Dakar
24 July 2008
Business leaders in Cape Verde are responding to their country'sascension to the World Trade Organization. While business leadersagree the measure should enhance the competitiveness of the islandnation, Brent Latham reports from our West Africa bureau in Dakar somein Cape Verde doubt the small country's businesses are ready to competeon an international level.
Representatives of local businessesin Cape Verde have accepted their country's membership in the WorldTrade Organization with optimism and reservation.
The small nation became the 153rd member of the WTO Wednesday in Geneva.
Whilemost business people in Cape Verde agree WTO membership will bringabout changes to help businesses improve their competitiveness, someexpressed concern that businesses would be unable to survive withoutnational protection and preferences, which will be gradually eliminatedunder WTO rules.
The economic dimensions of the country ofjust 500,000 inhabitants make it difficult for Cape Verde's businessesto compete on an international level, says the President of theBarlavento Chamber of Commerce, Luis Vasconcelos.
Vasconcelossays WTO membership will have some negative consequences for somebusinesses in Cape Verde. He says there will be new, complicatedregulations they will need to follow.
Nevertheless,Vasconcelos sees WTO membership as an opportunity for Cape Verde. Withthe opening of larger potential markets, Cape Verde's industries willhave the opportunity to diversify, he says, giving Cape Verde anadvantage over countries in similar economic situations.
A spokesman for Cape Verde's stock exchange said it was too early to determine the effect on the country's largest companies.
Mendozasays that Cape Verdean companies will now need to comply more withinternational standards and practices, which should enhancecompetitiveness.
Mendoza says foreign companies will have aneasier time coming to Cape Verde than local companies going abroad. Hesays only four companies, with a total capitalization of about$150,000, have been listed on the stock exchange. Mendoza says WTOmembership is likely to help increase that number.
NationalInstitute of Agrarian Investigation and Development program managerCarla Tavares said WTO membership is not likely to affect the country'sagricultural sector since Cape Verde is a net importer of food.
Tavares says the country has a lot of work to do before it will be ready to export agricultural products.
CapeVerde, Africa's westernmost nation, is composed of 10 main islandsabout 500 kilometers off the coast of Senegal. The economy dependsprincipally on tourism.
Last year, Cape Verde became only thesecond country, following Botswana in 1994, to be consideredsufficiently developed for removal from the United Nation's list ofleast developed countries.