Ethiopia is set to finally join the World Trade Organization this year, bringing an end to its more than 20-year effort to become a member.
The move is part of the country’s plan to strengthen its economy through deeper global integration, even as the WTO itself faces growing uncertainty.
The expected accession follows major economic reforms in the East African nation, known for exporting coffee and gold. While analysts note that global instability and rising protectionism present challenges, they believe WTO membership could help revive Ethiopia’s economy.
“It’s strategic clarity in an era where no single framework delivers comprehensive development support,” said Endalkachew Sime, a former state minister of planning and development, according to Reuters.
He explained that WTO membership is one part of a three-pronged strategy, alongside deeper engagement with the African Continental Free Trade Area (AfCFTA) and a push to join BRICS, which could provide more affordable development financing with fewer conditions.
Ethiopia’s Trade Minister, Kasahun Gofe, and his ministry did not respond to requests for comment.
At the same time, the WTO is facing one of the most challenging periods in its 30-year history. Last month, U.S. trade chief Jamieson Greer signalled that the United States may seek alternatives to the organisation.
Despite this, WTO membership could be vital for Ethiopia as it works to recover from an economic crisis marked by foreign currency shortages, double-digit inflation, and a sovereign debt default in 2023.
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Pamela Coke-Hamilton, executive director of the International Trade Centre (ITC), said membership would anchor Ethiopia in a rules-based global trading system.
“The first to benefit would be small businesses, which form the backbone of the Ethiopian economy, as they would gain access to new markets and have opportunities to integrate into global value chains,” she said.
Over the past two years, Ethiopia has introduced reforms tied to an International Monetary Fund bailout programme, including currency liberalisation, easing foreign exchange controls, and opening up sectors such as banking.
Trade experts say WTO membership would require binding policies that lock in these reforms and extend them to areas like telecommunications and financial services.
Hannah Ryder of Development Reimagined noted that Ethiopia’s “least developed country” status would help preserve access to favourable trade arrangements with key partners such as the European Union, India, and Brazil.
Endalkachew added that Ethiopia’s textile and apparel sector could gain broader market access under WTO “most favoured nation” rules, potentially attracting Asian manufacturers seeking to diversify supply chains.
This comes after the United States removed Ethiopia from its preferential trade programme with Africa, AGOA, in 2022.
However, industry players warn that WTO membership is not a complete solution. It would require Ethiopia to reduce some protective tariffs, exposing local companies to stronger competition from countries like Bangladesh and Vietnam.
Pankaj Bedi, owner of Kenya’s largest garment-exporting firm, Aryan Ltd, said the country must also improve its competitiveness by lowering energy costs, strengthening logistics, and increasing access to finance.
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Image Credit: SABC
