The signing of the Agreement Establishing the AfCFTA in Kigali on 21 March 2018 is a greatrnachievement for the continent’s trade integration. The implementation of this agreement hasrnprospects and challenges for the continent and for each State Party to the Agreement.rnEthiopia has signed the Agreement on the 21st day of March, 2018 and the FDRE House ofrnPeoples Representatives has ratified the Agreement at its session held on the 21st day of March,rn2019.In this regard, the prospects and challenges as well as the defensive and offensive interestsrnof membership of Ethiopia to AfCFTA must be examined very well to use the potential benefitsrnand minimize the possible challenges. Hence, the paper critically examine the prospects andrnchallenges and identifies the defensive and offensive interests of membership of Ethiopia tornAfCFTA in relation to the Protocol on Trade in Goods and the Protocol on Trade in Services.