Exports and imports with member countries enjoy preferential tariff rates. Export products from Ethiopia to the European Union market are entitled to duty reductions or exemptions and freedom from all quota restrictions under the terms of the Lome Convention. Trade preference include duty-free entry to all industrial products and a wide range of agricultural products including fruits, vegetables, pulses, oilseeds, etc. Besides, no quantitative restrictions are applicable to Ethiopian exports on any of the 3,000 plus items currently eligible for GSP treatment. Labor Ethiopia has an abundant hard working inexpensive and disciplined work force.
Private investors can easily find and recruit young and energetic work force at about the same rate.
Hence, the cost of labor in the country is very low by any standards. Ethiopia has also sufficient skilled and well-trained work force. Its technical and vocational training schools, engineering colleges and universities annually produce trained personnel in business, management, law, engineering, economic, accounting, technical training in fairly large numbers. Generally, the level of salary paid for skilled labour is determined by contract between the employer and the employee. The new labour law of Ethiopia, which has been prepared in conformity with recognized international labour norms and standards, provides adequate provisions for the beginning and termination of employment without infringing the rights of investors.