Tunisia-EU Trade Relations and Impact Assessment of the DCFTA

Details

Supervisors

Defraigne, Jean-Christophe

Faculty

Louvain School of Management

Degree label

Master de spécialisation en entreprises et politiques économiques européennes

Abstract

The European Union (EU) has recently concluded or is currently in the negotiation phase for various bilateral free trade agreements, encompassing both industrialized economies such as Japan as well as developing and emerging economies. At the heart of these negotiations is the case of Tunisia, where formal talks for the establishment of the Deep and Comprehensive Free Trade Area (DCFTA) began in October 2015. Aligned with the EU's trade strategy entitled "Trade for All. Towards a more responsible trade and investment policy," published in October 2015, these new generation bilateral agreements aim to be "deep and comprehensive". Beyond the resolution of traditional barriers such as tariffs and quotas, these agreements focus on a wide range of trade-related issues. These include investment liberalization and protection, intellectual property rights, public procurement, competition regulation, state aid, as well as non-tariff measures. Furthermore, the EU emphasizes the importance of integrating elements related to sustainable development, such as human rights, labor standards and environmental considerations, into its contemporary trade policy. In this context, opposition to this agreement has emerged in Tunisia, expressing concerns about the impacts for the country. It is therefore crucial to assess the agreement considering the Tunisian socio-economic situation and the provisions proposed under the agreement. Moreover, it is important to examine the historical trade relations between the EU and Tunisia, given that the EU is Tunisia's main trading partner. This evaluation aims to understand the impact of existing relations and to anticipate how the next agreement, currently being negotiated, could positively reinforce the achievements or potentially worsen the impacts already in force. This research is articulated in three stages: it first presents the Tunisian socio-economic context as well as the current commercial landscape. Then, it finds the evolution of trade relations between Tunisia and the EU, as a leading trade partner, to assess their existing impact. Finally, it addresses the agreement DCFTA that is under negotiation in the last chapter, from the perspective of analysing and evaluating its anticipated impact, mainly from the Tunisian point of view, given the recent socio-economic changes observed in the country. This study will culminate in a conclusion that will synthesize the crucial points of the analysis and shed light on the reasons underlying this contribution. In conclusion, a part will be reserved for the examination of potential avenues of future research as well as the limits inherent in this thesis.