The U.S. first established diplomatic relations with Ethiopia in 1903. The diplomatic relationship between Ethiopia and the U.S. is important, complex, and focused on four broad goals: (1) protecting American citizens; (2) strengthening democratic institutions and expanding human rights; (3) spurring broad-based economic growth and promoting development; and (4) advancing regional peace and security.
U.S. Assistance to Ethiopia
Ethiopia, the second most populous country in Africa, remains an effective development partner, particularly in areas of health care, education, and food security. During the past decade, Ethiopia reduced poverty and improved human development. While increased investments in resilience by the U.S. and Ethiopian governments allowed Ethiopia to weather the 2011 and 2015-2016 droughts with relatively little impact, an estimated 8.5 million people still require emergency assistance in Ethiopia. Ethiopia hosts more than 900,000 refugees, and U.S. support, totaling $76 million in FY 2017, is crucial to maintain Ethiopia's internal stability and support the region.
Bilateral Economic Relations
Ethiopia ranks among the fastest growing economies in the world. Ethiopia is eligible for preferential trade benefits under the African Growth and Opportunity Act. U.S. exports to Ethiopia include aircraft, wheat, machinery, low-value shipments and repaired products, and vegetables. U.S. imports from Ethiopia include coffee, oil seeds, textiles, and garments. The U.S. has signed a trade and investment framework agreement with the Common Market for Eastern and Southern Africa, of which Ethiopia is a member.