MFA’s Economic Diplomacy Strategy 2021 – 2023

The Council of Ministers approved on Friday the Economic Diplomacy Strategy for 2021 – 2023 through which the Foreign Ministry and its diplomatic missions abroad undertake a more active role in the promotion of Cyprus’s economic and business interests, as defined by the competent Ministries and the Council of Ministers.

The Foreign Ministry said in a press release that economic diplomacy is exercised in full alignment with the government’s policy pillars and the competent Ministries’ priorities as incorporated in the Strategic Framework for Fiscal Policy and the annual state budget.

The Ministry said it will promote the implementation of the Economic Policy Strategy and will facilitate and strengthen the work of all key stakeholders of Cyprus’ economic and business ecosystem via the promotion of the policy priorities and the economic interests of Cyprus abroad, while securing the maximum efficiency in the Strategy’s implementation.
 
Trade, Foreign Direct Investments, Innovation and Branding
 
According to the Ministry, the Economic Diplomacy desired impact is to strengthen economic prosperity from increased trade, foreign direct investments (FDI), innovation and strengthening Cyprus’ brand abroad through enhancing the government’s capacity and international influence, thereby maximising benefits stemming from diplomatic relations.
 
The desired impact will be pursued via three aims; contributing to the increase of exports and the increase of Cyprus business sector’s market share, attracting FDI that are focused on efficiency and strategic resources that would maximise added value and could transfer innovation to the economy and promoting and consolidating a cohesive and relevant national brand for Cyprus abroad.
 
Cooperation mechanisms
 
Furthermore, the Foreign Ministry added that with a view to achieve effective coordination in implementing the Strategy, a cooperation mechanism has been established at a political and technocratic level.
 
The political mechanism provides for a Ministerial Committee on Economic Diplomacy comprising the Ministers of Foreign Affairs, Finance, Energy Commerce and Industry, while the Committee may include other Ministers of Deputy Ministers depending on the issues and policy areas that will be discussed.
 
The technocratic cooperation mechanism will includes representatives from various Ministries and the Cyprus Investment Promotion Agency (Invest Cyprus).
 
Concluding the Foreign Ministry noted that the Economic Diplomacy Strategy was drafted following recommendations by experts, taking into account practices from other countries and Cyprus’ particular characteristics, while it was financed by the EU Strategic Reform Support Programme.