Turkey is close to commencing talks with Ethiopia over signing a free trade agreement (FTA), according to Turkish foreign trade minister Zafer Ça─ƒlayan.
Ça─ƒlayan, who is currently in Ethiopia to participate in talks with the Ethiopian government, said that both countries have already agreed on signing a FTA to ease custom difficulties, according to Turkish newspaper Today’s Zaman.
Turkey currently has FTAs with 13 countries, as well as with members of the European Free Trade Association (EFTA), which consists of four non-EU member states.
According to the newspaper, Ça─ƒlayan also said that Turkey hopes to increase its exports to Africa from $17 billion to $20 billion by the end of this year. He added that Ethiopia’s prime minister has already asked Turkey to construct an industrial zone in the country, offering tax incentives and state support to Turkish companies in return.
Turkey’s Eximbank has provided a $100 million loan with a low interest rate to Ethiopia, to be used for exports and to finance investment, according to Ça─ƒlayan.
Ethiopia, a country of 84.9 million people, has an estimated GDP of $30.60 billion, with a GDP per capita of approximately $360 in 2010.
Turkey exports around $170 million of goods to Ethiopia each year, and imports around $45 million.
