Thank you, Mrs Chair. 

I would like to welcome the Delegation of Cabo Verde, led by Mr Alexandre DIAS MONTEIRO, Minister of Industry, Trade and Energy, and thank the Discussant, Ambassador Ana Patricia BENEDETTI ZELAYA (El Salvador) for her introductory remarks.

The EU welcomes this opportunity to review the developments in Cabo Verde’s trade policies and practices. Let me start by highlighting that Cabo Verde has demonstrated both relative resilience and economic progress since its previous review in 2015. International trade remains a fundamental component of Cabo Verde’s economy, with the main sector being services, particularly tourism. Between 2015 and 2019, real GDP grew at an average annual rate of 4.1%, which were driven by services expansion, foreign investment, and tourism revenues. In 2023, real GDP arrived at 5.5%, after a sharp decrease in 2020, when key sectors were impacted during the COVID-19 pandemic. 

In recent decades, Cabo Verde has achieved notable economic and social progress, which have been underpinned by sound macroeconomic management and political stability. Cabo Verde has solid institutions, a multiparty system and scores high on human rights (92/100). During the period under review, the average national poverty rate declined from 35.2% to 24.8%. However, it remains vulnerable to climate-related risks, shifts in global demand, and global economic fluctuations in commodity prices.

The EU notes the strategic importance of Cabo Verde’s long-term development goals, as set out in its framework “Ambition 2030”, promoting sustainable development and economic growth. The EU encourages continued investment in infrastructure and industrial capacity, along with economic diversification and further efforts to address structural challenges.

We welcome that Cabo Verde has improved its legislative transparency and efforts to modernize its trade regime, particularly in trade facilitation, competition, government procurement, and intellectual property. The EU praises Cabo Verde for prioritizing the promotion of gender equality and undertaking efforts to align public investment with environmental resilience.

The EU notes that Cabo Verde has continued to focus on strengthening regional economic integration through, the ratification of the African Continental Free Trade Area (AfCFTA). As a member of the Economic Community of West African States (ECOWAS) since 1976, Cabo Verde started an implementation process of ECOWAS' Common External Tariff (CET) in 2022. We welcome these initiatives.

Regarding our bilateral relationship, the EU remains Cabo Verde’s main trading partner. Cabo Verde is part of the Economic Partnership Agreement (EPA) between the EU and West Africa, which is yet to be signed by all the West African countries to enable its application. Cabo Verde is also the beneficiary from the Generalised Scheme of Preferences Plus (GSP+), allowing a duty-free access to the EU market.

The EU and Cabo Verde have a comprehensive ‘Special Partnership’ in place since 2007, which is currently focusing on promoting renewable energy and to eliminate extreme poverty by 2026. The EU appreciates cooperation with Cabo Verde under the EU Global Gateway initiative. Recently, projects are focusing on digital transition, investments in ports and renewable energy.

We appreciate Cabo Verde’s commitment to the multilateral trading system and constructive engagement in the WTO in various areas and initiatives. The EU is pleased to see that Cabo Verde ratified the Trade Facilitation Agreement and phase 1 Agreement on Fisheries Subsidies. We also value the fact that Cabo Verde participates in the Joint Statement Initiatives on E-Commerce, on Investment Facilitation for Development, is engaged in the Informal Working Groupon MSMEs and is acting as one of the Co-Chairs of the Informal Working Group on Trade and Gender. In addition, the EU is pleased to acknowledge Cabo Verde’s participation in the Dialogue on Plastics Pollution and the Trade and Environmental Sustainability Structured Discussions (TESSD). We invite Cabo Verde to consider joining the Services Domestic Regulation Joint Statement Initiative and undertake the domestic regulation disciplines according to the reference paper.

In our written questions, the EU has raised a number of issues, inter alia as regards customs procedures, IPR protection and notification obligations. 

We thank Cabo Verde for its replies to the EU advanced questions, which we are reviewing carefully. 

On behalf of the EU, I look forward to a constructive dialogue with Cabo Verde during its 2^nd Trade Policy Review. 

Thank you.