An international embargo against Northern Cyprus is currently in place in several areas. The embargo is supported by the policy of the United Nations and its application by the European Union is in line with a European Court of Justice (ECJ) decision taken in 1994.
Northern Cyprus has been under severe embargoes since its unilateral declaration of independence in 1983, and the embargoes are actively promoted by a Greek Cypriot campaign. Among the institutions that refuse to deal with the Turkish Cypriot community are the Universal Postal Union, the International Civil Aviation Organization and the International Air Transport Association. The economic embargo was greatly exacerbated upon the ruling of the ECJ in 1994, when the food certificates issued by Northern Cyprus were deemed unacceptable for the European Union. Exports and flights from Northern Cyprus take place through Turkey, with direct flights being banned internationally. Turkish Cypriots face embargoes in the areas of sports and culture as well; Turkish Cypriot teams cannot play international matches, Turkish Cypriot athletes may not compete internationally unless they represent another country and some concerts by international musicians or bands in Northern Cyprus have been blocked.
After the economic destruction of the Turkish invasion of Cyprus in 1974, the southern part of the island received heavy subsidies from the international community to develop its economy. Northern Cyprus, meanwhile, only received aid from Turkey and very little international aid. This caused less economic development compared to the south and an economic dependence on Turkey. The economic embargo prevents foreign cash flow as the external demand is stifled and the use of foreign savings through borrowing and capital inflows is rendered impossible. The embargo has also restricted the tourism sector.
Until 1994, the United Kingdom, Germany, and some other European Countries accepted Turkish Cypriot food products, including citrus, being directly imported. While a 1972 agreement granted access to the European market to goods regulated by the Republic of Cyprus, the agreement was interpreted as applying to the whole island and the Turkish Cypriot Chamber of Commerce gave certificates that bore the old stamps of Cyprus, rather than that of the Turkish Federated State of Cyprus or the TRNC. In 1983, upon the declaration of the TRNC, the Republic of Cyprus changed its stamps and notified the European Union and its member states that only certificates with its new stamps, originating from territory under the control of the Republic, should be accepted. However, the Council of Europe reiterated that both sides should benefit equally from such an agreement, and Turkish Cypriot goods continued to be imported directly. The British Ministry of Agriculture issued a statement that "the Turkish-Cypriot certificates were just as good as the Greek-Cypriot ones."