The new economic policy in Senegal aims to increase income of the poor and reduce its incidence. Poverty reduction strategy will be implemented in the context of trade liberalization in the agricultural sector. In the paper we develop a microsimulation computable general equilibrium model to analyze the distributional impact of economic reforms. This approach offers a good framework to link economic policies with poverty and inequality indices. Our results reveal negative impact of increases in world prices of agricultural imports. Policies targeting an increase in the productivity of farmers favor urban households over rural households. The results obtained from our model proposed herein reveal the importance of incidence analysis when policy makers design targeting policies.