Economy

Ethiopia Nears WTO Membership Amid High Trade Costs

AI SUMMARY

Ethiopia is nearing the final stages of joining the WTO, but high logistics and transport costs could undermine the expected economic benefits.

Ethiopia is nearing the final phase of its bid to join the World Trade Organisation.
The WTO warned that high trade costs, geography, and underdeveloped infrastructure could blunt membership benefits.
Ethiopia accounted for 0.03 percent of global merchandise exports in 2025, with 7.59 billion dollars in exports and 23 billion dollars in imports.
About 80 percent of Ethiopia's import and export cargo passes through the Port of Djibouti.
Moving a container from Shanghai to Modjo dry port cost 3,663 dollars through Djibouti compared to 5,032 dollars through Mombasa based on 2021 quotes.
Ethiopia's spending for seaport access through Djibouti could reach 1.5 billion dollars annually.
Ethiopian transit cargo generates about 400 million dollars annually in port fees for Djibouti.
Multilateral negotiations have reached the draft Working Party Report stage with bilateral talks concluded with 11 of 17 members.
Agriculture comprises about three-quarters of Ethiopia's exports, led by coffee at 48 percent and fresh-cut roses at 10 percent.
The WTO estimates full implementation of its Trade Facilitation Agreement can cut agricultural trade costs and lift developing nation exports.