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January 20, 2021  
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Ethiopia: Transnational Issues & International Disputes

Transnational Issues Ethiopia
Disputes - international:
Eritrea and Ethiopia agreed to abide by 2002 independent boundary commission delimitation decision, but demarcation, scheduled to begin in 2003, has been hampered by technical delays and Ethiopian concerns that the decision ignored "human geography" and awarded Badme, the focus of the 1998-2000 war, to Eritrea, demarcation of the boundary has been postponed indefinately; Ethiopia maintains only an administrative line and no international border with the Oromo region of southern Somalia and maintains alliances with local clans in opposition to the Transitional National Government in Mogadishu; "Somaliland" secessionists provide port facilities and trade ties to land-locked Ethiopia; efforts to demarcate the porous boundary with Sudan have been delayed by civil war there
Illicit drugs:
transit hub for heroin originating in Southwest and Southeast Asia and destined for Europe and North America as well as cocaine destined for markets in southern Africa; cultivates qat (khat) for local use and regional export, principally to Djibouti and Somalia (legal in all three countries); the lack of a well-developed financial system limits the country's utility as a money-laundering center

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Source: The CIA World Fact Book 2003

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