Ethiopia Signals Review of Fuel-Car Import Ban Amid WTO Accession Push

Ethiopia’s government is preparing to reconsider its ban on fuel-powered vehicle imports as part of ongoing efforts to join the World Trade Organization (WTO).

Trade Minister Kassahun Gofe, who leads the country’s accession negotiations, indicated the potential policy shift during the seventh Working Party Meeting on Ethiopia’s WTO bid earlier this week. He told members that the government plans to align its trade policies with WTO rules, which discourage outright import bans.

The restriction on fuel-powered cars was introduced in early 2024 to support Ethiopia’s transition toward electric vehicles. However, WTO accession requirements may now prompt authorities to replace the ban with tariff-based controls instead.

“We have already lifted the ban on used clothing imports and replaced it with customs duties in line with WTO standards,” Kassahun said, adding that a similar approach is being considered for fuel-powered automobiles and three-wheelers.

According to Tages Mulugeta, an international trade negotiator at the Ministry of Trade, WTO rules require member states to allow the free flow of goods. He noted that while restrictions may be lifted, this does not necessarily mean imports will return to pre-2024 levels.

“Countries seeking WTO accession cannot maintain import prohibitions,” Tages said. “The next step is to remove these restrictions while managing trade through appropriate mechanisms.”

Ethiopia formally applied to join the WTO in 2003 and has since been working to reform its trade regime to meet membership requirements. The possible rollback of the vehicle import ban marks a significant step in aligning national policy with global trade standards.