An emerging stock exchange offers investors opportunities. Recent oil and natural gas discoveries have put off until the 21st century Tunisia's becoming a net energy importer. Still, difficult economic reforms need to be made, including further reductions in tariffs and subsidies. The Tunisian Government adopted a unified investment code in 1993 to attract foreign capital. More than 600 export-oriented joint venture firms operate in Tunisia to take advantage of relatively low labor costs and preferential access to nearby European markets.
Economic links are closest with European countries, which dominate Tunisia's trade.
Tunisia seeks continued preferential trade agreements with European countries. In 1993, Tunisia made the dinar convertible for trade transactions. President Ben Ali aims to increase relations with Arab and African nations while maintaining those with the West. Since the signing of the Israeli-PLO Accord in September 1993, the PLO Executive Committee has relocated to Jericho while the Political Department remains in Tunis. Tunisia consistently has played a moderating role in the negotiations for a comprehensive Middle East peace.