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Sunday, 9 October 2016

Cape Verde has a 'Special' Relationship with the EU

'Special' - it basically means they don't have to honour their Agreement, but have all the benefits!!!!  Have the people of Cape Verde benefitted - NO!  Is there good governance - NO!  

Cape Verde has a special relationship with the EU and the political relationship between them is mostly based on fishing and trade agreements.  However, foreign investors seems to be actively encouraged to invest in Cape Verde through the 2000 Cotonou Agreement, as protocols have been put in place to guarantee their legal security (see below for more details). 

In the main, political, trade and cooperation relations between the EU and Cape Verde are based on the 2000 ACP-EU Partnership Agreement. The underlying objectives of this are: the fight against poverty, good governance, new economic and trade partnerships, and improved financial cooperation. This treaty has been updated in 2007 and 2010. 

Foreign Investors

The EU is Cape Verde's main trading partner. The country has had access to the GSP+ trade regime since December 2011. 

The EU's "Generalised Scheme of Preferences" (GSP) allows developing country exporters to pay less or no duties on their exports to the EU. This gives them vital access to EU markets and contributes to their economic growth. The GSP+ enhanced preferences means the full removal of tariffs. These are granted to countries which ratify and implement international conventions relating to human and labour rights, environment and good governance.

Regarding foreign investors, the Cotonou Agreement seeks to:
 • implement measures to encourage the participation of private investors who comply with the objectives and priorities of ACP-EC agreement. 
 • provide reinsurance schemes to cover foreign direct investment by eligible investors against legal uncertainties and the major risks of expropriation, currency transfer restriction, war and civil disturbance, and breach of contract. 
 • provide support to reduce the commercial risks for investors (inter alia guarantee funds, regulatory bodies, arbitration mechanisms and judiciary systems to enhance the protection of investments improving the export credit systems).
 • attract foreign private investors and lenders to projects in the ACP States
 • provide legal guarantees to ensure fair and equitable treatment and protection of foreign investors; encouraging inter-firm linkages, networks and cooperation including those involving the transfer of technology and know-how at national, regional and ACP EU levels, and partnerships with private foreign investors which are consistent with the objectives and guidelines of ACP-EC Development cooperation.

Therefore, taking into consideration all of the above.  Cape Verde has been given the opportunity to seek private investment from EU countries.  The Portuguese Company, Tecnicil, targeted British Investors and who ended up out of pocket?  The British Investors.

Being a part of the EU wasn't necessarily a good thing for British.  Why, because it made it easier for countries who weren't even a part of the EU in our initial EU deal to sign up and agree to be able to get access to us and our money.

The contract we signed with Tecnicil is not worth the paper it was written on and was not adhered to.  The Directors actually laughed and found it amusing that they had people's money and the people had no comeback or anyone to represent them.  It's a shocking state of affairs and is unbelievable that people think they can act like this in a business capacity.  Not only is it going to damage reputations, but it has seriously damaged people who invested in Cape Verde.  This story does not just apply to one resort, as mentioned previously, many resorts have done the same thing to many people.  It is a huge scandal.  I hope in the future Cape Verde becomes successful for the sake of the people in poverty, but I also hope that Justice is done to the unscrupulous people who have used the situation to get agreements signed and make huge amounts of money to enjoy a luxurious lifestyle.

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