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The Republic of Cyprus is the internationally recognised government of the island, and it controls the southern two-thirds of the island. Almost all foreign governments and the United Nations recognise the sovereignty of the Republic of Cyprus over the whole island of 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.

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.

Economic affairs in Cyprus are dominated by the division of the country into the southern (Greek) area controlled by the Cyprus Government and the northern Turkish Cypriot-administered area. The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates in the 1990s reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability on the island and fluctuations in economic conditions in Western Europe. Economic policy in the south is focused on meeting the criteria for admission to the European Union. As in the Turkish sector, water shortage is a growing problem, and several desalination plants are planned. The Turkish Cypriot economy has about one-fifth the population and one-third the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. The economy remains heavily dependent on agriculture and government service, which together employ about half of the work force. Moreover, the small, vulnerable economy has suffered because the Turkish lira is legal tender. To compensate for the economy's weakness, Turkey provides direct and indirect aid to tourism, education, industry, etc.

Negotiations have been ongoing for years to reunite the island, but have not as yet seen substantial success. A United Nations plan, announced on 31 March 2004 following talks in Switzerland, was put to both sides in separate referenda on 24 April 2004.

The music of Cyprus includes a variety of classical, folk and popular genres. Recent trends have seen the rise of Ayia Napa, a resort, as a home for UK garage music, similar in its evolution to that of the island Ibiza.

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.

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.

Cyprus is mentioned by biblical historian Flavius Josephus as being settled by Kittim, son of Javan, grandson of Japheth. "Cethimus possessed the island Cethima: it is now called Cyprus; and from that it is that all islands, and the greatest part of the sea-coasts, are named Cethim by the Hebrews: and one city there is in Cyprus that has been able to preserve its denomination; it has been called Citius by those who use the language of the Greeks, and has not, by the use of that dialect, escaped the name of Cethim."