Required Report - public distribution

**Date:** 11/13/2006

**GAIN Report Number:** TS6010

TS6010

**Tunisia**

**Exporter Guide**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Michael Fay

U.S. Embassy

**Prepared by:**

Abdelkarim SMA

**Report Highlights:**

All sections of the Exporter Guide report have been revised, mainly to
update economic data.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tunis \[TS1\]

\[TS\]

Table of Contents

[Section I: Market overview 3](#section-i-market-overview)

[1.1 Economic Situation 3](#economic-situation)

[1.2 Key demographic developments and their impact on consumer buying
habits
4](#key-demographic-developments-and-their-impact-on-consumer-buying-habits)

[Section II: Exporter Business Tips
6](#section-ii-exporter-business-tips)

[Section III: Market sector structure and trends
7](#section-iii-market-sector-structure-and-trends)

[Section IV: Best high-value product prospects
9](#section-iv-best-high-value-product-prospects)

[Section V: Key contacts and further information
10](#section-v-key-contacts-and-further-information)

[Exporter Guide Appendix I. Statistics
12](#exporter-guide-appendix-i.-statistics)

[Table A: Key Trade & Demographic Information
12](#table-a-key-trade-demographic-information)

[Table B. Consumer Food & Edible fishery product imports
13](#table-b.-consumer-food-edible-fishery-product-imports)

[Table C. TOP 15 Suppliers of Consumer Foods & Edible Fishery products
14](#table-c.-top-15-suppliers-of-consumer-foods-edible-fishery-products)

# Section I: Market overview

## 1.1 Economic Situation

The Tunisian economy, unlike many other Arab oil-based economies, hinges
on a set of diversified sectors (agriculture, manufacturing and
services) and shows a steady growth at roughly 5 percent a year fueled
by sound market-driven economic reforms launched in the late 80's.
Tunisia, whose economic performance is very often hailed[^1] as a model
for other African and Middle Eastern countries, is well anchored in the
'middle-income' category of nations.

Nevertheless, the Tunisian economy remains fragile to both endogenous
and exogenous shocks. In 2005, GDP advanced by 4.2 percent as the
Tunisian economy experienced a slowdown ascribed to soaring oil prices
and to greater export competition in the textile sector on the European
market, the country's major trade and investment partner, due to the
dismantling of Multi-fiber agreement. In 2006, the economy recovered
noticeably, thanks, in part, to a good agricultural season and is likely
to post a growth in excess of 5.3 percent. The outlook for 2007 is also
favorable as GDP growth is set to reach 6 percent. So far, inflation has
also been kept within sound limits. But soaring prices for oil and other
international commodities pushed the consumer price index to a new high
of 4.7 percent. In September 2006, The Tunisian Central Bank raised its
bid interest rate by 0.25 percent to contain inflation.

Agriculture plays a major role in Tunisia. Approximately one-fifth of
the workforce is engaged in agriculture, which contributes nearly 12 to
13 percent of the GDP and up to 10 percent of the overall export of
goods. In 2005, Tunisia exported nearly \$ 1.117 billion worth of
agricultural products, mainly olive oil, citrus, dates and seafood.

The majority of Tunisian farmers grows basic rain-fed food grains (wheat
and barley) and faces highly variable production due to intermittent
droughts. Irrigated horticulture is well developed but must be
supplemented, from time to time, with imports to attain a sufficient
domestic supply. Tree farming (olive, citrus and dates) is
export-driven.

Tunisia is a net importer of agricultural products. In 2005, Tunisia
imported agricultural products valued at 1.627 billion Tunisian Dinars
(equivalent to nearly \$ 1.251 billion). About 10 percent of this total
is sourced from the United States.

So far, major goods imported into Tunisia from the United States remain
bulk commodities such as wheat, corn and some intermediate products such
as soybean meal and planting seeds. Although relatively high customs
duties[^2] are levied on most of the consumer-oriented food products,
export opportunities do exist as the Tunisian consumer is becoming more
sophisticated thanks to a greater disposable income and to an increasing
exposure to western-style consumption habits.

The U.S. market share has real room for growth despite a price
competitiveness gap with the EU caused by substantially higher freight
costs and preferential access granted to the EU following the free trade
agreement[^3] enactment in the mid 90's.

In addition, the establishment of the Greater Arab Free Trade Area
(GAFTA) in January 2005 has significantly altered market access for
consumer-oriented products. Tunisia and 17 other Arab countries agreed
to grant mutual zero-duty status for several products including
consumer-oriented products. Although the GAFTA is expected to
significantly increase the inter-Arab trade of goods including
agricultural goods, it is too early to determine whether it will be a
trade -creating or simply a trade-diverting free trade agreement.

## 1.2 Key demographic developments and their impact on consumer buying habits

Tunisia has a population of nearly 10 million, growing at a very low
rate (only 1.11 percent in 2005). Two-thirds of the inhabitants live in
urban cities and nearly one-fifth is living in the Greater Tunis
metropolitan area. The population enjoys a relatively good social
welfare, with ready access to education and health services. Women enjoy
equal status to men and make up a sizeable part of the work force.

Tunisians enjoy relatively high per capita revenue. It reached nearly \$
2,900 in 2005 at current prices, equivalent to a purchasing-power parity
(PPP) of nearly \$ 8,300 (2005 estimate). This PPP level is the among
highest[^4] in Africa

Data collected by the latest census conducted in 2004 put the total
household count at around 2.2 million. Data from the Household
Consumption Survey conducted in 2005 by the INS (Institut National des
Statistiques) have not been released yet. But it is widely expected that
it will confirm the trend set by the 2000 survey according to which food
annual spending accounted for nearly 40 percent of overall household's
expenditures. However, urban households spend nearly 65 percent more
than rural households.

Tunisia has a relatively large middle class, which represents 80 percent
of the entire population.

The typical Tunisian diet relies on staples such as couscous, the famous
dish of North Africa made from durum wheat. Pasta and olive oil are also
popular as Tunisian cuisine is, to a certain extent, influenced by
Italy, its closest European neighbor. Seafood is a mainstay of the
Tunisian diet. Tunisians like their food hot and spicy.

+-----------------------------------+-----------------------------------+
| #### Advantages                   | #### Challenges                   |
+-----------------------------------+-----------------------------------+
| #### A relatively                 | #### High tariffs lev             |
|  high household disposable income | ied on consumer-oriented products |
+-----------------------------------+-----------------------------------+
| #### US food pro                  | #### Enac                         |
| ducts' quality is well perceived  | tment of the Greater Arab Free Tr |
|                                   | ade Area (GAFTA) in January 2005  |
+-----------------------------------+-----------------------------------+
| #### A favorable US doll          | #### H                            |
| ar exchange rate against the Euro | igher freight cost as compared to |
|                                   |  goods sourced from nearby Europe |
+-----------------------------------+-----------------------------------+
| #### An increasing sophi          | #### Lack of awarenes             |
| stication of the consumption patt | s of US food products' brand name |
| erns driven by modern food retail | s compared to the European brands |
+-----------------------------------+-----------------------------------+

######### 

######### 

#########  

# 

# Section II: Exporter Business Tips

Doing business in Tunisia very often needs direct interaction with
customers or at least via a local agent who serves as a trade
facilitator and sometimes as an interpreter. The official language is
Arabic, and the second language is French. Although Tunisian businessmen
perceive U.S. agricultural goods as of high quality, some of them are
reluctant to pay substantial premiums, as price remains the most
determining factor. So people embarking on business in Tunisia should be
prepared for relatively demanding price negotiations.

Business etiquette is quite similar to western countries. The Tunisian
weekend is Saturday and Sunday. During the holy fasting month of Ramadan
the workday is shorter and it is advisable to be concise and to avoid
having lengthy discussions or meetings. When invited into someone's home
to share the Iftar meal (the meal marking the end of fast at sunset), it
is common for guests to bring a small gift as a token of appreciation.

Commercial advertising is well developed in Tunisia with TV channels and
newspapers providing the most sought-after vehicles for ads. Posters,
lotteries and event sponsorships are also very common. Tunisians,
especially those with high income, like to buy brands/trademarks having
a 'western look' seen in foreign satellites TV commercials and in
foreign newspapers ads.

According to the Consumer Protection Law of 1992, labeling should be in
Arabic in addition to other languages (mainly French and English), and
measurements must be in the metric system. Food packaging materials must
meet Tunisian standards and bear a food grade international logo (Decree
\# 2003-1718 of August, 2003).

Food standards are in general similar to those prevailing in developed
countries as Tunisia is heavily relying on Codex alimentarius standards
when setting its own food safety measures.

In addition to phytosanitary and sanitary certificates, the majority of
consumer-oriented food products are subject to a technical quality
control prior to customs clearance, as mandated by decree \# 94-1744
dated August 1994. Importers must apply for a document called
Autorisation de Mise a la Consommation (AMC). In order to expedite
customs clearance, the importer is entitled to a temporary document
called Autorisation Provisoire d'Enlevement (APE), pending dossier
instruction but must refrain from distributing or further processing the
imported good until the AMC is delivered by the Ministry of Commerce,
Directorate of Quality and Consumer Protection.

In order to comply with the technical control requirements, an
application form has to be submitted along with the following documents:

1.  Import certificate coupled with commercial invoice

2.  Certificate of origin

3.  Packing list

4.  Bill of lading

5.  Technical notice

6.  Other document (s) at the discretion of the Authorities

Tunisian currency, the Dinar, is not fully convertible. The Tunisian
banking system is strictly supervised by the Central Bank of Tunisia,
which has several restrictions on capital outflows. However, the Dinar
is convertible for trade and investment transactions. The Government of
Tunisia is carrying out reforms aimed at the full convertibility,
although the latter is most likely still far away.

Supply of short-term commercial credit generally exceeds demand. USDA's
Export Credit Guarantee Programs are available. In FY 07, an allocation
of \$ 20 million under GSM 102 was announced for Tunisia.

# Section III: Market sector structure and trends

According to the latest National Statistics Institute's (INS) survey
conducted in 2000, Tunisians spend on food nearly 6.5 billion TD a year
(nearly \$ 5 billion), mainly to purchase staples like bread, pasta,
semolina, cooking oil and dairy products. Other items that used to be
considered luxury goods, such as salty and sweet snacks, fruit juices or
fresh fruits are increasingly popular.

The retail sector (food and non-food) is boasting an annual growth rate
of 6 percent outpacing GDP growth rate The food retail sector is
gradually shifting from traditional distribution patterns based on small
neighborhood shops carrying limited assortments (a few dozens of food
items) to modern distribution based on supermarkets displaying wider and
deeper food assortments. Modern distribution commands nearly 15 percent
of total retail sales. Fresh fruit and vegetables as well as fishery
products are sold either in souks (open markets) or in specialized small
shops.

Currently, the country has only about 210 modern food retail outlets: 2
hypermarkets, 120 supermarkets and 100 superettes, self-service food
outlets with a selling area of less than 500 sq meters.

The major retail players[^5] are posting double-digit revenue growth.
French supermarkets, such as Carrefour and Casino are already present in
Tunisia, along with Tunisian retailers such as Magasin General and
Monoprix. More foreign retailers are expected to enter the market in the
medium run enticed by a sector poised to expand more aggressively over
the next decade, displacing traditional shops and capturing an estimated
30 percent of the overall food retail market. A higher disposable income
due, in part, to an increasing number of households with dual income,
increased urbanization and increased exposure to western lifestyles are
all factors underpinning this ongoing reshape of the Tunisian food
retail landscape.

The stocking of shelves at the supermarkets and hypermarkets levels is
done through two channels: either through importers or directly by the
retailer himself using its own local and international procurement
subsidiaries, the so-called 'Centrale d'achats'. Small grocery stores
source their goods from wholesalers for the large part of their
assortment and from certain importers having their own distribution
fleet to supply goods at the retail level.

In Tunisia, the Hotel and Restaurant Industry (HRI) is not perceived as
a separate market, for most hotels and restaurants source their food
needs either through annual tenders or using the same distribution
channels as households. In addition to domestic customers, this sector
caters to more than 5 million tourists visiting Tunisia each year.
High-end hotels do import spirits, wines and specialty cheese either
directly or via import companies.

The food processing sector demand for imported high-value ingredients is
steadily increasing, with more sophisticated products licensed by
multinational food companies (Nestle, Danone).

The following table gives indications about the number of food
processing companies broken down by main sub-sectors. For each
sub-sector there are off-shore companies whose operations are geared
toward export and on-shore companies, i.e. those working mainly for the
domestic market.

  --------------------- ------------- ----------------- -----------------
  Activity              Off-shore     On-shore          Total
                        companies     companies         

  Oils and fats         8             257               265
  industries                                            

  Fruits and vegetables 7             52                59
  industries                                            

  Cold storages         41            67                108
  facilities                                            

  Seafood industries    39            30                69

  Cereals and           5             284               289
  derivatives                                           
  industries                                            

  Beverage industries   5             46                51

  Dairy industries      \-            37                37

  Sugar and             2             29                31
  confectionary                                         
  industries                                            

  Meat industries       1             23                24

  Other food processing 16            58                74
  industries                                            

  **Total**             **124**       **883**           **1007**
  --------------------- ------------- ----------------- -----------------

Source: Industry Promotion Agency-April 2005

The best market entry approach for new-to-market exporters is to try to
identify a suitable importer, i.e., an importer with experience in
handling the targeted products. U.S. exporters are encouraged to check
the credentials of the importer. Another alternative could be to contact
retailers directly, as some of them have subsidiaries dealing with local
and international procurement. The USDA/FAS office in Tunisia is able to
help match new-to-market exporters with appropriate potential business
partners or to conduct specially tailored inquiries for U.S. companies
seeking to conduct business in this emerging market.

# Section IV: Best high-value product prospects

Owing to an expanding middle-class and the consequent change of both
consumption patterns and distribution channels, the Tunisian market is
evolving in a way creating real export opportunities for value-added
consumer-oriented products (COP).

The following consumer-oriented products are prospected to perform best
in the Tunisian market: Tree nuts, dried fruits, cookies, sauces,
condiments and mixed seasoning and breakfast cereals.

# Section V: Key contacts and further information

The Office of Agricultural Affairs (OAA) at the American Embassy is the
USDA/FAS office in Tunisia. It provides trade servicing and market
intelligence. Services offered by OAA include market briefings, lists of
importers, setting up agendas and meetings.

**US Embassy/ USDA-Foreign Agricultural Service Contacts**

##### Michael FAY, Regional Agricultural Attaché (based in Morocco)

E-mail: <Agrabat@usda.gov>

Phone : 212 3 776 5987

Fax  : 212 3 776 5493

##### Abdelkarim SMA, Agricultural Specialist

E-mail: [abdelkarim.sma@usda.gov]{.underline}

[Agtunis@usda.gov]{.underline}

Phone: 216 71 107 486

Fax  : 216 71 107 101

Adresse : Zone Nord-Est des Berges du Lac, Nord de Tunis, 2045 La
Goulette, Tunisia

**[Other Contacts :]{.underline}**

> **Directorate General for Veterinary services (DGSV**)
>
> Ministry of Agriculture, Environment and Hydraulic Resources
>
> 30, rue Alain Savary, 1002, Tunis, Tunisia
>
> Phone: 216 71 786 833
>
> E-mail: : <mag@ministeres.tn>
>
> **Directorate General for Crop Protection and Quality of Agricultural
> Products** **(DGPCQPA)**
>
> Ministry of Agriculture, Environment and Hydraulic Resources
>
> 30, rue Alain Savary, 1002, Tunis, Tunisia
>
> Phone: 216 71 786 833
>
> E-mail: : <mag@ministeres.tn>
>
> **Directorate of Quality and Consumer Protection (DQPC)**
>
> Ministry of Commerce
>
> Adresse : 37, av. Keireddine Pacha, 1002 Tunis\
> Phone : (216) 71 890-070 / 890 337\
> e-Mail : <mcmr@ministeres.tn>
>
> **Institut National de Normalisation et de Propriété Industrielle
> (Innorpi)**
>
> Standards setting and intellectual property enforcement authority
>
> BP 23 - 1012 Tunis Belvédère
>
> Phone: 216 71 785 922

######### Fax: 216 71 781 563

> E-mail: inorpi@email.ati.tn
>
> **Institut National des Statistiques (INS)**
>
> Trade and demographic statistics
>
> Phone: 216 71 891 002
>
> Fax (216) 71 792 559
>
> E-mail E-mail : [INS@mdci.gov.tn]{.underline}
>
> [**http://www.ins.nat.tn**](http://www.ins.nat.tn/)
>
> **[Other relevant websites]{.underline}**

-   [www.cepex.nat.tn](http://www.cepex.nat.tn/): The website of the
    Cepex (Export promotion agency) which has the full list of has le
    list of the domestic and international trade shows of interest for
    Tunisian businessmen

-   [www.Tunisie-commerce.com](http://www.Tunisie-commerce.com/): A
    directory of trade Tunisian companies

-   [http://www.tunisianindustry.nat.tn](http://www.tunisianindustry.nat.tn/):
    the website of the Industry promotion agency

-   [www.bct.gov.tn](http://www.bct.gov.tn/): The website of the
    Tunisian Central bank

-   [www.smg.com.tn](http://www.smg.com.tn/): the website of the leading
    Tunisian retailer: Magasin General

-   [www.TunisiaOnline.com](http://www.TunisiaOnline.com/): a digital
    gateway to news and information\
    resources on Tunisia, Tunisia\'s history, government, culture and
    environment.

# Exporter Guide Appendix I. Statistics

## Table A: Key Trade & Demographic Information

+---------------------------------+------------------+----------------+
| Agricultural Imports From All   | 1153             | 10 percent     |
| Countries(\$mil) / US Market    |                  |                |
| Share (%)                       |                  |                |
|                                 |                  |                |
| (average of 2003/2004/2005)     |                  |                |
+---------------------------------+------------------+----------------+
| Consumer Food Imports From All  | 472              | Less than 1    |
| countries (\$ mil) / US market  |                  | percent        |
| share (%)                       |                  |                |
|                                 |                  |                |
| (Average of 2003/2004/2005)     |                  |                |
+---------------------------------+------------------+----------------+
| Edible Fishery Imports from All | 39.4             | 0              |
| countries (\$mil)/ US market    |                  |                |
| Share                           |                  |                |
|                                 |                  |                |
| \(2005\)                        |                  |                |
+---------------------------------+------------------+----------------+
| Total Population (millions)/    | 10,029 (2005     | 1.11 percent   |
| Annual Growth Rate (%)          | estimate)        |                |
+---------------------------------+------------------+----------------+
| Urban Population (millions)/    | 6490 (2004)      | 1.83 percent   |
| Annual Growth Rate (%)          |                  |                |
+---------------------------------+------------------+----------------+
| Number of Major Metropolitan    | 1                |                |
| Areas                           |                  |                |
+---------------------------------+------------------+----------------+
| Size of the Middle Class        | 8 (2004          | 1.0 percent    |
| (millions)/ Growth rate         | estimate)        |                |
+---------------------------------+------------------+----------------+
| Per capita Gross Domestic       | 2,906            |                |
| Product (U.S. Dollars), 2005    | (equivalent US   |                |
|                                 | dollars at       |                |
|                                 | current prices)  |                |
+---------------------------------+------------------+----------------+
| Unemployment rate (%)           | 14.2 (2005)      |                |
+---------------------------------+------------------+----------------+
| Per capita Food Expenditures    | 970 (in 2000)    |                |
| (U.S. Dollars)                  |                  |                |
+---------------------------------+------------------+----------------+
| Percent of Female Population    | 24.3 (2005)      |                |
| Employed                        |                  |                |
+---------------------------------+------------------+----------------+
| Exchange Rate                   | 1.298 TD for \$  |                |
|                                 | 1.0 (2005        |                |
|                                 | average)         |                |
+---------------------------------+------------------+----------------+

## 

## Table B. Consumer Food & Edible fishery product imports

  --------------------------- ----------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- ----------
  **Tunisia Imports**         **Imports                         **Imports                         **U.S                 
                              from the                          from the                          Market                
                              World**                           U.S.**                            Share**               

  **(In Millions of                                                                                                      
  Dollars)**                                                                                                            

                              **2002**    **2003**   **2004**   **2002**    **2003**   **2004**   **2002**   **2003**   **2004**

                                                                                                                         

                                                                                                                        

                                                                                                                        

  **CONSUMER-ORIENTED         **116**     **132**    **199**    **3**       **3**      **2**      **3**      **2**      **1**
  AGRICULTURAL TOTAL**                                                                                                  

                                                                                                                         

  Snack Foods (Excl. Nuts)    4           4          5          0           0          0          0          0          0

  Breakfast Cereals & Pancake 1           1          1          1           0          0          7          0          0
  Mix                                                                                                                   

  Red Meats,                  0           4          27         0           0          0          0          0          0
  Fresh/Chilled/Frozen                                                                                                  

  Red Meats,                  1           1          1          0           0          0          0          0          0
  Prepared/Preserved                                                                                                    

  Poultry Meat                1           1          1          0           0          0          0          0          0

  Dairy Products (Excl.       20          29         40         0           0          1          0          0          0
  Cheese)                                                                                                               

  Cheese                      7           8          10         0           0          0          0          0          0

  Eggs & Products             2           3          3          1           1          1          0          0          0

  Fresh Fruit                 5           5          16         1           0          0          0          0          0

  Fresh Vegetables            18          17         22         0           0          0          0          0          0

  Processed Fruit &           7           6          10         1           1          1          6          8          0
  Vegetables                                                                                                            

  Fruit & Vegetable Juices    3           3          3          0           0          0          0          0          0

  Tree Nuts                   3           5          6          1           1          1          27         27         12

  Wine & Beer                 1           1          1          0           0          1          0          0          0

  Nursery Products & Cut      3           4          6          1           1          1          0          0          0
  Flowers                                                                                                               

  Other Consumer-Oriented     41          43         49         2           1          1          5          2          3
  Products                                                                                                              

                                                                                                                        

                                                                                                                        

  **FISH & SEAFOOD PRODUCTS** **19**      **36**     **29**     **1**       **1**      **1**      **0**      **0**      **0**

  Salmon                      1           1          1          1           0          0          1          0          0

  Surimi                      0           0          1          0           0          0          0          0          0

  Crustaceans                 1           1          1          0           0          0          0          0          0

  Groundfish & Flatfish       1           2          2          0           1          0          0          1          0

  Molluscs                    1           1          1          1           0          0          5          0          0

  Other Fishery Products      16          32         25         0           1          1          0          0          0

                                                                                                                        

  **AGRICULTURAL PRODUCTS     **993**     **858**    **1021**   **121**     **64**     **79**     **12**     **7**      **8**
  TOTAL**                                                                                                               

  **AGRICULTURAL, FISH &      **1128**    **1020**   **1189**   **121**     **64**     **80**     **11**     **6**      **7**
  FORESTRY TOTAL**                                                                                                      

                                                                                                                        

  Source: FAS\' Global                                                                                                  
  Agricultural Trade System                                                                                             
  using data from the United                                                                                            
  Nations Statistical Office                                                                                            
  --------------------------- ----------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- ----------

## 

## Table C. TOP 15 Suppliers of Consumer Foods & Edible Fishery products

  ---------------------------------------------- ------------- ------------- -------------
  **Tunisia Imports**                                                        

  CONSUMER-ORIENTED AGRICULTURAL TOTAL (\$                                   
  1,000)                                                                     

                                                 **2002**      **2003**      **2004**

  France                                         26,112        35,035        49,324

  Germany                                        3,268         10,585        31,462

  Netherlands                                    18,079        17,733        23,053

  Egypt                                          15,507        14,224        20,406

  Ecuador                                        3,868         3,858         13,498

  Spain                                          7,745         7,216         7,367

  Ireland                                        442           866           6,512

  Belgium                                        5,956         6,311         6,456

  Turkey                                         1,618         4,478         6,292

  Morocco                                        7,390         7,147         6,038

  Italy                                          3,129         4,669         4,866

  Denmark                                        2,669         2,238         2,008

  **United States**                              **3,387**     **2,780**     **1,974**

  Austria                                        2,611         1,670         1,938

  Australia                                      1,725         1,828         1,836

  Other                                          12,728        10,895        16,019

  **World**                                      **116,232**   **131,555**   **199,060**
  ---------------------------------------------- ------------- ------------- -------------

Source: FAS\' Global Agricultural Trade System using data from the
United Nations Statistical Office

[^1]: In the 2004 edition of the "Africa Competitiveness Report"
    published by the World Economic Forum, Tunisia ranked second to out
    of 25 African countries in the overall growth competitive index.

[^2]: Processed foods are taxed at relatively high levels: 73 percent
    for juices, and 73 to 150 percent for some bakery products. A tariff
    escalation scheme whereby tariffs on processed products are
    generally higher than tariffs on primary commodities is also in
    place and reflects efforts to protect the domestic food-processing
    sector

[^3]: Tunisia was the first country (July 1995) to sign an Association
    Agreement with the EU, which implies a free trade area to be
    gradually reached over a 12-year transition period.

[^4]: According to the World Development Indicators database, World
    Bank, July 2006

[^5]: The major players in modern food retailing are: Group UTIC
    (Carrefour hypermarket and Champion supermarket fascias licensed by
    the French retailer Carrefour), Group Mabrouk (Geant hypermarket and
    Monoprix supermarket fascias licensed by the French retailer
    Casino), Magasin General, a state-owned supermarket chain,
    Promogros, a privately owned supermarket chain, and Bonprix, a chain
    of superettes