Cape verde is now a member of WTO

The World Trade Organization General Council, which met in an ordinary session yesterday morning in Geneva, Switzerland, approved Cape Verde’s application to join the Organization. The country’s entry into the organization, however, will only become effective following ratification by the National Assembly of the adherence protocol signed yesterday morning by WTO director general Pascal Lamy and Cape Verde’s Minister of the Economy, Growth and Competitiveness, José Brito.

Cape Verde yesterday became the 152nd member of the World Trade Organization. The adherence protocol was approved by the organization’s General Council, which is currently meeting in Geneva.
According to the WTO’s operational norms, however, Cape Verde will only become a full-fledged member after the protocol is ratified by the National Assembly, an act that is expected to occur by June of next year.
The protocol, which was signed yesterday morning, also establishes a series of requirements to be met by Cape Verde, particularly with regards to legislation. For example, by the end of 2008 a new Customs Code must be approved, while legislation regarding intellectual property rights will have to be altered as well.
Prime Minister José Maria Neves stated that Cape Verde has joined the WTO “with pride and jubilance,” saying that the act lends even greater prestige to the country.
“It gives the country prestige, gives more credibility to foreign investment and will develop the private sector, bringing more business and a higher standard of living for Cape Verdeans,” said José Maria Neves, who was quoted by Portuguese news agency Lusa.
Now, added the Prime Minister, Cape Verde will have to improve the productivity of its economy and progressively liberalize the market, as well as implement reforms in the customs sector and work to help businesses increase their levels of productivity.
José Maria Neves admitted that an important percentage of tax revenues come from customs charges, but added that there will be no immediate loss in this regard because “there will be a gradual trade liberalization process, which will contribute towards improving the Cape Verdean economy.”
“There will be no immediate loss, but there would be if we had carried out a sudden reform and dismantled the customs department,” he said, adding that the reform in question will be elaborated so as to ensure that the revenues currently deriving from customs fees and taxes will be collected in other ways.
“Cape Verde will face its challenges with strength,” he affirmed, adding that the 2008 State Budget includes reinforcement of tax surveillance activities in order to prevent tax evasion and “clandestine business dealings” and to ensure that the country operates in accordance with “market rules.”
“More surveillance and less regulation” in order “better to control the commercial sector,” alongside “fewer taxes and greater tax efficiency and transparency” are elements of the recipe for success outlined by the Prime Minister.