The Compatibility of Ethiopian Shipping Sector Regime with GATS Obligations
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Date
2021-09
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Addis Ababa,University
Abstract
The role of shipping transport in the development of international trade and the economy is
critical, as evidenced by the binging of international trade. This is because, globally, states are
not self-sufficient in meeting all of their society's interests, forcing the state to interact in various
trade activities. Maritime transport is the world's biggest bulk transport with low cost when
compared to other transport modalities with high financial value.
The world is moving toward globalization to eliminate trade barriers for free flow of goods and
service among countries. The major driving forces for globalization are plans for the
government's living standard of their people, modernizing and privatizing public enterprise and
the contemporary stiff competition and market search persisting in the world. But this effort is
facing different challenges from various political, economic, social and technological crises.
There is a continuous negotiation under GATT to remove different trade barriers among the
states. Among such negotiations, the Uruguay round is the largest Multilateral Trade Negotiation
which resulted in the establishment of the WTO on January 1, 1995, and the incorporation of
trade in service (GATS) under the Multilateral Trade agreement. The Maritime transport
Negotiations Originally scheduled to end in June 1996, but participants failed to agree on a
package of commitments. As a result, it did not yet come in effect.
Currently, Ethiopia is in the process of accession to the WTO and as part of its accession
process, its legal regime on maritime transport shall be the subject of inquiry in line with GATS
obligation. International maritime transport is one of the sophisticated legal regimes which has
been unsuccessful till now. The thesis will first look at how the general and specific legal
obligations of GATS are enforced on the international shipping service, as well as the efforts
made so far to implement Multilateral Law on Maritime Service. Secondly, it examines the
compatibility of Ethiopian shipping service laws with that of GATS. Thirdly, it briefly discusses
the gaps in Ethiopia's shipping service sector laws and ways of negotiation to keep up the sectors
of strategic importance for the country.
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Finally, it will identify the potential areas of interest that negotiating parties might tend to limit
in line with Ethiopian policy and suggest terms of negotiation in the shipping service sector.
The study concluded that from a legal point of view, Ethiopian shipping sector law is compatible
with GATS obligation subjected to specific obligation the country is undertaking and enactment
of the clear licensing directive. It advises negotiators to maintain the sector's existing preferential
treatment.
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The Compatibility of Ethiopian