Türkiye, TRNC to Finalise New Economic Deal by March

Türkiye and the Turkish Republic of Northern Cyprus (TRNC) are set to deepen their economic partnership, with a new financial cooperation agreement expected to be finalised by the end of March. The announcement came after high-level talks in Ankara between Turkish Vice President Cevdet Yılmaz and TRNC Prime Minister Ünal Üstel.

Speaking following the meeting, Yılmaz described the discussions as productive and confirmed that work is ongoing to establish a renewed economic and financial cooperation framework. The updated agreement is expected to replace or expand the current protocol governing bilateral economic coordination.

“Our aim is clear. We want to carry the TRNC towards a more prosperous and stronger future,” Yılmaz said, underlining Türkiye’s continued support for Northern Cyprus.

Economic Cooperation Framework Nearing Completion

According to Turkish officials, the existing cooperation protocol between Ankara and the TRNC has been implemented effectively. Building on that foundation, both sides are now working to conclude negotiations on a new agreement before the end of March.

The economic framework is expected to address key areas, including public finance management, infrastructure investment, structural reforms, and development assistance. Türkiye has long played a central role in supporting the TRNC economy through financial aid packages and coordinated development strategies.

Yılmaz emphasized that relations between Türkiye and the TRNC go beyond conventional diplomatic ties. “These are not ordinary relations between two countries,” he said, noting Türkiye’s status as a guarantor state. He added that Ankara “will continue to stand by the TRNC.”

The upcoming agreement is widely viewed as a continuation of Türkiye’s long-standing policy of economic backing for Northern Cyprus, aimed at enhancing fiscal stability and sustainable growth.

Cyprus Issue: “Two States, Two Peoples”

Beyond economic matters, the talks also addressed the broader Cyprus issue. Yılmaz reiterated Ankara’s position that any potential settlement must reflect what he described as the “realities of the island,” including the recognition of “two states and two peoples” based on sovereign equality.

This stance aligns with the TRNC leadership’s long-held position advocating a two-state solution rather than a federal reunification framework. Yılmaz stated that Türkiye and the TRNC would continue to pursue cooperation in this direction, regardless of regional dynamics.

“Türkiye and the TRNC will continue on their path in a spirit of cooperation,” he said. “No matter what traps are set in our region, the realities of the region will render them ineffective.”

Regional Tensions and Defence Developments

After the meeting, TRNC Prime Minister Üstel also addressed recent regional developments, particularly a defence protocol signed between Greece, Israel, and the Greek Cypriot Administration of Southern Cyprus.

Although specific operational details of the trilateral defence agreement were not discussed in depth, Üstel characterised the move as part of a broader trend of militarisation in the region. He alleged that the three parties had entered what he described as an arms race and had been publicly showcasing new defence acquisitions.

Üstel stressed that the Turkish Cypriot community is not isolated, citing Türkiye’s continued political and strategic support. “Whatever they do, we have no doubt that when the time comes, we will respond in the same manner and with the same determination,” he said, referring to the trilateral defence cooperation.