In 1998, an Association Agreement (AA) with Tunisia came into force and is part of the southern dimension of the EU`s neighbourhood policy. Like all EU agreements with countries in the southern Mediterranean, the Association Agreement is very different from EU agreements with other third countries and especially with developing countries: while the Economic Partnership Agreements (EPAs) with the former colonies of Africa, the Caribbean and the Pacific allow the EU to fully open up EU markets to all products. , as AAS has so far limited large-scale market opening to only industrial products (including Tunisia`s large textile sector). As a `middle-income country`, Tunisia is excluded from full market opening for all products that the EU grants to least developed countries under the `all but arms` (EBA) regime, nor does it benefit from large tariff reductions under the Generalised Preference System (GSP). Indeed, improving market access with Tunisia is a dilemma for the EU: if the EU proposes to Tunisia, as it sees fit, the total abolition of tariffs, it would deprive sub-Saharan countries of their comparative advantage and, in the agricultural sector for example, to make them direct competitors. At present, EU tariff quotas are mainly relevant to olive oil. Tunisia is the world`s fifth largest exporter after southern European Member States and olive oil accounts for 40% of its total agricultural exports. However, for most categories of olive oil, quotas limit the amount that can be imported duty-free into the EU. In the wake of the terrorist attacks of 2015 and the resulting collapse of tourism, Brussels has twice increased the Tunisian quota against considerable opposition from producers in southern Europe. The EU has promised a further increase for 2018, provided Tunisia agrees to open its markets to certain agricultural products of its choice („mini-commercial package”). So far, Tunis has refused to do so, although it prefers a sectoral agreement – which applies only to goods – to a comprehensive agreement.
In fact, a „commercial mini-package” would be a first step in this direction. At present, treated oil does not benefit from tariff preferences. The agreement between the economic operators of the contracting parties and the abuse of a dominant position by the contracting parties are incompatible with the agreement if they affect trade between the EFTA states and Tunisia. In this case, a party may provide for the joint committee and, in the absence of an agreement between the parties concerned, take appropriate action (Article 17). Intellectual property protection provisions (Article 23 and Appendix V I. I) cover, among other things, patents, trademarks, copyrights and geographical indications. They are based on the WTO agreement on trade-related aspects of intellectual property rights (TRIPS) and provide a high level of protection, taking into account the principles of the most favoured nation and national treatment. Since 2016, the European Union has been negotiating with Tunisia a new free trade agreement (ACFTA) aimed at strengthening reciprocal market access for all goods, services and investments. But great obstacles still need to be overcome. The EU is reluctant to grant agricultural concessions that would make a deal attractive to Tunis, while civil society, the Tunisian economy and Tunisian politics as a whole oppose it. A smart agreement could promote economic modernization and growth in order to strengthen and stabilize Tunisia`s young democracy.
