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Ethiopia Rejects New Port Tariff by Djibouti
Ethiopia Thursday announced that it rejects the port tariff introduced by Djibouti last month, saying the two countries will have consultation over the issue next month.
Djibouti's newly imposed port tariff can not be effective because it is not yet agreed by Ethiopia, said Ethiopian Ministry of Foreign Affairs.
Under an agreement reached by Ethiopia and Djibouti in 1999, a port tariff issued by a single party can not be put into force, the ministry said, adding that a consensus on the issue is expected to be reached in a discussion due to take place here in February.
Djibouti, whose economy has been heavily dependent on its revenue from port charges, announced last month that it will increase its port dues by 30 percent as of January 15, 2001.
The increment will be imposed on all items including foodstuffs and relief food passing through the port.
The newly imposed port tariff will have the widest margin compared to those applied ever since the Dubai Port Authority took over the management of the port of Djibouti in 1999, local businessmen said.
Ethiopia has been relying on the port of Djibouti for all its major imports and exports since May 1998 when it began a two-year border conflict with Eritrea.
The increase of port dues will apparently impose considerable pressure on Ethiopia's foreign trade when the regulation becomes effective, local businessmen said.
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