EU’s share in Tunisia’s foreign trade down to 62 % in 2018 from 75% in 2005 (OTE)

“The European Union’s share in Tunisia’s foreign trade volume has declined from 75% in the period from 1995 to 2005 to 62% in 2018,” according to a data analysis by the Tunisian Observatory of the Economy (French: OTE) on Tuesday.

The Observatory explains the decline of the EU’s share in Tunisia’s foreign trade by “China’s rise in power, particularly over capital goods that has forced Tunisian companies with European capital to diversify their imported inputs, thereby reducing the share of European imports, which now accounts for 53% of imports into Tunisia.”

It said, however, “given that more than 60% of Tunisian exports are carried out by non-resident companies, the majority of which are held by European capital, it is logical that the share of exports to the EU remains so high even in 2018 with 73% of Tunisian exports directed to the EU.”

“The dependence of Tunisia’s foreign trade on these Tunisian companies with European capital, therefore, prevents Tunisia from diversifying its exports to more promising growth markets,” the observatory said in conclusion.

TunisianMonitorOnline (Source:TAP)

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