Trade liberalization as a result of the AfCFTA membership Algeria case

The Agreement on the African Continental Free Trade Area (AfCFTA) effectively came into effect on January 01, 2021. The AfCFTA plans to phase out tariffs as well as all other obstacles on intra-African trade. Through this study, we have tried to initiate a reflection on the expected effects on the Algerian economy, of opening up trade as part of its membership in the AfCFTA. To do this, we used a computable general equilibrium model, which we adapted to data from a Social Accounting Matrix made up of 26 sectors, 8 production factors, 10 household categories and 2 regions (foreign trade). We simulated two trade policy measures: first, a reduction in customs duties on some products (those whose shares in the supply of products from the "Africa" region are the highest) and then, an elimination of all customs duties. Although differentiated, the results obtained are generally negative, particularly in terms of public finances, with the decline in the government revenues. It should also be noted that these impacts are not large-scale, the volume of trade in goods between Algeria and the "Africa" region being relatively low.