On the optimality of common external tariffs in Africa: Evidence from the EAC customs union

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cg.authorship.typesCGIAR single centreen
cg.contributor.affiliationInternational Food Policy Research Instituteen
cg.contributor.crpPolicies, Institutions, and Markets
cg.coverage.regionWestern Africa
cg.coverage.regionNorthern Africa
cg.coverage.regionSub-Saharan Africa
cg.coverage.regionAfrica
cg.coverage.regionEastern Africa
cg.coverage.regionSouthern Africa
cg.coverage.regionMiddle Africa
cg.creator.identifierAntoine Bouet: 0000-0002-8020-8877
cg.creator.identifierDavid Laborde: 0000-0003-3644-3498
cg.creator.identifierFousseini Traore: 0000-0001-9352-9293
cg.identifier.projectIFPRI - Markets, Trade, and Institutions Division
cg.identifier.publicationRankNot ranked
cg.identifier.urlhttps://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=6384en
cg.reviewStatusInternal Reviewen
dc.contributor.authorBouët, Antoineen
dc.contributor.authorLaborde Debucquet, Daviden
dc.contributor.authorTraoré, Fousseinien
dc.date.accessioned2024-05-22T12:11:34Zen
dc.date.available2024-05-22T12:11:34Zen
dc.identifier.urihttps://hdl.handle.net/10568/143021
dc.titleOn the optimality of common external tariffs in Africa: Evidence from the EAC customs unionen
dcterms.abstractWe study the determination of a common external tariff for African customs unions, using the case of the EAC. We use trade and tariff data at the HS6 level and a multi-sector multi-country computable general equilibrium model with the consistent tariff aggregator. We assume that the optimal common external tariff will keep three tariff bands and the same distribution of HS6 lines in these three bands as the current distribution. The availability of detailed data allows us to keep detailed information to feed the model, and thus to make more accurate estimates. Compared to the current tariff bands, the optimal common external tariff implies less tariff dispersion and a higher average tariff. This common external tariff maximizes the total welfare of the region. The common external tariff that maximizes the welfare of each member of the region is different: larger for Kenya, the largest country in the zone, and smaller for the other countries, including Rwanda, the smallest country in the zone. The adoption of this common external tariff is a Pareto-superior reform. However, if there is perfect mobility of factors between countries in the zone, divergence of interest about optimal trade is larger: if the optimal common external tariff which maximizes regional welfare is implemented, the GDP increases in the largest country, but it decreases in the smallest countries.en
dcterms.accessRightsOpen Access
dcterms.bibliographicCitationBouët, Antoine; Laborde Debucquet, David; and Traore, Fousseini. 2021. On the optimality of common external tariffs in Africa: Evidence from the EAC customs union. Global Trade Analysis Project (GTAP). https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=6384en
dcterms.issued2021-12-31
dcterms.languageen
dcterms.publisherGlobal Trade Analysis Projecten
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll5/id/8132en
dcterms.subjectcommon marketsen
dcterms.subjecteconomic unionsen
dcterms.subjecttradeen
dcterms.subjecttariffsen
dcterms.subjectcommunitiesen
dcterms.typeConference Paper

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