Ethiopia has age-old cross-border trade relations with its neighboring countries. Mainly, with countries located in the Horn and have similar landscape and geographical locations, it has been conducting both formal and informal cross boarder trading.
The businesses, in turn, have strengthened the livelihood of border communities, deepened connectivity and increased people-to-people relations and interactions between the borders of trading nations.
However, as sources indicate Ethiopia’s trade with its neighboring countries is very little and limited due to the informal trade activities carried out in the areas. For instance, including the massive volume of livestock exports, coffee and chat are smuggled from Ethiopia to neighboring countries illegally.
To curb this illicit transaction of goods and services that has been there for a long time, as well as improve the efficiency of the business by inducing people to experience fair business activity thereby create mutual benefits between the countries, the country is revising its cross border agreements.
According to Wondimu Filate, Communication Director at the Ministry of Trade and Industry, Ethiopia has cross-border trade relation agreements with its neighboring countries. The transactions have enabled it to strengthen the livelihood of border communities by creating employment and business opportunities, harness social relations among others.
However, the country is currently revising its cross border agreements in a manner it develops the growth of formal trade, promote mutual benefits for countries involved in the trade relations
As to him, revising and reactivating the agreements has a vital role to maintain healthy and strong bilateral relations which foster the realization of legal trade flow among nations in accordance with international trade law.
Mentioning that Ethiopia has been working and stayed connected with Boundary Commissions of the neighborhood states in reviewing and reactivating the border agreements, he said that the new revised agreement aims at promoting the prevalence of active, fair as well as safe trade relations among countries in the region and expected to yield significant advantages for the border communities at most.
Ashenafi Bassa, Customs Compliance Division Head with the Ethiopian Customs Commission said that the major objective of the border trade agreement is to ensure legal import and export trade thereby control contrabandists.
Contraband trade results in undesirable political, social and economic effects on the country. The expansion of illegal trade has an adverse effect on businesspersons who are paying their taxes accordingly. By harming nation’s economy, it will hold back its overall growth.
To alleviate problems related to illegal cross border trade and promote legalized business transaction, the Commission has been working in collaboration with concerned authorities.
As to him, these two activities [curbing contraband and sustaining formal trading] are the two sides of the same coin in Commission’s activities. And to support the effort, control and facilitate the swift flow of the import-export as well as border trade, it has opened new check points in Rama and Bure.
Furthermore, the Commission to ensure safe and sound cross-border trade, facilitate secure delivery of goods as well as to cut off the unnecessary extra costs, loss of time is modernizing its services.
While talking about measures taken by the Commission so as to make its activities easier, he said that the number of documents that were asked as requirements to implement customs dealings is abridged and risk management procedures are reduced. At the same time, activities are in full swing to commence a single window service by next year.
The service is assumed to benefit all stakeholders. In general, great deals of tasks are underway to avoid and shorten the unnecessary bureaucratic working system of the Commission, he added.
As to him, the Commission will exert utmost effort to combat illicit trading in the borders and will control importation and exportation of goods that do not fulfill customs requirements.
Mentioning that substandard products, such as medicines, packed foods and beverages, electronics, weapons among others are imported via border areas, he said that as these products endangered the health and security of the public as well as harm country’s economy, the Commission will work persistently to combat illicit cross border trading.
However, as the problem covers a wide range of issues and is complicated, the Commission by itself cannot curb it. The public should participate in the effort so as to maintain sound, peaceful and sustainable development, he said..
The Ethiopian Herald June 5/2019
BY BETHLHEM BEDLU
