Irfan Siddiq: The bilateral relationship between the UK and Cyprus has never been stronger

According to British High Commissioner Irfan Siddiq, the relationship between the UK and Cyprus has never been stronger. Here, in an interview published in the February issue of GOLD magazine, he talks about the importance of a stable Europe, a united front against sociopolitical challenges, and addresses fears over the activities of the UK’s Sovereign Base Areas in Cyprus.

How would you describe bilateral relations between Cyprus and the UK? Three years since Brexit, has trade between the two countries been affected?

The bilateral relationship between the UK and Cyprus has never been stronger. Our shared history, close people-to-people links and common values, including as members of the Commonwealth, allow us to cooperate in a broad range of areas. Key areas include trade and investment, law, research, climate, defence and security. These bilateral ties are supported by strong people-to-people links, particularly in education and tourism. World trade has been adversely affected for several reasons in recent years. The COVID-19 pandemic brought everything to a standstill for a protracted period and the Russian invasion of Ukraine in 2022 significantly impacted the global economy further. The Israel-Gaza conflict caused more uncertainty and now the ongoing Houthi attacks in the Red Sea are having a damaging effect on international maritime trade. But we are now seeing bilateral trade bouncing back. Total trade in goods and services (exports plus imports) between the UK and Cyprus was £3.6 billion in the four quarters to the end of Q3 2023, an increase of 18.2% or £553 million in current prices from the four quarters to the end of Q3 2022. Of this £3.6 billion, total UK exports to Cyprus amounted to £2.0 billion (an increase of 22.5% or £364 million in current prices, compared to the four quarters to the end of Q3 2022) and total UK imports from Cyprus amounted to £1.6 (an increase of 13.3% or £189 million in current prices, compared to the four quarters to the end of Q3 2022). Cyprus was the UK’s 53rd largest trading partner in that period, accounting for 0.2% of total UK trade. And the UK is building on the Trade and Cooperation Agreement and the Windsor Framework to enter a new phase in our post-Brexit relationships in Europe. We are working closely together with our European partners to uphold the stability, security and prosperity of our continent.

What are the main sectors that our two countries trade in?

Cyprus and the UK have a long and diverse trade relationship. Top UK exports to Cyprus from Q4 2022 to Q3 2023 were cars (£151.9 million or 34.8% of all UK goods exported to Cyprus), beverages & tobacco (£25.1 million or 5.7%), mechanical power generators (intermediate) (£19.1 million or 4.4%), road vehicles other than cars (capital) (£13.2 million or 3.0%) and miscellaneous foods (£12.8 million or 2.9%). During the same period, the top five goods imported to the UK from Cyprus were dairy products & eggs (£128.3 million or 51.7% of all UK goods imported from Cyprus), aircraft (£18.4 million or 7.4%), vegetables & fruit (£14.2 million or 5.7%), scientific instruments (intermediate) (£6.4 million or 2.6%) and medicinal & pharmaceutical products (£6.1 million or 2.4%).

In the services sector we had travel (£386 million or 25.1% of all UK services exported to Cyprus), telecommunications, computer and information services (£383 million or 24.9%), transportation (£257 million or 16.7%), financial (£224 million or 14.6%) and other business services (£181 million or 11.8%). Meanwhile, the top five service types imported to the UK from Cyprus were travel (£841 million or 61.7% of all UK services imported from Cyprus), transportation (£162 million or 11.9%), government (£102 million or 7.5%), other business services (£98 million or 7.2%) and insurance and pension (£76 million or 5.6%).

The first annual review of the UK-Cyprus bilateral MoU took place in December. What does this mean for the two countries and what can we expect next?

The review recognised the depth and breadth of the bilateral relationship and was an opportunity to agree areas to further strengthen UK-Cyprus ties. This supports our shared objectives and helps address urgent global challenges, as we saw last year with the evacuation of UK nationals and other eligible individuals from Sudan and Israel. The review also identified further initiatives to build on the close and historical UK-Cyprus relationship and our joint ambition to work even more closely on new opportunities, and on the basis of mutual respect. Among the areas we’ve identified are foreign and regional policy, defence and security, education, trade and prosperity.

The UK remains the leading source of tourism for Cyprus. What is it that makes the island so attractive to British visitors?

We estimate that more than one million British tourists visit Cyprus every year. British tourists have long been attracted to Cyprus as a holiday destination, with many visiting year after year, and some enjoying it so much that they choose to move here permanently. People visit for a variety of reasons, but Cyprus’ warmer weather, its beautiful natural scenery, the lovely beaches and the food are obviously some of the reasons which make your island such an attractive destination.

On his recent visit to Cyprus, UK Defence Secretary Grant Shapps sought to ease concerns over the island’s security following UK military strikes from RAF Akrotiri against Houthi rebels in Yemen. How do you see the situation unfolding and what does it mean for Cyprus’ security and the maintenance of good relations between Cyprus and the UK?

We condemn in the strongest terms the illegal and unjustified attacks by the Houthis. Their reckless actions are putting innocent lives at risk, reducing the flow of humanitarian aid to those who need it most in Yemen, threatening the global economy, and destabilising the region. Military strikes form part of our broader Red Sea strategy, aimed at protecting UK interests, including freedom of navigation, and supporting regional stability and our regional partners. As the Defence Secretary said, we are confident that the Houthis do not pose an immediate threat to Cyprus. The strikes have been a UK operation and the Houthis are aware of that. The UK continues to work closely with Cyprus to safeguard security, which is of mutual interest.

The UK Government is working with the Cypriot authorities to provide technical support for the creation of a new sanctions implementation unit, drawing on international best practices and lessons from the UK’s own Office of Financial Sanctions Implementation. What does this mean for Cyprus’ economy with regard to Russian funds and businesses that it is currently hosting?

The UK has worked with its international partners to put in place an unprecedented package of sanctions designed to maximise the impact on Putin’s capacity to fund his war, to inflict an economic cost on Putin’s regime, and show solidarity and support for Ukraine. As a result of these measures, Russia is finding it increasingly expensive to afford the military hardware for its front lines. We are also working with our partners, including Cyprus, to build our capacity to tackle sanctions evasion to ensure that there is nowhere for dirty Russian money to hide. This includes assisting Cyprus in creating a new sanctions unit based on lessons learned from the UK’s own Office of Financial Sanctions Implementation (OFSI). A key part of OFSI’s role is to support industry by providing guidance on sanctions compliance to help maintain the integrity of, and confidence in, the UK financial services sector. President Christodoulides has made clear his determination to diversify the Cypriot economy to attract stable and sustainable forms of investment. The events of recent years have shown that Europe’s economic resilience requires a focus on diversification and de-risking.

Education and culture undoubtedly, play a vital role in strengthening understanding and cooperation between the two countries and the UK was one of the top education destinations for Cypriots for many years. This appears to have changed since the UK’s exit from the EU. How would you assess the current situation?

Our historical people-to-people links and the huge diaspora communities of Cypriots in the UK and British nationals in Cyprus remain incredibly strong. This keeps people connected, including through education, and the UK remains an important education destination for many Cypriots. It is true that there has been an impact on the interest of Cypriots to study in the UK, after the termination of the home fee status and student finance, but we are looking at alternatives to mitigate that, including trans-national education options.

What can you tell us about the number of British citizens residing in Cyprus and their main occupations?

There are about 75,000 UK nationals living in Cyprus. Most of them are pensioners who chose Cyprus to be their country of residence after they retired. Many of them are active members in their communities, take part in local charities and some even went on to get involved in their local municipal or community councils. Others of working age are employed in a variety of sectors across the Cypriot economy.

How do you perceive Cyprus’ lifestyle and culture? Are there specific aspects of local life that have left a lasting impression on you during your time here?

I am hugely enjoying my time living in Cyprus. The warmth and hospitality of the people, the beautiful nature and the great climate and cuisine are all wonderful attractions. I love the great seasonal produce that Cyprus produces – pomegranates, citrus fruits, olives – and I also love being able to swim in the Mediterranean or hike in the mountains. I also enjoy the feeling of being at the crossroads of three continents, with all of the diversity and richness of culture that brings. Living in Cyprus offers a great quality of life.

(This article was first published in the February issue of GOLD magazine. To view it click here)