TUNISIA

The basis for trade and economic cooperation between Russia and Tunisia is formed by the intergovernmental agreements signed on 11 November 1993 on trade and economic, scientific and technical cooperation, according to which the Russian and Tunisian sides grant each other most favoured nation treatment; these include an agreement on cooperation in hydraulic engineering, which confirms the consent of the Russian government to continue rendering economic and technical assistance to investment projects (dams, water conduits), and an agreement on forming a Russian-Tunisian intergovernmental Commission on trade, economic, scientific and technical cooperation (first meeting was held on 25-26 March 1999 in Tunisia).

Cooperation exists between Russia and Tunisia on the basis of education and public health agreements between state organisations of both countries. For example, in December 1998, new general terms (convenant) were signed for business trips of Russian medical specialists to Tunisia.

Trade turnover between Russia and Tunisia in 1998 increased by 14.9% and amounted, according to Tunisian statistics, to US million. It is formed primarily by Russian exports. Imports are extremely small, amounting to US million. Russia's share in Tunisia's foreign trade amounts to about 1% (2.1% in Tunisian imports and 0.05% in exports). Tunisia's share in Russia's trade turnover is estimated at 0.1%.

The bulk of Russian exports to Tunisia in 1998 consisted of such traditional Russian raw materials as ammonia, lumber, cellulose, sulfur, asbestos, petroleum products, synthetic rubber, rolled steel and paper.

Russia's largest imports consisted of perfumes and cosmetics, seafood, plumbing fixtures, tiles and synthetic paints. The import of these products amounted to 90% of overall Russia's imports from Tunisia. The demand for Russian goods is determined by the demands of Tunisian industry for the corresponding raw materials. For example, ammonia and sulfur are needed for manufacturing phosphoric acid and phosphate fertilisers from phosphorite, of which Tunisia is one of the five leading world producers; the shortage of forests makes it necessary to import lumber, cellulose and paper; and while it has supplies of heavy oil, Tunisia is forced to buy lighter petroleum products, etc.

There are no Tunisian investments in the Russian economy. Within the framework of the only investment project, Tunisia was granted credit of US million under an agreement of 11 November 1993, and foreign trade organisation Selkhozpromexport carries out designer’s supervision and technical control of the construction of the Sidi El Berrak dam, Sidi El Berrak-Sejenan water conduit, and the second line of the Sejenan-Djoumin-Mejerda water conduit.

Zdravexport assigns the necessary number of medical specialists to Tunisia. There were 108 Russian doctors working in 26 localities in 1999, whose performance is highly evaluated by the Tunisian side, and their number can be increased. Sent by Tekhnostroiexport, 11 Russian professors teach at two Tunisian universities. There are 20 vocational training instructors working in Tunisia, 18 of whom are assigned by Vneshobrazovanie, and two by Tekhnostroiexport.

Prospects and opportunities. The volume of bilateral trade is insufficient. There is still a ban on making advance payments, as well as on payment for goods after their receipt in Tunisia, which has an adverse effect on Russian exports. This is manifested either in the need to obtain loans for paying transportation costs by Russian exporters or recruiting foreign agents.

There is the possibility of buying Tunisian goods: superphosphoric acid, phosphate fertilisers, olives, citrus fruit, tomato paste, textiles and footwear. However, it should be borne in mind that there are no subsidies for the export of local agricultural production. Exporters from Tunisia's main rivals, Turkey and Greece, obtain significant subsidies from their governments (up to 30% of the cost) for trade in citrus fruit, olives and olive oil, which makes Tunisian agricultural products non-competitive on the Russian market.

In 1998, Tunisia showed an interest in Russian machin-tools (metal working and sewing industry). The demand for spare parts for previously delivered water drilling equipment, bearings, household and medical equipment, and hydraulic engineering equipment increased. A curbing factor in the trade of ready-made and, particularly, high-tech products is the low level of marketing research conducted by Russian companies on the Tunisian market, as well as the fact that Russian manufacturers do not hold international certificates.

The most promising directions for cooperation are the following:

1. Increasing Russian traditional exports (lumber, metal, chemical products), with reducing the number of agents and establishing direct ties and inter-regional contacts. There is interest in Russian lathes, pumps, transformers, electric motors, cables, and other equipment.

2. Continuing cooperation in irrigation construction. Attempts to introduce Russian drilling machines (for water), hothouses, industrial refrigerators, separators, pasteurisers onto the market.

3. There is the possibility of delivering equipment, materials and spare parts for Tunisian pharmaceutical enterprises.

4. Non-traditional sources of energy (wind power, solar batteries), energy-saving techniques, distillation of sea water, nuclear power.

5. Plans to construct a network of oil and gas pipelines in Tunisia provide the prospect of Russian involvement in this work.

6. Deliveries of special technology (coast guard launches, tugboats, spare parts for sea ships), KAMAZ, ZIL, GAZ trucks, as well as participation in modernisation of the country's ports.

7. Geological survey for solid minerals and water (including with the use of aerial and space photography).

8. Russian commercial ventures can participate in the implementation of fast-recoupment projects in Tunisia by granting their own credits. Russian companies can (if the necessary guarantees are obtained) participate in the construction of Tunisian tourist and health resort facilities.

9. Sending specialists to Tunisia (electrical engineering, increase in maritime biological resources).

10. Products manufactured in Tunisia meeting world standards (paints, ceramic tiles, footwear, textiles, perfume, etc.).

Tunisian public organisations in favour of developing relations with Russia. The Tunisian Federation of Film Clubs (TFC) was founded in 1950. Its main objective is to distribute and popularise films by organising special film shows and conferences. The federation is one of the founders of the international Carthage Film Festival, which has been held every year in Tunisia since 1966. The TFC is a permanent member of the board of directors of the International Festival of Amateur Films held in Tunisia. It has its own documentary film centre. Most Tunisian film-makers and critics started as members of the Federation of Film Clubs.

The TFC organises the International Festival of Short Films. In 1999, this festival was held for the fourth time, and a delegation of Russian film-makers from the State Institute of Cinematography participated in it for the first time. TFC President - Mohamed Meduni, tel./fax (216-1)348-435.

The Association of Young Doctors Without Borders (JMSFT) is a non-government organisation of300 members (doctors, teachers, lawyers, journalists). The committee of honorable members of the association includes some of the country's most well-known figures. It is headed by the country's head cardiologist and personal physician to the Tunisian president, Mohamed Geddish.

Directions of activity: hygiene instruction, assistance in emergencies and cooperation with foreign non-governmental humanitarian and social medical organisations. Financial resources consist of membership fees, subsidies from local communities, private donations, and charity contributions from international organisations.

The JMSFT received in Tunisia Russian children who were victims of the Chernobyl disaster, and it is interested in developing contacts with Russian international institutions. The chairman is Doctor Ilyas ben Marzuk. Chairman of the commission on social issues is Doctor Allagi Sami, tel: (216-1) 755-534, fax: (216-1) 755-534.

The Tunisian Association of Graduates of Soviet and Russian Universities was founded in March 1988. There are 1,600 of Russian university graduates in Tunisia, 300 of them cooperate actively with the Association. Seventy-five percent of these graduates are engineering specialists. Ten percent are graduates from physical education and medical schools, and 5% are specialists in the humanities. Fifty members of the association defended their doctoral theses in the USSR, Russian Federation and CIS.

The Russian Centre of Science and Culture in Tunisia actively cooperates with the Association. Association chairman is graduate from the Lvov Polytechnic Institute, Hedi ben Saleh, director of a company for the operation and sale of electronic equipment, tel.: (216-1) 496-520, fax: 496-536.