International trade procedures



Eritrea was portion of the first Ethiopian land of Aksum until its diminution in the eighth century. It came under the control of the Ottoman Empire in the sixteenth century, and subsequently of the Egyptians. The Italians captured the coastal countries in 1885, and the Treaty of Uccialli ( May 2, 1889 ) gave Italy sovereignty over portion of Eritrea. The Italians named their settlement after the Roman name for the Red Sea, Mare Erythraeum, and ruled at that place until World War II. The British captured Eritrea in 1941 and subsequently administered it as a UN Trust Territory until it became federated with Ethiopia. Eritrea was made an Ethiopian state on Nov. 14, 1962. A civil war broke out against the Ethiopian authorities, led by Rebel groups who opposed the brotherhood and wanted independency for Eritrea. Contending continued over the following 32 old ages.

In 1991, the Ethiopian People ‘s Revolutionary Democratic Front deposed the state ‘s hardline Communist dictator Mengistu. Without Mengistu ‘s military personnels to conflict, the Eritrean People ‘s Liberation Front was able to derive control of Asmara, the Eritrean capital, and organize a probationary authorities. In 1993, a referendum on Eritrean independency was held, supported by the UN and the new Ethiopian authorities. Eritrean electors about nem con opted for an independent democracy. Ethiopia recognized Eritrea ‘s sovereignty on May 3, 1993, and sought a new epoch of cooperation between the two states.

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Eritrea and Ethiopia disagreed about the exact limit of their boundary lines, and in May 1998 boundary line clangs broke out. Both destitute states spent 1000000s of dollars on military planes and arms, approximately 80,000 people were killed, and refugees were host. The war basically ended in a deadlock, and a formal peace understanding was signed in Dec. 2000. In Dec. 2005, an international Court of Arbitration ruled that Eritrea had violated international jurisprudence when it attacked Ethiopia in 1998.


Eritrea is located in the Horn of Africa and is bordered on the nor’-east and E by the Red Sea, on the West and northwest by Sudan on the South by Ethiopia and on the sou’-east by Djibouti. The state has a high cardinal tableland that varies from 1,800 to 3,000 metres ( 6,000-10,000 ft. ) above sea degree. A coastal field, western Lowlandss, and some 300 islands comprise the balance of Eritrea ‘s land mass. Eritrea has no year-around rivers.

The clime is temperate in the mountains and hot in the Lowlandss. Asmara the capital, is about 2,300 metres ( 7,500 ft. ) above sea degree. Maximal temperature is 26o C ( 80o F ) . The conditions is normally cheery and dry with the short or belg rains happening February-April and the large or meher rains get downing in late June and stoping in mid-September.


Eritrea ‘s population comprises nine cultural groups, most of which speak Semitic or Cushitic linguistic communications. The Tigrinya and Tigre make up four-fifths of the population and speak different but related and slightly reciprocally apprehensible, Semitic linguistic communications. In general, most of the Christians live in the Highlandss, while Muslims and disciples of traditional beliefs live in lowland parts. Tigrinya and Arabic are the most often used linguistic communications for commercial and official minutess. In urban countries, English is widely spoken and is the linguistic communication used for secondary and university instruction.


Eritrea ‘s Government faced formidable challenges following independency. With no fundamental law, no judicial system, and an instruction system in shambles, the Eritrean Government was required to construct establishments of authorities from abrasion. Presently, the Government of Eritrea exercises rigorous control of political, societal, and economic systems, with about no civil autonomies allowed.

On May 19, 1993, the PGE issued a announcement sing the reorganisation of the authorities. The authorities was reorganized, and after a national, freely contested election, the Transitional National Assembly, which chose Isaias as President of the PGE, was expanded to include both EPLF and non-EPLF members. The EPLF established itself as a political party, the People ‘s Front for Democracy and Justice ( PFDJ ) . The PGE declared that during a 4-year passage period it would outline and sign a fundamental law, draft a jurisprudence on political parties, bill of exchange a imperativeness jurisprudence, and carry out elections for a constitutional authorities.

In March 1994, the PGE created a constitutional committee charged with outlining a fundamental law flexible plenty to run into the current demands of a population enduring from 30 old ages of civil war every bit good as those of the hereafter, when prospective stableness and prosperity would alter the political landscape.A new fundamental law was ratified in 1997 but has non been implemented, and general elections have non been held. The authorities had announced that Transitional National Assembly elections would take topographic point in December 2001, but those were postponed and new elections have non been rescheduled.

The present authorities construction includes legislative, executive, and judicial organic structures. The legislative assembly, the Transitional National Assembly, comprises 75 members of the PFDJ and 75 extra popularly elected members. The Transitional National Assembly is the highest legal power in the authorities until the constitution of a democratic, constitutional authorities. The legislative assembly sets the internal and external policies of the authorities, regulates execution of those policies, approves the budget, and elects the president of the state. The president nominates persons to head the assorted ministries, governments, committees, and offices, and the Transitional National Assembly ratifies those nominations. The cabinet is the state ‘s executive subdivision. The ministries are agribusiness ; defense mechanism ; instruction ; energy and mines ; finance ; piscaries ; foreign personal businesss ; wellness ; information ; labor and human public assistance ; land, H2O, and environment ; local authoritiess ; justness ; public works ; trade and industry ; transit and communicating ; and touristry.


The Eritrean economic system is mostly based on agribusiness, which employs 80 % of the population but presently may lend every bit small as 12 % to GDP. Agricultural exports include cotton, fruits and veggies, fells, and meat, but husbandmans are mostly dependent on rain-fed agribusiness, and growing in this and other sectors is hampered by deficiency of a reliable H2O supply. Worker remittals and other private transportations from abroad presently contribute about 32 % of GDP.

After independency, Eritrea had established a turning and healthy economic system. But the 1998-2000 war with Ethiopia had a major negative impact on the economic system and demoralized investing. Eritrea lost many valuable economic assets in peculiar during the last unit of ammunition of contending in May-June 2000, when a important part of its district in the agriculturally of import West and South was occupied by Ethiopia. As a consequence of this last unit of ammunition of contending, more than one million Eritreans were displaced, though by 2007 about all have been resettled. Eritreans besides lost farm animal worth some $ 225 million, and 55,000 places deserving $ 41 million were destroyed during the war. Damage to public edifices, including infirmaries is estimated at $ 24 million. Much of the transit and communicating substructure is outmoded and deteriorating, although a big volume of intercity road-building activity is presently afoot.


The Eritrean Government has started a free zone plan in Eritrea. The aim of the plan is to lend to the development of an internationally competitory concern sector in Eritrea by making an environment in which domestic and foreign investors will be encouraged to put in export-related concern activities. The Government believes that the plan will, bury alia,

( a ) create employment chances,

( B ) extend the engineering base

( degree Celsius ) aid develop the proficient and managerial accomplishment of the Eritrean Workforce,

( vitamin D ) expand Eritrea ‘s external concern and selling contacts,

( vitamin E ) aid construct industrial undertakings of all sorts and storage installations for natural and processed stuffs, ( excepting storage of drugs ) .

The first free zone has been set up at the port of Massawa and is ready to accept investings which contribute to the accomplishment of the above aims. Investors will happen that the Free Zone Program is highly business-friendly as the undermentioned articles of the Eritrean Free Zones Proclamation indicate


The synergism that exists between India Africa can be gauged from the recent tendencies in Indo-African trade relation wherein bilateral trade has risen to US $ 25.0 billion in 2006-07 from US $ 967 million in 19990-91 due to the rise in both exports to and imports from Africa states.

Old ages 2002-03 2003-04 2004-05 2005-06 2006-07

Export 3,137.9 3,861.7 5,578.4 7,013.6 10,255.7

Imports 3,444.4 3,202.1 4,006.4 4,878.8 14,722.8

Entire Trade 6,582.3 7,063.8 9,584.8 11,892.42 4,978.5

Trade Balance 306.4 659.6 1,572.0 2,134.7 -4,467.1

Indian ‘s exports to Africa reached US $ 10.3 billion in 2006-07 from a comparatively low figure of US $ 394 million in 1990-91. As a consequence, the portion of Africa in India ‘s entire exports has risen from a marginal2.2 % in 1990- 91 to a healthy 8.2 % in 2006-07. Concomitant rise in imports from Africa during the comparable period attest to increased two-way trade relation wherein India ‘s imports from Africa during the comparable period attest to increased two-way trade dealingss where India ‘s imports from Africa rose from US $ 573 million in 1990-91 to US $ 14.7 billion in 2006-07, with the attendant 7.7 % portion in India ‘s entire imports, up from 2.4 % portion in 1990-91.

Bilateral Trade During 2006-07

During the twelvemonth 2006-07, India ‘s Exports to Africa registered a crisp rise of 46.2 % to make US $ 10.3 billion, from US $ 7.0 billion during the pervious twelvemonth. India ‘s imports from Africa besides recovered in 2006-07 to make US $ 14.7billion from US $ 4.9 billion the pervious twelvemonth. Consequently, due to big imports from the part, India experienced a trade shortage of US $ 4.5 billion with Africa in 2006-07 as against a trade excess of US $ 2.1 billion in 2005-06.

Major Trading Spouses

South Africa remained the taking finish for India ‘s exports during 2006-07, accounting for 22 % of entire export to Africa. Other major export finishs include Kenya ( 12.8 % of entire exports to Africa ) , Nigeria ( 8.8 % ) , Mauritius ( 7.2 % ) , Ghana ( 4.5 % ) , Sudan ( 3.9 % ) , Algeria ( 3.3 % ) , Djibouti ( 3.0 % ) and Tanzania ( 2.9 % ) .


The trade dealingss between these states are really old. Historically, there were strongtrade ties during the Axumite land. Agribusiness is really of import in both these States. It is to be noted that more than 70 % Eritreans and 60 per cent Indians depend on agribusiness as their pillar and hence there is a demand to re-focus on agribusiness. Both the states have resources, good clime, and H2O resources. The concentration on agribusiness along with industries requires a sustainable policy in Eritrea. Agribusiness was focused through five-year programs in India. Even after 15 old ages of Independence, Eritrea did non follow five twelvemonth program schemes, therefore it can larn Indian experience. Naturally, the province has to play an of import function to protect. It is to observe that, after liberalization policies in 1991, the private sector had emerged as an of import force to drive the economic system and go the anchor of Indian economic system that accounts 70 % of the GDP. Agriculture, gardening, flower gardening, sea nutrient industries, agro industries, agro-based industries and nutrient industries are in the private sector that includes little and big graduated table industries. India has about 3.57 million units in the small-scale sector. They employ more than 20 million people and lend USD 165 billion to the Indian economic system. The function of private sector is significant in the growing of sustainable economic development in India. Eritrea besides experience the same state of affairs with the little graduated table industries but could non lend more to the national economic system due to the competition from the big industries within the state and other competition from foreign trade.


Year India ‘s exports % growing India ‘s Imports % growing Total % growing

2003-04 10.72 0.25 10.97

2004-05 8.44 -21.28 0.99 300.67 9.43 -14.00

2005-06 8.18 -3.09 0.99 -0.35 9.17 -2.80

2006-07 6.64 -18.71 0.34 126,361.4 6.98 -23.77

2007-08 110.61 1,564.82 1.49 337.72 112.10 1,504.93

India ‘s export to Eriteria:

( Valuess in US $ Million )

HSCode Commodity 2006-07 2007-08 % Growth

10 Cereals. 0.57 0.07 -87.56

17 Sugars and Sugar Confectionery. 0.48 11.60 2,305.29

19 Preparations of Cereals, Flour,

Pastry cooks Products.


21 Miscellaneous Edible Preparations. 0.10

25 Salt ; Sulphur ; Earths And Stone, 0.00 0.70 15,755.80

Plastering Materials, Lime And Cement.

27 Mineral Fuels, Mineral Oils 92.23

28 Inorganic Chemicals 0.10 0.06 -38.20

29 Organic Chemicals 0.17 0.02 -89.31

30 Pharmaceutical Merchandises 0.70 1.61 131.65

32 Tanning Or Dyeing Extracts 0.02

33 Essential Oils And Resinoids 0.14 0.00 -99.46

37 Photographic Or Cinematographic Goods. 0.01

38 Assorted Chemical Products. 0.10 0.35 265.27

39 Plastic And Articles Thereof. 0.20 0.17 -17.74

40 Rubber And Articles Thereof. 0.70 0.51 -27.67

42 Articles Of Leather, Saddlery 0.01

48 Paper And Paperboard ; 0.30 0.42 37.29

49 Printed Bookds, Newspapers, Pictures And

Merchandises Of The Printing Industry 0.23 0.24 2.63

52 Cotton. 0.12 0.24 91.70

54 Man-made Fibrils. 0.03

55 Man-made Staple Fibres. 0.03 0.04 22.07

56 Wadding, Felt And Nonwovens 0.09 0.04 -53.90

59 Impregnated, Coated, Covered Or

Laminated Textile Fabrics 0.12

70 Glass And Glassware. 0.04

72 Iron And Steel 0.60 0.46 -23.16

73 Articles Of Iron Or Steel 0.04 0.14 218.22

74 Copper And Articles Thereof. 0.00

75 Nickel And Articles Thereof. 0.02

76 Aluminium And Articles Thereof. 0.14

82 Tools Implements, Cutlery, Spoons. 43 0.29 -31.98

84 Nuclear Reactors, Boilers, Machinery 0.40 0.35 -11.90

85 Electrical Machinery and Reproducers 0.14 0.19 31.72

87 Vehicles Other Than Railway 0.03 0.32 1,130.76

90 Optical, Photographic Cinematographic

Measuring, Checking Precision 0.04 0.04 -0.24

92 Musical Instruments 0.01

94 Furniture ; Bedding, Mattresses 0.02 0.01 -66.10

95 Toys, Games And Sports Requisites 0.16

97 Plants Of Art Collectors ‘ Pieces And Antiques. 0.01 0.01 32.89

98 Project Goods ; Some Particular Uses. 0.40

99 Assorted Goods. 0.20 0.01 -97.52

Entire 6.64 110.61 1,564.82

Exchange rate:

2006-2007: 1US $ = Rs. 45.2849

2007-2008: 1US $ = Rs. 40.2607

India ‘s import from Eriteria:

( Valuess in US $ Million )

HS Code Commodity 2006-07 2007-08 % Growth

38 Assorted Chemical Merchandises 0.01

41 Raw Hides And Skins

And Leather 0.09 0.82 843.87

71 Natural Or Cultured Pearls, Precious 0.01

72 Iron And Steel 0.10 0.31 206.65

74 Copper 0.11 0.25 130.84

76 Aluminium 0.01 0.02 17.96

84 Nuclear Reactors, Boilers, Machinery 0.02

85 Electrical Machinery And Equipment

Television ImageAnd Sound Recorders 0.08

99 Assorted Goods 0.01

Entire 0.34 1.49 337.72

Exchange rate:

2006-2007: 1US $ = Rs. 45.2849

2007-2008: 1US $ = Rs. 40.2607

















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The Legal System

Eritrea is a civil jurisprudence state. Unlike the common jurisprudence system where Judgess can establish their judgements on both legislative acts and regulations of jurisprudence developed by higher tribunals, the Eritrean Judgess apply merely legislative acts. Court determinations in Eritrea ( as in other civil jurisprudence states of the universe ) are enforceable merely on the parties to the difference. Therefore, they do non set up adhering case in points, although they can be used to carry Judgess. At present, Eritrean Torahs are go throughing through a transitional stage. After release in May 1991, Eritrea inherited the basic codifications of Ethiopia as modified to accommodate the new Eritrean world. Among the chief Ethiopian legislative acts that were modified and adopted by the Probationary Government of Eritrea are the Civil Code, Commercial Code, Maritime Code, Penal Code, Civil Procedure Code, and Criminal Procedure Code. The Torahs entered into force on September 15, 1991 after a Commission revised them. The Torahs were received as transitional, aimed at determining the new economic and societal life of Eritrea until the state developed a legal system of its ain.

The authorities continues to revise the transitional codifications and to publish new Announcements and ordinances turn toing assorted facets of life. During the first six old ages of independency, over 90 Announcements and about 20 ordinances were promulgated. These legislative steps brought jurisprudence and order to the freshly emerging province and helped to determine the society disintegrated by the thirty-year war. A new fundamental law was besides drafted after much argument between Eritreans populating in the state and those life in the Diaspora. Customary jurisprudence and Sharia jurisprudence are the other beginnings of jurisprudence in Eritrea, both of which are restricted to countries of private life, specifically, matrimony, divorce, and heritage. The Transitional Civil Code badly restricts the assorted local customary Torahs, go forthing small room even in these countries. Sharia jurisprudence, which was ignored by the Ethiopian Civil Code, operates about without limitation in the field of household jurisprudence under the Transitional Civil Code of Eritrea. Moslems constitute 50 per centum of the state ‘s population and they attach great significance to this spiritual Sharia jurisprudence, peculiarly with regard to marriage and disassociate.

Private Investment Law

On December 30, 1991 the Probationary Government of Eritrea passed the state ‘s first jurisprudence on private investing. Eager to rush up economic growing, the authorities enacted Investment Proclamation No. 18/1991225 seven months after Eritrea ‘s release from 40 old ages of colonial regulation by Ethiopia and more than one and a half old ages before the state declared independency. The step was a measure towards change by reversaling past restrictive policies by leting the engagement of the private sector in concern activities. Investment Proclamation No. 18/1991 encouraged both subjects and aliens to put in Eritrea. The Eritrean Investment Center ( EIC ) used the jurisprudence as a footing for investing undertakings. Under this jurisprudence the EIC handled or processed over two 100 investing undertakings.

Investing inducements

The investing policy of Eritrea provides following inducements to foreign and domestic investors:

* Both local and foreign private sector investors are allowed to take part in all sector of the of the economic system with no limitation.

* Priority foreign exchange allotment given to exporters.

* Up to 100 % keeping on foreign currency gaining.

* No revenue enhancement on dividends declared.

* Exports are exempted from export responsibilities and sale revenue enhancements.

Technology Transfer Agreement

The Proclamation defines Technology Transfer Agreement to intend understandings with investors sing, but non limited to

( 1 ) The usage of patents, hallmarks, trade names, and right of first publication

( 2 ) Training for and proviso of proficient cognition and information

( 3 ) Technical services including but non limited to, proficient aid technology, and consultancy ; and

( 4 ) Acquisition of managerial and selling accomplishments

The understanding must be approved by an authorised authorities organic structure and registered with the EIC. The EIC is besides authorized to regenerate the understanding which otherwise expires after the oversight of its continuance.

Role of India in Eritrean Development

Eritrea is engaging a great figure of professors, associate professors, helper professors, lectors and instructors from India to learn at the colleges, establishments at third degree and schools. It is observed that more than 800 instructors are learning at assorted colleges, vocational preparation Centres and high schools in Eritrea. Surprisingly, approximately 80 % of the module in the freshly established Eritrea Institute of Technology is Indians. There are agricultural scientists, and other proficient experts in different spheres have been working in Eritrea for many old ages. Further, there are some Eritrean pupils analyzing in India for their B.A. , MA/MSc. , Ph.D degrees. This helps a batch in human resource development of Eritrea. And of class, many Indian instructors have been involved in Eritrea since the 1960s even before its independency. Indian instructors have educated many leaders of Eritrea including the president Isaias Afwerki and some curates. The instruction sector of Eritrea has an first-class relation with India. India has been concentrating on human resource development since independency. That is one of the chief strengths of India, which, one hope would be rubbed off to Eritrea through this coaction. In 2006, Minister of Eritrean Education Mr. Osman Saleh has visited India and makes understandings with the Indian authorities in human capacity edifice.

It is observed that the Indian community promotes good will and understanding among people in Eritrea. They are the span that makes the two states come near together. The part for the Indian community is really of import. The Indian community life here contributes a batch to the economic system of the state. Large figure of Eritrean is traveling to India for instruction, concern, touristry etc. This contact between the two peoples is a great part for the sweetening of the relation between the two states.


Both India and Eritrea are developing states. India as a leader of Third universe made a immense pace in human resource development and agribusiness development where as Eritrea, a immature state still endeavoring difficult to develop these countries and therefore accomplish ego trust. Eritrea has been utilizing Indian human resources, as portion of its capacity edifice in instruction, agricultural and other related countries.

India Offer to Africa in Agriculture Sector

India ‘s trade with Africa, the Government of India launched an integrated programme “ Focus Africa ” in the twelvemonth 2002-03. The chief aim of the programme is to increase interactions between the two parts by placing the countries of bilateral trade and investing. The “ Focus Africa ” programme emphasized on major merchandising spouses of the part, viz. Eritrea Ethiopia, Nigeria, South Africa, Mauritius, Kenya, Tanzania and Ghana, which together account for around 69 % of India ‘s entire bilateral trade with the sub-Saharan Africa part. Alliance of Indian Industries ( CII ) Africa Committee has the authorization to farther concern co-operation that helps set up a symbiotic relationship between India and emerging African economic systems.

The Committee through broad ranging activities, like:

1 ] Develop schemes to heighten economic, industrial and trade dealingss,

2 ] Identifies countries of common co-operation,

3 ] Highlights issues of concern and evolves suited policy recommendations,

4 ] Frames guidelines and checklists for different signifiers of industrial co-operation, and

5 ] Represents industry sectors seeking greater common co-operation.

Export-Import Bank of India ( EXIM India ) operates a figure of funding and support programmes to ease and advance India ‘s trade and Investment in the African part. The EXIM Bank operates a programme to back up abroad investing by Indian booster through joint ventures/ entirely owned subsidies. Such support includes finance in selected instances, directs engagement in equity along with Indian booster, to put up such ventures overseas ( CII India-Africa Project Partnership ) . EXIM India has besides come out with a bilingual ( English and Gallic ) magazine titled “ Indo-African Business ” which focuses on bilateral trade and investing between India and Africa. The magazine addresses the concern information demands of companies who are interested in trade with the African part. With a position to promoting and easing bilateral trade with states in the Africa part, EXIM India works closely with Government of India. It has a representative office in Johannesburg, South Africa, which plays a function in easing economic cooperation with the African part, and is closely associated with several other Banks ‘ enterprises.


Exim Bank extends $ 20 million line of recognition to Eritrea

Export-Import Bank of India ( Exim Bank ) has extended a line of recognition of $ 20 million to the African province of Eritrea for financing eligible goods and services, machinery and equipment, including consultancy services from India, the Reserve Bank of India said in a release.

The financess would be used for funding multipurpose agricultural undertakings non transcending $ 10 million – the proposed undertakings include unreal insemination development undertaking, domestic fowl H2O and feeder, constitution of milk aggregation Centres, pressurised irrigation system ( drip irrigation system ) , solar pumps undertaking and dirt study and land rating equipment – and multipurpose educational undertakings non transcending $ 10 million – which include purchase of learning stuffs including books, laboratory/educational equipment, chemicals, computing machines etc for seven Eritrean establishments of higher instruction, including Eritrean Institute of Technology ( EIT ) , CSH, CBE, COMSAT, OROTTA, HAC and CASS, in add-on to the National Board of Higher Education – in Eritrea.


* Production of appropriate technologies- green goodss through public and private investings in agricultural research ;

* Human capital investings and vocational accomplishments of hapless people by investing in private and public schools, developing plans, on-the-job experience and wellness

* Investment in substructure like dikes, irrigation installations, telecommunications and roads.

* Indian export and import lessening in 2007-08 by 5.0242


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