New Trade Deal between Turkey and Greece

Mr. Gul said ties are now based on trust and friendship, and that the two sides have left their tensions behind. He said both countries hope to use contacts between journalists, artists, and everyday Greek and Turkish citizens to continue the good will.

The new Greek-Turkish trade agreement calls for an end to double taxation for companies doing business in both countries.

Mr. Papandreou said the new momentum in Greek-Turkish relations does not mean that problems will automatically be solved. But he said talks will continue on settling the split over Cyprus and disputed borders in the Aegean Sea — issues which once brought Greece and Turkey to the brink of war.

Cyprus has been divided between a Greek Cypriot south and Turkish Cypriot north since 1974, when Turkish troops invaded in response to a Greek-backed military coup in Nicosia.