Canada and Cyprus enjoy close bilateral relations through our shared membership in the UN and many of its agencies, the OSCE, La Francophonie, and the Commonwealth. Canada supports a negotiated solution to the Cyprus question that is acceptable to both sides, and was a major contributor to the United Nations Peacekeeping Force in Cyprus (UNFICYP) when it was formed in early 1964. 2014 marks the 50th anniversary of the arrival of the first Canadian peacekeepers in Cyprus. Before the withdrawal of the bulk of the Canadian contingent in 1993, over 25,000 Canadian soldiers served in UNFICYP, 28 of whom lost their lives while deployed.
Bilateral commercial relations with Cyprus remain relatively modest but are expanding. Two way trade in 2012 totalled $13.2 million CAD (Canadian exports to Cyprus – $9.5 million Cypriot exports to Canada - $3.7 million). Two way investment in 2012 totalled $ 4.674 billion CAD (CDI in Cyprus - $4.16 billion, FDI in Canada - $514 million).
Cyprus has recently discovered deposits of natural gas in its exclusive economic zone, and has launched bids for a second round of exploration. Opportunities may therefore exist not only in the development of natural gas and subsequent pipelines, but also in the possible development of a natural gas infrastructure in Cyprus. Cyprus is weighing various options related to exploiting its own natural gas reserves, estimated at 10 trillion cubic metres in its offshore territory, and creating a liquefied natural gas (LNG) terminal to export its own natural gas as well as that of neighbouring countries, which could transform Cyprus into a regional energy hub. The Cypriot government often promotes tenders to improve infrastructure in the sectors of electricity (power stations and power lines), roads, and management and consultancy services. As such, there is good potential for Canadian firms to partner in these local projects. The Cyprus-Canada Business Association, launched on January 21, 2011, is examining ways to exploit this potential and strengthen the bilateral commercial relationship.
The Canada-Cyprus Tax Convention for the Avoidance of Double Taxation was signed on May 2, 1984. Cyprus has expressed strong support for a successful conclusion to the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) negotiations.