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Tunisia prepares for free trade with European Union

Government rises to the challenge of international competition by supporting Tunisian business

In 2008, all duties and trade barriers will be eliminated between Tunisia and the European Union (EU) on most non-agricultural goods, services and capital.

The Tunisian government is not sitting idly and just hoping that businesses will be prepared to meet the challenges of the Free Trade Accord signed this year. Tunisians are taking steps to ensure that their products will continue to hold their own, and that ‘MADE IN TUNISIA' will grow as a sought after mark of excellence.

The Ministry of Industry - responsible for preparing Tunisia for international competitiveness - launched a program called Mise A Niveau in 1996 to provide companies with technical assistance, training, subsidies and infrastructure improvements. The goal of the program is to elevate Tunisian goods to European price, quality and innovation standards.

Moncef Ben Abdallah, Minister of Industry, prefers to translate the French "mise a niveau" as "upgrade" rather than the common translation of "restructuring."

This program will benefit 2,000 manufacturing companies between 1997 and 2001, by providing subsidizes to offset the high cost of upgrading a company's facilities. Twenty percent of investment is subsidized when participating companies use their own finances, and ten percent is subsidized when participants receive credit from a banking institution.

The free trade agreement with the EU compels Tunisian companies to increase productivity, as well as quality. Companies must be in operation for at least two years, and they must be financially solvent to be eligible for the Mise a Niveau program.

Tunisia Porcelain - Tunisia's only producer of fine quality china - is one of the companies that has met these requirements, and has benefited from the program. Sami Idriss, assistant general director of Tunisia Porcelain, says that improvements implemented in his factory under Mise a Niveau will allow his company to better compete in Europe - already the destination of ten percent of the company's exports.

"Although some companies will not be able to meet the demands of free trade, new ones will be created as a result of it," says Idriss.

All aspects of a company's operations are evaluated under Mise a Niveau to increase productivity without sacrificing quality. Idriss explains how the purchase of a new kiln, for instance, reduces the baking time for porcelain from 24 to only six hours. The time saved has helped increase annual production from 2,200 tons to 3,500 tons.

Meanwhile, new technologies, such as high-pressure casting, have been introduced to produce a higher grade of fine china. The assistance has achieved results. In 1997, Tunisia Porcelain received a high distinction for quality when it was certified ISO 9002.

Mise a Niveau serves as an example of the Tunisian sense of self-reliance. The program is an important cog in the Tunisian development wheel, and is helping to create a dynamic and internationally competitive Tunisian economy.