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Abstract

Global general equilibrium simulations of “regional” (within Sub-Saharan Africa –SSA-) and “multilateral” (Doha and preferential) trade integration are compared to assess policy reform priorities. Their coherence with the objective of agriculture-led industrialization is tested. New results reveal that for SSA regional integration delivers as much as multilateral integration. Multilateral liberalization drives Sub-Saharan African countries further away from agricultural-led industrialization. On the contrary regional integration fosters the production and trade of processed agricultural products. Regional integration has heterogeneous impacts on countries in SSA and gains might be concentrated on a few countries. Accompanying redistributive policies to compensate the loosers might help bring the negotiations further.

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