Essay on The United States Trade Organization

1506 Words Aug 20th, 2015 7 Pages
To add, The Birr (Ethiopia’s currency), is unreliable in banks and can cause delays while trying to exchange in business transactions and because of Ethiopia’s absence in the World Trade Organization (WTO), there is no way to regulate the coin, the value, and its exchanging mechanisms. In 2012, the US FDI in Ethiopian stock was $11M, and this reflected a 22.2% increase from 2011. Despite these promising figures, there are some investment barriers listed by the United States Trade Representative (USTR). As far as investments in the telecommunication services industry, as well as defense industry; any investment is prohibited unless it is being done within a partnership with the Ethiopian government. The banking, insurance, and micro-credit industries are restricted to domestic investors only. Only Ethiopian nationals may invest in broadcasting, domestic air transport services (aircrafts with a seating capacity over 20 people), forwarding and shipping agency services industries. Foreign investors are also barred from small retail and wholesale enterprise in industries such as, printing, restaurants, and beauty shops. Along with these restrictions and limitations, state-owned enterprises continue to be privatized. All in all, these barriers influenced by the political scene in Ethiopia, along with a foreign exchange managed by a Central Bank of a strict regime that bends for governmental benefits, are all reasons why an investor might see set-back from the political aspects…

Related Documents