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Trade balance heavily tilted in Tunisia’s favour

Indo-Tunisian relations have been friendly and free of discord. Tunisian leaders acknowledge with appreciation the strong support that India extended to it in its struggle for freedom. In fact, old-time Tunisians still refer to Mahatma Gandhi and Jawaharlal Nehru as inspiring figures.

Indo-Tunisian economic and commercial exchanges consist mainly of trading in primary commodities. Trade between the two countries, though significant, is heavily in Tunisia’s favour: Tunisia enjoys largest trade surplus with India.

The items exported to Tunisia are tea, spices, cotton and synthetic yarn, rubber products, basic chemicals, plastics and linoleum products, leather products, engineering goods and transport equipment. Bharat Earth Movers Ltd.(BEML), Bangalore, has been supplying heavy duty dumpers to the phosphate mines of CPG, a Tunisian company, for the last five-six years.

KEC Limited, Mumbai, has been awarded a contract for construction of 600 km 225 KV transmission line, worth Rs 200 crore, between Libya and Tunisia. Kudremukh Iron Ore Limited, too, is participating in the El Fouladh International tender for supply of 50,000 mt iron pellets. Telco is in an advanced stage of concluding an agreement with Dalmas, the motor division of the El Mzabi group of companies, for appointing them as their agent in Tunisia as well as setting up of an assembly plant for light commercial vehicles. Sanmar Footwear Limited, Chennai, has selected a local Tunisian shoe company for manufacturing shoes for the British market. This is on an experimental basis, and if it succeeds, the company plans to set up a joint venture. The company is also keen on setting up a textile joint venture in Tunisia for the European market. The state monopoly for import of tobacco in Tunisia, Regie Nationale des Tabacs et des Allumettes (RNTA), has decided to import 400 tonnes of tobacco from Best India Group, Guntur, against the tender for June 1999.

Also, Tunisian authorities are holding discussions with Tisco and GSFC to set up a fertiliser joint venture in Tunisia. BHEL, too, is proposing to set up ‘solar energy’ projects in Tunisia.

One of the key reasons for Tunisia’s recently acquired economic prosperity is the success of various schemes set up to attract investment, e.g., investment guarantee schemes, schemes for suspension of double taxation, duty-free access for industrial products, preferential access for agricultural products etc. Tunisia’s economic prosperity is being fostered by the combined effects of large-scale privatisation, globalisation and diversification.

‘Bilateral economic relations are still inadequate’ Though there is a lot of trade potential, lack of information on both sides needs to be plugged, the Tunisian ambassador, Elyes Kasri, tells Huma Siddiqui in an interview. Excerpts: Elyes Kasri Is Tunisia interested in joint ventures with India? There are several areas where joint ventures and collaborations between India and Tunisia can take place, like pharmaceuticals, agro-based industries (especially fish and olive oil), information technology, tourism and textiles. Though our diplomatic relations have always been very good, economic relations are inadequate. This is largely due to lack of information on both sides. Indian corporates will enjoy many advantages by collaborating with Tunisian business. At present, the most important advantage is Tunisia’s location, which allows easy access to both Europe and Africa. In 2004, Tunisia will become a member of the European Free Trade Zone. This will give Indian corporates exporting to the EU a considerable cost advantage if they use Tunisia as an export base. What is the status of trade ties? An Agreement on Avoidance of double Taxation is being re-examined. A decision has been taken to upgrade the existing Joint Trade and Economic Committee with Tunisia to a Ministerial Level Joint Commission, to be co-chaired by the ministers of state for external affairs of both the countries. The text of the Bilateral Tourism Cooperation Agreement may be signed at the forthcoming JCM meeting. Which industries have potential for tieups? The real wealth of India and Tunisia is their human resource capabilities, not oil and gold. The areas of agro business, textiles and apparels, automotive components, including electronic components also have potential. Is there scope for co-operation in software? We are interested in software development, especially customised. We are also in the process of setting up training and vocational institutions in Tunisia where we hope to tie up with Indian institutes. How important a role can tourism play? We are trying to promote Tunisia in India. We got the best international pavilion award during the recent International Trade Fair. Also, we recently signed an agreement with STIC Travels.