The accession of Ethiopia to the WTO in the context of its policy on "developmental state"

Abstract

Unlike many other international instruments, accession to the WTO does not simply require the commitment of the government to sign and ratify the multilateral agreements. A country needs to make considerable legislative and administrative changes to comply with the standards of the WTO and its members to finalize the negotiation for accession. For governments with impure free market economy policy the challenges amplify. The government of Ethiopia publicly pronounces its adherence to the ideology of the developmental state. On the other hand the nucleus of WTO principles is progressive trade liberalization. Therefore, this dissertation tries to provide some reflection on the paradox created as a result of the divergence in priority between WTO principles and developmental state in the context of Ethiopian desire to join the organization. The research is an interdisciplinary work. The issues that will be discussed are not purely legal in their nature. They have legal, political and economic dimensions. And the main focus of the paper is on trade in services and foreign investment negotiation aspect of the accession. Furthermore the objective of the dissertation is to give some insight for policy makers about the challenges and opportunities that „Developmental State‟ ideology will pose in the accession process of Ethiopia to the WTO. The research is divided into five chapters. Chapter one gives introductory remarks about the concept of the developmental state and accession to the WTO. The limitations of the WTO accession process and an overview of the features of developmental state in the world and particularly in Ethiopia are also briefly discussed in the chapter. The origin and concept of developmental state in the world, in Africa and Ethiopia is discussed in some detail under chapter two. The chapter also tries to show the impact of developmental state policies in the laws of the country that are going to be deliberated in the process of accession. Chapter three is about accession to the WTO. In this chapter the requirements, benefits, challenges and procedures of accession are dealt in depth. The writer debates and tries to show the fact that the system is slowly shifting from rule based negotiation to power and precedent based negotiation. By analyzing the laws of Ethiopia that are inspired by the principles of developmental state against the legal and precedent requirements to join the WTO, I tried to correlate the findings of chapter two and three in chapter four. Specific strategies and advises on how to move the negotiation forward on certain areas are also outlined in this chapter. Finally, conclusion and my summarized recommendations are placed under chapter five.