Diarra, Mahamadou Ouedraogo, Idrissa M. Bakouan, Pousseni

How Can Tariff Elimination and Trade Facilitation Affect East African Economies? - Foreign Trade Review 2024 - 117-145

The article assesses the potential economic implications of tariff elimination and trade facilitation (TF) in the context of the African Continental Free Trade Area (AfCFTA) agreement for East Africa. Using the most recent GTAP database and computable general equilibrium model, the article provides additional evidence on the socio-economic benefits of the ongoing trade integration process. The results show that the elimination of tariffs would improve economic dynamism in most sectors of activity and household consumption. However, the elimination of tariffs alone would not be sufficient to achieve a significant level of trade integration. From a policy perspective, although a gradual implementation of tariff elimination is more beneficial for the zone, the results highlight the relevance of combining tariff elimination with complementary TF reforms. These reforms amplify the socio-economic gain from the AfCFTA.JEL Codes: F13, F14, F15, E23, C68

0015-7325


African Continental Free Trade Area (AfCFTA)
East African Economies
Tariff Elimination
Trade Facilitation
Economic Implications