Ethiopia has submitted its initial tariff offers for trade in goods under the African Continental Free Trade Area (AfCFTA) agreement, according to the Ethiopian Ministry of Foreign Affairs' weekly briefing.
The briefing notes that Ethiopia's submission to the AfCFTA Secretariat is a crucial milestone towards implementing the landmark trade deal, which aims to deepen Africa's economic integration.
As one of the earliest signatories and ratifiers of the AfCFTA in 2018, Ethiopia has demonstrated its commitment to realizing the agreement, says the ministry. Its tariff offers fulfill a key requirement under the Protocol on Trade in Goods.
“Ethiopia has put in place the necessary legal and institutional frameworks for the implementation of the Agreement,” the Ministry added.
Most countries have submitted offers through Regional Economic Communities so far. Ethiopia has also put in place necessary legal frameworks for the AfCFTA domestically.
The Africa-wide free trade zone covers over 1.2 billion people and has a combined GDP of more than $3.4 trillion. Studies indicate it could boost intra-African trade by over 50% and lift 30 million people out of poverty by 2035 by reducing barriers.
Ethiopia's initial tariff offers are seen as an important step towards operationalizing the AfCFTA and unleashing its economic potential for the continent.
“It is an important step for the required legal measures as well as to meet the required level of ambition for continental integration,” the Foreign Ministry said.
According to the briefing, submitting tariff offers for goods is a key objective of the AfCFTA's Protocol on Trade in Goods. This protocol is one of six that make up the continental trade deal.
By signing onto the AfCFTA Agreement, member states committed to substantially liberalizing all trade by eliminating tariffs on 97% of product lines. This will be phased in over a 13-year period according to the tariff reduction schedules submitted by each country.
In its briefing, the Ministry also highlighted Ethiopia's significant involvement in negotiations for the AfCFTA Agreement. “As the host country of the African Union headquarters, Ethiopia is committed to concluding discussions on any unfinished protocols or annexes to the trade deal.”
The Ministry also reaffirmed Ethiopia's dedication to ensuring full implementation of the AfCFTA once finalized.
