Ethiopia

Red Sea Conflict affecting Ethiopia

 Red Sea Conflict

The Red Sea region is a very important global trade route and energy transportation connecting Africa, Middle
east and Asia to Europe.

Due to this conflicts in this region have far-reaching consequence for international stability and security

The ongoing civil war in Yemen (Houthis), the major powers in the region like Saudi Arabia and Iran have
significant impact for the security in the region.

Historical there has been disputes in the Red Sea region over control of the shipping lanes and ports with
disagreements with usage of these resources.
 Ethiopia Involvement

Ethiopia is a landlocked country and its access to Red sea is the reason of its involvement in the conflict. The
access to the Red Sea is via neighboring countries of Eritrea and Djibouti for its import and export.

There is a tension build up due to various disputes involving these neighboring countries over access to ports of
Red Sea.

Ethiopia has been involved in the regional conflict in resolving the South Sudan, which has implication for the
regional security including the Red Sea.

Again Ethiopia also constructed and operated the Grand Ethiopian Renaissance Dam (GERD) on the Nile River
leading to have dispute with other downstream countries like Egypt and Sudan impacting the geopolitics stability
in the Red Sea region.
 Red Sea Conflict immediate Impact

The Red Sea Conflict have significant impact on the trade relations and regional cooperation, security & stability in
that region and further global trade between Asia, Africa and Europe.

The disruption of flow of goods in insurance for shipping has impacted the business operation in this trade Route
significantly.

In summary the immediate impact of the Red Sea conflict has affected trade relations and which lead to increased
costs, uncertainty for businesses, and also the governments involved in trade in the region.
 Red Sea Conflict- Long term Impact

The long term impact of the Red Sea conflict on trade relations is very significant. The below are few long term
impacts to highlight

● Trade Diversion - This leads to alternative trade routes impact the business and supply of goods
● Low Investment - Lower of Business investment and economy in the region and Ethiopia.
● High Risk Assessment - Trade & Business activities goes down in a high risk area
● Security - The fear of war over resources
● Regional Integration - The region will have disparity in economic as well as in social or regional cooperation

In summary the long-term impact of the Red Sea conflict can shifts the regional trade patterns, investment
decisions, and economic implications for global trade.
 WTO Role to Resolve
The World Trade Organization (WTO) can play a very important Role to handle the Red Sea conflict in many ways.

● Dispute Negotiation: WTO can facilitate negotiations on trade-related issues with regional countries for a
acceptable solutions
● Trade Facilitation: WTO can help to have smooth trade processes and reduce trade barriers with mitigating
negative impacts of the conflict.
● Trade Monitoring: WTO can impose trade restrictions who violate WTO rules. It can have surveillance and
dialogue to address these issues and take actions as per WTO agreements.
● Peace and Stability Advisory: WTO can use its platform for peaceful resolution of conflicts in the Red Sea
region by engaging in advisory activities with the regional & global countries

The WTO shall handle the Red Sea conflict within its scope as an international trade organization.

Resolving other geopolitical and security issues would involve other international organisation and government
efforts.
 Ethiopian Government support

Ethiopian government can reduce the influence of the Red Sea conflict by following means.

● Governments can have diplomatic efforts to promote dialogue and peaceful discussion with regional
governments.
● Being kind to reduce the suffering of those affected (refugee) area due the conflicts
● Government can invest in infrastructure for job creation and economic development for a long-term
stability
● Ethiopian government can collaborate and work with neighboring countries and other organizations to
increase cooperation and collaboration on trade, security and stability.
● Support for International Organizations: like WTO, United Nations and the African Union, in resolving
the conflicts and their consequence
 Reference

● https://www.bbc.com/news/world-middle-east-68031732

● https://www.bloomberg.com/news/articles/2023-10-19/djibouti-latest-nation-to-reject-ethio
pia-s-red-sea-access-plea

● https://www.theguardian.com/world/2024/jan/03/what-is-the-red-sea-crisis-and-what-does
-it-mean-for-global-trade

● https://www.wto.org/english/thewto_e/whatis_e/10thi_e/10thi02_e.htm
Thank you