Addis Ababa( Ethiopia Today) June 20, 2023: The UK government is set to launch its new Developing Countries Trading Scheme in Addis Ababa in a bid to boost Ethiopia’s struggling economy by reducing export costs and facilitating trade with the UK market.
According to The Reporter-Ethiopia, this move comes as a response to the suspension of Ethiopia’s participation in the US African Growth Opportunity Act (AGOA) due to human rights violations allegations during the Tigray War in January 2022.
The AGOA suspension had a significant impact on Ethiopia’s industrial exports, resulting in job losses and factory closures. However, the UK’s new scheme, along with China’s zero-free treatment of Ethiopian goods, demonstrates international support for Ethiopia’s economic recovery.
Under the Developing Countries Trading Scheme, Ethiopia will enjoy duty-free exports to the UK, except for arms. This initiative is expected to foster trade between the two countries, stimulate economic growth, and aid in post-war recovery efforts.
Moreover, alongside launching the new scheme, the UK is set to endorse Ethiopia’s accession to the World Trade Organization (WTO) on June 20th, 2023.
The launch event, scheduled at the Bole Lemi Industrial Park, will be attended by representatives from the UK Embassy, the Government of Ethiopia, and local businesses.