Cyprus - U.S. Commercial Ties

Updated: May 3, 2011

Cyprus and the United States enjoy a very close trading and business relationship.  Bilateral trade statistics for recent years (attached) show that, in 2010, the United States supplied $123.5 million worth of goods to the island last year, making up 1.4% of Cyprus' total imports.  These statistics do not include Cyprus imports of U.S.-branded products manufactured or re-packaged outside the United States.  Some of the main U.S. exports to Cyprus for the domestic market include data processing equipment, electrical appliances, specialized vehicles and vessels, toys, furniture, optical, medical and other equipment.

The United States is also an important export market for Cyprus.  In 2010, the United States absorbed $20.9 million or 1.4% of the island's total exports.  Many Cypriot products, such as dairy products, salt, and mineral substances have been doing quite well in the United States in recent years, while others, such as fresh fish hold much potential for growth.

Many other facets of our bilateral commercial relationship are not captured by trade statistics alone, as witnessed by strong bilateral services flows.  During 2009, the inflow of services (from the U.S. to Cyprus) was $402.2 million, compared with an outflow (from Cyprus to the U.S.) of $283.3 million.  These figures are the result of numerous agreements between Cypriot and U.S. service providers -- from accounting firms to Internet providers.  Similarly, several very important U.S. firms conduct their international business for the region using Cyprus as a base, while many U.S. fast food franchises are very popular on the island.

Furthermore, the gradual liberalization of Foreign Direct Investment (FDI) regulations has made Cyprus progressively a more attractive destination for U.S. investors.  The flow of U.S. investment in Cyprus reached U.S. $101.3 million in 2009, or 1.7% of Cyprus' total inward FDI. The stock of U.S. investment in the island was U.S. $248.8 million at the end of 2009.  Projects involving U.S. investment in recent years have included real estate and various business activities, including a well-known U.S. coffee retailing franchise, a university, an information technology firm, an equestrian center, a hair products manufacturing unit, a firm trading in health and natural foodstuffs, an oil field products manufacturer, and a financial services company. Over the next few years, Cyprus' is poised to attract major investments in the field of offshore energy exploration and infrastructure.  U.S. investors may benefit from Cyprus’s abolition of EU-origin investment restrictions, provided they operate through EU subsidiaries. 

In conclusion, the bilateral Cyprus-U.S. business relationship keeps expanding on many levels, as it should.  The U.S. Embassy in Nicosia remains dedicated to promoting this relationship further.  For additional information, please visit the following websites:

American Chamber of Commerce Cyprus: http://www.cyaba.com.cy
Cyprus Investment Promotion Agency: http://www.cipa.org.cy