The Ethiopian parliament has ratified the Special Status Agreement (SSA), a document that was signed by Ethiopia and Kenya back in November 2012. It was only on April 8, 2014 that the Ethiopian parliament ratified the agreement while it’s Kenyan counterpart has ratified the agreement earlier this year.
The bill was given a unanimously approval and did not face any question or comments from its members.
The draft agreemenmt only reached the parliament in March when high-level businesspeople from Kenya made a visit to Ethiopia led by their President.
The agreement will allow the free movement of transit cargo, commercial vehicles, and axle weights between the two nations. One-stop border posts will be established and that will facilitate the transport of goods and services across the border of the two nations.
The bill also dictates that reciprocal trading facilities should be established. And this will ease the custom process.
Joint Private Investment Council (JPIC) will also be established by virtue of the bill. In addition to this, the bill includes a double taxation avoidance clause.
Ahmed Abagissa, deputy chairperson of the committee, told members of the parliament “Ethiopia seeks to benefit from such sectors as trade, infrastructure, and energy”. He further explained, “The agreement will help Ethiopian investors gain access to trade, investment and tourism in Kenya”.
Michael Baitho, head of the Membership & Marketing at the Kenya National Chamber of Commerce & Industry, said that “My hope is that Ethiopia will open up its markets to Kenyan businesses in reciprocation of Ethiopian business in Nairobi”. She added “Kenyan investors expect the deal will give them preferential market access in Ethiopia.”
Neverthelss, this is not going to be completely true when the Ethiopian Parliament has stressed that Ethiopia will not change bilateral trade and investment policies.
The Kenyan Ambassador to Ethiopia, Catherine Muwangi, has said that the bill is not meant to change the laws of the countries. She further noted that “The agreement will enable Kenyan businesses access the Ethiopian market besides boosting trade volumes between the two states,”
Source: Fortune
