CABO VERDE AND THE EU’s GSP

Economic Impact

Cabo Verde's economy concentrates on a small number of products which is reflected in the country's diversification score of 97.1% (2019). The minimum diversification threshold currently stands at 75%. In addition, Cabo Verde can be considered a vulnerable economy. The vulnerability score stood at 0.1 in 2019 with the threshold standing at 7.4%.

Cabo Verde's preference utilisation rate was well above 90% for most of the regarded period. This makes the country one of the highest users of GSP+ preferences and more than 90% of all imports from Cabo Verde benefit from preferential GSP+ duties. However, in 2022 the utilisation rate dropped by 8% in comparison to 2020. The most important product sections - fish and fish products - make particular high use of the preferential access to the European market. This is also valid for the apparel and footwear sector in which more than 99% of imports make use of the preferences granted under GSP+. While overall imports from Cabo Verde have increased constantly in recent years, there have been fluctuations in GSP eligible imports. This can mainly be explained by a decline in GSP eligible imports in the fish and crustaceans section (01b).

The largest product sections under the GSP+

SUSTAINABLE DEVELOPMENT AND MONITORING PRIORITIES

The COVID-19 pandemic hit the Republic of Cabo Verde (Cabo Verde) severely. The small archipelagic country is highly dependent on the tourism sector, and in 2020 the pandemic led to the worst drop in GDP in its history. The crisis reversed the substantial progress achieved on important economic and social development indicators and severely impacted the country’s public finances, placing Cabo Verde among the most indebted countries in the world. During the pandemic, Cabo Verde ensured a successful health policy and vaccination campaign. It also designed and timely implemented efficient measures to preserve the country’s economic and social fabric, which were adopted in close cooperation with international partners.

Monitoring priorities during the reporting period 2024-2025

For the reporting period 2024-2025, the EU has focussed its monitoring activities on eight priority areas. Despite the difficult context, Cabo Verde maintained the effective implementation of international conventions and good rates in human rights and corruption perception indexes. Elections (local, parliamentary, and presidential) between October 2020 and October 2021 fully complied with international standards, including on transparency and peaceful acceptance of results.

1. HUMAN RIGHTS

Cabo Verde has ratified all core human rights treaties required by the GSP+ regulation. It has additionally ratified the UN conventions on the rights of migrant workers and people with disabilities and signed the Convention for the Protection of All Persons from Enforced Disappearance. There is a high level of implementation regarding the fundamental conventions. Capacity constraints and limited resources occasionally pose a challenge to timely reporting. Additional legislative efforts will be required to ensure full respect of the rights of vulnerable groups, such as women, children, and detainees. A particular concern is sexual and gender-based violence, which has been addressed through awareness activities and protection measures for survivors.

Ratified

• Convention on the Prevention and Punishment of the Crime of Genocide (1948)
• International Convention on the Elimination of All Forms of Racial Discrimination (1969)
• International Covenant on Civil and Political Rights (1976)
• International Covenant on Economic, Social and Cultural Rights (1976)
• Convention on the Elimination of All Forms of Discrimination against Women (1981)
• Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
• Convention on the Rights of the Child (1990)

2. LABOUR RIGHTS

Cabo Verde has maintained ratification of all ILO labour rights conventions covered under the GSP+ and has additionally ratified two of the four ILO priority conventions which are not covered under GSP+. Over the reporting period, measures have been taken to better protect children from sexual exploitation. At the same time, child labour in hazardous environments remains a challenge and the list of hazardous occupations for children should be further refined.

Ratified

• Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) 
• Right to Organise and Collective Bargaining Convention, 1949 (No. 98) 
•  Forced Labour Convention, 1930 (No. 29)  (and its 2014 Protocol )
• Abolition of Forced Labour Convention, 1957 (No. 105) 
• Minimum Age Convention, 1973 (No. 138) 
• Worst Forms of Child Labour Convention, 1999 (No. 182) 
• Equal Remuneration Convention, 1951 (No. 100) 
• Discrimination (Employment and Occupation) Convention, 1958 (No. 111) 

3. ENVIRONMENTAL PROTECTION

Cabo Verde has ratified all relevant environmental protection conventions required by GSP+ but faces limited administrative resources to effectively implement some of the provisions and to comply with reporting obligations. For example, national legislation is missing to effectively implement the convention against illegal wildlife trade (CITES) and the Convention on Biological Diversity. Likewise, a biosafety framework is missing which prevents the implementation of the Cartagena Protocol.

Ratified

• Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
• Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
• Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (1989)
• Convention on Biological Diversity (1992)
• United Nations Framework Convention on Climate Change (1992)
• Cartagena Protocol on Biosafety (2000)
• Stockholm Convention on persistent Organic Pollutants (2001)
• Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)

4. GOOD GOVERNANCE

Cabo Verde has implemented a new National Integrated Programme 2018-2023 to address drug offenses and further combat drug trafficking in it maritime zone. Cocaine shipments originating from South America remain problematic and are hard to combat given Cabo Verde's small public administration and law enforcement. Regarding Cabo Verde's anti-corruption policy, no major compliance problems can be noted, despite the country does not have established an independent anti-corruption authority yet.

Ratified

• United Nations Single Convention on Narcotic Drugs (1961)
• United Nations Convention on Psychotropic Substances (1971)
• United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
• United Nations Convention against Corruption