After years of navigating a complex path, Ethiopia’s ambition to join the World Trade Organization (WTO) appears to be gaining significant momentum. Recent diplomatic effort s signals a renewed push to finalize the nation’s accession, potentially unlocking substantial economic benefits.
Ethiopia’s pursuit of WTO membership has been a long-standing objective, punctuated by intermittent engagement with the organization. However, currently Minister of Trade and Regional Integration has prioritized this initiative, setting an ambitious target of achieving membership by 2026.
It is known that WTO membership would provide Ethiopian exporters with guaranteed access to markets in other member countries, reducing trade barriers like tariffs and quotas. This could stimulate export-oriented industries and diversify the nation’s export basket.
In addition, a stable and predictable trade environment, facilitated by WTO rules, is likely to attract more FDI for the country. Investors gain confidence knowing that their investments are protected by a rules-based system, fostering long-term economic growth.
Also, adherence to WTO agreements would require Ethiopia to strengthen its trade-related laws and regulations, promoting transparency and predictability. This would enhance the overall business climate and reduce bureaucratic hurdles.
As a WTO member, Ethiopia would have access to the organization’s dispute settlement mechanism, providing a platform to resolve trade disputes with other member countries in a fair and impartial manner.
In similar vein, WTO membership can facilitate Ethiopia’s integration into global value chains, enabling businesses to participate in international production networks and access advanced technologies. By gaining access to global markets and improving trade governance, joining the WTO should help Ethiopia diversify its economy, reducing its reliance on a few key exports and building resilience against global economic shocks.
The country’s strides towards joining WTO, with its negotiating team, led by Chief Negotiator Kassahun Gofe (PhD), recently concluding the 5th WTO Working Group Meeting in Geneva. The Ministry of Trade and Regional Integration (MoTRI) has set an ambitious target to finalize the accession process by the 14th WTO Ministerial Conference in Cameroon in 2026.
During the Geneva meeting, Ethiopia engaged in crucial discussions with key development partners, securing firm commitments for financial and technical assistance. Minister Kassahun emphasized the fruitful nature of these talks, which built upon prior negotiations. “We successfully concluded our negotiations and agreed to hold the sixth working group meeting in July of this year,” he stated. “We are committed to completing our necessary preparations to join the WTO family at the 14th Ministerial Meeting in Cameroon in 2026.”
Key partners, including the World Bank, the European Union, India, China, the European Investment Fund, and the World Trade Center, reaffirmed their dedication to supporting Ethiopia throughout the accession process. This strong international backing was further evidenced by the support expressed by over 19 nations during the opening ceremony, as highlighted by Minister Kassahun on his social media platforms.
Minister Kassahun also urged WTO member countries to expedite bilateral market access negotiations, underscoring Ethiopia’s commitment to opening its trade and investment sectors to foreign entities, alongside ongoing privatization initiatives. He reiterated that WTO membership is expected to deliver numerous benefits to Ethiopia, including improved market access, enhanced trade relations, and the modernization of its service, agriculture, and other crucial sectors.
During the recent address by Director-General Ngozi Okonjo-Iweala (PhD) on “Mobilizing African Investment and Financing to Drive Agenda 2063’s Vision” She highlighted the substantial economic challenges facing the continent, noting that Africa loses over 88 billion dollars annually due to illicit financial transactions and more than 12 billion dollars from illegal fishing.
Okonjo-Iweala emphasized that these illicit financial flows, coupled with illegal activities related to migration and trade, are severely hindering Africa’s economic progress. She also acknowledged the challenging geopolitical environment, which further impedes the continent’s development goals outlined in Agenda 2063. “We are collaborating with the WTO and relevant regional and continental organizations to address these issues at the grassroots level,” she stated.
It is recalled that a year ago the meeting between Ambassador Mesganu Arga, State Minister of Foreign Affairs, and Maika Oshikawa, Director of the WTO Accession Division, the focus was clear: accelerating Ethiopia’s path to WTO membership. Ambassador Mesganu reiterated the Ethiopian government’s unwavering political commitment and readiness to finalize the technical negotiations promptly. He emphasized that WTO accession is not merely a bureaucratic procedure but a cornerstone of Ethiopia’s broader economic transformation.
“Joining the WTO is pivotal for Ethiopia’s economic reform agenda,” stated Ambassador Mesganu during the meeting. “We are committed to completing the necessary technical negotiations swiftly and efficiently.”
This commitment is underscored by significant policy amendments and radical decisions implemented across Ethiopia’s trade and finance sectors. These reforms are designed to align the nation’s economic framework with WTO standards, facilitating a smoother transition. The Ethiopian government has taken steps to liberalize its market, improve regulatory transparency, and strengthen intellectual property protections, all critical components for WTO accession.
Ethiopia’s position as a major economic player in Sub-Saharan Africa adds strategic weight to its accession bid. Officials argue that Ethiopia’s membership would not only benefit its own economy but also enhance the WTO’s stature and influence in the region.
Director Maika Oshikawa acknowledged Ethiopia’s progress and reaffirmed the WTO secretariat’s commitment to providing the necessary assistance. She pledged continued support to expedite the accession process, highlighting the collaborative nature of the ongoing negotiations.
Ethiopia’s accelerated pursuit of WTO membership, combined with the strong international support received, signals a significant step towards integrating its economy into the global trading system. The country’s commitment to trade liberalization and economic reform, coupled with the addressing of challenges outlined by the WTO Director-General, positions it for potential growth and development in the years to come.
BY EYUEL KIFLU
THE ETHIOPIAN HERALD TUESDAY 25 MARCH
