23.06.2016 Views

CASE STUDIES FROM AFRICA

30769-doc-services_exports_for_growth_and_development_africa

30769-doc-services_exports_for_growth_and_development_africa

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Ethiopia’s consideration of the service trade under the umbrella of WTO accession remains to be<br />

seen, given that a services offer is yet to be submitted to conduct services negotiations in<br />

earnest. It will be interesting to see how this process unfolds since Ethiopia has, at least at<br />

regional level, an aggressive interest in the sector. 32<br />

At the regional level, however, Ethiopia has been an active and aggressive participant for the<br />

implementation of the Yamoussoukro Decision 33 as well as the ones revised and delegated to<br />

regional blocs such as COMESA. Officials at the airlines see that many African countries are<br />

protective of the sector, and plans of previous declarations have not been duly implemented by<br />

signatories. In fact, the officials are keen to see not just regional liberalisation measures but<br />

liberalisation at the continental level. In addition, they would like to see deeper liberalisation<br />

initiatives, including:<br />

Yamoussoukro implementation, in that full ownership of airlines is allowed<br />

An African Aviation Policy on regulation, competition, and price that can supersede<br />

legislation at the national level, such as the EU has<br />

An effort to integrate Africa through aviation. 34<br />

But the divisions amongst African countries, such as North Africa vs. Sub-Saharan, East vs.<br />

West, and Anglophone vs. Francophone, have become a challenge for integration, according to<br />

the officials. Countries also favour their own flag carriers, impeding liberalisation. 35<br />

Defining Air Transport Services<br />

WTO Definition (W/120 and UN CPC)<br />

The WTO defines air transport services as activities that directly involve transporting people<br />

and goods by air. 36 This sector includes airports, airlines, navigation service providers,<br />

passenger services providers, air freight services providers, and manufacturers and<br />

maintenance staff of aircraft and aircraft systems.<br />

The air transport services sector is an area of the global economy in which Ethiopia enjoys some<br />

notable comparative advantages. The air transport industry in Ethiopia is largely dominated by<br />

EAL, which was founded in 1945. As of June 2015, the carrier serves 91 international<br />

32<br />

Interview with Mr. Henok Teferra, VP of Communications and Strategies of EAL.<br />

33<br />

The Yamoussoukro Decision is named after the Ivorian city in which it was agreed. It commits its 44 signatory<br />

countries to deregulate air services and promote regional air markets open to transnational competition. Historically,<br />

the Decision followed up on the Yamoussoukro Declaration of 1988, in which many of the same countries agreed to<br />

principles of air services liberalisation. In 2000, the Decision was endorsed by heads of states and governments at<br />

the Organisation of African Unity, and became fully binding in 2002 in pursuing its original intention of liberalising<br />

air service among member states.<br />

34<br />

Interview with Mr. Henok Teferra.<br />

35<br />

Ibid.<br />

36<br />

Air Transport and the GATS Documentation for the Second Air Transport Review under the General Agreement<br />

on Trade in Services (GATS), World Trade Organization, 2007.<br />

30

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!