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Ethiopia poised for WTO accession as crucial talks approach

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Ethiopia’s long-standing ambition to join the World Trade Organization (WTO) is nearing a pivotal moment, with the next round of negotiations scheduled for late February or early March. This development marks a significant step in the country’s efforts to integrate into the international trading system after years of extensive preparation and reform.

Ethiopia first applied for WTO membership in 2003 and has since undertaken substantial economic and trade policy reforms to meet the organization’s stringent requirements. The upcoming talks, expected to take place in Geneva, will focus on finalizing key competition contracts, including market access commitments and necessary domestic regulatory adjustments.

Trade experts and government officials have expressed optimism about the negotiations. “This is a historic opportunity for Ethiopia to strengthen its economy and attract foreign investment,” said Kassahun Gofe, Minister of Trade and Regional Integration. “Joining the WTO opens new doors for exporters and creates a platform for sustainable growth.”

A high-level Ethiopian delegation, led by Kassahun, recently met with the WTO Secretariat in Geneva. The delegation, which included representatives from various institutions, successfully completed all necessary documentation for distribution to member states, paving the way for the fifth round of negotiations.

Yasmin Wohabrebbi, State Minister for Trade and Regional Integration, who was present during the meeting, stated, “We have made it clear where we stand with this amendment in 2020 and how we want to proceed with our entry process.”

Although the fourth round of WTO Working Party meetings took place in 2020, progress was hindered by the COVID-19 pandemic and other unexpected challenges. However, Minister Yasmin assured that preparations for the upcoming round have now been completed.

The Ethiopian government’s commitment to WTO membership is evident in the broad macroeconomic reforms implemented over the past five years. These reforms have addressed many unresolved issues raised by member states at both multilateral and bilateral levels.

While a few additional rounds of working party meetings are anticipated, government officials plan to complete the entry process at the next Council of Ministers meeting in Cameroon in 2026.

In addition to multilateral negotiations, Ethiopia is actively engaging in bilateral talks with several countries. Yasmin emphasized that successful completion of these agreements will be crucial for ensuring favorable market access for Ethiopia’s goods and services—one of the key benefits of WTO membership.

The push for WTO accession aligns with Ethiopia’s broader strategy to expand its presence in global markets and strengthen regional trade integration. A central theme of this strategy is a focus on quality. The government is actively developing institutions and processes to ensure standardized products, recognizing their importance in competing effectively on the global stage.

Significant investments have also been made in infrastructure to facilitate trade and enhance Ethiopia’s competitiveness. These improvements are deemed essential for maximizing the benefits of WTO membership and fostering sustainable economic growth.

In a recent interview with Prime Minister Abiy Ahmed’s press secretary, Minister Yasmin reiterated that the upcoming round of negotiations represents a crucial step toward Ethiopia’s WTO membership. This move has been attributed to Ethiopia’s economic reforms under Prime Minister Ahmed’s administration, which prioritize liberalization and private sector development.

Ethiopia blossoms as key player in global air-transported flower trade

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A new report from the International Air Transport Association (IATA) highlights Ethiopia’s growing prominence in the global air-transported flower trade. The report, released on February 14, 2025, reveals a significant shift in the dynamics of the industry over the past two decades, with Ethiopia emerging as a key exporter alongside traditional powerhouses like Colombia and Ecuador.

According to IATA’s analysis of data from Global Trade Tracker, the value of the global air-transported flower trade has surged from USD 852 million in 2003 to USD 3.7 billion in 2024—a remarkable four-fold increase. This growth has been accompanied by a notable concentration of market share among a select group of exporting nations.

While Colombia remains a dominant exporter with a 42.3% market share in 2024, Ethiopia has made significant strides in the industry, becoming a notable newcomer that has pushed the Netherlands off the list of top exporters. This expansion is attributed to two primary factors: the reduction of tariffs and trade barriers through trade agreements, and advancements in air cargo capabilities.

“Trade agreements have reduced tariffs and barriers, increasing exports and opening markets for developing nations,” the IATA report stated. “Developments in air cargo, including improved refrigeration and logistics, ensured that flowers remained fresh and enabled seamless global distribution of large volumes on time.”

These advancements in air transportation have greatly facilitated the trade in perishable goods, including flowers, creating opportunities for emerging economies like Ethiopia to capitalize on their comparative advantages. The improved refrigeration and logistics networks are vital. It ensures that delicate flowers reach global markets in peak condition, preserving their quality and extending their shelf life.

On the import side, the United States continues to dominate, accounting for 53.6% of total imports in 2024. However, the Netherlands has risen to become the second-largest importer at 31.2%, serving as a main distribution center for flower re-exports.

As Ethiopia solidifies its position in the global flower trade, it is crucial for the country to continue investing in infrastructure, technology, and sustainable practices to ensure long-term competitiveness and growth. As the IATA report suggests, the increasing concentration of market share among a few key players underscores the importance of specialization and efficiency in this rapidly evolving industry.

The report concludes by playfully pondering which countries might have a comparative advantage in romance. While this question remains open for debate, there’s no doubt that Ethiopia has blossomed into a significant force in the global air-transported flower trade, showcasing its potential as a key player in the international market.

Ethiopia’s Tamrit Expo Poised to Generate Billions in Trade, Boost Manufacturing Sector

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The third edition of the Ethiopia Tamrit Expo, a national movement aimed at revitalizing the country’s manufacturing sector, is projected to generate over five billion birr in trade transactions, according to Industry Minister Melaku Alebel. The expo’s launch event, held recently in Addis Ababa, highlighted the initiative’s significant potential impact on Ethiopia’s economy.

Melaku emphasized that while Ethiopia boasts a rich history of ancient civilization, its manufacturing productivity has been slower to develop. Recognizing the crucial role of a strong manufacturing industry in Ethiopia’s journey towards prosperity, the Ethiopian Tamer initiative was launched in 2022.

The minister noted that the initiative has already achieved considerable success in addressing challenges within the sector over the past two years. Notably, the increased availability of domestically produced goods through reduced foreign exchange costs and import substitution has been a key achievement. In the first six months of fiscal year 2025 alone, Ethiopia successfully produced two billion birr worth of such products.

“Prioritizing the manufacturing industry is critical for building a sustainable and inclusive economy,” Melaku stated. He noted that the world is moving towards the fifth industrial revolution, characterized by production processes in which people and machines work closely together. Advances in robotics, artificial intelligence, and global internet connectivity are transforming industries, leading to more efficient, faster, and cost-effective production methods.

While acknowledging Ethiopia’s historic contributions to civilization in areas such as agriculture, architecture, science, and social systems, the minister stressed the need to modernize production systems to keep pace with global advancements. He reiterated the government’s commitment to making Ethiopia a model of prosperity in Africa by adopting modern technology and increasing domestic production.

The Ethiopian Tamer initiative aims to address key challenges facing the manufacturing sector, including market access, raw materials, reliable energy sources, and skilled labor. The initiative is working to improve the overall business environment through economic reforms, support for the manufacturing sector, streamlining government services, and efforts to enhance competitiveness.

The 2025 Ethiopian Tamer Expo, scheduled to run for seven days starting on May 7, 2025, is expected to attract a diverse array of businesses and generate substantial commercial activity. Minister Melaku called on all stakeholders to contribute to the success of the Expo, highlighting its potential to drive growth and innovation within Ethiopia’s manufacturing sector.

Advancing local pharmaceutical and medical equipment production

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Ethiopia is making notable strides in expanding its domestic production of pharmaceuticals and medical equipment, according to Dr. Abdulkadir Gelgelo, Director General of the Pharmaceutical Supply Service of Ethiopia (EPSS).

Speaking at the 4th International Pharmaceutical Suppliers Conference in Addis Ababa, Dr. Gelgelo highlighted the conducive environment fostered to support this growth within Ethiopia. The conference, themed “Building Strong Local and International Alliances for a Common Vision,” convened international pharmaceutical suppliers, industry representatives, and experts to discuss creating a transparent and efficient pharmaceutical supply chain.

Dr. Abdulkadir emphasized the tangible progress made since the Third International Drug Supply Conference, citing significant achievements in domestic production. “Ethiopia has now commenced production of medical gloves and syringes,” he announced.

He further highlighted the local assembly of ultrasound machines as a significant milestone in the production of domestic medical devices. “This success demonstrates the growing potential of Ethiopia’s medical technology sector,” Dr. Abdulkadir added.

Daniel Waktole, President of the Ethiopian Pharmaceutical and Medical Supplies Manufacturers Association (EPMSMA), echoed Dr. Abdulkadir’s assessment, emphasizing the positive impact of the government’s attention to the medical sector and recent policy and operational reforms. He underscored the favorable conditions for pharmaceutical manufacturing in Ethiopia, as well as the critical infrastructure provided by the Kilinto Industrial Park. Daniel also shared his vision of positioning Ethiopia as a hub for pharmaceutical suppliers in Africa.

Dr. Abdulkadir stressed the need to create additional investment opportunities to address the country’s current medicine supply needs. He reaffirmed EPSS’s commitment to forging strong partnerships, both domestically and internationally, emphasizing that the conference itself serves as a platform to facilitate such collaborations.

The conference, which drew participation from over 100 international pharmaceutical suppliers both in person and online, reflects Ethiopia’s dedication to strengthening its healthcare sector through local production and strategic partnerships.