AFRICAN JOURNAL OF ECONOMICS AND FINANCIAL ISSUES

In this article, we have modelled the impact of the application of trade measures for the development of product processing in Senegal using a Computable General Equilibrium Model (CGEM). Intermediate business consumption was modified to assess one of the objectives of the ECOWAS milk offensive, namely the application of a CET on the main products that compete with local dairy products. It emerged that the application of a 35% CET on fresh milk, milk powder and cheese would lead to an increase in the value added of the livestock sector, higher government revenue and a moderate reduction in poverty, as well as in the depth and severity of the problem. As far as liberalization (SIM 4) of dairy products is concerned, this option is favorable to private investment and would reduce the prices of fresh milk, milk powder and cheese, which could be beneficial to households but not to the livestock sector, which saw its value added decline over the period studied. Moreover, it has little capacity to have a positive impact on poverty, even if it does not worsen it either.

Keywords: senegal, dairy products, common external tariff, liberalization, MEGC
JEL Classification: Q13, F13, C68, O55, Q18