WT/TPR/S/152 Trade Policy Review 
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 IV. ANALYSIS OF TRADE POLICY AND PRACTICE, BY SECTOR 
(1) INTRODUCTION  
1. Thanks to its climate, Tunisia enjoys comp arative advantages for the production of several 
agri-food products, such as olive oil, harissa, and da tes, of which it is one of the world's leading 
exporters.  Fishing is another im portant sub-sector, currently undergoing restructuring following the 
depletion of fish stocks.  For reasons of food sel f-sufficiency, livestock breeding and cereal growing 
are encouraged by means of investment subsidi es, price controls and trading monopolies.  Most 
imported agri-food products are subject to very  high customs duties and complex technical 
regulations, which, for a number of products, have  not sufficed to discourage the demand for imports. 
2. Tunisia is now facing the prospect of a substan tial adjustment of its manufacturing sector.  It 
is losing its share of the European textiles and cl othing market which, up to 2005, was protected by 
import quotas;  in 2003, the textiles and clothing industries accounted for about one-fifth of the total value of Tunisian exports of goods and services.  In other manufacturing activities, the maintenance of 
export production will depend on the capacity of ente rprises to specialize in activities in which they 
are truly competitive, in the new context of free trad e with the European Union.  Growth is currently 
centred on headlamps and automotive components in gene ral, thanks to the proximity of the European 
motor vehicle market for which many Tunisian enterprises subcontract.  Some industries, particularly in the chemicals, wood, household appliance and consumer electronics sectors, have been established 
on the basis of the import substitution model a nd have not been exposed to competition. 
3. Trade policy on services is being progressively liberalized.  Substantial amounts of hard-
currency earnings are currently being derived from services such as tourism, health and wellbeing, 
medical, and engineering and accounting services.  However, the principal infrastructure services, such as energy (distribution of petroleum products , gas and electricity), telecommunications, postal 
and courier services, and financial services, have been opened up to competition only to a very limited 
extent.  Nevertheless, these services are essential to the performance of other sectors downstream.  
Significant liberalization in this area will produce mu ltisectoral effects by improving the quality-price 
ratio of the services offered to user industries. 
(2)  A
GRICULTURE AND RELATED ACTIVITIES  
(i) General 
4. Tunisia has 5 million hectares of arable land (30.5 per cent of the country's total area).  
Cereals are grown on about 1.5 million hectares of la nd exposed to sharp fluctuations in climatic 
conditions.  Olive trees occupy 1.6 million hectares and market garden crops about 150 000 hectares.  
In addition, 5.5 million hectares are covered by forests or pasture. 
5. The agricultural sector employs more than 16 per cent of the labour force (22 per cent in 
1994), contributes about 13 per cent to GDP, and provides almost one-third of Tunisians with a supplementary income.  Livestock farming (meat, mi lk and eggs) contributes 37 per cent to the value 
of agricultural production;  arboriculture (inc luding olive trees) contributes 27 per cent; cereal 
growing and market garden crops account for 15 per cent each; and fishing for 7 per cent.
1 
6. Since the beginning of the 60s, the agricultural sector has experienced remarkable growth at 
the rate of 3.6 per cent a year in real terms.  Th e reasons for this performan ce include the introduction 
                                                      
1 Ministry of Agriculture (1995). Tunisia WT/TPR/S/152 
 Page 71 
 
 
 of new seeds and high-yield plants, the diversifica tion of agricultural output, and a tripling of the 
irrigated area, from 120,000 hectares in 1970 to 400,0 00 hectares in 2005 (7 per cent of the cultivated 
area).  The agricultural sector, includi ng fishing, now employs 16.3 per cent of the total labour force, 
as compared with 21.9 per cent in 1994.2 
7. Since the 80s, rural development policy has emph asized and protected small farms.  Because 
farms are continuously being divided up, more than half consist of l ess than 5 hectares each and cover 
only 9 per cent of the agricultural land.  At the sa me time, large (private) agricultural development 
companies have been set up on former public lands:  1 per cent of farmers ma nage farms of at least 
100 hectares each, adding up to more than a quarter of the agricultural land. 
8. According to a 1997 study by the FAO, erosion is very severe and almost half the productive 
soil show signs of loss of fertility;  desertification is  advancing in the centre and south of the country;  
overexploitation of plant r esources, combined with inappropriate farming practices, is said to be 
responsible.3  The authorities are currently pursuing a policy of raising awareness of the problems of 
the degradation of natural resources and encouraging the creation of public interest associations for 
the management and exploitation of the water resour ce infrastructure and the forests and pasture land 
and for soil conservation. 
9. According to the legislation in force, agricu ltural enterprises and fishing companies must be 
established under Tunisian law and be headed by Tunisians; however, foreigners may hold up to 
66 per cent of the equity in these companies.  In no circumstances may investment involve the 
appropriation of farmland by foreigners; investment does not require prior authorization, but it must 
be declared to the Agence de promotion des investissements agricoles  (APIA – Agricultural 
Investment Promotion Agency).  Fishing is subject to  authorization by the Ministry responsible for the 
sector. 
10. Foreign companies are present in the agri-food sector, which is open to foreign investment;  
their main branches of activity are olive oil, m ilk and milk-based products, beverages, tobacco, 
seafood, fruit and vegetable processing, cooking salt, a nd meat and meat products.  According to the 
authorities, Tunisia has a comparative advantag e for these products, as well as for durum wheat, 
certain fresh fruits and vegetables, and animal pr oducts, whose competitiveness should improve if the 
distortions created by subsidies and other support provided by exporting countries are eliminated. 
11. Tunisia is one of the group of "net food-importing developing countries" concerned by the 
Marrakesh Ministerial Decision on measures concerni ng the possible negative effects of the reform 
programme.4  In particular, it imports wheat and maize (corn), vegetable oil, soya cake, and sugar 
(Table IV.1).  Since 2000, the FAO has no longer b een recording food aid for Tunisia, in view of its 
level of economic development.5 
                                                      
 2 Statistiques économiques et sociales de Tunisia .  Available at:  http://www.ins.nat.tn/_private/idc/page01010.idc. 
 3 FAO (1997). 
4 WTO document G/AG/R/33, 7 January 2003. 
5 WTO document G/AG/W/42/Rev.5, 8 November 2002. WT/TPR/S/152 Trade Policy Review 
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 Table IV.1 
Principal agricultural products, 1998-04 
 1998 1999 2000 2001 2002 2003 2004 
 (millions of US dollars) 
Trade balance        
   Agricultural products -472 -152 -327 -392 -631 -496 .. 
Total imports 910 749 756 846 1,022 966 .. 
   Wheat 217 133 161 198 265 221 .. 
   Soya oil 97 72 49 32 76 103 .. 
   Maize (corn) 58 74 75 91 103 79 .. 
   Soya cake 52 42 54 57 71 62 .. 
   Refined sugar 60 44 31 33 54 43 .. 
   Maize (corn) oil 8 14 11 8 17 38 .. 
   Barley 12 18 44 68 87 33 .. 
   Cigarettes 32 26 23 25 26 31 .. 
   Spun sugar, raw 29 23 23 22 24 25 .. 
   Cotton fibre 40 22 36 38 25 25 .. 
   Food preparations, n.e.s. 18 19 14 24 24 23 .. 
   Tobacco, non-manufactured 31 20 15 22 15 18 .. 
   Potatoes 31 20 15 22 15 18 .. 
   Tea 22 18 18 20 15 11 .. 
Total exports 438 598 429 454 391 470 .. 
   Olive oil 187 321 193 139 39 89 .. 
   Dates 61 47 39 73 69 74 .. 
   Maize (corn) oil 11 20 17 8 30 52 .. 
   Cigarettes 38 29 22 30 22 31 .. 
   Macaroni 7 7 7 8 15 22 .. 
   Food waste 0 0 1 7 12 17 .. 
   Distilled alcoholic beverages 11 11 7 12 8 12 .. 
   Non-alcoholic beverages 2 4 5 4 12 12 .. 
   Maize (corn) 0 0 6 9 9 11 .. 
   Red pepper, all-spice 4 5 4 5 6 10 .. 
Production (thousands of tonnes) 
   Milk, whole, fresh 720 803 870 916 927 872 864 
   Olives 465 914 1,139 566 162 370 1,414 
   Tomatoes 663 930 950 750 810 880 970 
   Wheat 1,353 1,397 842 1,118 422 1,983 1,722 
   Poultry meat 74 81 87 91 90 95 105 
   Sheep meat 43 46 47 49 51 45 45 
   Bovine meat 46 50 52 52 56 50 46 
   Hen's eggs (millions) 1, 407 1,523 1,476 1,434 1,487 1,390 1,475 
   Peppers 189 185 190 214 242 247 255 
   Grapes 105 130 141 121 113 107 120 
   Potatoes 295 320 290 330 310 310 375 
   Watermelons and melons 300 350 370 380 411 395 450 
   Dates 103 103 105 105 115 111 122 
   Barley 303 408 241 233 90 914 618 
Table IV.1 (cont'd)  Tunisia WT/TPR/S/152 
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  1998 1999 2000 2001 2002 2003 2004 
   Peaches and nectarines 65 70 73 75 82 92 100 
   Apples 83 97 108 108 100 99 121 
   Turkey meat 16 18 21 25 23 23 28 
   Citrus fruit, n.e.s. 229 211 226 240 240 224 209 
   Onions and shallots 270 241 272 259 257 241 190 
.. Not available.  
Source:  For trade:  FAO, on-line information.   Available at:  http://www.fao.org/es /ess/toptrade/trade.asp.  For production 
 data:  Ministry of Agri culture and Water Resources.  
(ii) Agricultural policy 
12. The evolution of Tunisian agriculture reflects a sustained commitment by the Government, in 
the course of the last three decades, involving public  investment in the infr astructure, subsidies for 
private investment, price stabilization, training and extension, and import protection in the interests of rural development, food security and self-sufficiency, and social stability.  The implementation of the 
Structural Adjustment Programme for the Agri cultural Sector, between 1986 and 1996, began the 
liberalization of Tunisian agriculture, the impr ovement in the competitiveness of the agri-food 
industries and their adaptation to the qualitative and sanitary requirements of the international 
markets.  With the exception of  wheat, agricultural production activities have been substantially 
liberalized; input and interest rates subsidies have  been practically eliminated; the price of water 
continues to be adjusted; and the marketing boards have partially lost their monopolies. 
13. The tax benefits conferred by the Investment  Incentives Code to encourage agricultural 
development include the deduction of the amounts invested from taxable profits; exemption from 
customs duties and the suspension of VAT and cons umption tax due on imports of capital goods for 
which there are no locally manufactured equivalent s; the suspension of VAT on locally manufactured 
capital goods; and the exemption of the investment from income tax for ten years.  The financial 
benefits include an (investment) subsidy of 7 per cent of the cost of the investment (maximum 
300,000 dinars); another subsidy of 1 per cent of th e total cost of the investment with a ceiling of 
5,000 dinars as the State's contribution to project d esign costs; an (investment) subsidy of 20 per cent 
of the investment cost (maximum 300,000 dinars) fo r operations connected with the installation of 
ice-making facilities in ports which lack them, and for fish (sardine and the like) processing and 
freezing projects in the Governorates concerned. 
14. In addition to the border measures described be low and subsidized consumer prices (cereals 
and oils), the main forms of intervention are gua ranteed prices for producers and buffer stocks 
(cereals).  Wholly and partly state-owned ente rprises are still active in international trade, in 
particular, in grain and sugar (imports) and ol ive oil and wine (exports) (Chapter III(4)(iii)). 
15. Customs duties are very high on most agricultural goods that compete with domestic 
production (Chart IV.1 and Table AIV.1).  Tunisia h as also reserved the right to invoke the special 
safeguard clause provided for in Article 5 of the WTO Agreement on Agriculture for about 4 per cent 
of the tariff lines relating to agricultural products .  However, Tunisia has not yet invoked this 
provision. 
16. Moreover, supplementary taxes are levied on the consumption of a whole range of food 
products, in particular, maize (corn) and soya cak e, preserved food, fruit and vegetables, and fish 
(Table III.2).  The taxes in question are ear marked for the Fund for the Development of WT/TPR/S/152 Trade Policy Review 
Page 74 
 
 
 Competitiveness in the Agriculture and Fishing Sector s (FODEC).  According to the authorities, these 
taxes apply to locally produced goods as well as to imports. 
020406080100120140
8 7 4 11 16 19 2 20 1 9 18 21 6 22 10 15 17 14 3 12 23 24 5 13Chart IV.1
MFN customs duties on agricultural products, by HS chapter, 2005
Per cent
Source: WTO Secretariat estimates, based on data provided by the Tunisian authorities.1
2
3
4
5
6
7
8
9
10
11
12Live animals
Meat and edible meat offal
Fish, crustaceans, molluscs, etc.
Dairy produce, etc.
Other products of animal origin
Live trees and other plants, cut flowers
Vegetables, roots and tubers
Edible fruit
Coffee, tea, maté, spices
Cereals
Products of the milling industry, etc.
Oil seeds and oleaginous  fruits13
14
15
16
17
18
19
20
21
22
23
24Lac, gums, resins and other vegetable saps and extracts
Other vegetable products n.e.s.
Animal or vegetable fats and oils
Preparations of meat, fish or crustaceans
Sugars and sugar confectionery
Cocoa and cocoa preparations
Preparations of cereals; pastrycook’s products
Preparations of vegetables, fruit,  etc.
Miscellaneous edible preparations
Beverages, spirits and vinegar
Residues and waste from the food industries
Tobacco and manufactured tobacco substitutes
 
17. Tunisia's most recent notification to the WTO concerning tariff quotas (TQ) relates to the 
years 2003 and 2004 (Table IV.2).6  In general, tariff quota imports fluctuate enormously from year to 
year, except for cheese, soft wheat and sugar, whose quotas are completely filled every year.  
According to the authorities, the underutilizati on reflects the level of demand for the products 
concerned among Tunisian consumers.   However, cereals, under tari ff quota, are imported exclusively 
by the Office tunisien des céréales  (Tunisian Grain Board) and sugar by the Office du commerce de 
Tunisie  (Tunisian Trade Board). 
18. To import products subject to TQ it is necessary to  obtain a "special TQ authorization" issued 
by the Minister for Trade, at the pr oposal of the TQ management committee.7  The Minister publishes 
an opening notice establishing the quantities, the TQ allocation procedure, the conditions of 
                                                      
6 WTO document G/AG/N/TUN/34, 11 July 2005. 
7 Decree No. 96-1119 of 10 June 1996 establishing the procedure for tariff quota management. Tunisia WT/TPR/S/152 
 Page 75 
 
 
 admissibility of applications, and the time-limits for submitting them.  TQs may be allocated 
according to:  traditional trade flows;  the chronological  order in which applications are filed;  or in 
proportion to the quantities requested under the TQ.  According to the authorities, between 1995 and 
1997, quotas were allocated mainly on the basis of traditional trade flows8;  in principle, 10 per cent of 
the tariff quota is reserved for newcomers.  The author ities have also pointed out that if applications 
exceed the tariff quota quantities,  requests are satisfied on a pro rata basis .  TQs for cereals are 
allocated through the Grain Board (see below) a nd those for sugar through the Trade Board. 
Table IV.2 
Imports under tariff quotas, 2001-04, and customs duty rates, 2005 
(Percentages, unless otherwise indicated) 
2005 2001 2002 2003 2004 Description 
of product Average 
quota rate Average 
out-of-quota rate Tariff quota 
commitment
(tonnes) Utilization
rate Utilization
rate  Utilization 
rate  Utilization
rate  
Calves and bullocks 27 82 3,000 0 0 0 97 
Bovine meat 27 88 8,000 0 0 0 100 
Sheep and goat meat 27 125 380 0 0 0 100 
Milk powder 17 76 20,000 10 19 35 43 
Butter 35 100 4,000 60 88 48 49 
Cheese 27 139 1,500 100 100 100 100 
Beans 25 60 1,300 0 0 0 0 
Durum wheat 17 73 300,000 100 100 0 0 
Soft wheat 17 73 600,000 100 100 85 100 
Barley 17 73 200,000 100 100 100 100 
Sugars 15 42 100,000 100 100 100 228 
Shelled almonds 43 60 1,335 70 100 0 0 
Tomato concentrate 43 100 155 0 0 0 100 
Source : WTO documents G/AG/N/TUN/29, 7 June 2004, G/AG/N/TUN/31, 22 Fe bruary 2005, and G/AG/N/TUN/34, 
 11 July 2005. 
19. In accordance with Protocol No. 3 of the Asso ciation Agreement, Tunisia applies preferential 
tariff quotas to several agri-food products originating in the European Community.  With respect to 
meat, dairy produce, cereals and sugar, which ar e also covered by WTO tariff quotas, exports from 
the EC may draw either on the WTO quota or on th e preferential quota.  However, EC exports under 
preferential tariff quotas are zero-rated; moreover, these quotas also cover other agricultural products 
such as eggs, poultry, potatoes, hazelnuts, maize (corn), groats and meals, malt, starch, certain flours, 
fats, oils, glucose, and dog and cat food.  Tunisia also intends to open add itional preferential tariff 
quotas under its bilateral agricultural trade agreem ents with each of the EFTA countries.  The 
products concerned are milk powder (100 tonnes), ch eese (50 tonnes), sugar and sugar confectionery 
(50 tonnes), and animal feed (50 tonnes). 
20. Meat of swine is excluded from the free importation regime (Chapter III(2)(vii)) and 
Table III.5).  Malt imports require the prior approval of the Grain Board.  Imports of milk, milk-flour 
(farines lactés ), and fruit preserves for infants require the prior approval of the Ministry of Public 
Health.  Some systematic import control procedur es ("List A") were simplified at the end of 2003 
(Chapter III(2)(x)).  However, in general, the re gulations on agri-food pro ducts are particularly 
complicated and would benefit from further simplification. 
                                                      
8 WTO document G/AG/R/10, 23 April 1997. WT/TPR/S/152 Trade Policy Review 
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 21. Tunisia's last notification to the WTO concerning domestic support relates to the year 2002.9  
It indicates a zero current total aggregate measurement of support (AMS), as compared with a maximum commitment of 61.12 million dinars on th e following products: durum and soft wheat, 
barley, milk, olive oil, and sugar beet.  The support declared for 2002 was "de minimis"
10;  it 
consisted of fixed producer buying prices for wheat and intervention prices for other products.  
Tunisia reported expenditure of 61 million di nars on measures exempt from the reduction 
commitment ("green box"), mainly under water and soil conservation and afforestation programmes.  
In 2002, under its development programmes, whic h are also exempt from the reduction commitment 
by virtue of the special and preferential treatment  in favour of developing countries, Tunisia spent 
91 million dinars on encouraging investment in agriculture. 
22. The notification also mentions an irrigation subsidy of 8.3 million dinars.  In fact, agriculture 
is the principal consumer of water; farms pay for water at below its real cost.11  Similarly, agri-food 
enterprises were entitled to special electricity tari ffs, but according to the authorities these special 
tariffs were abolished in February 2005. 
23. The last notification made by the Tunisian authorities concerning export subsidies relates to 
the year 2002 (Table IV.3).12  The subsidies are covered by Article 9.1 of the Agreement on 
Agriculture and consist of payments intended to  reduce processing and air freight costs.  The 
payments are made by FOPRODEX (CEPEX) upon presentation of invoices.13  In January 2005, the 
Government announced that subsidies on potato ex ports would amount to 50 per cent of transport 
costs, with a limit of 100 dinars per tonne (Chapter III (3)(iv)). 
Table IV.3 
Export subsidies, 2001 and 2002 
Total export subsidies  
(millions of dinars) Subsidized exports 
(tonnes)  Product description Basis of subsidy 
2001 2002 2001 2002 
Tomato double concentrate Direct payments 3.9 2.6 27,660 20,039 
Potatoes 50 per cent of freight costs, limited to 100 dinars/t 0.2 0.2 1,035 1,035 
Dates 50 per cent of freight costs 0.6 1.0 19,182 20,000 
Citrus fruit 50 per cent of freight costs 0.6 0.4 7,117 22,056 
Wine Direct payments; 50 per cent of freight costs 0.1 0.1 593,760 
bottles 75,250 
hectolitres 
Tomatoes 50 per cent of freight costs .. 0.5 .. 1,926 
.. Not available. 
Source:  WTO documents G/AG/N/TUN/ 27, 7 June 2003, and G/AG/ N/TUN/33, 7 July 2005. 
                                                      
9 WTO document G/AG/N/TUN/32, 4 May 2005. 
10 For developing countries, de minimis  support under the AMS encompasses product-specific support 
which does not exceed 10 per cent of the value of production of the product concerned, and 
non-product-specific support which does not exceed 10 per cent of the value of total agricultural production. 
11 UNDP–CEPEX (1998). 
12 WTO document G/AG/N/TUN/33, 7 July 2005.  Notifications for the years 2003 and 2004 were 
received by the WTO Secr etariat in July 2005. 
13 See also WTO document G/AG/R/12, 31 October 1997. Tunisia WT/TPR/S/152 
 Page 77 
 
 
 (iii) Policy by principal type of product 
(a) Olive oil and seed oil 
24. The area used for growing olive trees has expa nded rapidly and continuously, increasing from 
800,000 hectares in 1960 to 1.6 million hectares in 2005, i.e. one-third of the total useful agricultural 
area.  Annual olive oil output increased from 58,000 tonnes during the 60s to more than 
100,000 tonnes during the 70s and 80s, the current average being 160,000 tonnes.  However, this average output conceals sharp annual variations c onnected with the weather and with biological 
conditions intrinsic to the olive tree.  Olives are produced by small, medium-sized and large private 
farms.  The olive tree grows throughout the country , from the wet region to the Saharan zone.  Very 
often, it grows on poor, even marginal soils, i.e ., soils threatened by erosion and desertification. 
25. Tunisia, alongside Spain, Italy and Greece, is one of the world's four leading exporters of 
olive oil.  The tonnages exported reached a record  level of about 200,000 t onnes in 2003-2004, or in 
value terms more than 70 millions dinars.  Most of Tunisia's olive oil exports to the EU enter 
duty-free under the annual quota of 56,000 tonnes specifi ed in the Association Agreement.  The rest 
transits through the EU on its way to other destin ations outside the EU.  Within the tariff quota 
established under the Agreement, the oil which Tunisia exports to the EU must not be treated.  Most 
exports to the EU therefore involve untreated oil in bulk, which deprives the exporters of the value 
added associated with refining, packag ing, marketing and product identity. 
26. According to a recent study, Tunisian olive oil is competitive on price, but the sector is still 
lagging with regard to quality and modern oil plant capacity.
14  For example, extra virgin oil 
production is only 25 per cent in Tunisia (86 per cent, 70 per cent and 80 per cent in Spain, Italy and 
Greece, respectively).  Tunisia has six olive oil tr ademarks, but no registered appellation of origin 
(RAO) or national label, although there are projects in preparation. 
27. Olive prices and trade in olives are free.  Olive gathering and internal and external trade in 
olive oil were liberalized in 1994.  In 2003-2004,  private companies accounted for 80 per cent of 
exports (as compared with 22 per cent in 1996-97).  The Office national de l'huile  (ONH – National 
Oil Board) exported the rest.15  In order to ensure a minimum income for olive growers, the ONH 
offers to buy any quantity and quality of oil, at guaranteed minimum prices at the beginning of the 
season. 
28.  Tunisia has not notified any export subsidies for olive oil.  Customs duties are 150 per cent on 
olives, 15 per cent on soya seed, zero per cent on ma ize (corn), and 150 per cent on unshelled peanuts.  
Vegetable oils are protected by customs duties aver aging 41 per cent (Table AIV.1), with a range of 
from 10 to 17 per cent (soya oil), 73 per cent (peanut oil), and 100 per cent (olive oil). 
29. Tunisia subsidizes (in the form of controlled prices) the consumption of certain edible 
vegetable oils (colza and soya) not produced locally.  Olive oil does not benefit from these subsidies;  
this tends to discourage its local consumption. 
                                                      
14 Agence de promotion de l'industrie, Résu mé des Études de positionnement sectoriel, Cahier du CEPI , No. 4. 
15 Office national de l'huile , on-line information.  Available at:  http://www.onh.com.tn/fran/ 
index.htm. WT/TPR/S/152 Trade Policy Review 
Page 78 
 
 
 (b) Fruit, vegetables and preserved foods 
30. In addition to traditional products such as dat es and citrus fruit, the production of a broad 
range of fruit and vegetables is expanding thanks to new and more productive varieties, greater 
mastery of cultivation techniques, and the introducti on of crops into new regions with a potential for 
early marketing.  However, the main constraint on the expansion of the areas set aside for orchards 
and citrus fruit is the lack of water.  The authoriti es have pointed out that, with the exception of border 
measures, the fruit and vegetable sectors are not subject  to other intervention or regulation.  Prices are 
formed at wholesale market level.  Potatoes benef it from an intervention pri ce for the constitution of 
buffer stocks and/or a storage subsidy for regulating the supply between seasons. 
31. The date producing sector consists of 35 units, divided up between the north and south of the 
country and handling about 100,000 tonnes.  Tunisian dates account for about 12 per cent of total agricultural exports, i.e., for an average annual infl ow of 50 million dinars in foreign currency, in 
steady expansion since 2000 (Table IV.1).  This grow th is attributable to improvements in the quality 
of Tunisian dates and the participation of one-third of the packing centres in the national microstructural adjustment ("upgrading") programme .  Tunisia is one of the world's six leading 
exporters, with 40,000 tonnes of dates exported in 2003-2004.  Moreover, in 2003-2004, Tunisia 
exported about 900 tonnes of "Bio" dates, certified w ith foreign labels, mainly to the EU.  The dates 
are exported by exporter-packers (90 per cent of e xport volume) or international trading companies 
(10 per cent).  The latter only export, often several products. 
32. The rates of customs duty on imports of fruit and vegetables are among the highest in the 
Tunisian tariff (Chart IV.1), reaching 150 per cent on products such as potatoes, lentils, beans and 
cucumbers.  The State grants subsidies for exports of several products (Table IV.3). 
33.  Tunisia also exports preserved fruit and vegetabl es such as tomato concentrate and "harissa".  
The branch is characterized by its poor use of production capacity (55 to 60 per cent depending on the 
crop), a lack of technical and managerial skills, an d an undiversified range of products.  The trade 
measures consist mainly of tariff barriers of more than 80 per cent (Table AIV.1) and export subsidies 
(Table IV.3).  The main export destination is the EU, more especially France and Italy. 
(c) Cereals and products of the milling industry 
34. Tunisia produces about 70 per cent of the cereals it needs.
16  Annual domestic production of 
wheat, the main cereal consumed, amounts to a bout 1 million tonnes (80 per cent durum and 20 per 
cent soft wheat) and imports are around 1.4 million tonnes a year.  Production of the main cereals is 
promoted by guaranteeing prices for producers in orde r to support rural incomes.  The MFN tariffs 
applied to cereals range up to 100 per cen t, with an average of 45 per cent. 
35. The Grain Board is responsible for purchasing, on the domestic market, durum wheat and soft 
wheat at prices set by the State.  It also acts as the intervention body for barley.  It has an import 
monopoly on these three products and handles all imports  under the WTO tariff quota.  It sells cereals 
(local and imported) to the processing plants (flour and meal mills) at a fixed price and recovers from 
the Caisse générale de compensation  (CGC – General Compensation Fund) the difference between 
that fixed price and the cost price (Chapter III(4)(ii )).  Government subsidies of consumer prices for 
cereals amounted to 170 million dinars in 2004 (Table III.9). 
                                                      
16 Ministry of Agriculture (1995). Tunisia WT/TPR/S/152 
 Page 79 
 
 
 36. Sheltered from foreign competition thanks to cu stoms duties of 73 per cent (Table AIV.1), at 
the end of the 90s the biscuit trade was at a par ticularly low ebb, in terms of both quality and 
marketing strategies.17  There was not much demand for locally manufactured biscuits (3 kg per 
person annually) whereas, despite high customs duties and hence high prices, the demand for 
imported biscuits was strong.  However, according to the authorities, the conclusion of partnership 
agreements with foreign enterprises and the intr oduction of upgrading and quality programmes (ISO 
and HACCP) helped to increase per capita consum ption of local biscuits to 5 kg in 2004.  The 
products of the sector form part of the negative list (Annex 6) of products exempt from tariff 
reduction under the Association Agre ement with the European Union. 
(d) Sugar 
37. In Tunisia, sugar production and trading is subject to numerous trade measures.  Refined 
sugar is produced by the 12 per cent state-owned Société tunisienne de sucre  (STS – Tunisian Sugar 
Company) under the Ministry of Industry.  The Complexe sucrier de Tunisie  (Sugar Complex of 
Tunisia), which extracted sugar from sugar beet, w as put up for privatization in January 2005.  To 
assist this enterprise, customs duties on b eet molasses have been suspended since 200018, within an 
overall quota limit of 23,600 tonnes.19  The Trade Board, a state trading enterprise, imports refined 
sugar in accordance with market requirements, with  account for the sugar produced by STS.  The 
latter imports raw sugar for refining.  These tw o enterprises share the WTO sugar tariff quota. 
38. The MFN applied tariffs range as high as 100 per cent for sugar, with an average of 37 per 
cent. 
(e) Wine growing and wine making 
39. Vineyards are known to have existed in Tunisia since Roman times, as evidenced by the 
treatise of the Carthaginian Magon, regarded as the father of Mediterranean agronomy, whose 
memory is still evoked today by the local red wi ne which bears his name.  However, the mass 
introduction of the vine dates from the beginning of the French protectorate at the end of the 19
th century.20  Current wine production is about 300,000 hl, a quarter of which is for export, mainly 
in bulk.  Germany and France are the two main export destinations. 
40. Wine production is shared between the state sector (mainly the Office des terres domaniales  
(OTD – Public Lands Board)), the co-operative se ctor and the private sector, which account for 12 per 
cent, 67 per cent, and 21 per cent, respectively.  Since the beginning of the 90s, the vines of the OTD have been tended by agricultural development co mpanies under a partnership operation with foreign 
investors, who generally lease the land for 25 years.  In return, these companies are required to invest 
in the modernization of the agricultural sect or and to promote new production techniques. 
41. The Office national de la vigne  (National Vineyards Board) was wound up in 2002.  
However, the Union des caves coopératives viticoles  (UCCV – Union of Wine Producing 
Cooperatives) continues to export the output of the co-operative sector.
21  It owns most of the 
trademarks, the bottling capacity and the distributio n network.  The UCCV supplies the co-operative 
                                                      
17 UNDP – CEPEX (1998). 
18 HS 1703.9000. 
19 Official Journal No. 92, 17 November 2000. 
 20 Abdelkafi, J. (undated). 
21 Union centrale des coopératives viticoles , on-line information.  Available at:  http://www.uccv.com. 
tn/vins/Tunisia.htm. WT/TPR/S/152 Trade Policy Review 
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 sector with the equipment and inputs it needs to deve lop and work the vineyards, carries out vineyard 
restoration work, provides transport and accountancy  services, and takes charge of and markets the 
output of the co-operative sector inside the country. 
42. According to the authorities, the changes made in 2002 gave a strong boost to the private and 
state sectors whose capacity had been considerably re duced by excessively strict regulations which, it 
seems, are still being applied to th e co-operative sector.  Consequently, the preferential tariff quota for 
Tunisian wines granted (duty-free) by the EU was fa r from being filled, both for wine in bulk and for 
wine in bottles. 
43. The MFN applied tariffs are generally 43 per cent. 
(f) Livestock and derived products 
44. Livestock breeding in Tunisia mainly involves cattle, sheep, goats, camels and poultry.  Red 
meat accounts for almost 65 per cent of total meat production, the rest being attributable to poultry 
(35 per cent).  This production covers approximately 99 per cent of national meat consumption 
requirements.  Meat imports have fallen steadily in  recent years, following the development of local 
production, which increased from 138,000 tonnes in 1994 to 240,000 tonnes in 2004.  The herds and 
flocks are generally small.  Pric es are formed freely on the cattle markets.  Production is sheltered 
from foreign competition thanks to customs duties th at are among the highest in the Tunisian tariff 
(Chart IV.1) and range from 10 to 150 per cent, with an average of over 90 per cent. 
45. Milk imports are currently confined to milk  powder to meet the needs of the processing 
industries.  The central dairies use fresh local milk  and do not rely on the reconstitution of milk from 
imported powder, as did the former public (now privatized) central dairies. 
46. Milk is marketed through 260 milk collecting centres , 41 of which are part of the state system.  
Investment in these centres qualifies for special subsidies under the Investment Incentives Code.  
According to the authorities, it is the strengthe ning of the milk collecting capacity that has 
underpinned the expansion of the dairy industry.  The producer prices for milk are formed in 
accordance with agreements between the sector 's stakeholders, under the aegis of the Groupement 
interprofessionnel du lait (Joint-Trade Milk Group). 
(g) Fishery products 
47. In the course of the last decade, Tunisian exports of fishery products have climbed to an 
annual average of 14,000 tonnes, worth 120 million di nars in value terms and earning them second 
place, after olive oil, among agricultural and agri-food  exports.  About 90 per cent of exports go to the 
EU.  The two products most exported are octopus a nd squid and crustaceans (prawns).  Imports are on 
average 15,000 tonnes per year, mainly preserved products and certain species of fish. 
48. There has been a considerable increase in fi shing, culminating in 1988 in a catch of 
103,000 tonnes, before volume declined as a result of the depletion of fish stocks.  During the period 1995-2004, average annual output was 96,000 tonnes.  An upgrading programme was begun in 1993.  
This programme involves the port infrastructure, the fishing fleet, the fishery product processing and 
packing enterprises, the means of transport from the landing point to the point of sale, and the shellfish sorting centres.  The new regulations ha ve introduced biological recovery periods, minimum 
permissible sizes for certain species and bans on fish ing for certain species, while specifying fishing 
gear characteristics and identifying ar eas in which fishing is prohibited. Tunisia WT/TPR/S/152 
 Page 81 
 
 
 49. Numerous development and support programmes are in place, including under the Investment 
Incentives Code.  There is a fuel price subsi dy to encourage deep-sea fishing, which is 
underdeveloped.  The cost of port services is financed  by a 2 per cent levy on the value of the first 
sale.  There are 65 fishery product packing and freezing enterprises, 43 of which are wholly exporting.  
Their freezing capacity is 16,740 tonnes.  This is  not sufficient and the upgrading of the sector 
continues.  During the last decade, fish farming output averaged 2,000 tonnes a year. 
50. Applied MFN tariffs range from 17 to 43 per cent, with an average of 41 per cent. 
(h) Forestry 
51. Tunisia's natural forests cover an area of 368,0 00 hectares and consist mainly of Aleppo pine, 
cork oak, zen oak and maritime pine.  The 1988 Forestry  Code is the principal legal text;  it is aimed, 
in particular, at improving the vege tation cover and at reforestation.  Productive forestry plantations 
qualify for incentives under the Investment  Incentives Code (Chapter III(4)(i)). 
52. The forestry service sells the entire domestic out put of cork by public auction.  More than 
90 per cent of output is exported in the form of raw cork.  Prior to the liberalization of the sector in 
1994, raw cork exports accounted, on average, for only 20 per cent of output.  Annual output of 
esparto plant fibre was 43,000 tonnes in 2004.  Esparto is harvested by the local population under a 
development plan for all esparto areas.  The esparto collected is transported to the centres operated by 
the Société nationale tunisienne de cellulose et du papier  (Tunisian National Cellulose and Paper 
Company), the only esparto processing enterprise. 
53. Applied MFN tariffs extend to 150 per cent, with an average of 22 per cent. 
(3) MINES AND ENERGY  
(i) Principal mineral resources 
54. Tunisia's principal mineral resources are oil, natu ral gas, phosphates, iron, lead, zinc, barytes, 
fluorine, and salt.  The mining sector contributes about 2 per cent to real GDP and the energy sector 6 per cent.  National primary energy resources amount ed to 6.6 million tonnes oil equivalent (toe) in 
2004, as compared with total consumption of 7.4 million toe.  National crude oil and condensate 
production was 3.3 million metric tonnes, or 3.4 mil lion toe (60 per cent of consumption).  National 
production of natural gas amounted to 2.1 million toe,  and 1.1 million toe of gas was taken from the 
trans-Mediterranean gas pipeline.  The contributi on of natural gas to national resources was 48 per 
cent in 2004 as compared with 27 per cent in 1996.   This increase reflects the policy of developing 
gas, particularly in electricity generation. 
55. Exports of energy products and lubricants am ounted to approximately 1.15 billion dinars in 
2004, as compared with 1.5 billion in imports; dom estic and foreign trade is controlled by the 
Entreprise tunisienne d'activités pétrolière  (ETAP – Tunisian Petroleum Activities Enterprise).  Both 
crude oil and refined products are traded.  Oil is imported mainly from Libya; oil imports account for 
almost three-quarters of the total volume of Tunisian  trade with all the Arab countries.  Imports of 
natural gas (apart from the gas taken from the trans- Mediterranean gas pipeline) , coal and coke appear 
to be minimal. 
56. Up to the mid-80s, Tunisia had an energy surp lus.  The stagnation of domestic hydrocarbons 
production, combined with the rapid growth of the demand for energy, has ended these surpluses.  
Tunisia has introduced a three-pronged policy aimed a t: promoting direct investment in hydrocarbons WT/TPR/S/152 Trade Policy Review 
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 development; ensuring a secure supply at least cos t;  and encouraging the rational use of energy and 
the development of renewable energy sources.  A Commission nationale de maîtrise de l'énergie et 
des énergies renouvelables  (National Commission for Ener gy Economy and Renewable Energy 
Sources) was established in 2004 for this purpose.  Tunisia ratified the Kyoto Protocol in 2002. 
57. Tunisia has not undertaken any commitments concerning the energy market under the 
General Agreement on Trade in Services (GATS).22  Mineral prospecting, exploration and 
exploitation activities are generally open to Tunisian or foreign private companies.  On the other hand, petroleum product refining, gas and electricity production, and most distribution activities are 
controlled by state-owned enterprises (Table III.11). 
58. Each year, Tunisia extracts 7.5 million tonnes of  phosphate ore (the world's fifth largest 
producer).  The ore is mined by the Compagnie des phosphates de Gafsa  (Gafsa Phosphate 
Company), a state-owned enterprise.  Current kno wn reserves of phosphate ore are estimated at 
approximately 6.5 billion tonnes.  Moreover, tw o principal metal mining companies operate in 
Tunisia: Société du Djebel Djérissa  (state-owned) for iron, lead, zinc and barytes-fluorine, and the 
private company Breakwater ("non-resident") for l ead and zinc.  Three main resident private 
companies (COTUSAL, TUNISEL, SAIDA) produce sa lt and exported more than 800,000 tonnes in 
2003 and 2004.  The principal imports are sulphur and ammonia. 
(ii) Mining policy  
59. The 2003 Mining Code contains all the legislativ e provisions concerning mineral prospecting, 
exploration and exploitation
23, except for those relating to hydrocarbons which are regulated by the 
Hydrocarbons Code.24  The competent ministry is the Ministry of Industry, Energy and Small and 
Medium-Sized Enterprises.  A hydrocarbons consul tative committee has been set up to advise the 
Minister on all activities covered by the provisions of the Hydrocarbons Code.  The mining titles required are: a once-renewable one-year prospecting licence; a three-year exploration licence, renewable three times at most; and a concession w hose duration depends on the reserves that can be 
economically exploited and the rate of exploitation. 
60. The Government encourages investment in the mining and, in particular, energy sectors 
through tax and customs exempti ons and facilitated foreign excha nge measures for non-resident 
enterprises (Chapter III(3)).  For example, mining ac tivities qualify for relief from business profits or 
company tax for the first six years.  The owner of a mining title and his contractors may import their machinery and equipment, together with the vehicl es needed to service their transport operations, free 
of customs duties and all other taxes and charg es, including VAT, but with the exception of the 
customs services fee (Table III.3) and the automatic information pr ocessing charge (3 dinars per 
article).  However, these provisions do not apply to goods and merchandise available in Tunisia, 
provided the prices and quality are appropriate an d comparable.  Moreover, personnel of foreign 
nationality, non-resident before being recruited or  seconded to Tunisia and assigned to prospecting, 
exploration or exploitation activities, may also qualify for preferential tax treatment. 
61. Where hydrocarbons production is concerned, th e owner of an exploitation concession may, 
after paying a royalty the amount of which is laid down by law, dispose of the hydrocarbons extracted 
under that concession, in particular for export pu rposes.  However, to cover Tunisia's domestic 
consumption requirements, the authority granting the concession (ETAP) has the right to purchase, on 
                                                     
 
22 WTO document GATS/SC/87, 15 April 1994. 
23 Law No. 2003-30 of 28 April 2003. 
24 Law No. 99-93 of 17 August 1999 Enacting the Hydrocarbons Code. Tunisia WT/TPR/S/152 
 Page 83 
 
 
 a priority basis, up to 20 per cent of the liquid hydrocarbons extracted under concession in Tunisia.  
The transfer price is the fob export selling price obtained by the owner, less 10 per cent. 
62.  Under the Hydrocarbons Code, ETAP may opt to participate in any new hydrocarbons 
exploitation concession, within the limits laid down in the concession contract (generally 40 per cent 
of the investment).  If ETAP does not participate in the concession, the royalty applicable may not be 
less than 10 per cent for liquid hydrocarbons  and 8 per cent for gaseous hydrocarbons. 
63. ETAP and the Société tunisienne des industries du raffinage  (STIR – Tunisian Refining 
Industries Company), two state-owned enterprises, hold the exclusive rights to import petroleum products of all kinds into Tunisia (crude oil, LPG, di esel, jet fuel, fuel oil, bitumens, basic oils, lamp 
oil, petrol), as well as natural gas.  STIR has a monopoly on the refining of oil and all other fuels, such 
as motor fuel, liquid gas and lubricants, for the Tuni sian market.  STIR exports products such as fuel 
oil.
25  Imports of refined products, which amounted to 1.1 billion dinars in 2004, supplement those 
produced by STIR which, together with ETAP, has a monopoly on domestic sales of petroleum 
products. 
64. There are no private petroleum product traders in Tunisia.  STIR sells wholesale to the mostly 
Tunisian distribution companies authorized by decree.26  In particular, the  Société nationale de 
distribution des pétroles  (SNDP – National Petroleum Distribution Company) markets petroleum 
products locally (45 per cent of the domestic market);   the rest of the market is served mainly by 
multinationals working in partnership with Tunisian cap ital.  Motor fuel prices are set by decree at all 
stages of production and distribution. 
65. Special provisions apply to the natural gas ma rket, which, as noted above, accounts for almost 
half the primary demand for energy products and 11 per cent of the end demand.  A foreign company 
(British Gas) is the principal gas producer.  Any en terprise, producing natural gas locally must first 
meet the needs of the local Tunisian market by selling part of its production to the  Société tunisienne 
d'électricité et de gaz  (STEG – Tunisian Electricity and Gas Company), the sole buyer of these 
products.27  STEG is the only enterprise authorized to transport and distribute gas locally.  Gas prices 
are set by decree. 
(iii) Electricity 
66. Total electricity production was 12,424 gigawatt- hours in 2004 (Table IV.4).  Nearly 90 per 
cent of Tunisian electricity is generated from loca lly produced natural gas, the rest coming from other 
fuels (7.4 per cent of total production), water turbines (1.2 per cent) or wind energy (0.4 per cent).  
Domestic demand for electricity is increasing at a bout 5 per cent a year.  International trade is 
marginal. 
                                                      
25 Société tunisienne des industries du raffinage , on-line information.  Available at:  http://www.stir.com.tn. 
26 Law No. 91-45 of 21 July 1991. 
27 Société tunisienne de l'électricité et du gaz , on-line information.  Available at:  http://www.steg.com. 
tn/fr/institutionnel/electricite.html. WT/TPR/S/152 Trade Policy Review 
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 Table IV.4 
Electricity generation, 2000-04 
 2000 2001 2002 2003 2004 
Total output (GWh) 10,097 10,854 11,281 12,835 12,424 
STEG 9,222 9,787 8,270 8,302 8,664 
Independent .. 161 2,073 2,604 2,844 
Self-generated 874 906 941 929 910 
Total sales (millions of di nars) 530.9 592.3 632.9 690.2 765.4 
Exports (millions of dinars) .. .. 2.9 1.5 2.7 
Imports (millions of dinars) .. .. .. .. .. 
.. Not available. 
Source : Information provided by the Tunisian authorities. 
67. Most electricity is generated by STEG, whic h has a monopoly on electricity transport and 
distribution and international trade in electricity.  The Ministry of Industry, Energy and Small and 
Medium-Sized Enterprises is responsible for ma naging STEG, as well as for the sub-sector. Private 
power generation has been authorized since 1996 and there has been foreign private investment.  
Electricity is independently generated by the Ca rthage Power Company, us ing gas supplied by STEG, 
and by IPP EL BIBANE which generates electricity  from self-produced gas.  Private generators are 
required to sell to STEG the electricity they do not consume themselves.  The STEG grid serves about 
2.6 million users, including over 13,000 customers connected to the medium-voltage network and 
16 high-voltage customers.  Consumer tariffs are set by decree. 
68. There are five links between STEG's power grid and Algeria;  these make it possible to 
interconnect with the European grid, via the Alge rian and Moroccan networks.  There were some 
sales of electricity to Algeria in 2001 and 2002, a nd to Libya in 2003-2004.  Electricity is imported 
duty-free. 
(4) MANUFACTURING SECTOR  
69. Tunisia has particularly encouraged exports of manufactured products, which are regarded as 
a potential engine of economic growth.  To this end, all manufacturing industries with an export 
potential have been treated as strategic activities an d hence as eligible for numerous tax exemptions 
and other export incentives, which are regularly revi ewed and improved.  Consequently, the existing 
production and trade regimes differ s ubstantially depending on whether the enterprises are resident or 
non-resident, and partially or wh olly exporting (Chapter III(3)).  Most of the largest and most 
dynamic enterprises in the manufacturing sector appear to be organized under the "wholly exporting/non-resident" regime. 
70. Although this policy does not appear to be targ eted on any particular sector, it has introduced 
a sharp dichotomy between the export sector and that supplying the domestic market.  In particular, it 
has not encouraged the creation of a local web of integrated activities efficient enough to supply 
exporters with inputs, since the heavy protection provided for locally produced inputs prohibits their use in the production of goods for export – the tariff as a whole being characterized by mixed escalation, with higher rates for raw materi als than for other categories of products 
(Chapter III(2)(ii)).  Consequently, most of the i nputs needed by the export sector are imported, and 
the sector is efficient only in producing goods that do not require local inputs.  Reform, aimed 
primarily at liberalizing the domestic market, seems necessary to improve the competitiveness, productivity and diversification of manufacturing industry. 
71. There is still a considerable number of enterp rises established in accordance with the "import 
substitution" model which have so far survived as a result of being protected by high tariff and non-Tunisia WT/TPR/S/152 
 Page 85 
 
 
 tariff barriers.  The liberalization resulting from re gional integration, for example, the Association 
Agreement with the European Unio n, will certainly entail considerab le structural adjustment in 
manufacturing activities (oriented towards the local market) which have so far been sheltered from 
competition.  In order to facilitate this adjustment  and achieve internationally competitive levels of 
quality and cost, a programme for the micro-stru ctural adjustment ("upgrading") of industrial 
enterprises and industry-rel ated services was initiated in 1996.  The plans for reform were based on 
audits prepared by consultants and were to cost a total of 3 billion dinars for investment in equipment 
and in such activities as marketing, certification,  and organization and/or financial restructuring 
calculated to improve competitiveness.  Altogether, 2,045 enterprises, spanning most of the 
manufacturing sector, have been restructured in this way. 
72. The principal manufacturing industries are, in order of importance, textiles, clothing and 
leather;  the agri-food industries (Section 2, Agricu lture and related activities);  and the mechanical 
and electrical engineering industries.  Tunisia also produces building materials (cement, lime, plaster) and glass.  The average MFN customs duty on manufactured products is 30 per cent (Table AIV.1). 
(i) Textiles and leather 
73. The textiles, clothing and leather sub-sector comprises more than 2,000 enterprises mainly 
producing made-up goods, hosie ry and lingerie, and footwear.  This sub-sector, the country's leading 
employer, accounts for more than 40 per cent of to tal merchandise exports and 20 per cent of total 
imports (Table IV.5).  Nearly 90 per cent of th e jobs in the sub-sector are provided by wholly 
exporting enterprises.  Most exporters specialize in  subcontracting and process imported inputs.  The 
majority of larger enterprises are organized under the "wholly exporting/non-resident" regime. 
Table IV.5 
Manufactures: production and trade, 1994, 2000 and 2004 
(Millions of dinars at current prices, unless otherwise indicated) 
 1994 2000 2004 
Textiles, clothing , leather      
  Exports 2,235 3,726 5,112  
  Imports 1,640 2,686 3,327  
  Production index (1990 = 100) 146 210 215 
Pharmaceutical products    
  Exports 24 6 19 
  Imports 135 199 308 
  Production index (1990 = 100)    
Mechanical and electrical engineering    
  Exports 623 1,323 2,598 
  Imports 2,529 4,774 5,405 
  Production index (1990 = 100) 118 186 245 
Transport     
  Exports 29 84 285 
  Imports 607 1198 1,211 
  Production index (1990 = 100) .. .. .. 
All productsa    
  Exports 4,697 8,005 12,055 
  Imports 6,647 11,738 15,864 
  Production index (1990 = 100) 118 156 173 
.. Not available. 
a Including agro-industry, other manufact ures, and energy and mining products. 
Source: Institut national de la statistique , on-line information.  Available at:  http://www.ins.nat.tn/_private/idc/page01124.idc. WT/TPR/S/152 Trade Policy Review 
Page 86 
 
 
 74. From 1976 onwards, the sub-sector developed as a result of exports to the European Union 
under preferential tariff quotas within the context of the Multifibre Arrangement.  Thus, Tunisia 
became the fourth largest supplier of the EU, whic h was absorbing over 90 per cent of its fabric and 
clothing exports.  According to estimates, one third of  the 250,000 jobs that existed in this industry in 
2002 are likely to be lost as a result of the dismantling of the import quotas for these products – a 
process which began at the end of the Uruguay R ound and was completed by the end of 2004 – 
together with increased competition,  mainly from countries like China.28 
75. The slowdown in the growth of exports began in  the 90s, and in 2004 that growth was among 
the lowest in Tunisian industry.  The slowdow n reflects the heavy competitive pressure to which 
Tunisian exporters have been exposed since the progressive opening up of the European markets.  
Tunisia now has an average preferential tariff marg in of only 8 per cent on the European market.  
Asian competition has recently been joined by that  from the new member countries of the European 
Union.  Import competition is also increasing.  U nder the Association Agreement with the EU, the 
customs duties on the sector's products are steadily falli ng, with the prospect of their total elimination 
by 2008.  However, customs duties will not be reduced on carpets, lace, floor-cloths and worn 
clothing (covered by Annex 6 to the Agreement). 
76. Footwear exports have increased steadily and we re worth about 500 million dinars in 2004.  
About half the 200 enterprises in the sector are w holly exporting, and two " non-resident" enterprises 
alone account for half of exports.  The local leathe r market is experiencing difficulties with the supply 
of hides and with unstable prices and quality. 
77. According to some studies, the revival of the textile-clothing sector also presupposes the 
arrival of new foreign investors.  Certain analyses indicate that any improvement in the business environment also depends, for example, on the lib eralization of productive infrastructure services 
such as telecommunications, the Internet, and courier services.
29  Moreover, rapid and inexpensive 
customs procedures are extremely important in the clothing industry, which depends almost entirely 
on imports for its inputs. 
78. Customs duties on the sector's most "sensitive" pr oducts can reach 43 per cent (Table AIV.1).  
Average MFN duties vary from 21 per cent on spinni ng and weaving to more than 40 per cent on 
carpets, hosiery, articles of clothing, and footwear.  Tariff escalation is very steep, particularly on 
spinning and weaving, articles of apparel, and leat her products, especially footwear;  this indicates a 
fairly high effective level of pr otection and explains the importance of assembly activities in the sub-
sector. 
(ii) Mechanical and electrical engineering industries 
79. The average level of tariff protection in the m echanical and electrical engineering industries 
ranges from 3.2 per cent on special industrial ma chinery and equipment to 37 per cent on metal 
furniture and fixtures (Table AIV.1).  The tariffs  on machinery and equipment are characterized by 
sharp escalation, the average rates of 31 per cent on fi nished products being more than twice the level 
of tariff protection for semi-finished products. 
                                                      
28 See, for example, Arabies  No. 213, January 2005, pp 24-27.  Available at http://www.arabies.com/ 
Economie.htm. 
29 See, for example, Arabies  No. 213, January 2005, pp 24-27.  Available at http://www.arabies. 
com/Economie.htm. Tunisia WT/TPR/S/152 
 Page 87 
 
 
 80. The electrical and electronic component industri es have experienced expo nential growth since 
1997.  The main exports are electrical wire and cable s, in particular, wiring harnesses, and electronic 
components.  The sector's exports grew almost twi ce as fast as the average for all merchandise exports 
between 2000 and 2004. 
81. One of the initial reasons for this remarkable growth was the countertrade policy introduced 
by Tunisia in 1995 when the Government decided to  halt the assembly of private cars, a decision 
which became effective in 1998.  According to this policy, the foreign maker authorized to export its 
vehicles to Tunisia undertook in exchange to purchase motor vehicle components manufactured by the Tunisian mechanical and electrical engineering industries, for an amount equal to at least 50 per 
cent of the turnover on its exports of vehicles to Tunisia.  According to the authorities, this 
countertrade policy was scrapped in 1999.
30  Some industries in the sector apparently took this 
opportunity to improve their performance and are now  competitive, even without a countertrade 
policy. 
82. Most cutting-edge electrical industries – sever al are "non-resident" – are mainly export-
oriented, targeting, in particular, the European ma rket which provides them with their inputs.  The 
exporting enterprises are generally already or in process of becoming ISO 9000 certified.  By and 
large, only those enterprises which have committed  themselves to a quality-based approach of this 
kind, which stresses compliance with international standards, have been in a position to grasp the 
opportunities for export development. 
83. Household appliances and consumer electronics (television, video) are examples of import 
substitution industries based on the assembly of imported  parts which have survived thanks to a high 
level of tariff protection and technical import regul ations (Table III.6).  For example, the customs 
duties on electric cookers and washing machines are cu rrently 43 per cent.  It is not certain whether 
these activities will be capable of withstanding Eur opean competition when the tariff barriers are 
removed: the preferential customs duties on imports  of these two products from the European Union 
are currently 8.6 per cent and 14.2 per cent, respectively. 
84. The metallurgical industries are mainly orient ed towards the domestic market.  Despite high 
customs duties, domestic iron and steel maki ng, like metalworking, is uncompetitive. 
(iii) Automotive industry 
85. Since the decision by the authorities to abandon  vehicle assembly, the Tunisian automotive 
industry has specialized in the production of co mponents.  Accordingly, there is no longer any 
significant vehicle production in Tunisia, apart from f our plants that assemble utility vehicles, lorries 
and tractors and build bus bodies. 
86. Used motor vehicles cannot be imported freely (T able III.5).  The importation of new vehicles 
is subject to a range of trade measures, includi ng consumption taxes amounting to as much as 355 per 
cent, customs duties of about 18 per cent (Table AIV. 1), control of distribution margins, and technical 
import regulations in the form of specifications.  Imports are substantia l, but have not grown 
significantly in recent years (Table IV.5). 
                                                      
30 Order of the Ministries of Trade, Transport and Industry of 5 February 1999 amending the Order of 
10 August 1995 approving the specifications relating to the marketing of road transport vehicles manufactured 
locally or imported, Official Journal, 16 February 1999. WT/TPR/S/152 Trade Policy Review 
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 87. The vehicle parts industry manufactures both spar e parts for the domestic market and original 
parts for European parts makers.  In addition to electrical systems, the industry produces wheels and 
tyres (two "non-resident" enterprises), engine pa rts, suspensions and brakes, and transmission 
components.  Customs duties are about 19 per cent (MFN duty), and 4 per cent (preferential duty) on 
imports from the European Union.  Out of the hundre d or so active enterprises, about one-third are 
wholly exporting.  The branch illustrates the dichotomy typical of Tunisian industry between an export sector gradually adapting to international (mainly European) quality standards in order to 
compete on the export markets and a domestic mark et still (albeit decreasingly) protected from 
foreign competition by tariff and non-tariff barriers. 
(iv) Pharmaceuticals and other chemical products 
88. Pharmaceutical products (HS Chapter 30) are imported exclusively by the Pharmacie centrale 
de Tunisie  (PCT – Tunisian Central Pharmacy).  Howeve r, the Pasteur Institute of Tunisia still has a 
monopoly on the importation of sera, allergens and vacci nes for human and animal use.  The prices of 
products sold to the public sector (hospitals), w holesale distributing pharmacists, pharmacists, and end 
consumers are set by the State.  Tunisia has not signed the WTO's Pharmaceutical Understanding. 
89. The Government's current pharmaceuticals po licy is to improve the availability of 
medicaments and their accessibility, while encourag ing the development of a domestic proprietary 
and generic product industry.  Th is is an import substitution scheme based on the "correlation 
principle", according to which any import activity th at competes with medicaments or pharmaceutical 
preparations produced locally can be suspended at th e request of a local manufacturer, who is required 
to supply the market under certain specified conditi ons.  These conditions include the obligation to 
hold six months of reserves of stocks for vital produc ts and three months for ordinary products.  The 
price at which he sells his products should, in pr inciple, be lower than a maximum price set by the 
State on the basis of world market prices.  This principle has encouraged the production, by foreign 
laboratories, of proprietary products under licence in Tunisia.  The correlation principle has also made it possible to develop the production of generic prod ucts for the domestic market.  According to the 
authorities, products sold on the correlation princi ple account, on average, for 3 per cent of the 
turnover on sales of pharmaceuticals in Tunisia. 
90. The domestic pharmaceutical industry meets 47 per cent of the local demand for 
pharmaceuticals.  In 2000, there were 27 pharmaceu tical enterprises employing 3,000 people.  Some 
50 foreign pharmaceutical companies operate in Tunisi a.  Foreigners may hold up to 100 per cent of 
the capital.  In 2004, the Société des industries pharmaceutiques de Tunisie  (SIPHAT – Tunisian 
Pharmaceutical Industries Company), a state-owned enterprise under the Ministry of Health but with 
32 per cent of the capital held by private indivi duals, had a turnover of  about 36 million dinars, 
mainly on the domestic market.  This company manufactures mainly generics.  
91. In 2004, imports of pharmaceutical products  amounted to about 300 million dinars 
(Table IV.5);  between 2000 and 2004, in contrast  to the period 1994-2000, they grew more rapidly 
than product imports as a whole ("all products ").  Exports reached 19 million dinars in 2004.  
92. Exports of phosphoric acid a nd phosphate fertilizer have an annual value of about 
750 million dinars;  these products are exported by the Groupe chimique tunisien (GCT – Tunisian 
Chemical Group), which is 100 per cent state-owned.  At the beginning of the 90s, GCT was in a critical situation and owes its survival, in part, to the substantial financial support it received from the 
State.
31  Some enterprises also produce chemicals based on phosphoric acid.  The plastics industry 
                                                      
31 Conseil du marché financier , on-line information.  Available at:  http://www.cmf.org.tn/com_gct.htm. Tunisia WT/TPR/S/152 
 Page 89 
 
 
 includes both efficient export enterprises, whose exports increased from 19 to 154 million dinars 
during the period 1994-2004, and a domestic branch.  Customs duties on the sector's products average 15 per cent.  
(5) S
ERVICES  
93. In Tunisia, trade in services remains at a disa dvantage in several respects and, in particular, 
because of feebler foreign participation in the prov ision of services, which is largely reserved for the 
State and Tunisian nationals.  Consequently, in 2004, service activities accounted for only 10 per cent of the number of enterprises with foreign participa tion operating in Tunisia and less than 2 per cent of 
the jobs in those foreign enterprises.  
94. In 1999, in anticipation of the resumption of negotiations within the context of the General 
Agreement on Trade in Services (GATS), the Tunisian  Government estimated the potential benefits of 
liberalizing the services markets.
32  According to the conclusions of this study, the overall benefits of 
a broad liberalization of services would be substantial,  with the standard of living and GDP increasing 
by more than 7 per cent, i.e., an annual per capita ga in of about 230 dinars.  The estimated gain would 
be twice as great as the overall gains anticipated  from the free trade agreement with the EU, since 
liberalization under the GATS would apply not only to  cross-border trade in services (Mode 1 in the 
GATS terminology) but also to production and sal es on the domestic market through the commercial 
presence of foreign enterprises (Mode 3).  The s ub-sectors in which, according to the study, 
liberalization would bring the most substantial gains would be banking a nd financial services, 
transport, distribution, and communications.  
95. At present, Tunisia does not authorize cross-border supply (Mode 1), which means that 
foreign competition is possible only through comme rcial presence (Mode 3) or through the presence 
of natural persons (Mode 4).  Moreover, as the above-mentioned study points out, the barriers to 
foreign direct investment are still numerous in services activities, in contrast to the policy in effect in 
industry.  These restrictions are limiting competiti on and enabling local firms to continue dominating 
the domestic market to the detriment of consumers and productivity gains.  In particular, all trading 
activities, including wholesale distribution and reta il trading services, are reserved for enterprises in 
which Tunisians hold a majority interest.  Conseque ntly, foreign competition is restricted to minority 
partnerships in activities such as the distribution of petroleum products, spare parts, and building 
materials.  Similarly, foreigners can hold only a minority interest in building enterprises.  This lack of 
competition is creating additional costs for user industries. 
96. In its Schedule of Commitments Tunisia has specified a number of "horizontal" measures, 
i.e., measures applicable to all services.  For some  services activities, foreign investment requires the 
prior agreement of the Commission supérieur des investissements  (CSI – Investment Commission) if 
the foreign participation exceeds 50 per cent of th e company capital.  The measures affecting the 
presence of natural persons (Mode 4) remain unbound.   However, wholly exporting enterprises can 
recruit four executives and managers of foreign natio nality.  Any foreign natural persons wishing to 
engage in a salaried activity of an y kind in Tunisia must be in possession of a contract of employment 
certified by the competent authorities.  Tunisia's horizontal commitments also mention foreign exchange restrictions that affect all services (Chapter I (2)). 
                                                     
 
32 Eby Konan, D. and Maskus, K. (1999).  A ca lculable general equilibrium model was used.  WT/TPR/S/152 Trade Policy Review 
Page 90 
 
 
 (i) Tourism 
97. With 6 million foreign tourists in 2004 (0.8% of the world total) Tunisia is Africa's second 
most important tourist destination after South Afri ca.  The number of tourists rose from 3.9 million in 
1994 to 6 million in 2004, i.e., an average annual increase of 4.5 per cent.  Tourism plays a key role in 
the economy.  In 2004, earnings from tourism amount ed to approximately 2.3 billion dinars (7 per 
cent of GDP), the same as in 2001.  This reflect s the post-2001 decline in income resulting from the 
worldwide crisis that affected the sub-sect or.  Tourism generates about 90,000 jobs. 
98.  The main tourist attractions are the beach r esorts, although the Government is encouraging 
the development of tourism in new areas, in partic ular the Sahara Desert, cultural tourism, health 
tourism and business tourism.  Hotel capacity h as increased substantially since 1994 and in 2004 
stood at 800 hotels and 226,000 beds (Chart IV.2).  First-class hotels account for 46 per cent of hotel 
capacity.  The hotel occupancy rate was 49 per cen t in 2004, down on the 55 per cent recorded in 
2001 but up on 2003, when the rate was 42 per cent.  The tourists come mainly from Libya, France, 
Algeria and Germany. 
99. The task of the Office national du tourisme tunisien  (ONTT – Tunisian National Tourism 
Office), under the Ministry of Tourism, is to im plement government tourism policy.  This policy 
includes numerous investment incentives.  Any natural or legal person, Tunisian or foreign, whether 
resident or not, may hold a majority interest in  the following tourism enterprises: accommodation, 
entertainment, tourist transport, spa tour ism, conference tourism, and accommodation and 
entertainment unit management companies.  However,  foreign majority partic ipation in tour operator 
activities is subject to the approval of the CSI. 
100. Apart from the general incentives provided for in  the Investment Code (Chapter III(4)(i)), 
tourism projects in regional de velopment promotion areas qualify for the following benefits:  100 per 
cent exemption from income or profits tax for the first ten years of activity and 50 per cent during the next ten years, and exemption from the contributi on to the fund for the promotion of accommodation 
for employees during the first five years of activity.  If the investment is made in a mining 
redevelopment area, a subsidy of 25 per cent of the cost of the project (excluding land) is granted to 
the investor by the Minister for Tourism after c onsulting the ONTT.  In other regional development 
areas, the subsidy is fixed at 8 per cent.  The Stat e will also pay the employer's contribution to the 
statutory social security regime in respect of wa ges paid to employees of Tunisian nati onality during 
the first ten years of effective activity for investme nts made in Saharan areas and for five years for 
those made in other regional development promotion areas. Tunisia WT/TPR/S/152 
 Page 91 
 
 
  
101. The subsidy is released in three tranches for pr ojects costing not more than 1 million dinars:  
40 per cent when work on the project begins;  40 per cent on completion of 60 per cent of the investment;  and 20 per cent when production starts up.  If the cost exceeds 1 million dinars, the subsidy is released in four tranches:  30 per cen t when work begins;  30 per cent on completion of 
60 per cent of the investment;  20 per cent on completion of 80 per cent of the investment;  and 20 per cent at start-up. 
102. The State grants exemption from customs duties and consumption tax, with VAT at 10 per 
cent instead of 18 per cent, on imports of four-wh eel drive vehicles purchased by travel agencies, 
provided that these vehicles are not manufactured loca lly. It also grants hotels and travel agencies 
exemption from customs duties and a reduction in VAT to 10 per cent on imports of all public transport vehicles with less than 30 seats, driver's  seat included.  The State will also suspend VAT 
(new project) or reduce it to 10 per cent (project al ready in operation) for the purchase of buses (large 
or small) manufactured or assembled locally.
33 
103. Second homes purchased with convertible currenc y by non-residents are exempt from the 
registration fees and stamp duty when they change hands.  Effects and furnit ure for equipping second 
homes in tourist areas, purchased with hard curre ncy by non-residents, are admitted free of import 
duties and taxes. 
104. Under the GATS, Tunisia has bound without limitation the measures affecting Modes 2 
(consumption abroad) and 3 (commercial presence) of supply of hotel and restaurant services.  The 
                                                      
33 Decree No. 1994-1057 of 9 May 1994.   
0.0   1.0   2.0   3.0   4.0   5.0   6.0   7.0   
1994   1995   1996   1997   1998 1999 2000 2001 2002 2003   2004   100, 000120,000140,000160,000180,000200,000220,000240,000Chart IV.2    
Tourism indicators, 1994  - 2003    
Income from tourism
 (billions of dinars)
  Non - resident arrivals    
(millions)    Number of beds
Accommodation capacity    
available
 (righthand scale)
Source: Ministry of Tourism and Crafts (2004) , Le tourisme tunisien en chiffres, 2003; and information provided by 
 the Tunisian authorities. WT/TPR/S/152 Trade Policy Review 
Page 92 
 
 
 commitments on travel agencies (tour operators) bi nd only measures affecting the consumption of 
these services abroad.34 
105. A single hotel, with a 58-bed capacity, is still in  state ownership.  Moreover, the State has 
8 million dinars invested in tour companies and t ourism-related service companies.  Tourism activities 
are subject, on the one hand, to a hotel tax and a vocational training tax, each amounting to 2 per cent 
of turnover, and, on the other hand, to VAT at  10 per cent.  A hotel upgrading programme and a 
standards, certification and quality label program me are in process of being introduced.  ONTT is 
responsible for the supervision and classification of hotels. 
(ii) Telecommunications  
106. From independence up to 1996, telecommunications  services were provided by a department 
of the Ministry of Communications (Directorate General of Telecommunications).  The state-owned enterprise Tunisia Télécom was established in 1996 to carry out these activities.  Since 1999, the 
Tunisian Government has set itself the objective of  giving Tunisians access to high-quality, low-cost 
telecommunications services.  Thus, the Tenth Ec onomic and Social Development Plan (2002-2006) 
provides for about 2.8 billion dinars to be invested in telecommunications, including approximately 
40 per cent by the private sector.  The plan calls fo r the extension of the fixed and mobile telephone 
network, the modernization of the data transmis sion networks, and an increase in telephone density.
 
107. Under the GATS, in 1997, Tunisia undertook to bind, without limitation, measures affecting 
the supply of telex and packet-switched data tr ansmission services as from 1999;  mobile telephone, 
paging, teleconferencing and frame relay services as from 2000;  and local telephone services as from 
January 2003.35  However, it is stipulated that the supply of such services requires a start-up and 
operating permit issued in the light of unspecified "national development needs".  An operating permit 
is issued only to enterprises governed  by Tunisian law and with at least 51 per cent of the equity held by 
Tunisians.  Tunisia has made no commitment c oncerning either long-dis tance or international 
telecommunications services or satellite services.  Tunisia has not annexed the reference document on 
basic telecommunications to its Schedule of Commitments.36  Nor do its commitments include the 
provisions of the WTO Annex on telecommunications services relating, inter alia , to leased circuits.  
During the negotiations in progress in the WTO in June 2005, Tunisia submitted a new offer on 
telecommunications services.  According to the auth orities, the reference document will be annexed to 
their new Schedule of Commitments. 
108. The entry into force of the Telecommunications Code in 2001 led to the creation of the 
Instance nationale des télécommunications  (INT – National Telecommunications Authority), an 
administratively and financially independent entit y responsible, among other things, for advising on 
the method of determining tariffs for networks and services; administering the national plans for 
numbering and addressing;  overseeing the implementation of the legislation in force; and considering disputes.  The President of the Republic appoints the members of the INT. 
109. The management and allocation of the radio frequencies assigned to telecommunications 
services is the responsibility of the Agence nationale des fréquences  (ANF – National Frequency 
Agency), which comes under the Ministry of Tel ecommunications.  The President of the Republic 
                                                     
 
34 WTO document GATS/SC/87, 15 April 1994. 
35 WTO document GATS/SC/87/Suppl.1, 11 April 1997. 
36 The reference document specifies a number of measures for preventing large suppliers from adopting 
anti-competitive practices. Tunisia WT/TPR/S/152 
 Page 93 
 
 
 also appoints the members of the ANF.  Two licen ces have recently been issued:  a (second) GSM 
mobile telephony licence in 2002 and a data  transmission licence (VSAT) in 2004. 
110. In practice, the current situation is monopolis tic or, in some sub-sectors, duopolistic.  The 
traditional operator, Tunisia Télécom, is the onl y supplier of most basic services (fixed telephony, 
telex, fixed satellite, leased lines).  The mobile operator Tunicell is a branch of Tunisia Télécom.  A 
2004 law authorizes the conversion of Tunisia Télécom to a public corporation, in the form of a public 
limited company subject to the trade legislation.37  The process of opening up 35 per cent of the equity 
in Tunisia Télécom was under way in June 2005.  Since 2002, Orascom Télécom Tunisie (OTT), a 
consortium of Kuwaiti and Egyptian private interest s, has been exploiting a second mobile telephony 
licence purchased for 680 million dinars .  According to the authorities, OTT currently has more than 
1 million subscribers (2005), with a turnove r of approximately 375 million dinars. 
111. INT must be given advance notice of tariffs for telecommunications services.  The Ministry of 
Communication Technologies pe riodically sets the maxima for basic se rvices by decree (Article 17).  In 
practice, Tunisia Télécom determines  not only the price of telephone call s but also subscription charges, 
the cost of contract amendments, 0800 numbers, and special services (for example, directory enquiries, 
wake-up calls, tele phoned telegrams). 
112. Internet services are open to the private sector, a nd 12 providers (including five private) are 
operating in Tunisia.  These services remain heavily  regulated.  Internet traffic passes through lines 
leased to Tunisia Télécom (via the Agence tunisienne de l'Internet  (ATI – Tunisian Internet Agency), 
a public corporation) at prices and under access conditi ons determined by the latter.  Tunisia Télécom 
is the only provider of basic ("backbone") networks .  It has holdings in international high-speed 
fibre-optic networks for handling traffic to and from Internet service providers and end users.  Tunisia 
Télécom is negotiating commercial agreements for the exchange of traffic with other backbone 
network providers elsewhere in the world. 
113. Tunisia's telecommunications indicators are summarized in Table IV.6.  In 2005, the 
telecommunications network had about 6.7  million subscribers, including 4.5 million mobile 
subscribers.  In 2003, about 30 per cent of the pop ulation had a telephone line (fixed or mobile).  In 
2005, about 8.5 per cent of the population had access to the Internet. 
Table IV.6 
Telecommunications, 1995, 2000 and 2002-05 
 1995 2000 2002 2003 2004 2005 
Total number of  telephone subscriptions (per 100 inhabitants)  5.86 11.23 17.61 3146 48 59 
Connection charge for a business tele phone (US dollars)  126.88 58.39 56.34 6202 48 16 
Monthly subscription for a business telephone  (US dollars)  2.82 1.95 1.88 207 2.07 2.07 
Annual investment (millions of US dollars)  134.9 159.4 305.8 .. 428 800 
Mobile telephony – cost of a three-minute peak time  local call (US dollars)  1.33 0.55 0.53 0.52 0.52 0.44 
Internet users (per cent of population) 0.01 2.72 5.17 6.37 7.2 8.5 
Source: International Telecommunica tions Union and Ministry of Communication Technologies . 
114. In general, the reform of telecommunications services seems to have been slow and possibly 
not far-reaching enough for businesses to obtain access to modern information and communication 
technologies at competitive prices and thus be able to improve their competitiveness.  According to a 
Tunisian competitiveness survey, more than 40 per ce nt of the businesses questioned said that high 
                                                      
37 Law No. 2004-30 of 5 April 2004. WT/TPR/S/152 Trade Policy Review 
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 telecommunications tariffs were a major constraint.38  However, Tunisia Télécom is offering exporters 
discounts of 20-40 per cent on their international telecommunications costs (depending on the volume), in order to moderate the impact of the lack of competition in the supply of these services on the international competitiveness of Tunisian goods and services. 
115. Exports of call centre services have boomed in r ecent years.  There are currently seven call 
centres with foreign participation, six of which are wholly exporting;  altogether, they employ more 
than 1,100 people.  According to some sources, the new, relatively advantageous technical and 
financial conditions for the acquisition of high-pe rformance overseas-oriented telephone systems, 
even if they are not specific to call cen tres, largely explain their development.
39  The technical factors 
specific to  Tunisia include a large pool of qualified ope rators, the ability to speak good French, and 
labour costs competitive with those to be found in rival countries. 
(iii) Postal services 
116. The main piece of postal services legislation is the 1998 Postal Code.40  The supply of postal 
services is still a state monopoly entrusted to the Office national des postes (or Poste tunisienne ), the 
Tunisian Post Office.41  Poste tunisienne  is a wholly public corporation responsible, among other 
things, for the collection, transport and distribution of postal items inside and outside the country;  the 
operation of post office savings and curr ent account services;  and postal orders.42  Total turnover is 
estimated at 127 million dinars for 2005, with 44 per cent corresponding to postal services, 40 per 
cent to financial services, and 16 per cent to new services (for example, courier services).  Poste 
tunisienne  has more than 9,000 employees, a figure which has been increasing since 2003. 
117. Foreign private companies wishing to offer c ourier services are authorized to operate in 
Tunisia only in partnership with the company Rapid-Poste EMS , which itself is owned by 
Poste tunisienne .  According to a recent study, Rapid-Poste 's services are sometimes unreliable and 
inefficient.43  At the same time, businesses cannot function effectively without courier services.44 
118. Poste tunisienne  also handles post office savings and current accounts and carries out foreign 
exchange operations authorized under the foreign ex change regulations.  In 2004, post office savings 
totalled 1.23 billion dinars.  Thus, Poste tunisienne  is a major operator on the financial services 
market. 
(iv) Transport 
119. Transport policy is the responsibility of the Ministry of Transport.45  Since 2001, the Ministry 
has introduced a number of important reforms designed to increase the productivity of services, 
particularly in maritime and road transport.  A ccording to the authorities, at the end of the 90s, 
                                                      
38 Cahiers de l'IEQ , "Compétitivité de l'économie tunisienne", No. 18, January 2004. 
39 International Trade Centre/UNCTAD/WTO (2004). 
40 Law No. 98-38 of 2 June 1998, and Decree No. 98-1305 of 15 June 1998.   
41 Poste tunisienne , on-line information.  Available at:  http://www.poste.tn. 
42 Decree No. 98-1305 of 15 June 1998 creating the Office national des postes  and establishing its 
administrative and financial organization and operating procedures. 
43 International Trade Centre/UNCTAD/WTO (2004). 
44 Arabies  No. 213, January 2005, pp. 24-27.  Available at:  http://www.arabies.com/Economie.htm. 
45 See the Tunisian Government's site for a detailed description of recent developments in the field of 
transport. Tunisia WT/TPR/S/152 
 Page 95 
 
 
 international transport to and from Tunisia and was re latively inefficient, which translated into high 
freight costs. 
120. Tunisia has not included transport services in its Schedule of Specific Commitments under the 
GATS. 
(a) Maritime transport 
121. Maritime transport plays a vital role in the pr omotion of Tunisia's international trade, 97 per 
cent of which is carried by sea.  In 2003, impor ts accounted for 12 million tonnes, exports for 
13 million tonnes and domestic coastal traffic (cabotag e) for 1.2 million tonnes (Table IV.7).  More 
than 77 per cent of international traffic is with Eu rope, mainly Italy and France.  Since Tunisia's last 
TPR, extensive structural reforms have been intr oduced in order to encourage private initiative and 
thus increase competition.  The Government's present ambition is to achieve a further reduction in the 
cost of operating containers and transport units by  encouraging the increased participation of private 
shipowners and international enterprises specializing in multimodal transport and by creating 
logistical activity zones. 
Table IV.7 
Port traffic, 1995 and 2000-04 
(1,000s tonnes) 
 1995 2000 2001 2002 2003 2004 
Imports 11,002 13,677 14,110 15,400 13,323 12,460 
Exports 9,948 10,400 11,100 10,903 11,815 13,915 
Cabotage 1,560 1,032 981 887 1,216 990 
Total 22,510 25,109 26, 191 27,190 26,354 27,565 
Source:  Information provided by the Tunisian authorities. 
122. As Chart IV.3 shows, the foreign fleet ha ndles between 80 and 90 per cent of Tunisia's 
maritime traffic.  The Compagnie tunisienne de navigation  (CTN – Tunisian Shipping Company), the 
national state-owned shipping line, has seen its share decline sharply since 1992.  Although the 
market was opened up to private shipowners in 19 92, their share of the market did not increase 
significantly until 1995.  The sector was further libera lized with the end of the Tunisia-South France 
conference in 1998.  This initiative encouraged an increase in traffic, including capacity and the 
frequency of departures, and price reductions of 10-15 per cent for containers and 20-30 per cent for 
semi-trailers.  In 1999, CTN was restructured and its  fleet renewed.  Since 2000, there has again been 
a net contraction in the Tunisian private shipowners' share of maritime traffic.  At present, CTN 
operates alongside six private shipping companies, mainly engaged in shipping bulk liquids (oil), 
partly in chartered vessels. 
123. Since 1992, the supply of maritime transport servi ces has been liberalized and the tariffs are 
freely determined by the shipping lines.  However, coastal traffic remains exclusively reserved for the 
national shipping company, and the same applies to  towing operations inside ports or in Tunisian 
territorial waters or between Tunisian ports, except by special derogation. 
124. The available statistics indicate that the averag e price in dinars for transporting a container 
fell considerably between 1988 and 2003:  by 12 per cent a year on average on the South-of-France route and by 10 per cent on the route to Genoa in Italy.
46  Significant falls have also been recorded for 
bulk traffic by the tonne (equal to 6 per cent and 9 per cent for the two above-mentioned destinations, 
                                                      
46 Ministry of Transport (2004). WT/TPR/S/152 Trade Policy Review 
Page 96 
 
 
 respectively).  At the same time, the cost of trans porting semi-trailers has increased substantially (by 
2 per cent and 8 per cent, respectively).  According to the authorities, during the period 1998-2000 the price for semi-trailers fell by 20-30 per cent with th e end of the conference, but has increased since as 
a result of fluctuations in exchange ra tes, fuel prices and insurance costs. 
125. International comparisons of average maritime transport prices (freight plus port transit) 
carried out by the Ministry of Transport suggest th at, in 2000, Tunisia was much more expensive than 
Alexandria but on a level with Istanbul and cheaper than Casablanca.
47 
0102030405060708090100
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Chart IV.3
Shares of Tunisian maritime traffic, 1992-2005
Percentage of total tonnage transported
Source: Ministry of Transport (2000), Évolution du transport maritime en Tunisie ; and data provided by the
Tunisian authorities.CTNTunisian private
       shi pping linesForeign  shipping
lines
 
(b) Port services 
126. Tunisia has seven main commercial ports, hand ling about 28 million tonnes of cargo a year.  
The ports are managed by the Office de la marine marchande et des ports  (OMMP – Merchant 
Marine and Ports Authority).  The 1999 Comme rcial Seaport Code regulates and organizes port 
activities, including the concession and occupation of port property.  Since 1998, OMMP has 
gradually withdrawn from commercial port operations  and refocused its activities on its port authority 
prerogatives.  The reforms have made it possible to  privatize the activities of lighterage, piloting, 
cargo handling, storage and delivery inside the port,  and to assign the operation of the standage areas 
to private handling companies.  In particular, OM MP has withdrawn from port operations in favour of 
groups of handlers set up in each port to provide competition for the state-owned enterprise, the Société tunisienne d'ac onage et de manutention  (STAM – Tunisian Lighterage and Handling 
                                                     
 
47 Ministry of Transport (2000). Tunisia WT/TPR/S/152 
 Page 97 
 
 
 Company), within the framework of a docks operating concession.48  Since 1 March 2005, the work of 
the dockers has also been reformed and made subj ect to the provisions of ordinary labour law. 
127. The Code also provides for the possibility of  awarding public property and port equipment 
concessions, with or without a public service obligation, for a term of 30 years, renewable for a 
further term of 20 years maximum.  At the e nd of 2004, OMMP had aw arded concessions to STAM 
for operating the Rades docks49 and to the Grain Board in various ports.50  Several other contracts for 
the concession of specialized docks to state-owned enterprises were in the process of being negotiated 
at the end of June 2005.  The authorities have dr awn attention to an ongoing feasibility study for a 
third-generation deep-water port project offering m odern freight transit and vessel handling services. 
128. In order to shorten the stay of goods in the ports, since 2001 the port authorities have also 
been participating in efforts to facilitate and si mplify administrative procedures by computerizing the 
processing of transport documentation and extending th e use of the Tunisie Trade Net system to all 
port stakeholders.  Other reform-related progress includes the opening of commercial seaports on a 
24 hours a day, seven days a week basis and the mo dernization of the port equipment.  These reforms 
have made it possible to reduce the stay of containe rs in the ports from 18 days in 2000 to nine days, 
with a consequent substantial reduc tion in fees.  Similarly, the average handling rate has increased 
from 250 to 450 containers per day and fr om nine to 18 semi-trailers per hour. 
(c) Land transport 
129. Following the 1996 reforms, land freight transport and some tourist transport services are now 
wholly privatized; in practice, all these service s are open to competition from private companies 
provided that a majority of the capital is Tunisian -owned.  However, recent legislative amendments 
affecting market access include the elimination of  the requirement of Tunisian nationality for the 
supply of international road transport services on beha lf of third parties.  Foreign companies wishing 
to engage in this activity must first obtain the agreement of the CSI.51  Drivers and other employees 
must be Tunisian. 
130. International road haulage (TIR) is governed  by international conventions and by the 
22 bilateral agreements currently in force.52  In connection with the latter, Tunisia has established with 
each of the countries concerned an annual system of  bilateral permits that allow carriers from one of 
the parties free access to the territory of the other.   In addition, most of these agreements provide for 
reciprocal exemption from the duties and taxes in for ce in each of the countries concerned.  Tunisian 
carriers have only a very small share of the inte rnational road transport between Tunisia and its 
partners.  The 57 Tunisian operators carried only about three per cent of the 25 million tonnes of 
goods transported by sea between Tunisia and fore ign countries in 2002.  This low rate of 
participation is attributable, in particular, to the difficulties experienced by Tunisian carriers in 
obtaining visas, to the difficulties facing Tunisi an enterprises wanting to establish themselves in 
Europe, and to Tunisia's lack of means of transpor t that comply with EC standards.  In practice, 
Tunisian carriers are mainly employed in hau ling foreign semi-trailers on Tunisian territory. 
                                                      
48 Decree No. 2002-135 of 28 January 2002 set out the services relating to the missions of the OMMP 
which can form the subj ect of a concession. 
49 Decree No. 2004-2367 of 4 October 2004. 
50 Decrees Nos. 2004-2366, 2368, and 2369 of 4 October 2004. 
51 Law No. 2004-33 of 19 April 2004.  
52 Algeria, Austria, Belgium-Luxembourg, Egypt, Finl and, France, Germany, Hungary, Iraq, Iran, Italy, 
Jordan, Lebanon, Morocco, Poland, Portugal, Spain,  Sweden, Switzerland, Tu rkey and United Kingdom.  WT/TPR/S/152 Trade Policy Review 
Page 98 
 
 
 131. In order to develop investment in international road haulage and increase the domestic 
carriers' share of this market, Tunisia has, among other things, abolished quantitative restrictions and 
exempted imported TIR vehicles from duties and taxes, such vehicles not having been manufactured locally since 1995.  Other measures include the adoption of a special regulatory framework for 
international road haulage
53 and European standards on the weight and dimensions of vehicles used 
for these purposes. 
132. The State continues to play a significant role in passenger land transport.  From 
nationalization at the end of the 50s up to the en d of 2003, scheduled inter-city coach transport was 
provided by public operators.  The passage of a ne w law has resulted in the market being opened up, 
to some extent, to Tunisian private operators.54  At present, to engage in these activities it is first 
necessary to obtain the approval of the CSI where fo reign equity participation exceeds 50 per cent, in 
conformity with the Investment Incentives Code. 
133. There are two main public rail transport operators, namely, the Société nationale des chemins 
de fer tunisiens  (SNCFT – Tunisian Railways) and the Société de transport de Tunis  (STT – Tunis 
Transport Company, rail network), which specializes in urban passenger transport in the capital.  The 
SNCFT is a public corporation for transporting passengers and freight by rail.  In 2004, it carried 
6 million passengers on the main lines and 34 million in suburban traffic, in addition to 
11 million tonnes of freight, including 7.7 million tonnes of phosphates.  It has a fleet of 179 locomotives, 294 passenger coaches, 4,312 goods wagons, and 2,064 containers.  In addition to 
providing bus transport, STT operates a 34 km networ k of light metro lines and an electrified railway 
line, with 134 and 18 trains, respectively.  In 200 4, the number of passengers using the rail network 
was 133 million.  
(d) Air transport 134. The aviation sector is regarded  by the authorities as one of the strategic sectors for the 
development of the Tunisian economy;  it generate s substantial hard curre ncy income, accounts for 
2 per cent of GDP and provides about 12,000 jobs.  Th e Government's strategy is to encourage private 
participation in civil aviation activities in order to  improve the profitability of domestic air transport 
and air freight services, in view of the important role played by these two activities in the development of the national economy. 
135. Another Government objective is to cont inue "upgrading" the public corporations 
TUNISAIR, TUNINTER and NOUVELAIR.  A new private air transport company KARTHAGO 
began operating in March 2002.  St atistics on the turnover and traffic of the Tunisian commercial 
aviation industry are reproduced in Table IV.8.  They  indicate that the Tunisian companies have been 
successful in increasing their share of passenger air transport. 
136. The Civil Aviation Code, the main legislati on on air transport, was amended in 2004.
55  Once 
the implementing decrees are in place, the Code will enable a broad range of services to be opened up 
to the private sector.  One of the draft decrees lays down the conditions which an enterprise must fulfil 
in order to build, equip, operate, maintain and de velop airports.  Another is  intended to harmonize the 
                                                      
53 Law No. 98-21 on Internationa l Multimodal Freight Transport. 
54 Law No. 2004-33 of 19 April 2004 on the Organization of Land Transport; and Decree 
No. 2004-2410 of 14 October 2004 on the composition and functioning of the Regional Consultative 
Commission. 
55 Law No. 99-58 of 29 June 1999, as amended a nd supplemented by Law No. 2004-57 of 12 July 2004. Tunisia WT/TPR/S/152 
 Page 99 
 
 
 Tunisian regulations with European standards c oncerning the technical and financial conditions for 
obtaining a permit to operate an airline. 
Table IV.8 
Air transport, 2000-04 
(Thousands of passengers, except where otherwise indicated)  
 2000 2001 2002 2003 2004 
Traffic       
  Scheduled international traffic 3,395 3,334 3,112 2,986 3,318 
  Non-scheduled international traffic 
  (charter flights) 5,654 5,785 4,402 4,378 5,728 
  Domestic traffic 602 577 565 548 540 
  Total 9,651 9,696 8,079 7,912 9,586 
Passengers by company      
  Tunisaira 3,442 3,536 3,132 2,935 3,604 
  Tuninterb 480 503 307 300 306 
  Nouvelairc 996 1,152 869 949 1,241 
  Karthago Airlinesd .. .. 180 365 488 
  Total foreign companies 4,733 4,505 3,771 3,363 3,947 
  Percentage of total 49 47 47 43 41 
Freight (tonnes) 28,535 23,370 21,731 20,618 21,160 
.. Not available. 
a National air passenger, freight and mail transport company. 
Market share in 2004:  41 per cent (58 per cent of scheduled traffic and 30 per cent of charter traffic).  Turnover:  842.1 mil lion dinars. 
b Domestic and local air transport company. 
Market share in 2004:  1 per cent of international traffic.  Turnover: 19.4 million dinars. 
c Company specializing in charter flights. 
Market share in 2004:  23 per cent of charter traffic.  Turnover: 218.6 million dinars. 
d Company specializing in charter flights. 
Market share in 2004:  9 per cent of charter traffic.  Turnover: 79.5 million dinars.  
Source:  Information provided by the Tunisian authorities. 
137. Under the Code, the Office de l'aviation ci vile et des aéroports  (OACA – Civil Aviation and 
Airports Authority) has a triple role:  airport operation and development, together with all the 
operations and services required by travellers, th e public, aircraft, freight, and air mail;  the 
supervision of flights, aircrew and aircraft; and th e issuing of all the documents required by aircrew, 
aircraft and airlines, in accordance with the legislation in force.56  Airport fees and the charges made 
for aviation services are established by decree.57 
138. The authorities have made it a priority to in crease the capacity of Tunisia's international 
airports, in particular by building two new airports  and extending Djerba International Airport.  The 
Civil Aviation Code provides for the possibility of ci vil airports being wholly or partially operated 
under private concessions, on the basis of specifi cations whose clauses are fixed by decree. 
139. Since 1996, nonscheduled (charter) air freight and passenger transport activities have been 
open to private initiative, provided that a majority of the enterprise's equity is held by Tunisian 
nationals.58  Scheduled international passenger transport services are provided by the state-owned 
                                                      
56 Office de l'aviation civile et des aéroports , on-line information.  Availabl e at:  http:// www.oaca.nat.tn/. 
57 Decree No. 93-1154 of 17 May 1993. 
58 Order of 04/05/1996 publishing the specifications establishing the conditions for granting 
authorization to operate air freight transport services;  and Order of 28 February 1995 specifying the conditions 
for granting authorization to operate non-scheduled air passenger transport services. WT/TPR/S/152 Trade Policy Review 
Page 100 
 
 
 Tunisair, by one of the other Tunisian companies,  or by foreign enterprises under bilateral traffic-
sharing agreements.  Cabotage is reserved for T unisian enterprises.  On the domestic market, 
passenger and freight tariffs are regulated.59  Passenger fares, freight tariffs and the terms of transport 
between Tunisia and other countries are subject to the provisions of air transport agreements (see 
below). 
140. The Government supports the principle of progressi ve liberalization of air transport within the 
framework of a regional free trade market or in the in ternational context.  Tunisair has recently signed 
strategic alliance agreements with Air France and Royal Air Maroc.  According to the authorities, 
most of the bilateral aviation agreements signe d by Tunisia provide for multiple designation;  
however, in June 2005, the bilateral agreements with the member countries of the European Union 
had not yet been amended to permit such designation. 
(v) Financial services 
141. Financial services accounted for 5 per cent of GDP in 2004.  They play a vital part in trade 
since they provide indispensable support for busin esses of all kinds.  Their quality and cost have a 
direct influence on competitiveness, including that of exporters. 
142. Under the GATS, Tunisia has made specific co mmitments in the financial services sector.60  
These commitments were improved by an offer wh ich became definitive on 26 February 1998.61  This 
new schedule, attached to the Fifth Protocol a nnexed to the GATS, replaced the section relating to 
financial services in the April 1994 offer, the insurance commitments remaining unchanged. 
(a) Insurance 
143. By 1996, several insurance companies had accu mulated substantial deficits which exceeded 
their capital and the sub-sector found itself in a crit ical situation.  The authorities appealed to the 
World Bank for assistance in drawing up a master plan for the reorganization of the sub-sector involving the restructuring of the insurance comp anies, the strengthening of the institutional and 
regulatory framework and the promotion of new insu rance products.  Almost ten years later, the sub-
sector appears to have returned to financial equ ilibrium, but remains highly regulated and protected 
from outside competition and hence internationally uncompetitive, with inev itable consequences for 
the quality and cost of the policies available. 
144. The insurance market in Tunisi a comprises 18 resident and 3 non-resident companies.  Most 
of these are diversified (offer several types of insu rance), but some specialize in a single insurance 
activity: two in life insurance (Hayett and Amina), one in export credit insurance (Cotunace), one in 
reinsurance (Tunis-Re), and one in local credit insu rance (Assurcredit).  Seven of the companies are 
partly foreign-owned (20 to 49 per cent).  In 2003, two public corporations (Star and Cotunace) 
accounted for 31 per cent of the sub-sector's turnover.   Certain insurance services may be offered by 
the banks.
62 
145. In 2002, the resident insurance companies ha d a turnover of 530 million dinars.  In 2002, 
insurance premiums amounted to approximately 46 m illion dinars.  A review of the data for the last 
                                                      
59 Decree No. 95-1142 of 28 June 1995. 
60 WTO document GATS/SC/87, 15 April 1994. 
61 WTO document GATS/SC/87/Suppl.2, 26 February 1998. 
62 Law No. 92-24 of 9 March 1992 Enacting the Insurance Code, as amended by Law No. 2002-37 of 
1 April 2002. Tunisia WT/TPR/S/152 
 Page 101 
 
 
 five years (1999-2003) shows that the market's to tal turnover has grown stead ily.  An international 
comparison indicates that, in 2003, insurance premiums amounted to approximately US$50 per capita, more than in Morocco, Romania or Turkey (US$43, 36 and 47, respectively) but less than a third of 
the levels recorded in the new members of the European Union.
63  The motor vehicle sector generates, 
on average, 42 per cent of premiums.  Life insuran ce still has only a small share of the market (8 per 
cent). 
146. The reinsurance company Tunis Re received 51 mi llion dinars in premiums in 2003, mainly 
in aviation and fire insurance;  only three-quarters of the premiums related to Tunisian local risk, 
5 per cent came from Maghreb countries, 10 per cent from other Arab countries, 5 per cent from other 
African countries, 4 per cent from Europe, and 2 per cent from Asia and the rest of the world.  The 
premiums retroceded through Tunis Re amounted to 67 per cent of the premiums accepted.  The activities of Tunis Re accounted for a little over one-qua rter of the total reinsurance premiums paid by 
Tunisian enterprises (non-resident companies ex cluded), which indicates that the majority of 
reinsurance services are provided by "n on-resident" or foreign companies. 
147. Three non-resident companies insure non-reside nts and are mainly engaged in reinsurance.
64  
They were established on the basis of an agreemen t, approved by decree, between the Minister for 
Finance and the General Manager of the comp any concerned on the opening of a branch or 
representative office.  These companies are entitled to the tax, customs, foreign exchange and foreign 
personnel benefits available to  non-resident wholly exporting enterprises (Chapter III(3)). 
148. The regulatory authority is the General Insuran ce Committee of the Ministry of Finance.  The 
Conseil supérieur des assurances  (Insurance Council) and the Commission consultative des 
assurances  (Consultative Insurance Commission) were est ablished in 2002.  The trade association is 
the Fédération tunisienne des sociétés d'assurance  (Tunisian Federation of Insurance Companies). 
149. Tunisia's commitments on insurance under th e GATS are insignificant and, generally 
speaking, insurance services are not open to internat ional competition.  The Insurance Code requires 
all risks situated in Tunisia to be insured with resident companies.  The transportation of imported 
goods by air, sea or land must also be insured in Tuni sia.  However, in view of the magnitude of the 
risks relating to the civil liability of shipowners  and maritime carriers not covered by ordinary 
insurance (such as pollution risks), the Code was amended to permit insurance policies relating to 
those risks to be taken out outside of Tunisian te rritory.  The importation of reinsurance services has 
been free since 1993.65 
150. Foreign investors can provide insurance services onl y if their commercial presence is ensured 
by a subsidiary set up in the form of a joint vent ure in which the foreign participation does not exceed 
49 per cent of the equity.  The minimum capital required is 10 million dinars for public limited 
companies engaged in several branches of insuran ce, 3 million dinars for those engaged in only one 
branch, and 1.5 million dinars for mutual insu rance companies.  These minimum amounts apply 
whether or not the company is partially foreign-owned.  Under the Tunisian labour legislation, wholly 
exporting enterprises may recruit four  foreign executives or managers. 
151. The market also includes 622 insurance inte rmediaries, 613 insurance experts and loss 
adjusters, and seven actuaries.  The sale of insu rance intermediation (life insurance, insurance 
                                                      
63 Swiss Re, Sigma No. 3/2004, update 2005.  Available at:  http://www.swissre.com/. 
64 Law No. 85-108 of 6 December 1985 on the Encouragement of Financial and Banking Institutions 
Working Mainly with Non-residents, and Articles 67 and 68 of the Insurance Code. 
65 Decree No. 93-1696 of 16 August 1993. WT/TPR/S/152 Trade Policy Review 
Page 102 
 
 
 brokerage and other auxiliary services) and claim assessment services is re served exclusively for 
Tunisian nationals. 
(b) Banks and other financial enterprises 
152. In June 2005, the financial system (excluding  insurance) consisted of 20 commercial banks, 
eight non-resident banks, 11 leasing organizations, tw o factoring companies, two merchant banks and 
eight collecting companies.  At the end of 2004, the four leading banks (in terms of assets) accounted 
for 56 per cent of total commercial bank assets.  In  1982, the authorities gave permission for the 
establishment of the first majority foreign-owned bank (Arab Tunisian Bank).  At present, there are 
five foreign clearing banks in Tunisia, representing 20 per cent of total bank assets. 
153. The general trend in the sub-sector is to wards concentration and the conversion of 
development finance companies into universal banks.  The authorities are expecting an intensification 
of the foreign presence in the next few years.  In 2004, State participation in total commercial bank 
assets amounted to 46.5 per cent.  At the same time, the privatization strategy currently being pursued 
in the banking sub-sector could he lp to make it more efficient. 
154. The main legislation governing the financial servi ces offered by resident  banks is a 1994 law, 
last amended in 1999.66  It covers all the institutions that rely on savings, including banks, insurance 
companies and undertakings for coll ective investment in transferab le securities (UCITS).  The 1994 
law also organizes the operations of the Tunis Stock Exchange.67  The Conseil du marché financier 
(Financial Market Council) is responsible for overseeing the protection of savings invested in 
institutions covered by the law.68  However, it does not have responsibility for the insurance markets 
(Section (a) above).  The Association professionnelle tunisienne  des banques et des établissements 
financiers (Tunisian Trade Association of Banks and Fina ncial Institutions) acts as an intermediary 
between the banks and the government in all ma tters relating to the practice of the banking 
profession.69 
155. The weakness of the Tunisian banks during th e 90s was largely due to the loan repayment 
difficulties experienced by the partly and who lly state-owned enterprises.  An "upgrading" 
programme launched in 1997 began with the rest ructuring of the banks' portfolios based on the 
absorption of the non-performing debt of the St ate-owned enterprises into the budget.  This 
programme was supplemented by measures to im prove the banks' pruden tial and organizational 
arrangements, mainly, through the adoption, in Ju ly 2001, of a new law modernizing the regulatory 
framework and introducing the notion of a universal bank.  Today, the Tunisian banks are generally 
profitable; the average solvency ratio is 11.8 pe r cent.  However, the banking sub-sector remains 
vulnerable.  The ratio of non-performing loans to total bank assets is still high.  For some banks, the 
capital adequacy ratio has fallen below the mandatory minimum. 
156. The revised version of Tunisia's Schedule of Commitments under the GATS binds, without 
limitation, the measures affecting the cross-border s upply or consumption abroad of several financial 
                                                      
66 Law No. 94-117 of 14 November 1994 on the Reorganization of the Financial Market, as amended 
by Law No. 99-92 of 17 August 1999 on the Revival of the Financial Market. 
67 Tunis Stock Exchange, on-line information.  Available at:  http://www.bvmt.com.tn. 
68 Conseil du marché financier , on-line information.  Available at:  http://www.cmf.org.tn/. 
69 Association professionnelle tunisienne des banques et des établissements financiers , on-line 
information.  Available at:  http://www.apbt.org.tn.  Tunisia WT/TPR/S/152 
 Page 103 
 
 
 services, including those provided by banks, leasing companies and investment companies.70  I n  
reality, the foreign exchange controls sharply rest rict the opportunities for cross-border trade, apart 
from the financing of current operations.71  In fact, most financial operations, such as investments in 
foreign stocks and bonds, are not authorized, inasmu ch as residents (whether natural or legal persons) 
cannot freely send foreign currency abroad or receive  it from abroad, no more than they can purchase 
financial services abroad.  Measures affecting the supply (by any mode, except Mode 4) of loan 
broking and financial consultanc y services are bound without limitation. 
157. Special and much lighter legislation applies to the eight "non-resident" banks established 
mainly to finance "non-resident" enterprises.  These are either public limited companies under 
Tunisian law or corporations with their headquart ers abroad approved by the Ministry of Finance, 
subject to a report by the BCT, as a non-resident organization working mainly with non-residents.72  
Non-resident banks are authorized to engage fr eely in all banking operations with non-residents. 
Operations with residents are restricted to the following73:  participation in the equity or medium and 
long-term financing of resident enterprises;  financ ing, from foreign exchange resources, of the import 
and export operations of resident enterprises; financing, from dinar resources, of productive 
operations carried out in Tunisia by resident en terprises; and auxiliary foreign-trade operations on 
behalf of the customers they finance.  The non-resident banks may also finance the business 
operations of residents from their foreign exch ange resources and from resources derived from 
foreign-currency borrowings on the money market.74 
158. With respect to external borrowing, reside nt enterprises may, for the purposes of their 
activities, borrow limited amounts in foreign currenc ies from non-resident banks.  When these loans 
are for a term of more than 12 months, they ma y be taken out freely and in unlimited amounts by 
credit institutions, and subject to an annual limit of 10 million dinars by other enterprises.75  A t  
present, the non-resident banks are collectively aut horized to take deposits from residents up to a 
maximum of 1.5 per cent of total deposits.76  The share of each bank is not specified in advance.  
Since 2002, non-resident banks have also been author ized to provide residents with mortgage loan 
services.  Personal instalment loan servi ces remain subject to authorization. 
159. Foreign investment is authorized in principle. However, it is subject to acceptability criteria.  
Thus, any investment in the banking sub-sector  (no matter whether the bank is "resident" or 
"non-resident") must be approved by the Ministry of Finance, on the recommendation of the Central Bank.  Approval is granted on the basis of the applic ant's business plan and its technical and financial 
resources.  Moreover, the institution must be a public  limited company under Tunisian law.  Similarly, 
mergers of credit institutions and the acquisition of more than 10 per cent of the voting rights must 
receive the prior approval of the Ministry of Fina nce.  The managing director of a credit institution 
must be a Tunisian national
77 and, like the other members of the management board, must be resident 
in Tunisia.  Exceptions may be made for foreig n credit institutions.  When founded, every bank, 
whether foreign or not, must show that it has a mi nimum of 10 million dinars in fully paid-up capital, 
                                                      
70 Public limited companies for the promotion of investment – fixed capital (SICAF) or risk capital 
(SICAR). 
71 Stephenson, S. (1999). 
72 Law No. 85-108 of 6 December 1985 defines the field of intervention of the offshore bank which 
may, as the case may be, have a capital or endowment without a minimum requirement as to the amount. 
73 Law No. 85-108 of  6 December 1985. 
74 Article 3 of Circular No. 92-13 of 10 June 1992. 
75 Circular to Approved Intermediaries No. 2005-03. 
76 Law No. 85-108 of  6 December 1985. 
77 Law No. 2001-65 of 10 July 2001. WT/TPR/S/152 Trade Policy Review 
Page 104 
 
 
 or 3 million dinars in the case of financial institu tions (not authorized to  take deposits from the 
public). 
(c) Trading in securities  
160. Since 1994, the reform of the financial syst em has led to the adoption of new general 
regulations for the Tunis Stock Exchange, the introduction of a new regime for stock market 
intermediaries, the progressive opening up of the stoc k exchange to foreign investors, and the reform 
of its legal and fiscal framework.78  T h e  Conseil du marché financier (CMF – Financial Market 
Council) is responsible for the s upervision of the stock market.79  The CMF is an independent public 
authority with legal personality and financial aut onomy.  It organizes the markets and ensures that 
they function properly.  It is also responsible  for checking financial information and penalizing 
breaches or infringements of the regulations in force.  The stock market intermediaries and the securities deposit, clearance and settlement compan y are also under its control and it supervises the 
UCITS.  The capitalization of the stock market rose  from 2.5 billion dinars in 1994 to 3.1 billion in 
2004.  This relatively feeble growth is attributable  to the high cost of a listing in terms of the 
minimum capital needed, accounting requirements and relatively high fees. 
161. Foreign investment in stock broking services must be approved by the CMF;  stock market 
intermediaries (whether natural or  legal persons), the only agents au thorized by law to deal in and 
register securities on the stock market, must be of Tunisian nationality. 
(vi) Professional services
 
162. Until recently, professional and other business services were mainly perceived as having to be 
protected from foreign competition rather than as dyna mic activities with a st rong export potential.  
However, Tunisia is a country rich in well-qualif ied human resources and internationally competitive 
in certain professional services, such as auditing and engineering. 
163. Since trade in professional services in particular, and business services in general, is largely 
based on the movement of natural persons, the pr oviders of professional services are particularly 
affected by regulations which restrict such move ment (Mode 4 in the terminology of the GATS).  
Tunisia would benefit considerably if count ries were more open to foreign professionals 
(Chapter II(4)). 
(a) Legal services 
164. To be called to the bar and be able to practice in  Tunisia, it is necessary to have been Tunisian 
for at least five years and to reside in Tunisia.  It is also necessary to be the holder of a Tunisian 
certificate of aptitude to practice law or of a foreign diploma deemed to be equivalent by the Ministry 
of Higher Education and Scientific Research.80  In 2004, there were a few foreign lawyers and law 
offices registered in Tunisia as providers of legal consultancy services only, subject to the provisions 
of the Investment Incentives Code.  These lawy ers are supervised at national level by the 
Ordre des avocats tunisiens  (Tunisian Bar Association).  Tunisia has not made any commitment under 
the GATS with respect to legal services. 
                                                      
78 Law No. 94-117 of 14 November 1994 Reorganizing the Financial Market. 
79 Conseil du marché financier , on-line information.  Available at :  http://www.cmf.org.tn/lecmf.htm. 
80 Law No.89-70, of 28 July 1989, as amended by Law No. 92-122 of 29 December 1992 
Decree No. 96-519 of 25 May 1996. Tunisia WT/TPR/S/152 
 Page 105 
 
 
 (b) Accounting, auditing and taxation services 
165. In Tunisia there are currently about 400 regist ered auditors and accountants.  The number has 
doubled since 1997.  Tunisia applies accounting standa rds very similar to the International Financial 
Reporting Standards (IFRS)81, which may give Tunisian professionals a comparative advantage on the 
other markets applying these standards.  Moreover, according to a recent surv ey, Tunisian tariffs are 
internationally competitive.82 
166. In Tunisia, the practice of the profession of ac countant is mainly governed by a law of 1988.83  
The practice of the profession of bookkeeper is based on a law of 2002, amended in 2004.84  To be 
allowed to practice these professions in Tunisia it is necessary to have been Tunisian for at least five 
years and to hold a diploma recognized by the Mini stry of Higher Education.  The two professional 
bodies to which practitioners must belong are the Ordre des experts comptables de Tunisie , for those 
qualified to practice as aud itors and accountants, and the Compagnie des comptables de Tunisie , for 
bookkeepers.  Both bodies come under the supervision of the Ministry of Finance.  Auditors must 
apply the scale of fees approved by the Ministry. 
167. Since 2005, auditing and accounting services have been eligible for State aid from the Fonds 
de promotion et de décentralisation in dustrielle au titre des nouveaux promoteurs  (Promotion and 
Industrial Decentralization Fund for New Promoters).85 
168. Since 1960, taxation services have been govern ed by the Law on the Approval of Tax 
Advisors, as last amended in 2001.86  Unlike the bookkeeping and accountancy professions, persons 
of foreign nationality (natural or legal) are allowe d to practice the profession of tax adviser in Tunisia 
on the same conditions as Tunisians, provided that in the countries to which they belong Tunisians are 
granted, in law and in fact, the same opportunities.87  Tunisia has not made any commitment under the 
GATS concerning the provision of accounting, auditing and bookkeeping or taxation services. 
(c) Engineering and architectural services 
169. There are about 2,000 design offices (architectur e, engineering) and consulting engineering 
firms active in Tunisia.  Some, such as the STUDI and SCET-Tunisia groups, do more than half of 
their business for export, in particular, as subcont ractors for European firms.  These activities are 
supervised by the Ministry of Public Works, Housing and Town and Country Planning. 
170. In Tunisia, the practice of the profession of cons ulting engineer is subject to the signature of 
articles and conditions approved by mi nisterial order.  Tunisian nationality is required for membership 
of the Ordre des ingénieurs  (Society of Engineers) and the Ordre des architectes  (OAT – Society of 
Architects).  Foreigners may practice provisionally on ce they have the consent of the Minister and the 
competent society, subject to reciprocity agreemen ts between Tunisia and the countries to which they 
belong.  A majority of the equity in design offices must be Tunisian, and they must be headed by a 
                                                      
81 Law No. 96-112 of 30 December 1996 on the Business Accounting System. 
82 International Trade Centre/UNCTAD/WTO (2004). 
83 Law No. 88-108, and Decree No. 89-541.  The other relevant legal texts deal, in particular, with 
professional duties, the auditing of the accounts of public corporations, and the scale of fees. 
84 Law No. 2002-16 Organizing the Profession of Bookkeeper (as amended by Law No. 2004-0088 of 
31 December 2004. 
85 Juriste Tunisie .  Available at:  http://www.jurisiteTunisia.com/Tunisia/codes/cii/94-0538a.htm 
86 Law No. 60-34 of 14 December 1960 on the Approval of Tax Advisers, as supplemented and 
amended by Law No. 2001-91 of 7 August 2001. 
87 Chikaoui, L. (2004). WT/TPR/S/152 Trade Policy Review 
Page 106 
 
 
 Tunisian architect or engineer.  All buildings must be the subject of plans prepared by an architect 
enrolled with the OAT.  Moreover, the practice of the profession is subject to membership of the 
OAT.  In general, architects and engineers may set  their fees freely;  however, they are bound by a 
scale when the services are supplied to the State. 
 Tunisia WT/TPR/S/152 
 Page 107 
 
 
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