Ethiopia To Reconsider Auto Import Ban As Part Of WTO Accession Efforts | The Reporter Ethiopia

The federal government may soon revisit its restriction on fuel-powered automobile imports as part of Ethiopia’s long-standing efforts to gain accession to the World Trade Organization (WTO).

Trade Minister Kassahun Gofe (PhD), who leads Ethiopia’s negotiations with the WTO, mentioned vehicle import reconsiderations while addressing the seventh Working Party Meeting on Ethiopia’s accession earlier this week.

“We have lifted the import ban on used clothing and replaced it with an applicable customs duty in line with WTO requirements. We intend to take a similar approach regarding the import restrictions on fuel-powered automobiles and three-wheelers prior to accession,” Kassahun members of the working party, which was established when Ethiopia first formally requested accession in 2003.

The federal government restricted the import of fuel-powered vehicles in early 2024 as part of its pursuit for an energy shift to EVs. However, accession requirements could soon see a return to non-EV imports.

Tages Mulugeta, international trade negotiator at the Trade Ministry, explained that while the WTO’s rules would compel Ethiopia to lift import restrictions, this does not mean that import trends will revert to their pre-2024 norms.

“Under the WTO requirements, countries cannot restrict imports. If we want WTO accession, we cannot prohibit imports. Free flow of commodities is a basic requirement under WTO terms. The Minister wanted to mention that in the next steps, Ethiopia will lift the restrictions on vehicles,” Tages told The Reporter.

“However, that does not mean we will completely allow the import of fuel cars to Ethiopia. We will introduce other measures that can discourage the import of fuel cars. The Ministry of Finance and other stakeholders will discuss and decide on this in the future. Environmental concerns and other measures like taxation might be proposed to discourage the import of fuel cars. Therefore, the restriction on import of fuel cars might be lifted in order as part of our negotiations to join WTO, but that does not necessarily mean import of fuel cars will technically be allowed in fully. It does not mean we return to the previous scenario,” added Tages.

Ethiopia’s 23 year bid to join the WTO has made headway over the past year, and Kassahun says efforts are at “a critical juncture.”

Ethiopia has intensifed efforts to respond to the specific concerns raised by members during the last working party meeting in September 2025, and less than 10 bilateral agreements remain outstanding, according to the Minister.

Among the points he emphasized in his address to the working party is the consolidation of state-owned enterprises under Ethiopian Investment Holdings (EIH) to “enforce rigorous financial discipline, transparency, and international accounting standards.”

“Through the introduction of independent professional boards and clear performance-based metrics, the government is actively separating political objectives from corporate governance, ensuring that SOEs now operate with a private-sector mindset that prioritizes efficiency, profitability and competitiveness while systematically opening formerly closed sectors to private investment,” reads a copy of his address.

The document reveals that information on the total assets under SOEs is still under review.

It also outlines other reforms, such as the liberalization of import, export, wholesale, and retail trades to foreign participation, expansion of foreign currency accounts and guarantees on retention, and a customs valuation rework as part of efforts to realize accession.

“As we approach the final stages of this accession process, the importance of our collective momentum cannot be overstated. Through the constructive engagement and support of Members in advancing Ethiopia as a credible candidate for the WTO membership, we have made significant strides in aligning our policies and legislative framework with WTO rules. This collective exercise has strengthened our institutional arrangements, and I wish to reaffirm that Ethiopia stands prepared indeed ready, even today, to assume the obligations of the membership,” stated Kassahun.