Ethiopia
As a least-developed country (LDC), Ethiopia is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies Ethiopia as a low-income economy with a per-capita income of $1,272 in 2023. Total EU imports from Ethiopia amounted to about €682 million in 2023; preferential EBA imports reached €298 million.
What is the EBA?
The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)
128.7M (2023)
Population
Federal Parliamentary Republic
Government
6.5% (2023)
GDP Growth
30.2% (2023)
Inflation
$ 163.7B (2023)
GDP
Facts about the Ethiopian economy
Export Products
Ethiopia's most important export products are coffee and spices, sesame seeds, flowers, apparel, and clothing, as well as vegetables and hides and skins. The large dependency on the export of agricultural products leaves the country vulnerable to fluctuations on international commodity markets.
Trading Partners
China is Ethiopia’s most important trading partner, with the EU ranking second. The UAE is the most important export market, absorbing 18% of Ethiopia's total exports in 2023 closely followed by the EU (17%). China is by far the most important supplier (33% of Ethiopia's total imports), followed by the US and the EU.
Fast economic growth
Ethiopia has experienced substantial economic growth, in fact the fastest among countries in Sub-Saharan Africa, however starting from a very low level. Economic growth in Ethiopia is mainly driven by growth in the construction and services sectors.
Trade with EU
Total trade with Ethiopia summed up to € 2.2 billion in 2023. With a share of 13.1%, the EU is Ethiopia's second most important trading partner.
Preference Utilisation
45% of Ethiopia's exports to the EU make use of the EBA (most of the rest enters the EU duty free under the normal tariff regime). Ethiopia's preference utilisation rate remained high in 2023, at 89%, but declined slowly in recent years (from 96% in 2021).
Strategic Location
Ethiopia is strategically well located on the Horn of Africa. Though landlocked, the country uses the nearby port of Djibouti for over 90% of its foreign trade ensuring a good connection to Europe, but also Middle Eastern countries.
Ethiopia and the EU
Imports from Ethiopia by product section (2023, € million)
Imports from Ethiopia over time (€ million)
ETHIOPIA AND THE EU GSP
Economic Impact
50%
Share EU imports from Ethiopia eligible for preferential market access under the EBA arrangement in 2023.
89%
Ethiopia's preference utilisation rate in 2023.
92%
Share of zero-duty imports from Ethiopia.
Preference utilisation and export diversification
EU imports from Ethiopia (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
The EU's EBA-eligible imports from Ethiopia in 2022 and 2023 were among the highest ever recorded. Ethiopia’s preference utilisation rate was high in recent years although with a decreasing trend: it dropped from 96% in 2021 to 89% in 2023. The most important product group, plants (mostly cut flowers), made almost full use of the EBA preferences, and the second most important product group, apparel, had a utilisation rate of 89%. Lower rates apply to textiles and footwear.
The largest product sections under EBA (€ million, 2023)
Ethiopia has high preference utilisation rates for its most popular export products under the EBA scheme like live trees and plants, coffee, tea and spices as well as textile articles. Even though a large share of one of Ethiopia’s most famous products- coffee- is being imported to the EU under MFN rates. Preferences are underutilised in the area of articles of stone, plaster, etc (S13), where less than 40% of the imports make use of EBA preferences.
SUSTAINABLE DEVELOPMENT
Ethiopia has ratified all 7 core conventions on human rights as well as all 8 fundamental ILO conventions on labour rights. Although Ethiopia, as an EBA beneficiary, is not obligated to ratify any of the international conventions, the country has ratified all 27 conventions covered under GSP+.
Core international conventions on human rights and labour standards
Ratified
- Convention on the Prevention and Punishment of the Crime of Genocide (1948)
- International Convention on the Elimination of All Forms of Racial Discrimination (1969)
- International Covenant on Civil and Political Rights (1976)
- International Covenant on Economic Social and Cultural Rights (1976)
- Convention on the Elimination of All Forms of Discrimination Against Women (1981)
- Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
- Convention on the Rights of the Child (1990)
- Convention concerning Forced or Compulsory Labour, No 29 (1930)
- Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
- Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
- Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
- Convention concerning the Abolition of Forced Labour, No 105 (1957)
- Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
- Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
- Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)
Additional Conventions
- Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
- Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
- Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
- Convention on Biological Diversity (1992)
- The United Nations Framework Convention on Climate Change (1992)
- Cartagena Protocol on Biosafety (2000)
- Stockholm Convention on persistent Organic Pollutants (2001)
- Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
- United Nations Single Convention on Narcotic Drugs (1961)
- United Nations Convention on Psychotropic Substances (1971)
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
- United Nations Convention against Corruption (2004)
EU-Ethiopia Bilateral Development Cooperation
DG INTPA
Access all info about EU-Ethiopia relations on the International Partnerships website.