2023-11-06 09:57:38
Tunisia’s economy truly experienced the process of economic liberalization from 1987. And, it was exactly from the free trade agreement concluded with the European Union, signed on July 17, 1995 and entered into force. effective 1is March 1998, leading to increased opening to global competition and the gradual dismantling of customs barriers begun in 1996 until 1is January 2008. In fact, this liberalization led to privatization which initially resulted in the sale of small companies belonging to sectors such as tourism, construction materials, textiles, the agri-food industry, fishing and mechanics. This period coincides with Tunisia’s accession to the World Trade Organization in 1995 and the adoption of the Barcelona Declaration emanating from an intergovernmental conference held in Barcelona from November 25 to 27, 1995 bringing together the 15 member countries of the World Trade Organization. European Union and twelve countries from the south and east of the Mediterranean. In order to better understand this crucial period of the Tunisian economy and this complete turnaround with the signing of these two conventions, we contacted Ridha Chiba, international export advisor, to provide us with more details on these free trade agreements and their impacts on the country on a national and international scale. Interview:
What are the main areas of cooperation between Tunisia and the European Union through the free trade agreement signed in 1995?
By signing this agreement, Tunisia initially relied on an economic space exceeding 380 million inhabitants. This space is considered among the largest markets in the world and also Tunisia’s first partner. The agreement signed on July 17, 1995 provides for the creation of a free trade zone over a period of twelve years. It entered into force on March 1, 1998 following its ratification by the parliaments of the signatory countries of this treaty. The European Union grants Tunisian industrial products total exemption from customs duties and taxes with equivalent effects.
On the other hand, Tunisia is proceeding in stages with the dismantling of tariff protection vis-à-vis exports of industrial products of European origin during a transition period of twelve years from the date of entry into force of the agreement for the creation of this zone. To this end, the European Union has required ISO 9,000 certification for all Tunisian, industrial and agri-food products exported to Europe.
How are industrial goods imported into Tunisia from the European Union and the signatory countries of this free trade agreement?
All exporters use the EUR1 movement certificate which is proof that allows the shipment of goods originating in the European Union to a country that has concluded preferential agreements with this economic grouping. This document allows customs duties and taxes to be waived. It is the exporter, who is responsible for drafting the document, which is approved by the customs of the country of export. It should be noted that benefit from the preferential regime is subject to the presentation of the EUR1 certificate which must be presented at the time of customs clearance. To use this EUR1 movement certificate which replaces the certificate of origin, there must be an agreement between the European Union country and the third country providing for the use of this document. The goods concerned must originate in this area or third countries. It should be noted that in addition to the European countries and Tunisia benefiting from this advantage, the other signatory countries benefit from this convention in the same way, among others Egypt, Israel, Lebanon, Malta, Morocco, Turkey .
What does the Barcelona declaration on the Euro-Mediterranean partnership consist of?
An intergovernmental conference held in Barcelona from 25 to 27 November 1995 bringing together the 15 member countries of the European Union and twelve countries from the south and east of the Mediterranean led to the Barcelona process which began with the final declaration of the Euro-Mediterranean ministerial conference which brought together the 15 foreign ministers of the Member States of the European Union and the following twelve Mediterranean third countries: Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, Turkey and the Palestinian Authority.
This conference laid the foundations of a process aimed at achieving a multidimensional framework of dialogue and cooperation between the European Union and third Mediterranean countries, which jointly adopted a declaration and a work program which extends over three components predominant, namely: the political and security aspect (with the definition of a common space of peace and stability), the economic and financial aspect (to enable the construction of a zone of shared prosperity) and the social aspect, cultural and human (in order to develop human resources, promote understanding between cultures and exchanges between civil societies).
In terms of international trade, the EUR-MED certificate constitutes a conventional certificate and certifies the pan-Euro-Mediterranean origin of a good. It allows you to benefit from preferential customs measures on imports into certain countries. The customs authorities of the country of export issue the certificates upon written request from the exporter. The latter must then be able to produce all the documents which prove the origin of the products concerned and compliance with the applicable rules. The DOF EUR-MED certificate subsequently replaces the EUR-MED certificate. It is then a matter of affixing a note concerning the origin on the invoice. The exporter can carry out the EUR-MED DOF himself as long as the sum of the goods does not exceed a certain value. Otherwise, the customs administration must first approve it. This economic free trade agreement between all signatory countries, which pushes them to further strengthen bilateral relations between them without any distinction, defines the pan-Euro-Mediterranean zone, specifies rules of common origin and thus makes it possible to invoke the different principles of accumulation. A product can thus acquire the origin of a country as soon as transformations are successively carried out in various countries of the pan-Euro-Mediterranean zone.
In light of the above, the Barcelona Treaty tends to normalize economic relations between all the signatory countries, including Israel which is in this convention in the same way as all the other partner countries.
What are the impacts of these conventions on the Tunisian economy?
The association agreement signed with the European Union on July 17, 1995 and entered into force on March 1, 1998, which was at the origin from 1996 to the gradual dismantling of customs barriers until 1is January 2008, completely liberalized the industrial sector which is gradually tending to disappear. In fact, since the launch of the new privatization program, the government has totally or partially sold several public or semi-public companies to private companies. This new economic policy has not made it possible over the preceding years to increase productive investments, the creation of expected wealth and the multiplication of employment positions, despite a reform of the Labor Code in 1994 which also favored the flexibility of work and the development of precarious jobs in a fleeting banking system and especially in the absence of foreign investment and the loss of a large sum of money coming from the exemption of customs duties and taxes.
Excessive liberalization has negatively affected the Tunisian economy, especially following the signing of the two aforementioned conventions which really blocked the development of the industrial sector.
Privatization has not also achieved the goals that the Tunisian people expected, namely improving costs, optimizing efficiency, achieving better performance in terms of quality of services, investments private and wealth creation.
This has obviously led to significant disastrous social consequences, particularly in terms of jobs, public services or workers’ rights, a more difficult social life for disadvantaged people, and a concentration of economic power in the hands of large companies.
At the same time, we notice that the industrial sector is going through very difficult times. We are currently witnessing the closure of several industrial companies and the unemployment of their employees, which has brought them to a very critical economic, financial and social situation. Likewise, the Tunisian people cannot in any way tolerate the fallacious actions which led companies to be sold within the framework of “Carepp” with prices marked below their real values. Instead of promoting them by expanding their activities and creating new products, while finding new local and international markets, the leaders of these companies have always sought to change their vocation to make them part of the tertiary sector.
And as a conclusion?
Really, if we want the economic sector to regain its importance and its influence and even more to be in tune with a new policy and a rational strategy and the expectations of the Tunisian people, it remains imperative, in our opinion, to withdraw from these conventions and establish a program to safeguard Tunisian companies mainly aimed at restructuring and modernization, in particular of the Tunisian industrial fabric and strengthening the competitiveness of Tunisian companies. We must also encourage local investments to boost the economic niche, like the advantages granted to foreign investments and tirelessly combat parallel trade, unfair competition, dumping and increase the supervision rate of industrial companies, while putting an end to wild and chaotic imports which harm similar products manufactured in Tunisia. Thus, the country can ensure good production, better productivity, rational planning, optimal organization, reliable administration to achieve the excellent expected performance.
Finally, it remains imperative to re-examine the economic situation and constantly review the real conditions which led to the squandering of all the public companies which were sold within the framework of “Carepp” and to take them back for a possible reorganization going hand in hand with the real role that should be assigned to them.
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