THE TUNISIA NATIONAL WORKSHOP WAS held in Tunis on 25 and 26 September 2001 to discuss the findings of the Tunisa country assessment. It highlighted the twin challenges of the end of the quota system under the multi-fibre agreement in 2004, and a free trade treaty with the European Union in 2007.

The workshop brought together 80 members of Government, civil society and academia, and widened the circle of people investigating how Tunisia can best seize the opportunities of integration into the world economy.

Participants noted that Tunisia is pursuing a vast array of policies complementary to trade liberalization, which require some strengthening. Objectives include better co-ordination of export promotion policies; higher-quality trade facilitation programmes; enhancement of SME-oriented facilities; more access to export financing and credit insurance; and greater emphasis on exports of services other than tourism.

Government efforts in foreign investment liberalization and promotion have the potential to attract more FDI. The foreign investment promotion agency needs to expand its financial and human resources, focus its efforts on targeting investors, and promote partnerships and BOT (build-operate-transfer) projects. Although a number of measures have recently been introduced to stimulate portfolio equity flows, full capital account liberalization will only take place once the domestic sector is strengthened. One important question to be asked is, however, whether the pace of these reforms can be accelerated without jeopardizing financial stability.

The next few years may see tensions emerge as firms adjust to competition by cutting jobs. The long-term impact on employment will ultimately depend on the volume and quality of domestic and foreign investment, labour market flexibility and improvements in education and vocational training. In order to enhance labour mobility, the Government could examine the feasibility of an unemployment insurance scheme.

Tunisia is implementing a panoply of rather successful poverty-reduction programmes with only 1% of the population now below the international poverty line of $1 a day. However, in order to cope with the possible adverse effects of increased openness on the poor, priority attention should be paid to better coordination and harmonization of the various schemes in operation. The Workshop was very well received by the Tunisian press. The Minster for Foreign Affairs, M. Youssef Mokaddem, reiterated his country's commitment to an open economy in pursuit of sustainable human development.

Tunisia country page (includes summary of country assessment)

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