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Analysis of Agri-Food Trade Structures

To Promote Agri-Food Trade Networks

In the Islamic Countries

102

4.3.

Tunisia

Agriculture is historically very important in Tunisia. Despite its decline in terms of relative GDP,

the agricultural sector plays crucial economic and social roles. Indeed, agriculture represents

10% of overall GDP (Figure 43) and about one employee in six works in this sector. However, its

driving effects are really important. For example, the agri-food sector arrives first in terms of

investments in all industrial sub-sectors, with a share of more than 25% in 2015. Agriculture is

also a major supplier of the tourism sector, which is very important for the overall economy. In

addition, the development of agri-food production is necessary to ensure food security and

promote households’ income in rural areas (that represent 35% of the overall population), in

which poverty is concentrated.

Figure 43: Sectoral Breakdown of GDP in Tunisia, 1965-2016, Percent

Source: World Development Indicators, the World Bank, April 2018.

In the development strategy 2016-2020, Tunisian authorities have planned to modernize the

agricultural sector, support research and development and develop human resources in order

to promote the economic importance of the sector and ensure food security.

In addition to the sustainable management of natural resources, the development of water

infrastructure, the incentives to private operators included in the new investment law, new

trade liberalization agreements are expected to be signed. The negotiations for the Deep and

Comprehensive Free Trade Area with the European Union started in 2016. This agreement will

liberalize trade in agri-food products with the European Union, which is the main partner of

Tunisia (more than two thirds of trade flows). The conclusion of this agreement will be

associated with major reforms linked to this sector (technical, sanitary, phytosanitary and

health standards; subsidies and government support, competition framework, public

procurement, etc.)

Agricultural Trade Performance

Table 25

reports the statistics about trade performance of Tunisia, with a focus on agricultural

products. It appears that the share of exports of agricultural products does not exceed on

average 10% (except for 2015, with an exceptional performance of 14.5%). In addition, the

share of imports of agricultural products varies between 10% and 12%. Throughout the period

2005-2016, the trade balance of the Tunisian economy and that of the agricultural sector are in

deficit. It was slightly positive only in 2006.

0%

10%

20%

30%

40%

50%

60%

70%

Agriculture (% of GDP)

Industry (% of GDP)

Services (% of GDP)