Ethiopian Review

US Trade Representative Ron Kirk will conclude his visit this afternoon after talks with Prime Minister Meles Zenawi when he is expected to “be discussing a range of issues.”

Kirk said that his talks with Prime Minister Meles would include issues of privatization of the telecommunication and finance sectors. The non-liberalization of these sectors, Kirk believes is part of the cause for the lower rate of US direct investment in Ethiopia.

“Investors have concerns about infrastructure, telecommunications, communications, and financial services. Reforms in these areas and further privatization should help to draw more foreign direct investment in Ethiopia,” he told The Reporter.

Prior to his arrival in Addis Ababa, Kirk had been attending the African Growth and Opportunity Act (AGOA) Forum in Nairobi with Secretary of State Hillary Clinton.

In Kenya, African textile exporters were calling for an extension to the AGOA, pointing out that its expected expiry in 2015 had caused uncertainty in potential investors.

Ethiopia is among the top twenty sub-Saharan countries that export industrial products into the United States through the AGOA.

“I am here to consult with stakeholders in Ethiopia on how best to advance U.S.-Africa trade relations in the coming years. AGOA has been amended several times by the US Congress to make improvements. It is too early to say what changes may be made in 2015,” he said.

Kirk said Ethiopia was one of the fastest growing countries under the AGOA in that its exports to the U.S. increased 73% from 2007 to 2008, compared to an average of only a 30% increase from other AGOA eligible countries.

Secretary of State Clinton, during her opening speech at the AGOA Forum, pointed out the need for increased trade between Africa and the US, and the contribution that would make to Africa’s economic growth, which she said accounted for two percent of the global trade.

“If sub-Saharan Africa were to increase that share by only one percent, it would generate additional export revenues each year greater than the total amount of annual assistance that Africa currently receives,” Clinton said on Wednesday.

Ron Kirk said yesterday that he was also to hold talks with Prime Minister Meles on Ethiopia’s accession to the World Trade Organization.

“President Obama is working to engage with the nations of the world. He is particularly committed to working with the world’s poorest countries, including African nations. I am here to further explore trade and investment opportunities that can provide economic growth and recovery in Africa and in the U.S. as well,” he said.

- By Namrud Berhane | The Reporter