How to Comply With U.S.-Ethiopia Trade Agreements

The United States has had a tumultuous relationship with Ethiopia over the past several decades. Up until World War II, relations between the two countries were friendly and mutually beneficial. However, this changed when Ethiopia developed close ties to the Soviet Union during the Cold War. Recently, U.S.-Ethiopia relations have begun to warm and trade between the two nations has begun once again. Your business can take advantage of this by learning how to comply with U.S.-Ethiopia trade agreements.

Instructions

Difficulty: Moderately Challenging

Comply With U.S.-Ethiopia Trade Agreements

1. Become a humanitarian. U.S.-Ethiopia trade agreements allow for virtually unlimited humanitarian aid to be imported into the country.
2. Be aware of Ethiopian investment restrictions. Ethiopian policy prohibits foreign companies or individuals from investing in the banking, aviation and insurance industries there.
3. Know that Ethiopia still imposes some hefty tariffs on imports. Tariffs as high as 40 percent on some goods are not uncommon there.
4. Refrain from importing goods that can not be sold in Ethiopia. Ethiopia does not allow the sale of health care products or hygiene products produced by foreign companies. You may be able to import such things into Ethiopia, but it would be a moot point as no store would be permitted to sell it.
5. Expect lengthy and cumbersome trips through customs in Ethiopia. Ethiopia is notorious for its excessive wait times for products to make it through its customs facilities. Further, Ethiopian law maintains that only Ethiopian nationals are permitted to inspect imports and certify them for entry into the country.

Tips & Warnings

• Some Ethiopian markets welcome foreign investors. Telecommunications and defense are two of these markets. Hydroelectric power is another. These markets have been newly opened to foreign investors quite recently.
• Beware of Eritrean insurgents. Ethiopia is currently engaged in a tense conflict with the neighboring country of Eritrea. Many shipments of humanitarian aid and goods to Ethiopia are intercepted by hostile Eritrean forces. In some cases, foreign workers who bring in this aid have been accosted and even killed by Eritrean forces.
• Ethiopia does not comply with international standards regarding the protection of intellectual property rights. It also does not offer protection to holders of foreign copyrights or patents. If you are doing business in Ethiopia, particularly if you work with valuable intellectual property, you should be aware of this potentially detrimental situation. Currently, Ethiopia only offers copyright and patent protection for goods and services produced in Ethiopia.