What is The relationship between Ethiopian and FTA
As an AI language model, I assumed FTA to represent Free Trade Agreement.
Ethiopia is not currently a party to any Free Trade agreements. However, Ethiopia is a member of the African Continental Free Trade Area (AfCTA), which aims to create a single market for goods and services among African Union member states. Ethiopia ratified the AfCTA in 2019, indicating its commitment to free trade.
The relationship between Ethiopia and the FTA (Free Trade Agreement) can be understood in the context of Ethiopia's participation in regional and international trade agreements.
1. Regional Trade Agreements: Ethiopia is a member of the Common Market for Eastern and Southern Africa (COMESA) and the Intergovernmental Authority on Development (IGAD). Both of these regional trade agreements aim to promote economic integration and free trade among member countries in Africa. Through these agreements, Ethiopia enjoys preferential access to markets in other member countries, and vice versa.
2. African Continental Free Trade Area (AfCFTA): Ethiopia is also a signatory of the AfCFTA, which is a newer trade agreement aiming to create a single market for goods and services in Africa. AfCFTA aims to boost intra-African trade, eliminate tariffs on 90% of goods, and harmonize trade rules and regulations. Ethiopia's participation in AfCFTA allows it to access a larger market and promote economic growth through increased trade with other African countries.
3. Bilateral and Multilateral Free Trade Agreements: Ethiopia has also entered into bilateral and multilateral free trade agreements with various countries. For example, Ethiopia has a bilateral trade agreement with Djibouti, allowing for preferential trade relations between the two countries. Additionally, Ethiopia enjoys trade benefits with certain countries through membership in the Everything But Arms (EBA) initiative, which grants duty-free and quota-free access to the European Union market for least-developed countries.
Overall, the relationship between Ethiopia and the FTA is one of active participation in regional and international trade agreements, which provide opportunities for increased market access and economic integration.