Date:04/10/2008 URL: http://www.thehindu.com/2008/10/04/stories/2008100460361900.htm

Business

Trade ties with Ethiopia to be strengthened

Special Correspondent

Jairam Ramesh

NEW DELHI: Union Minister of State for Commerce and Power Jairam Ramesh will be heading a high-level trade delegation on a two-day trip to Ethiopia from October 6 aimed at strengthening trade ties with the African nation. Important bilateral agreements in power, leather, information technology and fashion design are likely to be signed during the visit. Mr. Ramesh, accompanied by senior officials, businessmen, bankers and heads of various export promotion council, will be attending the crucial fifth meeting of the India-Ethiopia Joint Trade Commission in Addis Ababa. The two countries are in advanced stages of finalising a trade agreement to replace the earlier trade deal signed in November 1982.

“I would be signing some important bilateral agreements during my visit. We are looking at expanding the supply of raw skins and hides that are abundantly available in Ethiopia for India’s growing leather manufacturing industry. We plan tot set up an apparel fashion design institute in Ethiopia with the assistance of the Apparel Export Promotion Council (AEPC), besides setting up a 38-MW hydel project. In addition, bilateral agreements on standards, small and medium enterprises and agricultural research are on the anvil,” Mr. Ramesh told The Hindu.

The Minister said that Ethiopia was the recipient of India’s largest-ever single line of credit to any country — $640 million — for the expansion of the sugar industry.

In addition, India has extended a $65 million line of credit for power transmission and distribution as part of the Ethiopia’s rural electrification programme.