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EU law is currently not applied in the Turkish occupied north. The Union has promised to aid and to work towards lifting the trade sanctions imposed by the European Court, but they have ruled out diplomatic recognition of northern Cyprus.

Cyprus has been liberalizing its trade regime by eliminating import quotas and licenses and lowering tariffs on most products as a result of its obligations under the new world trade agreement and its Customs Union agreement with the European Union. As a result, U.S. products are becoming more competitive in Cyprus and prospects for further expansion of bilateral trade ties are excellent.

Cyprus changed hands numerous times prior to the Medieval era, and was an important outpost of Christianity and European civilization during the Crusades. The tumultuous history introduced a variety of styles, including music from Armenia, France, Greece and Arabs. The island's peak as a cultural capital of Europe occurred from 1359 to 1432.

Cyprus is geographically in Western Asia. Historically, Cyprus has always been a bridgehead between Europe and Asia, with interchanging periods of Levantine, Anatolian, and Greek influences.

In 1974, following a coup by the Greek backed National Guard and the arrival of Turkish troops (claiming their authority was as one of the 3 international guarantors of Cyprus), the Turkish Cypriots formally set up their own institutions with a popularly elected president and a Prime Minister responsible to the National Assembly exercising joint executive powers. In 1983, the Turkish Cypriots declared an independent "Turkish Republic of Northern Cyprus" (TRNC). In 1985, they adopted a constitution and held elections--an arrangement recognized only by Turkey.

Greek and Turkish Cypriots share many customs but maintain distinct identities based on religion, language, and close ties with their respective motherlands. Greek is predominantly spoken in the south, Turkish in the north. English is widely used. Cyprus has a well-developed system of primary and secondary education. The majority of Cypriots earn their higher education at Greek, Turkish, British, or American universities, while there are also sizeable emigrant communities in the United Kingdom and Australia. Private colleges and state-supported universities have been developed by both the Turkish and Greek communities.

Turkish Cypriots, together with Turkey, do not accept the Republic's rule over the whole island and call it the "Greek Authority of Southern Cyprus". They control the northern third of the island, following a military invasion by Turkey in 1974. This happened following a coup sponsored by the military regime of Greece, see: the 1974 crisis between Greece and Turkey.

Cyprus gained independence from the United Kingdom in 1960, with the UK, Greece and Turkey retaining limited rights to intervene in internal affairs.

Cyprus has a well-developed system of primary and secondary education. The majority of Cypriots earn their higher education at Greek, Turkish, British, or American universities, while there are also sizeable emigrant communities in the United Kingdom and Australia. Private colleges and state-supported universities have been developed by both the Turkish and Greek communities.

Cyprus has an open, free-market, serviced-based economy with some light manufacturing. The Cypriots are among the most prosperous people in the Mediterranean region. Internationally, Cyprus promotes its geographical location as a "bridge" between West and East, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications.

Both greek and turkish cypriots use the violin as the main solo instrument, accompanied by laouto (form of lute) for greek cypriots and ud for turkish cypriots. Accordion, percussion and recorder (pithkiavli) are also used.

The 1960 Cypriot Constitution provided for a presidential system of government with independent executive, legislative, and judicial branches, as well as a complex system of checks and balances, including a weighted power-sharing ratio designed to protect the interests of the Turkish Cypriots. The executive, for example, was headed by a Greek Cypriot president and a Turkish Cypriot vice president, elected by their respective communities for 5-year terms and each possessing a right of veto over certain types of legislation and executive decisions.

It's worthy to note that in the internationally recognised Greek Cypriot side, all visitors to the island who have a father of Cypriot extraction are required to obtain an Exit Visa from a local Defence Ministry office. This must be done for those of 16 years of age and older.

The Turkish Cypriot area proclaimed its independence in 1975, and the self-styled Turkish Republic of Northern Cyprus was established in 1983. This state was recognised only by Turkey. Furthermore, Organization of the Islamic Conference granted it observer member status under the name of "Turkish Cypriot State". The other power with territory on Cyprus is the United Kingdom. Under the independence agreement, the UK retained title to two small areas on the southern coast of the island, around Akrotiri and Dhekelia, known collectively as the UK sovereign base areas. They are used to host military bases.