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THE NORTH AFRICA COUNTRY SERIES 2019 B REPUBLIC of TUNISIA N COUNTRY PROFILE I

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THE NORTH AFRICA COUNTRY SERIES 2019 B REPUBLIC of TUNISIA N COUNTRY PROFILE I REPUBLIC OF TUNISIA n COUNTRY PROFILE A REPUBLIC OF TUNISIA THE NORTH AFRICA COUNTRY SERIES 2019 B REPUBLIC OF TUNISIA n COUNTRY PROFILE i REPUBLIC OF TUNISIA 2019 ii REPUBLIC OF TUNISIA n COUNTRY PROFILE iii ACKNOWLEDGEMENTS Team Leader: Samir S. Amir Lead Researcher: Mariam Noor DISCLAIMER The findings, interpretations and conclusions expressed do not necessarily reflect the views of the Board of Directors and members of The Pakistan Business Council or the companies they represent. Any conclusions and analysis based on data from ITC, UN Comtrade, World Bank, Doing Business and CIA World Factbook are the responsibility of the author(s) and do not necessarily reflect the opinion of the UN, WTO, World Bank, or the CIA. Although every effort has been made to cross-check and verify the authenticity of the data, The Pakistan Business Council, or the author(s), do not guarantee the data included in this work. All data and statistics used are correct as of December 1st, 2018, and may be subject to change. For any queries or feedback regarding this report, please contact [email protected] or [email protected] iv THE PAKISTAN BUSINESS COUNCIL: AN OVERVIEW The Pakistan Business Council (PBC) is a business policy advocacy platform, established in 2005 by 14 of Pakistan’s (now 79) largest private-sector businesses and conglomerates, including multinationals. It is a professionally-run organization headed by a full-time Chief Executive Officer. The PBC is a not-for-profit entity, registered under Section 42 of the Companies Ordinance 1984. Though it is not required under the law to do so, the PBC follows to the greatest extent possible, the Code of Corporate Governance as applicable to listed companies. The PBC is a pan-industry advocacy group. It is not a trade body nor does it advocate for any specific business sector or industry. Rather, its key advocacy thrust is on easing barriers to allow Pakistani businesses to compete in regional and global markets. The PBC conducts research, publishes position papers and policy notes and holds conferences and seminars to facilitate the flow of relevant information to all stakeholders in order to help create an informed view on the major issues faced by Pakistan. The PBC works closely with the relevant government departments, ministries, regulators and institutions, as well as other stakeholders including professional bodies, to develop consensus on major issues which impact the conduct of business in and from Pakistan. The PBC has submitted position papers and recommendations to the government on legislation and other government policies / initiatives affecting businesses. It also serves on various taskforces and committees of the Government of Pakistan as well as those of the State Bank, SECP and other regulators with the objective to provide policy assistance on new initiatives and reforms. REPUBLIC OF TUNISIA n COUNTRY PROFILE v THE PBC’S FOUNDING OBJECTIVES The major objectives of the PBC as stated in its founding documents are: • To provide for the formation and exchange of views on any question connected with the conduct of business in and from Pakistan. • To conduct, organize, set up, administer and manage campaigns, surveys, focus groups, workshops, seminars and field works for carrying out research and raising awareness in regard to matters affecting businesses in Pakistan. • To acquire, collect, compile, analyze, publish and provide statistics, data analysis and other information relating to businesses of any kind, nature or description and on opportunities for such businesses within and outside Pakistan. • To promote and facilitate the integration of businesses in Pakistan into the World economy and to encourage in the development and growth of Pakistani multinationals. • To interact with governments in the economic development of Pakistan and to facilitate, foster and further the economic, social and human resource development of Pakistan. The PBC is a Section 42 not-for-profit Company Limited by Guarantee. Its working is overseen by a Board of Directors. More information on the PBC, its members, and its workings, can be found on its website: www.pbc.org.pk vi THE PBC’S MEMBER COMPANIES REPUBLIC OF TUNISIA n COUNTRY PROFILE vii viii EXECUTIVE SUMMARY Since 2015, the Pakistan Business Council (PBC), has been publishing a Country Profile Series aimed at promoting Pakistan’s trade with its non-traditional trading partners. In 2015 ‘six’ countries from Africa – Angola, Ethiopia, Ghana, Mozambique, Nigeria and South Africa were covered, in 2016 ‘five’ countries from South America – Argentina, Brazil, Chile, Columbia, and Mexico were highlighted, in 2017 ‘five’ countries of Central Asia – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan were showcased, while in 2018 “six” South East Asian countries – Cambodia, Indonesia, Malaysia, Singapore, Thailand and Vietnam were featured. In the 2019 series, the PBC is covering ‘four’ countries in North Africa – Algeria, Egypt, Morocco and Tunisia. This is the third publication in the North Africa Country Series and features the Republic of Tunisia (Tunisia). The Republic of Tunisia is located between Libya and Algeria along the Mediterranean Sea. It covers a total area of 163, 610 Km2 with a coastline of 1,148km. It has a population of 11.50 Million, of which 99% are Muslims. The most dominant ethnic group are Arabs with Arabic as the official language. Tunisia has a rich history with cultural traditions flavored from being ruled by the Carthaginians, Vandals, Jews, Romans, Andalusians, Ottoman Turks and the French. In 146 BC the land which now constitutes Tunisia was occupied by the Carthaginians, they were over the course of time followed by the Romans, Vandals, the Byzantine Empire, the Arabs, the Ottoman Turks and finally by the French. Tunisia gained its independence from the French in 1956 with Habib Bourguiba as the first president. Due to its prime location, Tunisia has been the hub of trade between Europe and Africa for more than 2,000 years. In 2011-2012, Tunisia was declared the most economically competitive country in Africa, while being ranked number 40 globally by the World Economic Forum (WEF). However, growth in recent years has been hampered primarily due to the Arab Spring and the uncertainty created by it, this has led to an increase in unemployment and inflation. As far as composition of the economy is concerned, 63.80% of Tunisia’s GDP is contributed by the tertiary sector, 26.00% by the secondary sector and 10.00% by the primary sector. In order to expand trade and foreign investment, Tunisia took its first steps to integrate into China’s Belt and Road Initiative (BRI) by signing bilateral deals with China in 2018. BRI aims to link 65 countries from Asia, Africa and Europe. Tunisia’s deals with China include projects to develop Tunisia’s southern port of Zarzis into an economic and trade hub, and to construct a bridge linking Djerba, to Djorf in the mineral-rich Medenine region. In 2017, Tunisia exported $14.20 Billion worth of goods and imported goods valued at $20.62 Billion, resulting in a negative trade balance of $6.42 Billion. Major exports of Tunisia in 2017 comprised of electrical machinery and equipment, apparel and clothing, and mineral fuels. Major imports included electrical machinery and equipment, mineral fuels, mineral oils and mechanical appliances. The major export destinations for Tunisian goods were France, Italy and Germany REPUBLIC OF TUNISIA n COUNTRY PROFILE ix who as part of the European Union (EU), have GSP and Euro-Mediterranean Trade Agreements with Tunisia. Bilateral trade relations between China and Tunisia were established in 1958. China is the 3rd largest import partner for Tunisia. In 2017, Tunisia’s imports from China totaled $1.85 Billion, imports mostly comprised of electrical machinery and equipment, mechanical appliances, vehicles, iron and steel. Exports to China in 2017 were valued $30.93 Million and primarily included electrical machinery and equipment, plastics, mechanical appliances, salt and sulfur. Tunisia has traditionally maintained friendly and cordial relations with India since the establishment of diplomatic relations in 1958. Exports to India are mainly dominated by inorganic chemicals; organic or inorganic compounds of precious metals; made up textile articles; raw hides and skins; total exports amounted to $103.30 Million in 2017. Imports comprised mainly of vehicles; organic chemicals; and electrical machinery totaling $297.50 Million in 2017. Over the last 10 years, bilateral trade between Tunisia and Pakistan has had fluctuations. In 2017, Tunisia faced a trade deficit of $21.93 Million with Pakistan as imports and exports stood at $28.97 and $7.05 Million respectively. Exports to Pakistan primarily comprised of inorganic chemicals; Textiles and Vehicles; imports on the other hand mainly comprised of cotton; man-made staple fibers and cereals. Tunisia had the potential to export an additional $1,699.89 Million worth of products to Pakistan in 2017, while Pakistan in 2017 had the potential to export an additional $1,343.34 Million worth of goods to Tunisia, with the highest export potential being in denim fabric. The table below provides a brief comparison of the economies of Tunisia and Pakistan. In comparison to Pakistan, Tunisia has a much smaller population and a lower GDP. Pakistan Tunisia Population 200.8 Million (2018) 11.5 Million (2018) Year 2015 2016 2017 2015 2016 2017 GDP (Current US$ Billion) 270.55 278.65 304.95 43.15 41.8 39.9 GDP per Capita (Current US$) 1,429 1,442 1,548 3,828 3,666 3,464 GDP growth (%) 4.7 5.5 5.7 1.15 1.11 1.96 Inflation (%) 2.5 3.7 4.1 4.86 3.71 5.33 Tunisia has its major trading relations with the European Union (EU) which accounted for approximately 63.00% of trade, the EU was followed by the Greater Arab Free Trade Area (GAFTA) which comprises of 17 Arab states.
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