By Benadeta Mwaura - Reporter
Ethiopia , August 21, 2026 - Ethiopia has signed a bilateral trade agreement with the United Kingdom, marking another step in the country’s long-running efforts to join the World Trade Organization (WTO) and deepen its integration into the global economy.
The agreement was signed in Addis Ababa by Ethiopia’s Minister of Trade and Regional Integration and chief WTO negotiator, Dr Kassahun Gofe, and UK Ambassador to Ethiopia Darren Welch. The deal covers bilateral market access negotiations conducted under Ethiopia’s WTO accession framework.
For Ethiopia, the agreement is significant because WTO membership would give its businesses a more predictable framework for accessing international markets while strengthening the country’s participation in global trade.
The agreement also comes as Ethiopia pursues wider economic reforms aimed at attracting investment, expanding exports and increasing its participation in international commerce.
Speaking during the signing ceremony, Dr Gofe said Ethiopia had reached the agreement while protecting the country’s national interests and policy space. The UK said the deal would strengthen its longstanding economic and diplomatic ties with Ethiopia while reaffirming its support for the country’s WTO accession and economic reforms.
The UK becomes the 10th member state to officially sign a bilateral agreement with Ethiopia under the WTO accession process, while negotiations have now been concluded with 11 member countries. Ethiopia has previously signed similar agreements with China, Russia, Argentina, Türkiye, Brazil, Japan, India, New Zealand and Thailand.
The growing list of agreements highlights the scale of work required before Ethiopia can complete its WTO accession process.
For businesses, the potential benefits extend beyond trade with individual countries. Greater integration into the multilateral trading system could help Ethiopian exporters access wider markets, encourage foreign investment and create opportunities for domestic companies to participate more deeply in global supply chains.
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But increased market access also comes with pressure. Ethiopian businesses will increasingly have to compete with foreign companies, making productivity, quality, infrastructure and access to finance critical to whether local firms can take advantage of new opportunities.
The government's emphasis on protecting its policy space therefore reflects one of the central challenges of economic liberalisation: opening markets while retaining enough flexibility to support domestic industries and national development priorities.
The UK agreement suggests Ethiopia is continuing to move in that direction.
With bilateral agreements now covering a growing number of major trading partners, the country is positioning WTO accession not simply as a diplomatic milestone but as part of a broader strategy to reshape its place in the global economy.
The next challenge will be turning those agreements into increased exports, investment and jobs for Ethiopian businesses and workers.