The Ethiopia-Djibouti border has a new prohibition against border trading

The regional trade organisation stipulates that border traders may neither export or import items into or out of Djibouti on a monthly basis in excess of $1,000 USD, or its equivalent in Ethiopian Birr or Djiboutian Franc.

The Ministry released this statement as a result of the rise in illegal money laundering in regions along the borders of the two countries and the damaging effects it had on the economy.

The minister of commerce and regional relations G/Kress Chala approved a memorandum outlining new trade legal rules that states that “a border trader is required to bring in the same amount of output that he has taken out of the country.”

The document refers to registered traders involved in border trade and specifies that if they sell more than $1,000 worth of goods in a calendar month, they must import the government-required commodities.

According to reports, the instruction was decided to be issued in order to eliminate smuggling and illegal commerce in the border regions of both nations.

On the other hand, the directive is necessary to provide citizens of the areas bordering Ethiopia and Djibouti with access to necessities that they cannot easily acquire from the country’s interior through border trade.

In addition to reducing economic pressure, the order aims to create an opportunity for using alternative raw resources and goods from neighbouring countries to reduce local goods inflation.
The signatory countries are required to draught and approve “guidelines” for the implementation of border trade under Article Six of the Border trade Protocol Agreement. The “Coastal Trade Protocol” agreement was signed by Ethiopia and Djibouti, who agreed to abide by it.

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