Somalia ‘ready for war’ with Ethiopia over Somaliland deal

A Somali police officer stands guard during a march against the Ethiopia-Somaliland port deal along KM4 street in Mogadishu, Somalia January 11, 2024. (Reuters)
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Updated 13 January 2024
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Somalia ‘ready for war’ with Ethiopia over Somaliland deal

  • ‘We are pursuing all diplomatic options and I think Ethiopia will come to its senses’: Somali presidential adviser
  • Somali president to visit Egypt to rally support against Addis Ababa’s MoU with breakaway territory

LONDON: A senior adviser to Somalia’s president has said his country is prepared for a war with Ethiopia to prevent recognition of Somaliland’s statehood and the building of a naval base in the breakaway territory, The Guardian reported on Saturday.

On Jan. 1, Ethiopia signed a memorandum of understanding with Somaliland allowing for the construction of a coastal port.

The move has enraged Somalia’s government, which claims Somaliland as part of its territory and declared that the deal is void.

The adviser said: “We are pursuing all diplomatic options and I think Ethiopia will come to its senses, but we are ready for a war if Abiy (Ahmed, Ethiopia’s prime minister) wants a war.”

Somalia’s President Hassan Sheikh Mohamud warned last week to “prepare for the defense of our homeland” as rallies took place in Mogadishu condemning the MoU.

At a summit in Saudi Arabia in November, Ahmed denied seeking sea access via Somaliland in a private conversation with Mohamud, the adviser said, adding that the deal “caught Somalia by surprise.”

Somaliland was a British colony until 1960, uniting with former Italian colony Somalia after five days of independence.

Somaliland broke away in 1991 and today operates as a de facto independent state, with its own monetary system, parliament and foreign embassies. But it has yet to be formally recognized by any country.

Despite enjoying relative stability and prosperity compared to Somalia, Somaliland struggles to attract foreign investment and cannot directly access the international financial system.

The deal with Ethiopia is seen as paving the way for recognition of Somaliland’s statehood, despite the former insisting that the agreement is purely commercial.

Somaliland’s Foreign Minister Essa Kayd said: “Recognition is what we have been fighting for all this time and it is the most important thing we can offer to the people of Somaliland.

“Ethiopia needs sea access and we need recognition, so you can see how these needs can be dealt with.”

Ethiopia, however, said it had only agreed to “make an in-depth assessment towards taking a position regarding the efforts of Somaliland to gain recognition.”

A Western diplomat described the deal as a “memorandum of misunderstanding” in comments to The Guardian, adding: “Ethiopia insists they did not agree to recognise Somaliland.”

Addis Ababa’s move for sea access comes amid its construction of the Grand Ethiopian Renaissance Dam, which has angered Egypt and Sudan, which say it will reduce their access to Nile water. Mohamud is preparing to travel to Egypt to rally support against the MoU.

Ethiopia and Somalia fought a war in 1977-78 over disputed territory, leading to decades of tensions between the two countries.

In 2006, Ethiopia invaded Somalia to remove Islamist militants from Mogadishu, leading to the Al-Shabaab insurgency.


India signs free trade deal with Oman, expands footprint in Gulf region

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India signs free trade deal with Oman, expands footprint in Gulf region

  • Agreement is India’s second CEPA with a GCC state and Oman’s first such deal in two decades
  • Deal opens tariff-free access for most Indian exports and simplifies visa regime for professionals

NEW DELHI: India signed a free trade agreement with Oman on Thursday, marking its second such deal with a Gulf Cooperation Council country and expanding its economic presence in the region.

The Comprehensive Economic Partnership Agreement was signed by Commerce Minister Piyush Goyal and Qais bin Mohammed Al-Yousef, ‘s minister of commerce, during Prime Minister Narendra Modi’s state visit to Muscat.

The new deal allows India to export most of its goods without paying tariffs, covering 98 percent of the total value of India’s exports to Oman.

Beyond tariff cuts and goods, the agreement covers services, investment and mobility facilitation, and cooperation in sectors such as textiles, vehicles, agro-chemicals, and renewables.

“The CEPA will act as an enabler of a more ambitious future by offering duty-free access, addressing trade barriers, and simplifying rules. It will allow our exports to be more competitively priced in each other’s economies,” Goyal said.

“The comprehensive economic partnership would facilitate greater market access for our professionals and firms supporting Oman’s Vision 2040 ... The CEPA allows fair and predictable visa regime and labor mobility for our skilled workforce while fully respecting Oman’s sovereign employment policies.”

Indian professionals working in Oman on short-term assignments will be allowed to stay for up to two years, up from the previous 90 days, with the option to extend for another two years.

Oman is one of Delhi’s smaller GCC trading partners — trailing behind the UAE and Saudi Arabia, with bilateral trade of about $10 billion, according to India’s trade ministry. But it is strategically important to India due to its location near the Strait of Hormuz, a key passage for Asia’s crude oil.

Hosting 700,000 Indian citizens, it is also home to the fifth-largest population of Indians working overseas.

Free trade negotiations between India and Oman began in November 2023, with the first round in New Delhi and the second in Muscat. When the talks concluded in March 2024, Oman sought revisions on market-access terms and the final signature was postponed.

The Shoura Council, Oman’s consultative and legislative body, approved the CEPA draft last week.

The pact is the second such trade agreement with a GCC country after a 2022 CEPA with the UAE. For Oman, it is the second such bilateral deal after the Oman-US free trade agreement signed in 2006.

“The agreement is a strategic instrument to boost investments, enhance supply chains, and promote joint growth not only in trade but also in production, innovation, and regional integration,” Al-Yousef told Indian business leaders, as quoted by the Oman News Agency before the deal was signed.

“The historic trade routes that once connected our ports remain vital today, linking India to the Gulf, East Africa, and global markets through Oman’s advanced logistics corridors, ports, and industrial hubs.”