RESTRICTED  
  
WT/TPR/G/322  
1 September 2015  
(15-4337)  Page: 1/15  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
CABO VERDE 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Tr ade Organization), the policy statement by 
Cabo Verde is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Cabo Verde. WT/TPR/G/322 • Cabo Verde 
 
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  Contents 
1   CABO VERDE'S 2030 VISION  – TRANSFORMATIO N AGENDA ....................................... 3  
2   MACROECONOMIC ENVIRONMENT AND SECTORAL PERFORMANCE ............................. 3  
2.1   Macroeconomi c Performa nce ....................................................................................... 3  
2.2   Sectoral Performance ................................................................................................. 4  
3   INSTITUTIONAL FRAMEWOR K – TRADE ADMINISTRATION ......................................... 5  
3.1   Trade Policy  Formulation ............................................................................................ 5  
3.2   Strategic Trade Development Plan – 2015-2020 ............................................................. 7  
3.3   Sectoral Governance .................................................................................................. 7  
3.4   National Trade Council ............................................................................................... 8  
4   BILATERAL, MULTILATERAL, REGIONAL OR PREFERENTIAL TRADE 
AGREEMENTS ................................................................................................................... 9 
4.1   ACP Group - African Caribbean and Pacific ..................................................................... 9  
4.2   African Econ omic Community ...................................................................................... 9  
4.3   Economic Community of West African States (ECOWAS) .................................................. 9  
4.4   European Union's Generalized System of Preferences ..................................................... 10 
4.5   Economic Partne rship Agreem ent (EPA) ....................................................................... 10 
4.6   African Growth and Opportunity Act (AGOA) – United States ........................................... 11 
4.7   Bilateral Agreements ................................................................................................. 11 
5   WORLD TRADE ORGANIZATION ................................................................................ 11  
5.1   Implementation of Agr eements under WT O Accession .................................................... 12 
5.2   Aid for Trade ............................................................................................................ 14 
5.3   Technica l Assistance ................................................................................................. 14 
6   CONC LUSION............................................................................................................. 14  
SOURCES ........................................................................................................................ 15  
 
 WT/TPR/G/322 • Cabo Verde 
 
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  1  CABO VERDE'S 2030 VISION – TRANSFORMATION AGENDA  
1.1.  The First National Transformation Forum, which took place in 2003, provided the Government 
of Cabo Verde with an Agenda aimed at expand ing the production base capable of stimulating 
rapid economic growth, boosting employment and reducing poverty. 
1.2.  The Government Program for the 8th Term (2011-2016) establishes as its vision an inclusive, 
just and prosperous nation, with opportunities for all, by listing, among other strategic objectives, the construction of a dynamic, competitive an d innovative economy and promotion of private 
sector growth, investment and productivity.  
1.3.  The Growth and Poverty Reduction St rategy Paper (GGPRSP III), which covers the 
2012-2016 period, takes up the vision established by the Government Program, analyzes the situation in various fields of the country's development, assesses the prospects and challenges, 
and defines a strategic agenda based on strong potential areas for Cabo Verde, given its strategic 
location on the trade routes in the Middle Atlant ic, organized into three cluster groups, namely: 
i) Agribusiness, Maritime Economy and Tourism; ii) ICT and Creative Economy; iii) Finance and 
Aero-business. 
1.4.  The GPRSP III also places  great importance on maintaining macroeconomic stability and 
public financial management, reforming the State's business sector governance, labor market 
flexibility, improved education and training quality, improved infrastructure quality, unemployment 
and poverty reduction. 
1.5.  Ten years later, in May 2014, the 2
nd National Transformation Forum – Cabo Verde 2030 was 
held. It made a strategic assessment of the im plementation of the guidelines from the 1st Forum 
(2003) and identified the need to implement robust and innovative strategies, with a clear vision 
based on expanding the economic base and creating high value added services – agri-business, tourism, finance, business/ICT, outsourcing, the cultural/creative industry, aero-business – 
relevant, and the best route to avoid the middle-income country trap.  
2  MACROECONOMIC ENVIRONMENT AND SECTORAL PERFORMANCE  2.1  Macroeconomic Performance 
2.1.  After a robust growth (12.2%) in 2007, Cabo Verde's economy slowed down in 2008, with a 
6.7% growth, followed by a recession (-1.3%) in 2009. The following years saw moderate growths, of 1.5%, 4.0%, 1.2% and 0.5%, resp ectively, in 2010, 2011, 2012 and 2013 (Banco de 
Cabo Verde data). The Government Budget for 2015 expects the GDP to grow between 2% and 
3% in 2014 and between 3% and 4% in 2015, driven mainly by external demand. 
2.2.  Thus, between 2009 and 2013 the national economy had an average growth rate of 1.2%, 
compared to 7.1% between 2004 and 2008. This shar p growth deceleration was due to the crisis 
that particularly affected our main partner – the Eurozone and the tourism property development 
sector. 
2.3.  In 2013, the Cabo Verdean GDP structure was divided among agriculture and fishing (7%), 
industry and construction (17%), and services, in cluding trade (76%). For an estimated population 
of just over 512,000 inhabitants, per capita GDP was around €2,904. 
2.4.  "Driven primarily by public sector investments and some increase in real disposable 
household income, the economy regained some momentum in 2014, increasing by 2.7% in real 
terms." This growth was "... driven particularly  by the performance of telecommunications and 
postal services, construction, non-market services, business services and fishing." 
2.5.  The effects of the crisis in the Eurozone and the anemic recovery in the global economy, as 
well as the challenges that emerge from Cabo Verde's relative success and that culminated in its 
graduation, reinforce the need to accelerate the implementation of reforms and the transformation agenda, aimed at strengthening a less dependent and more resilient economy. WT/TPR/G/322 • Cabo Verde 
 
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  2.6.  In 2013 the inflation rate was 1.5%; that is, 1 pp lower than in the previous year. The 
components that contributed most to the rise in inflation were housing rent, accommodation, catering, water, electricity, gas and other fuels. On the opposite side, the components that contributed most to contain inflation were transportation and cultural products. 
2.7.  The Cabo Verde Escudo (CVE) maintained its fixed exchange rate against the euro (€1= 
CVE110.265), through an Exchange Cooperation Agreement. 
2.8.  Heavy reliance on external funding for its development contributed to increase the external 
public debt, estimated at 112.7% of GDP at th e end of 2015, aggravated by the Government's 
option to take advantage of exceptionally favorable conditions for obtaining loans granted by development partners, within the context of its graduation, to fund and implement the public infrastructure development program and, at the same time, compensate for the sharp fall in 
private investment. 
2.9.  The Balance of Payments is structurally defi cient, despite a consistent improvement in recent 
years, thanks to the faster pace of growth in expo rts, of both goods and services, than in imports. 
The trade deficit went from -15.3335 billion CVE in 2012 to - 3.7548 billion CVE in 2013. 
2.2  Sectoral Performance 2.10.  Cabo Verde's foreign trade is deeply marked by the structural deficit of its balance of trade. 
Nevertheless, the improvement occurred in recent years (around 5.5% annual average), thanks to 
faster export growth between 2006 and 2014, is noteworthy. 
2.11.  In addition to the high and structural deficit in its balance, Cabo Verde's foreign trade is 
marked by its lack of diversification. Analyzing the structure of goods exports, it appears that in 
2014 exports of fresh fish, crustaceans and molluscs accounted for 44.5% of total exports. For 
their part, preserved fish accounted 40.0%... Th e remaining 15% corresponded to clothing, 
footwear and accessories and alcoholic beverages. 
2.12.  The value of exports of goods and services, including re-exports, increased from 
67.6125 billion escudos in 2012 to 75.6874 billion e scudos in 2014, an increase of about 12%. For 
its part, the value of imports of goods and services rose from 102.331 billion escudos to 
103.7358 billion escudos in the same period, representing an increase of only 1.4%. The 
combination of developments in these two indicators results in a very favorable growth in the coverage rate of exports of goods and services, which rose from 66.1% to 73.0%, between 2012 
and 2014. 
2.13.  The top ten imported products in 2014 accounted for 54.8% of total imports that year. Fuel, 
engines and machinery, reactors and boilers, iron and articles thereof, milk, cement, motor vehicles, rice, alcoholic beverages and textiles were the top ten imported products that year. 
2.14.  That same year, consumer goods accounted for 39.7% of total imports, followed by 
intermediate goods (31%), fuels (15.3%) and capital goods (11%). 
2.15.  From a purely commercial point of view, Europe is Cabo Verde's main customer and 
supplier. In 2000 that continent was the destination and origin of 85.2% and 78.3% of total Cabo 
Verdean exports and imports, respectively. In 2014, these percentages stood, respectively, at 85.6% and 80.7%, representing a slight increase in both items. 
2.16.  Portugal and Spain are Cabo Verde's main customers. In 2000 these countries received 
78.6% and 3.5% of total exports from Cabo Verde, respectively. In 2014 the positions were 
reversed and the percentages stood at 15.0% and 63.8%, respectively. Portugal, followed by the Netherlands and Spain, are Cabo Verde's main suppliers. In 2000 these countries accounted for 
48.1%, 6.0% and 2.7%, respectively, of total Cabo Verdean imports. In 2014 the percentages 
stood, respectively, at 39.0%, 20.0% (2013) and 8.4%. 
2.17.  Africa, where our ECOWAS sub-region is located, is the continent that supplies Cabo Verde 
the least, with only 1.8% of our total imports in 2014, preceded by America (6.8%) and Asia 
(9.2%). WT/TPR/G/322 • Cabo Verde 
 
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  2.18.  Note the positive performance of construction, which began to regain some momentum in 
2012. The improved performance of construction ov er the past two years reflected, to a large 
extent, the dynamics of public works related to the country's infrastructure development program, after the effects of the strong contraction in to urism property development, as from 2009, were 
dissipated. 
3  INSTITUTIONAL FRAMEWORK – TRADE ADMINISTRATION  
3.1  Trade Policy Formulation 
3.1.  Given the country's weaknesses, soon after independence (1975) the Government focused 
the trade strategy on supplying the domestic market through public structures created for distribution and marketing, by integrating public aid management with control of imports of goods 
and services. Through a public company, EMPA, the State centralized imports of essential goods 
and ensured their redistribution among the islands of the country at equal prices, and kept foreign 
trade operations severely constrained. 
3.2.  The early 1990s saw the start of an extensive gradual economic liberalization process, 
through economic reforms. A trade sector reform  program was designed and implemented starting 
in 1992, with the progressive liberalization of im ports and cap system, through the publication of 
successive lists of products exempt from the annual import quota system. 
3.3.  Imports were fully liberalized in 1999, including essential goods, with the latter being subject 
to special licensing conditions, given the importance of supplying the domestic market. 
3.4.  Trade liberalization consolidated the transition from a State-centered economic model to a 
market economy. However, the legislative reform implemented proved to be insufficiently 
regulated and, despite the legislative alignment with the free market policy principles, technical 
and institutional constraints, exacerbated by resource  constraints, are, to this day, reflected in the 
State's ability to implement a trade policy that is integrated with development policy. 
3.5.  After the liberalization, trade sector reform continued to merit attention from the 
Government, both in the context of WTO accession negotiations, completed in 2008, to better conform its trade policy and legislation to the best international trade rules and practices, and as 
part of implementation of the action plans agreed during the accession process. 
3.6.  The 2011-2016 Government Program elected the Trade sector as one of the pillars of the 
Cabo Verdean economy's growth and competitivene s s ,  w i t h  t h e  a i m  o f :  a )  f i g h t i n g  p o v e r t y ;  b )  
promoting sustainable development through the prom otion of national production and its products' 
quality; and c) improving the business environment. 
3.7.  In the third Growth and Poverty Reductio n Strategy Paper – GPRSP III (2012-2016), in Area 
IV (Private Sector Enhancement) the Government anticipated "a pragmatic approach that 
emphasizes business opportunities, value chains an d concrete measures that are implementable, 
to facilitate trade, boost production and quality, and foster new business opportunities." 
3.8.  According to the GPRSP III and the economic transformation agenda, the Government 
intends to focus development activities on areas where comparative and competitive advantages 
have been identified – the competitiveness clusters, corresponding to the economic activity sectors likely to have the greatest impact on growth and poverty reduction, particularly: 
  Agribusiness : Develop agribusiness activities and companies with a view to promoting 
growth in quality production that exploits the potential for import substitution, including 
connection with the tourism value chain, and that creates an export base for certain more competitive product niches;  
  Maritime Economy : Build a maritime economy focused on fishing, transshipment of 
goods and maritime services such as bunkering and offshore supply services; 
  Tourism : Promote high value-added tourism services. WT/TPR/G/322 • Cabo Verde 
 
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  3.9.  In addition to those with greater expect ed impact on economic growth, the GPRSP III also 
prioritizes other areas that contribute to increasing the country's competitiveness in the international market, namely: 
  Finance : Turn Cabo Verde into a center fo r financial services and investment; 
  Creative Economy : Build a service industry based on Cabo Verdean culture focused on 
exporting and promoting the Cabo Verde brand; 
  Aero-business : Turn Cabo Verde into a regional platform for air cargo, free trade zone 
and services for airlines; 
  Information and Communication Technology (ICT) : Promote Cabo Verde as a 
technologically advanced island and specifically attracting ICT industry companies to use the country as a base for conducting business, particularly with the sub-region. 
3.10.  The focus on GPRSP III aims to qualify an d strengthen the management of value chains 
associated with the priority clusters. Trade and indu stry are thus included in all areas with strong 
potential for developing the Cabo Verde economy. 
3.11.  Thus, in terms of trade policy, the Diagnostic Trade Integration Study (DTIS) 2013 found 
that Cabo Verde has not been an active member in regional and international organizations as well as in compliance with the terms of the agreements, underlining the country's weak analytical 
capacity in the international trade arena, recommending the training of trade administration to 
better understand and defend Cabo Verde's peculiarities in the sub-region and adopt a foreign trade strategy that contributes to integrate the economy into the international trading system. 
3.12.  The DTIS 2013 also recommends that the Government participate actively and effectively in 
multilateral trade negotiations, to promote market diversification, and help the private sector to 
seize the opportunities offered by preferential access to markets, and to stimulate and support 
economic diplomacy. 
3.13.  The DTIS 2013 also highlights the need to intervene in order to: a) review the legislation 
and better adapt it to WTO rules; b) improve trade facilitation by broadening reforms in customs and other services involved in trade; c) continue to modernize and harmonize external trade 
procedures in general with international technical standards; d) strengthen domestic trade 
organization to better urbanize the sector; e) supply and stabilize prices; f) modernize the sector, and g) unify the domestic market. 
3.14.  Having a small market, coupled with the fact that the country is an archipelago, lack of 
infrastructure and deficient inter-island transportation, poor business and industrial sector 
development in particular, as well as a fragile financial system, are strong barriers to domestic private investment and growth in the trade sector. 
3.15.  Taking into account the fact that the Cabo Verdean economy is characterized by a very 
significant percentage of commercial/business activities that are carried out by small enterprises, of which about two thirds are informal, although representing a significant amount of jobs and 
contributing to poverty reduction, the Government approved Law No. 70/VIII, of 26 August 2014, 
which defines the special legal framework for micr o and small businesses, as part of economic 
development and private business sector enhancement policies. 
3.16.  The special scheme for micro and small enterprises aims to create a framework to boost and 
densify the MSE market, reduce informality, promote self-employment, improve the business 
environment, particularly through simplification, improve the economic and financial capacity attached to it, and expand the tax base and social security contribution base. 
3.17.  On 12 February 2015 the Government also approved Decree-Law No. 11/2015, which 
regulates all production and marketing of aguarden te, to be produced exclusively from sugarcane. 
The law takes effect 180 days after its publication, so a monitoring committee was formed 
involving all participating entities from the public and private sectors, to disseminate the law, 
diagnose existing production facilities, and pr opose a set of business adequacy and training WT/TPR/G/322 • Cabo Verde 
 
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  measures. The process is expected to lead to the international recognition of aguardente made in 
Cabo Verde. 
3.2  Strategic Trade Development Plan – 2015-2020 3.18.  The preparation of the Strategic Trade Development Plan (STDP) in the 2015-2020 period 
was included in Cabo Verde's Enhanced Integrated Framework's (EIF) Category 1 project, with the 
aim of providing the Government with a governance strategy tool for the trade sector, both domestic and foreign. 
3.19.  The STDP 2015-2020 meets the recommendations made by DTIS 2013 and defines a 
strategy aimed at modernizing the sector and fitting the country in the new regional and international context, incorporating the guidelines from the Government Program and Cabo Verde's 2030 development vision. 
3.20.  The overall objectives of STDP 2015-2020 are: 
  Increase the trade sector's share to 15% of GDP; 
  Increase the coverage rate, calculated on the sum of exports and re-exports, to 65%. 
3.21.  Specifically so the trade sector in Cabo Verde lives up to its potential and plays the 
economic and social role expected of it, the State's action in the coming years should pursue the following specific objectives: 
  Promote the development of production and competitiveness of domestic goods and 
services, especially agricultural products like fish, coffee, sugar cane and local fruits, the manufacturing of ECOWAS raw material, and tourism services. The goal is to double the value of the manufacturing, food and beverage industries sub-sectors in GDP; 
  Promote the improvement of internal distri bution and increased purchase of locally 
produced fresh fruits and vegetables, meat and fish by resorts and medium-sized and large hotels. The goal is for 30% of these products to be consumed by these categories of 
tourist accommodation establishments. Current consumption is virtually nil; 
  Stimulate trading, leasing, storage and bunk ering and increased exports and re-exports of 
goods. The goal is to achieve a 15% annual av erage growth in exports and re-exports of 
goods; 
  Encourage the discovery of new supply markets, reduce intermediation, promote 
economies of scale, improve import management  and encourage joint purchases. The goal 
is to diversify the import market and redu ce the current share of Cabo Verde's top 5 
suppliers from 71.3% to 60%; 
  Promote and encourage the internationalization of activities by national companies in the 
service and industry sectors where Cabo Verde can be competitive, particularly ICT, 
international trade, telecommunications, pharmaceuticals, construction and public works. 
The goal is to have, on average, one new Cabo Verdean company operating in the international market, per year, and increase the business volume generated abroad by 
subsidiaries of national companies, which is currently insignificant, to 15% of total national 
goods exports. 
3.22.  The STDP 2015-2030 was disseminated and approved by the partners and the Government 
in June 2015 so its communication to the WTO Se cretariat is now only awaiting its official 
publication. 
3.3  Sectoral Governance 3.23.  Trade sector governance is, in practice, shared among at least three ministries. Although 
the Ministry of Tourism, Investment and Business Development (MTIDE) is directly responsible for 
trade, in reality, the Government implements its trade policy through inter-sectoral action by WT/TPR/G/322 • Cabo Verde 
 
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  different departments, with special emphasis on the departments of Trade, Industry, State 
Revenue and Foreign Affairs. Agriculture, transp ortation and tourism are other departments whose 
relationship with trade is critical to its performance. 
3.24.  The MTIDE is responsible for setting trade policy, listening to the other departments whose 
intervention intersects with trade. As regards foreign trade, the MIREX has been in charge of 
internal coordination of multilateral trade negotiations and the issue of regional integration. The Finance Ministry, through Customs, is in charge of  implementing an important part of foreign trade 
relations, implementing the ECOWAS Customs Tariff/ CET, as well as the preparatory work for 
being part of the Trade Facilitation Agreement. 
3.25.  This reality reflects the cross-cutting nature of trade and highlights the trade 
administration's challenge in ensuring coordination  in the adoption, and especially implementation, 
of trade policies. The performance of the trade se ctor ends up being largely determined by the 
result of the coordination between the various sectors involved in trade. 
3.26.  Despite the revision and adaptation made in  the context of accession to the WTO, the legal 
framework for the trade sector is based on still dispersed laws, some of which were passed in the 
1990s and early 2000s, thus not adequately reflecting the current economic reality and the situation of a country that, having graduated from LDC to middle-income country, today faces 
greater challenges in terms of financing its development. 
3.27.  Following the DTIS 2008 recommendations which, regarding the institutional framework, 
had already identified a number of constraints and proposed to the then Ministry of Economy, Growth and Competitiveness measures aimed at "strengthening trade and investment 
institutions," the DTIS 2013 resumes the analysis of trade sector governance, reassesses the 
institutional constraints of all entities involved in the administration of trade matters, and identifies three major institutional capacity constraints: 
i.  The MTIE's analysis capacity, particularly regarding international negotiations;  
ii.  Coordination with the Ministry of Foreign Affairs (MIREX) in terms of global trade 
integration;  
iii.  The organization and responsiveness of the MTIE structure. 
3.4  National Trade Council 3.28.  The DTIS 2013 institutional recommendatio ns were assessed positively by the Ministry 
responsible for trade and by the Government. A de cision was made to equip the country with a 
new trade sector governance model and, in June 2015, the creation of a National Trade Council 
(NTC) was approved. The NTC is a permanent structure for formulating and coordinating Cabo Verde's trade policy. 
3.29.  In view of the demands and challenges posed by trade sector governance and given the 
limitations in terms of qualified human resources in various matters that are derived from trade negotiations, and taking into account all the trade agreements, the Government considered it 
necessary to extend the term of the Inter-In stitutional WTO Committee and merge it with the 
Enhanced Integrated Framework's (EIF) National Steering Committee, and integrate the various working committees that often operate on an ad-hoc basis into one single (and better coordinated) body, in order to provide the country with a structure capable of: 
  Advise the Government on setting, implementing and monitoring trade policy, both at 
internally and externally; 
  Follow up on strategic decisions to densify the national productive sector, and promote 
overall competitiveness of the economy; 
  Substantiate Cabo Verde's positions in regional and international trade negotiations, 
particularly within the context of the ECOWAS/EPA and WTO, and in bilateral negotiations. WT/TPR/G/322 • Cabo Verde 
 
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  3.30.  The National Trade Council (NTC) is supervised by the Council of Ministers for Economic 
Affairs and is chaired by the Trade Minister, in close coordination with cabinet members responsible for the areas of foreign affairs, industry, tourism, finance, agriculture, fishing, employment, and local authorities. The NTC will be co-chaired by the private sector and include 
representatives of civil society organizations concerned; 
3.31.  Thus, along with the authority to design both domestic and foreign trade policies, trade 
administration training in inter-sectoral coordination is of great importance for the sector's 
performance. Under the direct responsibility of  the Trade Department, the sector governance 
model, both in the foreign aspect, with multilateral trade negotiations and regional integration, and in the domestic aspect, includes coordinated inte rventions and the exploration of synergies among 
different government departments. 
4  BILATERAL, MULTILATERAL, REGIONAL OR PREFERENTIAL TRADE AGREEMENTS 
4.1.  In multilateral negotiations, Cabo Verde participates in the African, Caribbean and Pacific 
(ACP) Group, the African Group, the G-90, the Recently Acceded Members (RAM) Group, and 
Small and Vulnerable Economies (SVEs). Cabo Verde is also a sponsor of the "W52." As a WTO 
member, and as part of membership obligations, Cabo Verde has been implementing commitments and provided reports on various aspects of its trade system since 2008.  
4.1  ACP Group - African Caribbean and Pacific 
4.2.  Since the 6 June 1975 signing of the George town Agreement that established the ACP Group, 
the latter has expanded and now has 79 Member States, including 48 African, 16 Caribbean and 15 Pacific. This intergovernmental organization has demonstrated a sense of cohesion and 
solidarity, operating as a platform through which countries that make it up can adopt joint 
positions. 
4.3.  The negotiation of ACP/EU Economic Partnership Agreements is an area that has polarized 
the ACP efforts in recent years. The ACP Group is also committed to playing its role in South-South 
and triangular cooperation, aimed at a useful diversification of its international partners.  
4.4.  Given the number of Small Island Developi ng States (SIDS) that are members of the ACP 
group, Cabo Verde is echoed in various positi ons advocated by the ACP Group, in particular 
regarding the issue of SIDS' development specificities, their exposure to climate change, and in the context of regional integration. 
4.2  African Economic Community 
4.5.  Cabo Verde has, since June 1991, been a member of the African Economic Community, which 
aims to establish a monetary union by 2034. Cabo Verde signed the Treaty establishing the African 
Economic Community, on 3 June 1991, and is ther efore a founding member of the African Union, 
which succeeded the Organization of African Unity (OAU). 
4.6.  Under the New Partnership for Africa's Development (NEPAD), adopted at the 37
th OAU 
Summit, in July 2001, as a tool to connect Afri ca and the international community, Cabo Verde 
participates in various programs and themes promoting regional integration, economic 
management, business development, agricultural diversification, new information and communication technologies, etc. Established in 2002, the National Committee acts as an interface between Cabo Verde and officials responsibl e for implementing NEPAD programmes. The 
committee is currently located in the Ministry of Foreign Affairs. 
4.3  Economic Community of We st African States (ECOWAS) 
4.7.  Cabo Verde has, since 1976, been a member of the Economic Community of West African 
States (ECOWAS), whose main aim is to promote cooperation and integration, in order to create 
an economic and monetary union capable of ensuring development in all economic areas, especially in industry, telecommunications, transportation, energy, agriculture, natural resources, 
trade, monetary and financial areas, and social and cultural affairs. The ECOWAS Treaty calls for 
free trade, free movement of persons, right of residence and establishment, free movement of WT/TPR/G/322 • Cabo Verde 
 
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  capital, and an economic union with a common currency. At the moment, Cabo Verde does not 
participate in the West African Economic and Monetary Union (UEMOA). 
4.8.  The Treaty has resulted in the signing of a set of agreements that have inevitably influenced 
trade policy at regional level and also vis-à-vis countries outside the Community. Of the most 
relevant agreements, we highlight the Commo n External Tariff (CET), the ECOWAS Trade 
liberalization Scheme (ETLS), the West Afri can Common Industrial Policy (WACIP) and the 
Economic Partnership Agreement (EPA) signed with the EU, as part of ECOWAS/UEMOA. So far, 
Cabo Verde's trade with its ECOWAS partners has been negligible, which is largely due to the lack 
of reliable and regular maritime transportation with the sub-region. 
4.9.  Free trade among ECOWAS member States is promoted through ECOWAS Trade 
Liberalization Scheme (ETLS). At the beginning in 1979, the scheme only covered agricultural 
products, handicraft and unprocessed products. Th e ETLS was extended to industrial goods in 
1990, and the approval process to grant the right to free movement of manufactured goods was facilitated in 2002. 
4.10.  The ECOWAS countries decided to develop a common agricultural policy (ECOWAP) in 2005. 
The ECOWAP promotes food sovereignty; that is , a reduction in the region's dependence on 
imported food. The ECOWAS Regional Agency for Agri culture and Food (RAAF), which is part of the 
implementation of the common agricultural policy, was launched in September 2013. 
4.11.  The ECOWAS members initially agreed to es tablish a customs union with a common external 
tariff (CET) with the aim of establishing a customs union and common tariff policy and removing all 
customs duties, border fees and non-tariff barriers, such as quotas and prohibitions on intra-
ECOWAS trade. The ECOWAS CET was adopted by the ECOWAS finance ministers in March 2013 
and by the 29
th Conference of ECOWAS Heads of State and Government in January 2006, and 
became effective in January 2015. Cabo Verde has been preparing internal procedures for its 
effective application. 
4.12.  Through Protocol A/P1/1/03, the ECOWAS defi ned the rules of origin for trade in the region, 
and through Regulation C/REG.3/4/02, it establishe d the procedures for its application, and so the 
region has another trade policy instrument among its member states capable of protecting the 
exchange of products manufactured in the region, wh ich for Cabo Verde is also an instrument that 
alters trade policy with non-community trading partners 
4.13.  The West African Common Industrial Po licy (WACIP) was adopted by ECOWAS Heads of 
State and Government, in Cabo Verde, in November 2010. The WACIP aims to provide the region 
with a competitive industrial base internationally, which respects the environment and is able to significantly improve people's standard of living  by 2030. Its general objectives are to speed up 
the industrialization of West Africa, by promotin g endogenous industrial processing of local raw 
materials, development and diversification of industrial production capacities, as well as to strengthen regional integration and exports of manufactured goods.  
4.4  European Union's Genera lized System of Preferences 
4.14.  In late 2011, the EU agreed to grant Cabo  Verde GSP+ status by giving it preferential 
access to EU markets reserved for countries that have ratified 27 international conventions on human rights, labor rights, good gove rnance and environmental Protection. 
4.5  Economic Partnership Agreement (EPA) 
4.15.  An Economic Partnership Agreement ha s been signed by and between the ECOWAS and 
the EU. It was adopted by the 46
th ECOWAS Heads of State Summit and signed by the European 
Commission in November 2014. One of the main objectives of the agreement is the gradual 
liberalization of the contracting parties' market s within 25 years, by opening 80% of the ECOWAS 
market and fully liberalizing the EU market for products from the West African region. The 
agreement also provides for other measures, including anti-dumping, countervailing and safeguard 
measures, the elimination of subsidies and financing for development, among others. WT/TPR/G/322 • Cabo Verde 
 
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  4.16.  The EPA covers trade in goods, development cooperation, and the clauses that require new 
negotiations on services. The EPA is accompanied by an aid package, called the EPA Development Program (EPADP). Until the EPA becomes effective, Cabo Verde exports to the EU are subject to preferential tariff treatment through the EU's GSP. In 2011, Cabo Verde became the first African 
country to be granted the "GSP +" status and, thus, enjoy more benefits for exports of goods and 
services. 
4.6  African Growth and Opportuni ty Act (AGOA) – United States 
4.17.  Cabo Verde is eligible for AGOA, which enables it to export most products to the United 
States tax free. The new Bill on AGOA makes it possible to extend this mechanism's duration for 10 years (up to September 2025) and the provisions for third country fabric for the same about of time, while also renewing the Generalized System of  Preferences (GSP). There is more flexibility in 
the use of rules of origin, but also in terms of proc essing costs, including labor, which can facilitate 
production and trade in a context of regional integration. 
4.18.  In its January 2014 proposal submitted to the Trade Commission, Cabo Verde makes 
recommendations to enable real utilization of AGOA  facilities. Apart from issues related to access 
to more products, rules of origin, excise tax and capacity building, such recommendations include other provisions, such as financing for production and/or increased production, and tax incentives 
under FDI to attract small and medium-sized US companies. 
4.19.  Cabo Verde's exports to the United States are modest. The share of "AGOA imports" in total 
US imports from Cabo Verde is no more than 5%-10%, and consisted exclusively of agricultural products in recent years. In 2011, the United States imported goods worth nearly $1.5 million 
from Cabo Verde, with imports under AGOA accounting for $154,000. Exports to the United States 
increased to $2.1 million in 2013, while the AGOA trade value remained stable. 
4.7  Bilateral Agreements 
4.20.  Cabo Verde has bilateral agreements with a number of countries, namely Senegal, 
Mauritania, Angola, Guinea-Bissau, Sao Tome and Principe, China, Brazil, India, in order to increase the national production and export base, in particular of fishing products, pharmaceuticals 
and soft drinks. Also, in the fishing sector, it established a bilateral agreement with the European 
Union. 
5  WORLD TRADE ORGANIZATION 5.1.  Cabo Verde joined the WTO in 2008, becoming its 153
rd Member. In the accession process, 
the country negotiated sectoral action plans for agriculture (sanitary and phytosanitary measures), 
customs (customs valuation), industry (industrial property) and general/cross-cutting (legislative adjustment). The period for gradual implementation  of these action plans will run until 2019. Most 
negotiated action plans have already been implemented or are in an advanced state of 
implementation. In place are the new Customs Code and customs value determination according to GATT. 
5.2.  Cabo Verde's accession to the WTO brought with it a set of new requirements, namely in 
terms of implementing commitments made in the Action Plan agreed upon during the accession process, as well as those relating to adapting policies and legislation to international trade rules and best practices; monitoring activities and funding and developing the productive base. 
5.3.  The Government has implemented structural reforms whose impacts are reflected from the 
planning to the implementation of measures that are crucial to enhance the national economy's competitiveness, as well as to contribute to a leap in the country's economic growth and 
sustainable development at all levels. 
5.4.  Led by the State's Reform Office, the "change to compete" programme monitors the set of 
measures that are being implemented across the Mi nistries and State Departments in view of the 
aim of optimizing structures, modernizing and simp lifying public administration and improving the 
business environment. WT/TPR/G/322 • Cabo Verde 
 
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  5.5.  The improvement of Doing Business  indicators and of internal and external competitiveness 
has been a strategic challenge for the country's transformation agenda, which is being implemented through various modernization and innovation projects aimed at essentially 
improving the business environment in Cabo Verde, with the involvement and participation of all 
players in the national economy, including the go vernment and various public sector departments, 
municipalities, chambers of commerce, financial institutions and economic operators.  
5.6.  The various modernization measures carried out in recent years as part of State Reform, 
supported by national and international strate gic partnerships, have enabled the country to 
achieve considerable improvements in some indicators (Starting a Business, Licensing, Property Registration...) with Cabo Verde being ranked 122
th (2015) in the global Doing Business . 
5.7.  In 2015, Cabo Verde was ranked among the To p 20 best reforming countries by the Heritage 
Foundation, rising 16.4 points in the Index of Economic Freedom, over the last 20 years. The 
country was ranked 122th by the Global Competitiveness Report, improving seven points in the 
overall ranking, being among the ten African countries with the best business environment. 
5.8.  The modernization and computerization of State services, through strong innovation and use 
of new technologies in public administration helped the country to take qualitative leaps in improving doing business in Cabo Verde, throughout the life cycle of companies. 
5.9.  Law No. 26/VIII/2013, of 21 January 2013,  which approved the Tax Benefits Code, 
harmonized and synthesized the various incentives that were dispersed across multiple provisions into a single law. The law provides for an exceptional tax scheme for projects implemented in the forms of contracts (establishment agreement) wi th the State aimed at implementing capital 
intensive businesses with high potential to gene rate employment and to accelerate social and 
economic gains. 
5.10.  Legislative Decree No. 01/2011, of 31 Ja nuary 2011, created the Cabo Verde International 
Business Center (IBC), whose main purpose is to promote international trade and promote 
investments with export potential. Economic operators who operate within the CIN may engage in industrial activities at the International Industrial Center (IIC), trade activities at the International 
Trade Centre (ITC) and service provision activities at the International Service Delivery Center 
(ISDC). The law establishes a set of incentives, in terms of tax benefits for businesses (90% IUR reduction between 2011 and 2018 and 85% reduction from 2019 to 2025), tax benefits for members (IUR exemption), and customs incentives. 
5.11.  The Single Investor Window was implemented in February 2015 and is managed by 
Cabo Verde Investimentos, which implemented a single point of contact between investors and public administration, enabling the electronic pr ocessing of investment projects by various 
departments and their monitoring by the promoter through Casa do Cidadão's website. The main 
objective of this project is to reduce the proj ect appraisal/approval time to 75 days, introduce 
more efficiency and accountability in the process and thus improve the business and investment 
environment. 
5.1  Implementation of Agreements under WTO Accession 5.12.  Changes have been made to Cabo Verde's le gislative framework in the area of sanitary and 
phytosanitary measures, to facilitate compliance with the WTO SPS Agreement. The modernization 
of the Cabo Verde SPS system remains a work in progress that needs more assistance for its 
development. The aim is to operationalize the national SPS committee as part of NTC. 
5.13.  The average rates applied are 20.8% in agriculture and 17.7% for non-agricultural 
products. The reduction commitments will be impl emented by 2018, leading to a final average MFN 
rate of 15.9% (in total); 19.3% in agriculture and 15.4% for other goods. All rights were linked to ad valorem  rates. 
5.14.  Cabo Verde has implemented the WTO Ag reements on Anti-dumping; WTO Subsidies and 
Countervailing and Safeguards Measures; and Customs Valuation, through the new Customs Code (Legislative Decree No. 4/2010).  WT/TPR/G/322 • Cabo Verde 
 
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  5.15.  Cabo Verde is in the process of pre-accessi on to the trade facilitation agreement, having 
concluded, in July, the creation of a trade facilitation committee as an integrated structure in the National Trade Council. Advances have been made under the Customs Modernization and Reform Program. The Directorate of Customs still faces challenges associated with the need for reinforced 
and improved controls, by introducing management and risk analysis tools, as well as fraud and 
tax evasion, and trade facilitation measures. Ther e is a need to continue and improve capacity 
building through training and technical assistance, beyond that which Cabo Verde has been 
receiving from the World Bank, the AfDB, the IM F, the European Union, and the World Customs 
Organization, among others. 
5.16.  Cabo Verde still applies an open and general import licensing system, which was 
implemented in order to control the import of products that may adversely affect the country's 
environment and safety and people's health. Cabo Verde has a long tradition in the 
implementation and management of its import licensing system. 
5.17.  When negotiating access to goods market, Cabo  Verde argued in favor of high tariff rates on 
imported revenue-generating goods. It consolidat ed the rates for these goods at a higher level 
than current rates, which, in the case of revenue  loss, enables the Government to raise them to 
the consolidated rate levels. 
5.18.  Cabo Verde fully supports the development and maintenance of an international system for 
promoting and protecting intellectual property rights. The Quality Management Institute-Intellectual Property (Portuguese acronym: IGQ-PI) is fully established and operational, actively participating in the development of technical stan dards for the production of agribusiness ranks. 
Legislative and regulatory adaptation is a continuous component in the institution's agenda, as is 
representing Cabo Verde in international fora and regional projects. Through the work of IGQ-PI and the application and updating of appropriate le gislation, Cabo Verde is advancing towards full 
compliance with the TRIPS Agreement. 
5.19.  Cabo Verde agreed to adhere to the Info rmation Technology (ITA) and Civil Aviation (CA) 
Agreements. The Agreement on Civil Aviation covers 272 tariff lines (tariff items), while the 
Information Technology Agreement covers 128 tariff lines (tariff items), of which 12 with 30% 
rates on rights; 27 with 20% rates; 46 with 10% rates; 13 with 5% rates, and 30 with 0% rates. A transition period was negotiated to reduce  the rates until they reach the zero level. 
5.20.  Cabo Verde continues to make notifications under the WTO Agreements, as needed. With 
the establishment of the NTC, the aim is to syst ematize and centralize the notification sending 
process. 
5.21.  The participation of Cabo Verdean technical experts in the meetings of WTO bodies, 
including negotiating groups, remains a challenge due to budgetary constraints. In this context, 
the NTC will coordinate efforts to improve Cabo Verde's participation in the forums of interest on the most relevant issues. 
5.22.  Trade liberalization has had a significant impact on Cabo Verde. In fact, given its small size 
and its strong external dependence, Cabo Verde had to adapt the regulation that affects the 
competitiveness of companies and products, market diversification, restructuring of the economy's 
productive sectors, and development of human and institutional expertise. Measures that have led 
to the gradual improvement of the business environment.  
5.23.  Major components of the ensuing process of  adaptation to trade liberalization include the 
need to address the loss of government revenues, competitiveness in the domestic market and 
preference erosion. Currently, about 50% of Cabo Verde's total revenue is derived from customs 
duties and charges. Further liberalization will result in increased preference erosion and contribute to increased international and domestic competitive pressures. It is therefore imperative that the 
issue of preference erosion be adequately addressed in the context of the current round of 
negotiations, as a means to ensure protection against a possible marginalization of small vulnerable economies. There is also a need to maintain some room for improvement of decisions that have an internal impact. WT/TPR/G/322 • Cabo Verde 
 
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  5.2  Aid for Trade 
5.24.  The concept of aid for trade, which the Hong Kong Ministerial Declaration (2005) 
distinguished from the existing technical cooperatio n, is based on the understanding that improved 
market access opportunities does not automaticall y translate into exporters penetrating global 
markets. Cabo Verde, thus, sees aid for trade as a vital need and the Aid for Trade initiative as a 
promising tool, and it is interested in taking full advantage of it. 
5.25.  Cabo Verde obtained funding from the Enhanced Integrated Framework's (EIF) Special 
Affectation Fund, in order to execute Aid for Trad e projects and strengthen institutional capacity 
(category 1). Part of these funds were used to implement the EIF National Implementation Unit. 
5.26.  The category 1 projects were approved in November 2011 and the Financing Memorandum 
of Understanding between UNOPS and the Governme nt of Cabo Verde was signed in December 
2011 and is valid for three years, with the right to extend for 2 years. After this period, in June 
2015, the Government of Cabo Verde requested that  the project be extended for two more years 
and, based on the ongoing work agenda and mid-term assessment, submitted an updated work 
proposal to the EIF Executive Secretariat to extend the project until 2017. 
5.3  Technical Assistance 5.27.  Cabo Verde appreciates the technical assistance it has received from WTO and 
acknowledges the latter's efforts in trying to expand the range of its technical assistance activities. 
5.28.  There is, however, a need to optimize the technical assistance activities provided by the 
WTO, to take into account the different capacities of developing countries, so that these activities are more accessible to small developing countries with limited management and human resources. 
6  CONCLUSION 
6.1.  Cabo Verde remains committed to the multil ateral trading system, as has been evident from 
its active and continued participation in the regular WTO work program and the Doha Development 
Agenda. 
6.2.  According to the available resources and support from development partners, Cabo Verde 
continues to make efforts to implement the WTO agreements, alongside regional, bilateral and 
multilateral agreements. By implementing the National Trade Council, Cabo Verde is taking a 
holistic approach to trade agreement implementation, ensuring that it fulfills its commitments. It is, thus, essential that the country continue to benefit from aid for trade and all trade opportunities. 
6.3.  However, Cabo Verde is aware that trade negotiations do not necessarily produce tangible 
net benefits, and the experience can be painful especially when competitive advantages are negated by longstanding erosion preferences,  increasingly reduced political leeway, and 
increasingly sophisticated and "creative" non-tariff measures in export markets. 
6.4.  In addition, and particularly in the context of a severe economic recession, revenue loss 
through tariff liberalization is a prospect that can hardly be contemplated, unless it is certain that 
these losses will be simultaneously offset by proportional increases in market access, investment, 
production, competitiveness, employment and trade.  
6.5.  This is an unfortunate situation for heavil y indebted developing countries with small, open 
and vulnerable economies, thus being an issue that requires urgent consideration by all WTO 
members in the current context of the dimension of the Doha Development Agenda. WT/TPR/G/322 • Cabo Verde 
 
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  SOURCES 
GPRSP III 
DTIS 2014 State Reform Office – UCRE 
Doing Business in 2015 
Budget Support Group Report 2014 Strategic Trade Development Plan 2015-2020 
Resolution creating the National Council for Trade 
Cabo Verde's WTO Accession Report. 
  
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