Minister Väyrynen: Ethiopia needs to open up its economy

Press release 432/2008
20 November, 2008

After discussions with the leaders of Ethiopia during his visit to the country, Minister for Foreign Trade and Development Paavo Väyrynen suggested that the country should open up its economy and develop the market economy mechanisms.

“The EU market benefits are already available to Ethiopia through the so-called Everything but Arms system, granted to the Least Developed Countries. By joining the EPA Agreement, Ethiopia would gain similar benefits also in the regional cooperation of Africa. In addition, Ethiopia would also be entitled to Aid for Trade. Furthermore, Ethiopia should aim at joining the WTO,” Väyrynen pointed out.

Väyrynen said that Finland is also prepared to further develop its cooperation with Ethiopia, especially for the development of the private sector.

“We are considering the possibility of expanding the present water sector cooperation into a more comprehensive programme covering several regions that, in addition to water, could also include use of land, the environment, and sustainable exploitation of natural resources,” Väyrynen pointed out when he met Prime Minister Meles Zenawi. The possible expanded programme would cover the regions of Amhara and Benishagul-Gumuz. Väyrynen also discussed the regional conflicts of Africa with the Prime Minister.

In a meeting with the Deputy Chairperson of the African Union Erastus Mwencha, another question that emerged in addition to the regional conflicts was the development cooperation between the EU and Africa. Väyrynen emphasised so-called convergence approach in which the industrialised countries would increase their investments in infrastructure and the development of the private sector, while the emerging developing countries would enhance their cooperation within the social and health sectors as well. In addition, according to Väyrynen, the South-South Cooperation between the developing countries and emerging developing countries should be developed, for instance, by removing trade barriers. Prime Minister Mwencha expressed his support for the Minister’s views.

During his two-day visit (18-19 November) to Ethiopia, Väyrynen met, for instance, the Prime Minister, Minister of Finance & Economic Development and the Minister of Water Resources of Ethiopia, and the Deputy Chairperson of the African Union. Väyrynen was accompanied by a Finnish business delegation with representatives from, for instance, rural, forest and water sectors, ICT technology and meteorology. The Minister will continue his tour in Africa to Kenya on 19 November.

Further information: Advisor to the Minister Päivi Nevala, tel. +358 40 753 4375, and Head of Unit Helena Airaksinen, tel. +358 40 829 3412