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Addis Ababa – Ethiopia is working to complete its accession to the World Trade Organization (WTO) for next year, said the Senior Policy Advisor and Chief Trade Negotiator in the Prime Minister’s Office.
In an exclusive interview with ENA, Senior Policy Advisor and Chief Trade Negotiator Mamo Mihretu revealed that the WTO accession negotiation that began 16 years ago is progressing.
In a multilateral negotiation held last January with the member countries of the WTO, Ethiopia had examined its trade and investment regime against the agreements and requirements of the WTO.
For the most part, the country’s trade regime is consistent with WTO rules and regulations, the senior policy adviser said, adding that “we believe there will be no major setback for Ethiopia to be part of the multilateral trading system.”
Similarly, significant progress was made during bilateral trade negotiations with 8 member countries in Geneva last January.
“The main issue when it comes to bilateral negotiations is the tariff we apply on our commercial goods and the type of investment or service sector that we open to foreign investors,” explained Mamo.
In addition, he noted that the government has made important progress; and there is a lot of drive, goodwill and support from the WTO member countries for Ethiopia to complete its accession process. “
“Our goal is to conclude Ethiopia’s accession negotiations to the WTO in 2021. But that, of course, largely depends on what we discuss and successfully conclude bilateral negotiations with member countries. For us, to conclude the accession to The WTO is fundamental because we see it as an Anchor for our national reform effort. Being part of the multilateral trading system is a natural result of the national economic reform program that the government is currently undertaking, “stressed the chief trade negotiator.
The completion of the WTO accession process will create clear and predictable external market access for Ethiopian traders and investors, Mamo said, adding that “the WTO, for the most part, will have a very positive impact on the domestic private sector. “.
The government is not eliminating tariffs on goods arriving in Ethiopia, but rather putting a limit. “So most of the private sector will continue to enjoy the protection that prevails.”
The most sensitive part of the negotiation is the degree of willingness that allows foreign investors to come and operate in Ethiopia, particularly financial and telecommunications institutions, said the lead trade negotiator.
However, Mamo stated that in telecommunications, regardless of the WTO, the government is carrying out a reform program and, as a result, the entry and investment of new telecommunications operators is allowed.
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The sensitive issue is the financial sector, according to Mamo, who noted that most member countries would like Ethiopia to open their financial companies.
He said that the government’s position in that regard largely depends on the reform program.
“We believe that we can negotiate accession to the WTO while maintaining current prudential regulations on the financial sector. We need to make a distinction between openness and deregulation. We will continue to maintain our strong and prudent regulatory framework while creating a competitive investment climate for future investors and operating in Ethiopia, “emphasized Mamo.
He believes that accession to the WTO will fundamentally transform Ethiopia’s investment climate and modernize trade rules and regulations, and ultimately attract FDI.
