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 $1,310 in 2024. Total EU imports from Ethiopia amounted to about €839 million in 2024 (after €682 million a year earlier); preferential EBA imports reached €364 million (after less than €300 million in 2023).

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.

Ethiopia flag

At a glance: EU preferential imports from EBA beneficiary countries (2024, € million)

group

132.1M (2024)

Population

account_balance
Federal Parliamentary Republic

Government

trending_up

7.3% (2024)

GDP Growth

equalizer

21.0% (2024)

Inflation

money

$ 126.8B (2022)

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, followed by India and Saudi Arabia. The EU is the most important export market, absorbing 20% of Ethiopia's total exports in 2024, followed by Singapore (11%). China is by far the most important supplier (35% of Ethiopia's total imports), followed by India and Saudi Arabia.

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 €1.8 billion in 2024. With a share of 9%, the EU is Ethiopia's fourth most important trading partner, but the country's most important export market.

Preference Utilisation

44% of Ethiopia's exports to the EU made use of the EBA in 2024 (most of the rest enters the EU duty free under the normal tariff regime). Ethiopia's preference utilisation rate rebounded to 97% (after 89% a year before).

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 (2024, € million)

Imports from Ethiopia over time (€ million)

ETHIOPIA AND THE EU GSP

Economic Impact

45%

Share EU imports from Ethiopia eligible for EBA preferences in 2024.

97%

Ethiopia's preference utilisation rate in 2024.

98%

Share of zero-duty imports from Ethiopia in 2024. Most imports are duty-free under normal EU tariffs.

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 2024 were among the highest ever recorded. Ethiopia’s preference utilisation rate has also been high in recent years (97% in 2024). The most important product group, plants (mostly cut flowers), made full use of the EBA preferences, and the second most important product group, apparel, had a utilisation rate of 98%. A slightly lower rate applies to textiles.

The largest product sections under EBA (€ million, 2024)

The EU's preferential imports from Ethiopia mostly fall into two groups: agricultural products - led by plants (mostly cut flowers) and followed by fruit and vegetables as well as food products - and textiles and garments. Preference utilisation rates are high throughout, in particular those for textiles doubled from than 40% in 2023 to more than 80% in 2024. Preferential imports of textiles garments increased by more than 70% from 2022 to 2024.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, Ethiopia is not required to ratify any conventions to be able to benefit from preferential access to the EU market. Nonetheless, the country has ratified all 27 international conventions listed in the GSP Regulation on human and labour rights, environmental protection and good governance.

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.

Contact points