Ethiopian officials have approved a list of products and services subject to customs tariff reductions under the African Continental Free Trade Agreement (AfCFTA).

Seven percent of the duty items are free of tariff cuts within six to 13 years, while the remaining 190 (three percent) are not up for negotiations. But this exclusive list is up for amendment every five years. Nearly 90pc of the 6,328 products available will be up for a gradual tariff removal within a decade.

No tariff reduction or removal will be applied on goods and services on which the country has no competitive advantage, according to the officials. This includes the financial sector and the retail market, both identified as areas with little comparative advantage for Ethiopia.

The items are selected based on their prospects for job creation, revenues generation, and contributions towards the country's food security, according to Mussie Mindaye, director of Multilateral, Regional & Bilateral Trade Negotiation at the Ministry of Trade & Industry.

Items with high customs revenues are not up for negotiations, says Mamo Mihretu, chief trade negotiator and policy advisor at the Prime Minister`s Office.

Mamo leads a steering committee comprising representatives from eight federal government offices, including the Ministry of Finance and the central bank, in charge of reviewing documents prepared for negotiations.

"Manufactured goods that are a source of job opportunities for many are not open for foreign competition under the free trade area and will not enjoy a tariff reduction," the Chief Negotiator told Fortune.

Ethiopia is the 19th country to submit its instrument of ratification, a document that includes tariff concessions and monitoring mechanisms, two years ago. Before the approval, the document was sent to the Ministry of Finance and the Customs Commission for comments. Ethiopia has identified items that will be negotiated upon receiving tariff reductions from other African countries. If allowed, the countries will receive import tariff reductions, and Ethiopia will be privy to the same privileges as well.

The AfCFTA was conceived nine years ago to bring down trade costs and allow African countries to play a bigger role in global supply chains. The agreement is touted by the World Bank for its potential to increase export by seven percent to 450 billion dollars and lift 30 million people out of extreme poverty by 2035.

All the African countries but Eritrea have signed the agreement, although close to 34 countries have ratified the deal with their legislative houses.