Agriculture and AfCFTA: NTM reductions increase intra‐Africa trade

Abstract

AbstractThe African Continental Free Trade Area (AfCFTA) is expected to provide trade gains for Africa, especially from reducing non‐tariff measures (NTM). Unfortunately, data on NTMs is scarce, both by country and sector. Using three underlying NTM data sets and other data sources, we provide a range of estimates to fill the missing gaps in the existing estimates. Focusing on agriculture, we then use a computable general equilibrium model to estimate the effects of the AfCFTA. Results from all three data sets indicate that NTM reduction leads to much greater intra‐Africa trade gains than tariff reduction alone.