One of the major growth sectors for the Tunisian economy is textiles, providing well over 200,000 jobs. However, a senior official in the Tunisian textile dealers association voiced his fear Wednesday as the multi-fibre agreement draws to a close by the end of the year. This agreement allowed for entry into the European market.
Eighty percent of Tunisian textiles are exported to Europe and the re-imposition of tariffs will raise prices, making Tunisia lose its comparative advantage over steep competition from China. According to a recent Tunisian Central bank report, Tunisia is the EU's fourth largest textile exporter.
Growth has fallen dramatically from 10 percent a year between 1997 and 2001, to only 1 in recent years. (menareport.com)
