Trading Partner Portal: Ethiopia
Ethiopia has a population of approximately 99.39 million and is the second most populous country in Africa and the most populous landlocked country in the world. In 2015, Ethiopia’s GDP was $61.5 billion.
Two-way trade between the United States and Ethiopia was approximately $1.5 billion in 2016. The United States exported over $827 million to Ethiopia, making it the 82nd largest export destination for the US. Exports consisted of $463 million in transportation equipment, $135 million in agricultural products, and $93 million in special classification provisions. Imports from Ethiopia were $236 million, with the top categories being agricultural products, apparel manufacturing products, and re-imports.
In 2016, California was one of the top ten state exporters to Ethiopia with approximately $22 million. Exports from California to Ethiopia have more than doubled from 2010 to 2016. Computer and electronic products were credited with 30.9 percent of the total, making up $6.9 million of exports. Transportation equipment held 21.5 percent with roughly $4.8 million. Electrical equipment held 13.2 percent with $2.9 million. (US Department of Commerce)
Investment Guide to Ethiopia 2014
Ethiopian Investment Commission
Trade in Goods with Ethiopia Data – U.S. Census
Ethiopia profile – BBC News
African Growth & Opportunity Act (AGOA)
The African Growth and Opportunity Act (AGOA), extended to 2025, initially was enacted in 2000, eliminating duties on imports from African nations into the United States if those nations made significant efforts to open their economies.
Since its inception, AGOA has helped increase U.S. two-way trade with sub-Saharan Africa. In 2015, U.S. exports with the AGOA nations totaled $17.5 billion, nearly triple the amount in 2002.
In 2015, Congress approved legislation to extend AGOA until 2025, granting the longest extension in its history.
Following its extension, President Obama remarked, “Now that it’s been renewed, AGOA will be central to our efforts to boost the trade and investment that supports hundreds of thousands of jobs both in Africa and the United States, creating opportunities for all of us. And I’m especially pleased that AGOA will continue to encourage good governance and labor and human rights.”
The signing of the Cooperation Agreement between the United States and the East African Community (EAC) – a regional bloc comprised of Kenya, Uganda, Tanzania, Rwanda and Burundi – is a major relationship milestone.
The agreement centers on building trade capacity in the EAC nations on three issues of importance to the private sector:
- Trade Facilitation
- Sanitary and Phytosanitary (SPS) Measures
- Technical Barriers to Trade (TBT)
The agreement shows that the United States and EAC nations are on the same page in terms of the path forward to building local economic growth and further encouraging foreign direct investment in the region. The work tackled after the signing of this agreement will benefit all businesses in the EAC – both local and foreign.
U.S. Chamber of Commerce, February 26, 2015
U.S. Strategy Toward Sub-Saharan Africa
In June 2012, Obama announced the new U.S. Strategy toward Sub-Saharan Africa with four main objectives:
(1.) strengthen democratic institutions
(2.) spur economic growth, trade and investment
(3) advance peace and security
(4) promote opportunity and development
This strategy emphasizes U.S. support for sustainable economic growth and prosperity in Africa.
Power Africa Initiative
Currently, over two-thirds of the population of 800 million people in sub-Saharan Africa has no access to power or electricity. The Power Africa Initiative was launched in June 2013 to double access to electricity in sub-Saharan Africa and provide more than 10,000 megawatts of electricity generation capacity that is cleaner and more efficient.
The U.S. government has committed to providing over $7 billion in aid and loan guarantees over a five-year period. Twelve U.S. government agencies including the U.S. Export-Import Bank (EX-IM), the Overseas Private Investment Corporation (OPIC) and the U.S. Trade and Development Agency (USTDA) are combining efforts to provide funding and technical assistance to the initiative.