Abstract:
Regionalism has become a preferable way for nations to promote their political and
economic interest and even recognized by United Nations (here in after UN) and similar
arrangements followed in its functioning. African countries as any other have regional
economic arrangement and now AFCFTA. However, Ethiopia engagement in regional
economic community (here in after REC) is very low and the import export balance is at
deficit in general and intra Africa trade in particular. With this trade balance Ethiopia
ratified the AFCFTA. The thesis entirely focuses on relating poor participation of Ethiopia in
the REC and possible expectations due to AFCFTA where better economies will have access
to Ethiopian market while Ethiopia had several production and infrastructure issues to be
competitive. The thesis tries to address pros and cons of weak participation in REC towards
Ethiopia, possible gains and losses from the AFCFTA and domestic realities towards free
trade area (here in after FTA) and the AFCFTA in particular are addressed. The thesis
looked in to Poor participation in COMESA and possible impact towards AFCFTA with
building block status. Furthermore, the approach of the two GTP and performance is looked.
In doing so the research used doctrinal approach that highly relies on literature. It also used
qualitative techniques by interviewing key stakeholders in the trade sector. Primary and
secondary sources are used. The thesis discussed existing trade realities of Ethiopia in terms
of setting policies, laws and institutions to facilitate the market for 55 trading partners. In
doing so the experience of international regime and other regions along with lessons are
discussed. In general, the overall readiness of the country starting from policy attentions up
until related trade facilitation concerns and infrastructure issues are discussed. Based on the
findings the research recommends that Ethiopia to have a clear policy towards foreign trade
and AFCFTA along with that an institution that facilitates the transaction under AFCFTA is
important. To protect the domestic and the revenue interest government need to identify
exceptions and technical provisions under AFCFTA. And also need to identify natural
production advantage of Ethiopia and focus on supporting such sectors. Furthermore,
government to work in various infrastructure challenges to facilitate trade such like road,
port development, electricity, banking, insurance, and telecom and related. For all this the
government needs to support the domestic industries and traders in terms of finance and
techniques assistance
