Assessing Algeria’s Trade Performance within the African Continental Free Trade Area: Indicators-Based Approach

Abstract

In the evolving economic and geopolitical landscape, regional integration serves as a strategy for countries to enhance global influence and optimise trade relations. The present study assesses the impact of trade liberalisation under the African Continental Free Trade Area (AfCFTA) on Algeria’s exports, contributing thus to the debate on the potential effects of trade agreements involving developing countries. The study relies on official data gathered from international institutions to compute essential trade indicators, particularly those related to concentration and regional orientation. Our analysis enabled us to categorise products based on the possible effects they are likely to encounter. The results show that only four natural resource-based products will continue to enjoy a trade expansion. More importantly, a large number of non-hydrocarbon products are not likely to increase despite tariff reductions. According to our findings, the effects of the AfCFTA on trade creation are limited. The analysis revealed that Algeria currently lacks the essential prerequisites for a successful integration into the African market. To facilitate its integration process, a series of complementary measures must be implemented.

Keywords

• african integration
• algeria
• regional orientation
• trade creation
• trade liberalisation