ANKARA, Turkey, Aug. 9 (UPI) -- A trade agreement reached Friday between Turkey and the Turkish Cypriot leadership in northern Cyprus is causing concern in the European Union, BBC reported.
The agreement will remove trade obstacles and allow goods from the breakaway Turkish Cypriot territory to reach foreign markets through Turkey.
The Northern Cyprus administration, which split from the Greek Cypriot south in 1974 with the help of Turkish troops, is recognized only by Turkey and hence its goods are in effect embargoed internationally, the BBC said.
Analysts say the agreement could strain relationships with the European Union and hamper reunification talks on the divided island, the BBC reported.
In their accord, Turkey and the Turkish Cypriots pledged to reduce port and airport taxes. Turkey will also encourage foreign investment in northern Cyprus.
A spokesman for the Greek Cypriot government called the deal "illegal and a provocation for Europe and the international community."
Turkey plans to join the EU. The Greek Cypriot south will join the EU next year.
