1. The Compatibility of Trade Policy with Domestic Policy Interventions in Ethiopia Amdissa Teshome Consultant +251 (0) 91 117 7069

2. Elements of trade policy • Liberalisation • Investment Policy/FDI • Policy on Cross Border Trade • Financial Sector Policy • Rural Development Policy • Food Security Strategy/Safety Net • PRSP +251 (0) 91 117 7069

3. Liberalisation • Government withdrawal from production and marketing/trade. • Removal of fertilizer subsidies • Allow the market to determine prices (except petrol/sugar) • Devaluation of the Birr (towards “Flexible” exchange rate) +251 (0) 91 117 7069

4. Investment policy • Priority areas for investment • Horticulture • Floriculture • Agro-processing • Livestock • Textile and garment • Leather and leather products • Where are the staple foods? • Are investors responding? Yes, but critical of exclusion from certain sectors. +251 (0) 91 117 7069

5. Cross border trade • Cross border trade labeled “illegal” • Government crack down has seriously affected the livelihood of those depending on it. +251 (0) 91 117 7069

6. Financial sector • Private banks and public banks work side-by-side • The sector not opened to international competition • Opening up this sector seen as critical to increase FDI +251 (0) 91 117 7069

7. Institutional support to trade and domestic policy • Ethiopian Quality and Standards Authority • Ministry of Agriculture • Investment Agency • Privatisation Agency • Customs Authority • Ethiopian Livestock Marketing Agency • Ethiopian Grade Trade Enterprise +251 (0) 91 117 7069

8. Compatibility • Too much emphasis on enforcing regulations. • Removing fertilizer subsidy incompatible with ensuring food security. • Investment in floriculture, construction and other sectors taking prime land away from the staple food production. • Ban on cross border trade incompatible with ensuring food security. • Giving unfair advantage to party affiliated trading institutions incompatible with free market economy. +251 (0) 91 117 7069

9. Ethiopia: an ancient trading nation …. but +251 (0) 91 117 7069

10. Heritage Foundation’s “Index of Economic Freedom” (average 50%) +251 (0) 91 117 7069

11. Ethiopia & WTO • Applied in 2003 • Memorandum on trade regimes submitted in 2007 • It could take up to 10 years for approval and accession • No public debate on pros and cons of joining the WTO • Informally we feel that we must get our house in order before joining. +251 (0) 91 117 7069