What is The major Trade policy of Ethiopia
As an AI language model, I don't have current information about the trade policy of Ethiopia. However, as of September 2019, Ethiopia's main trade policy is focused on promoting export-oriented manufacturing industries. The government has initiated several trade promotion measures such as tax exemptions for export products, investment incentives, and the development of industrial parks and special economic zones to attract foreign direct investment. Additionally, Ethiopia is a member of the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services in Africa, and the country is expected to benefit from increased trade and investment opportunities within the continent.
The major trade policy of Ethiopia is centered around promoting export-led industrialization and increasing foreign trade. Ethiopia's trade policy aims to enhance competitiveness, attract foreign direct investment (FDI), and diversify its export base.
Here are the key steps and strategies involved in Ethiopia's trade policy:
1. Trade Liberalization: Ethiopia has been gradually liberalizing its trade regime by reducing trade barriers, customs duties, and non-tariff barriers. This helps to promote market access and encourage international trade.
2. Preferential Trade Agreements: Ethiopia has entered into various bilateral and regional trade agreements to enhance market access for its exports. For instance, it is a member of the Common Market for Eastern and Southern Africa (COMESA), which provides preferential access to member countries.
3. Export Promotion: Ethiopia has been actively focusing on export promotion through various measures. The government has established the Ethiopian Export Promotion Agency (EPA) to support exporters and facilitate their engagement in international trade. Special attention is given to sectors such as manufacturing, agriculture, and textiles.
4. Industrial Parks and Special Economic Zones: Ethiopia has developed industrial parks and special economic zones to attract FDI and promote export-oriented industries. These zones provide various incentives, including tax breaks, infrastructure facilities, and streamlined administrative procedures.
5. Investment Incentives: The government of Ethiopia offers a range of investment incentives aimed at attracting foreign investors. These incentives include tax holidays, duty-free import of capital goods, and repatriation of profits and dividends.
6. Infrastructure Development: Ethiopia is investing heavily in improving its infrastructure, including transportation networks, energy supply, and telecommunications. Enhancing infrastructure is crucial for facilitating trade, reducing logistics costs, and attracting investors.
7. Market Diversification: Ethiopia is working on diversifying its export markets beyond traditional trading partners. It aims to tap into emerging markets in Asia, Africa, and Latin America while also expanding trade with established economies.
8. Trade Facilitation: The government of Ethiopia is committed to improving trade facilitation measures, such as simplifying customs procedures, reducing trade documentation requirements, and enhancing trade logistics.
Overall, Ethiopia's trade policy is focused on boosting competitiveness, attracting investment, promoting exports, and diversifying its trade partners to accelerate economic growth and reduce dependency on a narrow range of exports.