Trade Agreement Between Ethiopia And Djibouti

The Ethiopian side commended the Government of Djibouti for its measures to improve relations with Eritrea. Djibouti appreciated the courageous steps taken by Prime Minister Dr Abiy to promote calm in the region. Peace initiatives have provided a solid starting point for encouraging young people to participate in the current wind of hope, change and trust. The agreements reached have clearly demonstrated the deep-rooted commitment of both governments to promoting the prosperity of their peoples. These include strengthening cooperation in criminal matters, formulating plans to ensure regular, safe and orderly migration on the basis of the Marrakesh Agreement and the development of a new comprehensive agreement on labour issues, as well as improving cooperation on peace and security bilaterally and within the framework of IGAD, of the African Union and the United Nations. Djibouti joined GATT in 1994 and became a member of the WTO in 1996. The country is a member of the Common Market for Eastern and Southern Africa (COMESA), the League of Arab States (LAS), the Intergovernmental Authority on Development (IGAD) and the Cotonou Agreement.Djibouti benefits from the expanded integrated framework, aid for trade and other trade initiatives. Djibouti accounts for about 95 percent of total inbound trade for Ethiopia, Africa`s second most populous nation and an economic power in East Africa. The Ethiopian News Agency said the agreement reached over the weekend during a visit by Ethiopian Prime Minister Abiy Ahmed to Djibouti included the joint development of facilities.

In return, Djibouti would have the opportunity to participate in Ethiopian state-owned enterprises. These issues remain the key to Djibouti`s success and prosperity, which depends on trade, logistics and services — all of which depend on a stable environment — to create growth and jobs. Indeed, the country`s bilateral relations can also be viewed through this prism. This is what is most evident with regard to its relations with Ethiopia. Djibouti has taken advantage of its friendly relations with its western neighbour and the export potential that its ports offer to landlocked Ethiopia to advance its own development agenda. Djibouti retained neutrality during the Ethiopian-Eritrean conflict of the late 1990s and the country played an active role in promoting increased cooperation in the region. . . .