Abstract:
This study estimates the potential implications of the implementation of African
Continental Free Trade Area (AFCFTA) Agreement for Ghana in terms of trade,
welfare and revenue effects. By applying the WITS-SMART simulation model on
2018 disaggregated international trade data, the paper finds that total trade effects
in Ghana are likely to surge by US$ 148.3 million while promoting consumers' welfare
by US$ 8.597 million. However, revenue losses are imminent as the country might
experience a drop in tariff revenue of US$ 8.604 million. Overall, the free trade area
is expected to improve on the country's trade balance as exports are envisaged to
outweigh imports. In order to mitigate the revenue losses, the paper recommends
that the country keep substantial portion of tariff lines for sensitive and excluded
products over a longer period during the liberalization
