The Republic of Cape Verde (hereinafter referred to as Cape Verde) is a beneficiary of the special arrangement for least-developed countries (also known as the Everything but Arms scheme, EBA) under the Union’s scheme of generalised tariff preferences.

Article 11(8) of Regulation (EC) No 732/2008 provides for the withdrawal of a country from the special arrangement for least-developed countries, when that country is excluded by the United Nations from the list of the least developed countries. This Article also provides for the establishment of a transitional period of at least three years before the removal takes effect.

The transitional period granted under Regulation (EC) No 1547/2007, coming in a time of economic crisis, was marked by declining trade volumes that hampered Cape Verde’s economic diversification efforts. Hence, this transitional period has not allowed the time necessary for Cape Verde to overcome the over-reliance on one key export sector and thus alleviate potential adverse effects of the removal from the EBA scheme. That period should therefore be extended until 1 January 2012.

The measures provided for in this Regulation are in accordance with the opinion of the Generalised Preferences Committee,