The UK has long been one of the leading shipping hubs, this role having been enhanced by its European Union membership and influence over its organs. However, since the 2017 referendum and impending exit (Brexit), with or without an agreement, the focus has turned on other EU alternatives. One of these is Cyprus, a nation with naval tradition going back millennia.
A recent example is the British ferry and shipping freight operator P&O which decided to shift the registration of its UK vessels to Cyprus ahead of Britain’s departure from the European Union. According to the spokesman of P&O, one of the reasons for the move to the Cyprus flag was the following: “The Cyprus flag is on the ‘White List’ of both the Paris and Tokyo Memoranda of Understanding (“MOU”), resulting in fewer inspections and delays, and will result in significantly more favourable tonnage tax arrangements as the ships will be flagged in an EU member state”.
BREXIT & THE ROLE OF CYPRUS
