Inflation has been moderate. Growth in tourism and increased trade have been key elements in this solid record. Tunisia's association agreement with the European Union entered into force on 1 March 1998, the first such accord between the EU and Mediterranean countries to be activated. Under the agreement Tunisia will gradually remove barriers to trade with the EU over the next decade. Further privatization, the attraction of increased foreign investment, and improvements in government efficiency are among the challenges for the future.
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