The three Ethiopia’s preferential agreements are signed with neighboring countries such as Sudan, South Sudan and Kenya. These preferential agreements enable the signatory countries to diversify and expand their trade exchanges by eliminating both tariff and non-tariff barriers of trade in goods. The agreement signed with Sudan and South Sudan have provisions that helps to eliminate tariff on the importation of goods from one to other parties where as the special status agreement signed with Kenya states that the two countries shall reduce tariffs based on the good offers that the parties agree on. Thus the liberalization of trades in goods with Kenya is based on the offers which may be exchanged between the two countries while the other two preferential Trade agreements do not require submitting of offers to eliminate tariff on trade in goods.
Concerning the implementation of these agreements, Ethio-Sudan Preferential Trade agreement is being on effect since its ratification in 2003. The two countries have also been negotiating sensitive list products and it is planned to finalize this negotiation soon.
The other two Preferential Trade Agreements have not yet been fully implemented because of various reasons. Ethio-South Sudan Preferential agreement is not ratified in Ethiopia side and thereby it is impossible to the agreement to come into effective. Likewise, the reason for ineffective Ethio-Kenya Special Status Agreement is that both countries have not yet exchange offers to reduce tariffs on goods imported from one to other party.
