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Government computerization and telecommunications development, two of the priorities of the government's 5-year development plan (1994-1998), provide excellent opportunities for U.S. exports. Sales of computer-assisted design systems, new capital equipment for textile, clothing, footwear production, medical equipment, environmental equipment, and services are also expected to grow. U.S. pressure resulted in the adoption of a new copyright law in 1994 and a new patent law in 1998.

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

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.

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.

The Cyprus Broadcasting Corporation (CyBC) is the main broadcaster in the Greek Cypriot area, although there are also privately-owned radio and TV stations. A TV channel from Greek state broadcaster ERT is also available. The British Forces Broadcasting Service also operates radio and TV stations, although the TV signal is now confined to the Sovereign Base Areas or encrypted for copyright reasons. In the Turkish Cypriot area, Bayrak Radio Televizyon is the local broadcaster, with radio and TV from Turkish state broadcaster TRT also available.

Cyprus (in Greek Kypros and in Turkish Kibris) is an island in the eastern Mediterranean Sea, 113 kilometres (70 miles) south of Turkey and around 120 km west of the Syrian coast.

After independence Cyprus became a founding member of the Non-Aligned Movement despite all three guarantor powers (Greece, Turkey and the UK) being NATO members. Cyprus left the Non-Aligned Movement in 2004 to join the EU.

The central plain (Mesaoria) with the Kyrenia/Girne and Pentadactylos/Besparnak mountains to the north and the Troodos mountain range to the south and west. There are also scattered but significant plains along the southern coast. The climate is temperate, Mediterranean with hot, dry summers and cool, variably rainy winters.

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.

The U.S. embassy in Nicosia sponsors a popular pavilion for American products at the annual Cyprus International State Fair, hosts the Commercial Awards dinner, and organizes other events to promote U.S. products throughout the year. Total U.S. exports to Cyprus were about $700 million in 1997 (compared with $670 million in 1996), making the U.S. Cyprus' number-one supplier of total imports for the third year in a row. Exports include American tobacco and tobacco products, automatic data processing and other machinery, and cereals. Principal U.S. imports from Cyprus consist of clothing, footwear, steel tubes and pipes, dairy products, and various food items.