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Ethiopia, with a
population of over 71 million, provides a steady and growing
domestic market, which is one of the largest in Africa.
The common market provides various services to member
states. These are creating wide, harmonized ad more free trading
area; making industries more competent and productive; creating
conducive environment or agricultural production and food security,
motivating the countries for rational utilization of their natural
resources; establishing more harmonized and favorable monetary and
banking policy as well as promoting appropriate developmental
programs in the countries.
Ethiopia is a
member of the common markets for eastern and Southern Africa (COMESA).
This economic bloc embraces 23 member countries with a total
population of over 300 million offers producers and manufacturers
and enlarged market for their goods. Joining the COMESA Ethiopia
creates free trade area, duty and quota free access to domestic as
well as foreign investors operating in the country to benefit from
the opportunity.
There is a positive trend in trade to alleviate the
existing major constrains of inadequate market information system.
It is an alternative to producers, traders and exporters to address
the seasonal prices fluctuation and expanded trading in COMESA
region and is also and extra as opportunity that needs to be
exploited.
Ethiopia is also
well placed to benefit from “Every thing But Arms” trade opportunity
offered by the European Union. Export products from Ethiopia to the
European Union markets are entitled to duty reductions or exemptions
and freedom form all quota restrictions.
African Growth and opportunity Act ( AGOA) as part of the
Trade and Development Act of 2000 provides beneficiary countries in
Sub-Saharan Africa with the most liberal access to the U.S. Market.
It reinforces African reform effort, provides improved access to the
U.S. credit and technical expertise, and establishes a high-level
dialogue on trade and investment in the form of a U.S. sub-Saharan
Africa trade and economic Forum. It has also shown the power of free
markets to improve the lives of people in both the USA and in
Africa. By reducing barriers to trade, the law has increased export
goods and has crated job opportunities AGOA in the United State
offers privileged access to large markets for a variety of
manufactured goods including ready-made garments.
Further more, a wide range of Ethiopia’s manufactured
products are entitled to preferential access under the generalized
system of preference (GSP) in USA, Canada, Finland, Japan, Norway,
Sweden, as well as most European countries.
Besides, no quantitative restrictions are applicable to
Ethiopian exports on any of the 3,000 plus items currently eligible
for generalized system of preference treatment.
In addition, geographical location of the country along
with its proximity and fair transport cost to the Middle East also
gives a good marketing opportunity.
All the
above-mentioned favorable conditions are additional advantages to
Ethiopia to penetrate into the biggest world market through
exportable products.
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