07 December 2007
The Western Africa archipelago Cape Verde is to become the 152nd member of the World Trade Organisation after it has agreed on entry negotiations yesterday.
Following the General Council's approval on December 18th, Cape Verde will then have a six-month period to ratify the deal, before officially entering the world organisation.
Cape Verde has been trying to become a member since 1999 but saw its application postponed due to issues on trading and investment rights, as well as taxes and export subsidies.
The ten-island archipelago is partially dependant on other countries' resources and will welcome a higher degree of trade safety provided by the WTO.
Its merchandise exports reached only $18 million in 2005, compared to $438 million worth of imports according to the World Bank figures.
The former Portuguese colony, which became independent 32 years ago, exports shoes, garments, fish and hides to countries such as Spain, Portugal and the Netherlands.
The size of Cape Verde's economy was $1.1 billion in 2006, an equivalent of $2,130 per inhabitant, according to World Bank figures. Cape Verde's population reaches 518,000.
The WTO was created on first January 1995, and its main role is to ensure that no sudden changes of trade policies occur between individuals, companies and governments, so as to secure a certain level of stability.
