 2010, the Cyprus-Canada Business Association was established under the auspices of the Cyprus Chamber of Commerce and Industry, aiming to enhance bilateral trade relations.
A number of Canadian companies have operations or partnerships in Cyprus. They include:
- Vantage Airport Group
- Vantage Airport Group of Vancouver controls 11% of Hermes Airports Ltd. Hermes assumed management and control of the Larnaka and Pafos International Airports in 2006, under a 25 year BOT (Build-Operate-Transfer) concession agreement with the Republic of Cyprus.
- Intelcan Technosystems Overseas Ltd.
- Intelcan is a global leader in the field of Air Traffic Control (ATC) and Aviation Infrastructure. Intelcan’s location in Cyprus is a strategic one serving the neighbouring region.
Comprehensive Economic and Trade Agreement (CETA)
Canada and the European Union signed the Canada-EU Comprehensive Economic and Trade Agreement (CETA) at the Canada-EU Summit on October 30, 2016. The European Parliament approved CETA on February 15, 2017. Provisional application of CETA started on September 21, 2017, at which time all economically significant parts of the Agreement entered into force. CETA is expected to generate new economic opportunities for both Canada and Cyprus.
Canada’s main exports to Cyprus are:
- Pharmaceutical Products
- Electrical or Electronic Machinery and Equipment
- Plastics and Articles Thereof
- Machinery and Equipment
The main products Canada imports from Cyprus are:
- Fruits and Nuts
- Dairy Products
- Fish and Seafood
- Electronics and Electrical Machinery and Equipment
- Pharmaceutical Products
The investment profile is significant with stocks of Canadian direct investment in Cyprus totaling $3.2 billion in 2016. The stock of Cypriot direct investment in Canada totalled $885.0 million that same year.
- The University of Cyprus and the Concordia University established a partnership agreement in 2016.
- Montreal Medical International Inc. (MMI) signed a Memorandum of Understanding with the University of Cyprus in February 2016 towards the agreement to establish a medical teaching hospital and various educational/research collaborations on the island. MMI (MMI) coordinates the delivery of a wide range of medical and healthcare related services including training, education and knowledge transfer by healthcare professionals to state health agencies and healthcare centres around the world. It acts as principal contractor in projects for the delivery of these services from professionals and academics affiliated with leading healthcare educational institutions in Canada and elsewhere, to ensure the application of best practices in the management and delivery of healthcare services abroad, including in new and emerging medical technologies.
- The Honorary Consulate of Canada in Cyprus initiated the establishment of the Cyprus Association of Canadian Universities Alumni in 2010, aiming to enrich the educational links between the two countries.
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