successful sectors such cs the clothinq and shoe industries. The situation was saved by the oil boom of the 1970s combined with Cvorus' Proximity to the Middle Eastern markets. Cypriot industry then beqan exPortinq and prospered. This experience opened our eves to the fact that the future lay not in protectionism but in boostinq competitiveness so cs to expand effectively into the wider international na.rket, and this we Proceeded to do with the success I described earlier. However our achievements oo far do not allOI'IT us to rest on our laurels. In order to survive in the increasingly competitive eronomic climate of the 1990s and the aPprcachinq twenty-first century -and this aPPlies not only to Cyprus -we must take steps to achieve a more robust Performance on the international markets. A dynamic private sector is essential to success. However this success will be severel v hampered unless the Private sector is backed UP by an efficient public sector. We must thus take determined action to trim bureaucracy, raise public-sector productivity and slash domestic budqet deficits. In Cyprus the measures we have aPPlied include the siqninq of a Customs Union Aqreement with the European Community and the elaboration of an innovative tax refonn packaqe designed to distribute the tax burden more fairly while boostinq tax revenue throuqh the reduction of income tax rates combined with the introduction of a value added tax. RH/6 A/S-18/PV. 6 23 (President Vassiliou) O,prus' long-term Political and economic future can of course onlY be assured by a just and viable settlement of the problem generated by the continued occu~tion of over one third of the country by Turkish troopg. 'lb this end our side is doing everything possible to assist the Secretary-General in his efforts to bring about the reunification of cyprus under a federal system of government. 
**Analysis**
The text primarily discusses the economic development and challenges faced by Cyprus, specifically in the sectors of industry, trade, and finance. It highlights the country's reliance on the private sector and the need for a robust performance on international markets. The text also touches on the importance of a just and viable settlement of the Cyprus problem for the country's long-term political and economic future.

**Category**
Economic development, International trade