1. What are the Major Trade Agreements of Ethiopia with other Countries?

Ethiopia has signed different trade agreements which have been summarized below:

  • Bilateral Investment Treaties (BITs): with ~30 countries including: Algeria, Germany, Libya, Switzerland, Austria, India, Malaysia, Tunisia, Belgium, Iran, Netherlands, Turkey, China, Israel, Russia, United Kingdom, Egypt, Italy, South Africa, Yemen, Equatorial Guinea, Djibouti, Spain, USA, Finland, Qatar, Sudan, France, Kuwait and Sweden.
  • Double Taxation Avoidance Treaties (DTTs): with ~12 countries including countries like Czech Republic, Russia, Italy, Turkey, France, South Africa, Kuwait, Yemen, Israel, Tunisia and Romania. 
  • Generalized System Preferences (GSP): extended to LDCs by most developed and developing countries including; Australia, Canada, European Union, Japan, New Zealand, Norway, Russia, Switzerland, Turkey, USA, India, Chain and South Korea
  • AGOA (African Growth and Opportunity Act): is a market opportunity provided by US Government to eligible sub-Saharan African countries (Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Cape Verde, Chad, Cote d’Ivorie, Comoros, Congo, Djibouti, Gabonese, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Malawi, Madagascar, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome & Principa, Seychelles, Sierra Leone, South Africa, South Sudan, Swaziland, Tanzania, Uganda and Zambia) to export their qualified products free from tariff and quota.

- Ethiopia’s export has been growing by 80% since the introduction of AGOA

- Ethiopia earned ~$33 million from AGOA benefit in 2014

- The average U.S. applied tariff on apparel is 11.4% compared to an average for all products of 3.5%. But AGOA has avoided this tariff.

  • Everything but Arms (EBA): is market opportunity that is given to all LDCs full duty free and quota-free access to the EU markets for all their exports with the exception of arms and armaments.
  • Common Market for Eastern and Southern Africa (COMESA): is a free trade area with twenty member states stretching from Libya to Swaziland and Ethiopia is a member.