TUNISIA

COUNTRY OVERVIEW

LOCATION AND SIZE.

Situated in northern Africa, Tunisia is bordered by Algeria on the west and Libya on the southeast and by the Mediterranean Sea on the north, where it has a coastline of 1,148 kilometers (713 miles). Tunisia has an area of 163,610 square kilometers (63,169 square miles), making it slightly larger than the state of Georgia. Its capital city of Tunis is located on the country's northern coastline.

POPULATION.

Tunisia's population was estimated at 9,593,402 in 2000, compared with 8,790,000 in the 1994 census. In 2000 the birth rate was 17.38 births per 1,000 population while the death rate was 4.98 deaths per 1,000 population. The population is expected to reach 11.2 million by 2015 with a projected annual population growth rate of 1.17 percent.

The Tunisian population is almost entirely of Arab descent (98 percent). Europeans make up 1 percent of the population, and Jewish and other ethnic groups make up the rest. Tunisia's population is young: 30 percent of the people are below the age of 14, and only 6 percent are older than 65. The population is increasingly concentrated along the eastern coast, with 43 percent either living in the capital city or on the mid-eastern and northeastern coasts. There has been a large population shift from the countryside to the cities due to increased job opportunities in the urban areas; since 1984, 86 new towns have been created.

Tunisia was the first Arab country to initiate nationwide birth-control programs. Since the creation of the Department of Family Planning and Population in 1966, the birth rate has fallen sharply, from 3 percent in 1966 to 1.17 percent in 2000. This drop is the result of an increase in the standard of living, widespread access to education, and improved health care. The number of women who are entering the labor force increased by 12 percent in 2000, and women's rights are actively promoted.

OVERVIEW OF ECONOMY

When Tunisia achieved its independence from France in 1956, a 1-party state was established by President Habib Bourguiba. During his 31-year tenure, economic policy focused on state ownership and high levels of protection from outside competition. At this time the economy was based primarily on agriculture, oil, and phosphates. Although this degree of government control led to inefficiency and waste, the economy remained stable due to revenue from the export of oil and phosphates during the 1960s and 1970s. The collapse of the price of oil in the 1980s meant that Tunisia could no longer rely on oil as its principal source of foreign exchange. Tunisia's agricultural and tourism sectors deteriorated simultaneously. Under advice from the International Monetary Fund (IMF), Tunisia promptly adopted a 3-pronged program of structural adjustment: to reduce the size of the public sector, to reduce tariff barriers, and to create a stable macroeconomic climate.

Following the adoption of the adjustment program in 1986, the Tunisian economy has shifted from being largely state-controlled to being based on market principles. The economy is now diverse, with a large services sector, a healthy tourism industry, and a growing manufacturing sector. Despite these improvements, the Tunisian government is still faced with a serious unemployment problem. In 2001, there were 480,000 unemployed Tunisians, or 15.4 percent of the workforce.

As the economy improved, the amount Tunisia received in Official Development Assistance more than halved, from US$559 million in 1990 to US$278 million in 1995. Since 1996, the European Union has been the main source of assistance, with France, Italy, and Germany as the main donors. Tunisia's external debt remains high, having risen from US$3.5 billion in 1980 to US$11.078 billion in 1998. Most of this debt is owed to private creditors, and the Tunisian government has issued international bonds (financial notes promising repayment of a given amount by a given date, plus interest).

POLITICS, GOVERNMENT, AND TAXATION

After gaining independence from France on 25 March 1956, Tunisia became a republic headed by President Habib Bourguiba, who promptly assumed the title, "president for life." Since his ascension to office, Tunisia has been largely a 1-party state. The president's left-wing party, the Socialist Destourien Party (PSD), is dominated political life and punished its opponents with censorship and imprisonment. The 1960s saw a short-lived socialist experiment that finally gave way to increased economic liberalization in the 1970s under the influence of Prime Minister Hedi Nouira. By the middle of the 1980s, the state started to face serious problems as the ailing Bourguiba became increasingly unable to effectively rule the country. Bourguiba's presidency was marked by serious economic instability towards the end of the 1980s, followed by serious civil unrest. A party called the Islamic Movement (MTI), an effective organization with a large base of support, challenged the government's stability. In response to this movement, the president appointed General Zine al-Abidine Ben Ali, a former head of the security services, to be the minister of the interior. His main task was to dismantle the MTI. Following thousands of arrests and the successful dismantling of the MTI, the president appointed Ben Ali the prime minister.

According to the terms of the Tunisian Constitution and based on the opinion of a team of medical doctors who declared Bourguiba unfit to govern, Prime Minister Zine El Abidine Ben Ali assumed the duties of president on 7 November 1987. Ben Ali started to dismantle the old oppressive regime by allowing increased freedom of the press, releasing political prisoners, and legalizing political parties. The PSD party was renamed the Rassemblement Constitutionnel Democratique (RCD) and legislation was passed implementing a multi-party system. Today there are 6 legal opposition parties in Tunisia, but most of them lack the necessary resources to be effective, and they are still prohibited from criticizing government policies. President Ben Ali's government has brought with it economic and political stability, focusing extensively on health care, women's rights, and education. Despite these reforms, Tunisia is still essentially a 1-party state.

The principle source of revenue for the Tunisian government is taxation. According to the EIU Country Profile, more than 50 percent of government revenues come from direct taxation and 40 percent from domestic or foreign borrowing. In 2000, the corporate rate of taxation in Tunisia was set at 35 percent, except for those businesses involved in the fishing, agriculture, or handi-craft industries, which are taxed at a 10 percent rate. Normal business expenditures such as depreciation (the decline in value of a physical asset as it is used over time), social security contributions, and costs are deductible. Due to generous government incentives, exporting businesses are exempt from all major taxes in Tunisia. Personal income tax is paid on a progressive basis ranging from 15 to 35 percent. Non-residents have to pay tax only on income earned from Tunisian sources. There is a 17 percent value-added tax (VAT) on sales that is applicable to most items and transactions.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Since 1995 the Tunisian government has invested heavily in the country's infrastructure. There are 20,000 kilometers (12,428 miles) of good-quality roads linking all parts of the country; 18,226 kilometers (11,326 miles) of these roads are paved. Having such roads is a considerable feat given that Tunisia is a large country with differing and often inhospitable terrain. There is only 1 modern highway in the country, but a second (from Tunis to Bizerte) is under construction and is expected to be completed by 2002. After 1996, there was a rapid growth in the number of licensed vehicles, which has led to heavy congestion and pollution. The government has made plans to modernize the railway system that is operated by a company called SNCFT. The railways have traditionally transported phosphates and fertilizers, although the number of passengers has been increasing by about 5 percent a year. Still, the SNCFT ran at a loss throughout 2000. There are a total of 2,168 kilometers (1,347 miles) of rail lines in the country.

There are 6 international airports in Tunisia: Tunis-Carthage, Monastir-Skanes, Jerba-Zarzis, Tozeur-Nefta, Tabarka, and Gafsa. The national airline, Tunisair, flies to many European and Middle Eastern countries with the exception of Israel. In turn, most European and Middle Eastern carriers fly into Tunis. The Tunis-Carthage airport has a capacity of 4.5 million passengers a year. There are 8 commercial seaports and 22 smaller ports within Tunisia, known for their inefficient customs officers and bad links to railways and roads.

Tunisians receive their electricity from the state-owned company, Société Tunisienne de l'Electricité et du Gaz (STEG), which can produce 1,974 megawatts of power at full capacity. More than 90 percent of the country's electricity is generated by this company. There are 29 radio stations and 19 television stations. Telecommunications services in Tunisia are poor, rates are high, and Internet use is not common. According the EIU Country Profile 2000, the country had only 30,000 Internet users at the beginning of 1999 and only 2 government-controlled Internet service providers.

ECONOMIC SECTORS

The Tunisian economy is a diverse one with services contributing 60 percent of gross domestic product (GDP) in 1998 and industry contributing 28 percent. In the 1960s and 1970s, when there was heavy state control, oil and phosphates were central to the economy. These sectors have diminished in importance since the 1980s with increases in the manufacturing of textiles and

electrical equipment. The agricultural industry employs nearly a quarter of the labor force, but its output is dependent upon the weather; during drought years this sector's contribution to GDP can fall from 16 percent to 12 percent, the contribution in 1998.

AGRICULTURE

Agricultural output is central to the Tunisian economy, accounting for 12 to 16 percent of the GDP, depending on the size of the harvest. This sector provided jobs for 22 percent of the country's labor force in 1998.The 2 most important export crops are cereals and olive oil, with almost half of all the cultivated land sown with cereals and another third planted with more than 55 million olive trees. Tunisia is one of the world's biggest producers and exporters of olive oil, and it exports dates and citrus fruits that are grown mostly in the northern parts of the country. The center of the country is used largely to raise cattle, the Sahel region is famous for its olive groves, and the southern part of the country is known for its date production. Tunisia remains one of the few Arab countries which is self-sufficient in dairy products, vegetables, and fruit and almost self-sufficient in red meat. Since the 1980s, agricultural output has increased by about 40 percent, and exports of food have risen considerably. At the beginning of 2000 the government entered into talks with the European Union seeking a free-trade agreement for its agricultural goods. The remainder of Tunisia's agricultural production consists of several smaller export products including tomatoes, peppers, artichokes, melons, onions, potatoes, sugar beets, almonds, apricots, and wine.

Tunisia's labor-intensive agricultural sector uses very low levels of fertilizers and pesticides. Because farms are not highly mechanized, plowing a field may take 5 times longer than in the United States. Most of the land is split into very small farms making production much less efficient. Some 80 percent of farms are smaller than 20 hectares, and only 3 percent are larger than 50 hectares. Transportation and storage facilities are poor, leading to high levels of waste. Severe droughts, like the one experienced in 2000, have proven to be enormously costly.

Annual agricultural production can vary significantly from year to year due to Tunisia's unpredictable and largely irregular rainfall patterns. Almost all of Tunisia's water is used in irrigation, and the government is seeking more efficient methods that will conserve water. Its national plan aims to increase water resources from 2.1 to 3.5 cubic meters billion per year by building 21 large dams, 203 hillside dams, 547 reservoirs, and 1,580 deep wells by the end of 2001.

The fishing industry employs 25,000 people and catches an average of 93,000 tons of fish a year. However, coastal fishing has declined dramatically since 1995 due to pollution and the depletion of fish stocks. Fish is Tunisia's second most important food export after olive oil, and the government has made strong efforts to improve processing and storage facilities in order to match European standards. The government has also invested heavily in the upgrading of its ports and the improvement of its fleets.

INDUSTRY

OIL.

The production of oil in Tunisia began in 1966 when 2 main oil fields in the southern part of the country were tapped: El Borma and Ashtart. Over the years, many smaller oil fields have been discovered, and by 2000 there were 28 known oil deposits. In 1999, just over 4 million tons of crude oil was produced, and it is estimated that Tunisia has 55 million tons (400 million barrels) of total oil reserves. In spite of the fact that Tunisia has fairly small oil reserves compared with those of other countries in the region, overseas companies still consider it worth the risk to prospect for oil because the tax laws are favorable to even the smallest of discoveries. In 1999 more than US$100 million was invested in exploration, with some 40 separate explorations being carried out in 2000. Petroleum products, such as motor fuels, fuel oil, and liquefied petroleum, are not being produced to full capacity because of the small size of the state-owned refinery at Bizerte on the northern coast.

GAS.

Prior to 1966, gas was largely imported via the TransMediterranean pipeline that transports Algerian gas to Italy. In that year, British Gas invested US$600 million into the Miskar field in the Gulf of Gabés, a site that produced 168 million cubic feet of gas per day in 2000, a figure that was forecast to rise to 230 million in 2001. Given plans by British Gas to invest an additional US$450 million in 2001, it is likely that this industry will continue to grow and become increasingly important.

PHOSPHATES.

Tunisia is one of the world's largest producers of phosphates, which are found mainly in mines in the southern part of the country. Private-sector activity is limited in this industry which is dominated by the state-owned Compagnie des phosphates de Gafsa. A reduction in exports, falling world gas prices, and rising labor costs led to financial difficulties within the company in the mid-1990s, but it recovered with the upturn in world prices. In 1999, about 8 million tons of phosphates were produced. Tunisia also has reserves of other important minerals including iron ore, lead, zinc, and sea salt. The production of iron ore has been steadily declining since 1993 as reserves neared depletion.

MANUFACTURING.

Manufacturing accounts for 20 percent of Tunisia's GDP and employs 20 percent of the country's labor force in 5 different sectors: textiles, food processing, mechanical and electrical industries, construction materials, and chemicals. Almost one-third of the manufacturing sector is involved in the production of textiles, a sector that grows an average of 6 percent a year. In 1999 the textile industry accounted for 6.7 percent of the GDP. Some 1,800 firms are involved in textile production, 700 of which are partly or totally owned by foreign companies. Textile exports were valued at more than 3 billion Tunisian dinars in 1999, a figure equal to 23 percent of total exports; however, the sector is heavily dependent on Europe for its raw materials and faces the challenge of increased competition from Asia.

Manufacturing overall continues to perform better than any other sector, having grown an average of 5.2 percent a year since the early 1990s. However, product quality is variable, and much of the labor force is under-skilled. Manufacturing is dependent upon imports of raw materials, spare parts, and capital goods and is challenged by increasing competition within its European export markets. Tunisia signed an association agreement with the European Union in 1995 which will lead to free trade in industrial goods with Europe by 2008. In 1996, the government initiated a project aimed at industrial modernization.

SERVICES

TOURISM.

Employing 270,00 people, the tourism sector is of vital importance to the Tunisian economy, contributing 6.2 percent to the GDP each year and 16 percent to foreign exchange earnings. In 1999 Tunisia welcomed 4,832,000 tourists, three-quarters of whom were French, German, Italian, or British. In the wake of the Gulf War (1990-91) the number of tourists fell sharply, and in 1995 there was a brief downturn due to an economic decline in the European Union. The sector has been growing steadily since that date. Important Tunisian tourist destinations include the historic site of Carthage and the many locations in the desert where the film Star Wars was shot.

The government has identified the need to attract tourists from Central and Eastern Europe. Development has slowly started to expand beyond the principal resort areas, and more moderately priced restaurants are beginning to open. Tunisia is becoming increasingly popular as a multi-seasonal destination because of its range of climactic conditions, its popular skiing resorts, and its attractive beaches. It still remains heavily dependent on the European market. Compared to the rest of north Africa, revenue per tourist remains fairly low: US$340 compared with US$468 in Morocco and US$850 in Egypt (all 1999 figures). This low amount is mostly due to the lack of opportunities for tourists to spend their money.

FINANCIAL SERVICES.

The financial-services industry is largely regulated by the Central Bank of Tunisia. In 1999 there were 8 development banks, 2 merchant banks, 13 commercial banks, and 8 offshore banks. The banking system continues to be highly inefficient, holding large amounts of debt. In 2001 the sector is planning to open itself up to foreign competition following agreements signed with the European Union and the World Trade Organization.

The financial markets in Tunisia are composed of a semi- privatized stock exchange (partly owned by the government and partly owned by the private sector) known as the Bourse des Valeurs Mobiliéres (BVM), plus various bond and stock/bond funds. The government opened the BVM in 1990 primarily to encourage foreign investment, but it has not succeeded in its aim due to the overvaluation of stock, illiquidity (unavailability of hard money), and a lack of investor confidence. In response, the government privatized the managing company, BVM, and set up a state-controlled watchdog, a central share depository, and a guarantee fund. In 2001, there were 23 mutual funds, 87 investment funds, and 25 risk capital funds totaling US__BODY__.24 billion.

INTERNATIONAL TRADE

In the 1960s and 1970s, Tunisia's chief exports were oil and mining products; after the 1980s, the chief exports became manufactured or processed goods. The export of textiles grew significantly in the 1990s and amounted to 43 percent of total exports in 1999. Olive oil, chemicals, shoes, and leather goods are also increasingly important exports. Given that the manufacturing industry is the largest, many intermediate goods such as textiles, machinery, and electrical equipment are needed in the process, and these materials have to be imported. The European Union, Tunisia's principal trading partner, buys 81 percent of Tunisian exports and provides 71 percent of its imports. France alone accounted for 26.3 percent of total Tunisian trade in 1999.

Tunisia has kept substantial large external trade deficits that have amounted to over US$2 billion since 1995. In 1999 the trade deficit stood at US$2.5 billion on exports of US$5.8 billion and imports of US$8.3 billion. These serious deficits are due to 5 main causes: a sharp drop in traditional exports such as crude oil and phosphates; Tunisia's need to import most of its capital equipment; the practice of converting raw and semi-processed imports into end products for re-export; long-standing deficits in energy and agricultural trade balances; and an increase in disposable income that has led to a surge in the number of imports of consumer goods.

Tunisia took steps toward free trade by joining the World Trade Organization (WTO) and by signing an association agreement with the European Union in July, 1995. Tunisia will have to increase its exports and put an end to its trade deficit, a daunting task given that Tunisian exports have very low value-added status (increase in the market value of a product at a particular stage of production). Plans are underway to solve this problem by encouraging the domestic manufacture of intermediate goods that Turkey is forced to import in order to produce goods for export. The government has implemented several measures to ease this process, such as doing away with the red tape that hampers exports and allowing exporters improved access to credit.

MONEY

The goal of the Tunisian central bank is to maintain a stable dinar so that the economy can function competitively abroad. Since the end of 1995 the government has gradually devalued the dinar against the U.S. dollar, French franc, Italian lira, and German mark to help Tunisian exporters be competitive abroad. In July 2000 US__BODY__ was equal to 1.186 Tunisian dinars, and 1 EU euro was equal to 1.265 Tunisian dinars.

In 1996 a foreign exchange crisis occurred when Tunisia's foreign-currency reserves fell to alarmingly low levels. This problem was an important reason for the adoption of the IMF structural adjustment program. Since 1995 foreign reserves have fluctuated between US__BODY__.6-2.2 billion and in January 2000 rose to an all-time high of US$2.3 billion.

POVERTY AND WEALTH

The distribution of income in Tunisia, like that in many developing countries, is quite unequal. The top 20 percent of the people in Tunisia earn 46.3 percent of the country's total income while the 20 percent at the bottom of the scale earn only 5.9 percent of income. The majority of wealthy Tunisians live in Tunis and are able

to purchase the most expensive imported goods from up-scale shops. Still, unlike many less developed capitals in the Middle East, there is a real sense of community in Tunis and a desire to create an egalitarian society.

When President Zine El Abidine Ben Ali came into office in 1987, about 22 percent of the Tunisian population was living below the poverty line, impelling him to declare an all-out war on poverty in his inaugural speech. In 1992 he created the National Solidarity Fund whose goal was to promote 1,144 disadvantaged regions throughout the country, at an estimated cost of US$500 million. Since 1996, more than US$300 million has already been raised. Created in 1998, the Tunisian Solidarity Bank has also offered thousands of micro-credit loans (loans of very small amounts to help get a small business started, for example) to young graduates and small business owners.

Currently, the 6 percent of the population who are under the poverty line receive heavy subsidies from the government. Tunisia's first involvement with the World Bank in 1960, an education project, is testimony to the country's commitment toward the reduction of poverty and the redistribution of wealth. Various indicators also show a substantial improvement in the living standards of all Tunisians over the past 20 years. Average life expectancy increased from 67 in 1984 to 72.4 years in 1999. The annual rate of population growth dropped from 1.7 percent in 1994 to 1.1 percent in 2000. The per capita income

increased from 952 dinars in 1986 to 2,644 dinars in 1999.

WORKING CONDITIONS

In 1999 the labor force stood at 3.3 million, a substantial increase from the 1995 figure of 2.84 million. Some 22 percent of the labor force is employed in agriculture, 23 percent in industry, and 55 percent are in services. The public sector employs around 25 percent of the labor force. The official unemployment rate in 2000 was 15.4 percent, leaving the number of people without a job at 480,000. It is likely that the real rate of unemployment is significantly higher than the official figure, with some estimates putting it as high as 20 or 25 percent. About half of the unemployed are under the age of 25, many of whom are unskilled. The country has a national literacy rate of over 70 percent, and about 90 percent of the workforce under the age of 35 is literate. Although job-training programs and secondary educational institutions produce many skilled workers, many young people still cannot expect to find jobs with high-paying salaries. According to the EIU Country Profile, 70,000 jobs will need to be created outside agriculture to create full employment. There is also a large underground

economy whose production is estimated at 15 percent of the GDP, and in which workers have no legal protections against adverse working conditions.

According to law, Tunisian workers have the right to form labor unions, and about 30 percent of the work-force is unionized. There is 1 national labor confederation, the General Union of Tunisian Workers (UGTT), to which all unions belong. Wages and working conditions are agreed upon through collective bargaining between the UGTT and the employers' association, and these agreements apply to about 80 percent of the public sector. The Labor Code sets a standard 48-hour workweek for most sectors and requires one 24-hour rest period. The industrial minimum wage is 170 dinars (US$155) per month for a 48-hour workweek and 149 dinars (US$136) for a 40-hour workweek. The agricultural minimum wage is 5.20 dinars (US$4.74) per day. The law prohibits forced child labor and sets the minimum age for employment in manufacturing at 16 years. The minimum age for light work in agriculture and some other non-industrial sectors is 13 years. The law also requires children to attend school until age 16.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1574. Tunisia becomes part of the Ottoman Empire.

1705. Husseinite Dynasty is established.

1881. French Protectorate is established on 12 May 1881. Anti-colonial resistance, led mostly by the Neo-Destour party, persists for most of the 75 years of French domination.

1956. Independence from France is declared on 20 March.

1957. The Republic of Tunisia is proclaimed. Habib Bourguiba becomes the first president on 25 July.

1959. The first Constitution of the Republic of Tunisia is adopted on 1 June.

1960. First Tunisian project is funded by the World Bank.

1963. The French evacuate Bizerta, their last base in the country.

1966. The production of oil begins.

1986. The International Monetary Fund's Structural Adjustment Program is adopted.

1987. Prime Minister Zine El Abidine Ben Ali succeeds the ailing President Bourguiba.

1990. Tunisia becomes a member of GATT.

1994. President Ben Ali is re-elected and an opposition party accedes to Parliament for the first time.

1995. Tunisia becomes the first country south of the Mediterranean to sign an association free-trade agreement with the European Union.

1995. Tunisia joins the WTO.

1998. The Tunisian Solidarity Bank starts to offer thousands of micro-credit loans to young graduates and small businesses.

1999. After the first-ever contested presidential elections, President Ben Ali is re-elected to a third term by an overwhelming majority. The Democratic Constitutional Rally keeps its majority in the Chamber of Deputies, but the opposition gains 20 percent of the 182 seats. The number of women in Parliament increases to 21.

FUTURE TRENDS

The international community recognizes that Tunisia has made serious and successful attempts at economic reform. As of 2000 more than 800 foreign companies were investing in the country. The World Bank has recommended that Tunisia speed up the sales of its publicly-owned companies, but this process has been overshadowed by an aggressive campaign to free up 93 percent of import-related businesses from state control and a major regional free-trade agreement. Having become a member of the World Trade Organization, Tunisia has also shown its serious commitment to free trade. Although Tunisia has moved somewhat slowly, especially in the telecommunications sector, the reforms that it has undertaken since 1990 have been far-reaching. Currently, Tunisia needs to concentrate on privatization to ensure continued and increased efficiency.

DEPENDENCIES

Tunisia has no territories or colonies.

BIBLIOGRAPHY

Economist Intelligence Unit. Country Profile: Tunisia. London: Economist Intelligence Unit, 2000.

McMahon, Janet. "Tunisia: Progress through Moderation." Washington Report on Middle East Affairs. <http://www.washington-report.org/backissues/0499/9904019.html>. Accessed July 2001.

Morrisson, Christine, and Talbi Bechir. Long-Term Growth in Tunisia. OECD, 1996.

Salem Norman. Habib Bourguiba and the creation of Tunisia. London: Croom Helm, 1984.

Tunisie: Site du Gouvernement .<http://www.ministeres.tn>.Accessed May 2001.

Tunisia Online. <http://www.tunisiaonline.com>. Accessed May 2001.

U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed July 2001.

U.S. Department of State. FY 2000 Country Commercial Guide: Tunisia. <http://www.state.gov/www/about_state/business/com_guides/index.html>. Accessed May 2001.

World Bank. Republic of Tunisia: Towards the 21st Century. 2 vols. Report No. 14375 TUN. Washington, D.C.: World Bank, 1995.

World Bank. World Development Report 2000. Washington, D.C.: World Bank, 2000.

—Salamander Davoudi

CAPITAL:

Tunis.

MONETARY UNIT:

Tunisian dinar (TD). One Tunisian dinar equals 1,000 millimes. The notes in circulation are 5, 10, 20, and 30 dinars, and there are coins of 5, 10, 20, 50, 100, and 500 millimes, and 1 dinar.

CHIEF EXPORTS:

Textiles, machinery, electrical equipment, phosphates, chemicals, olive oil, hydro-carbons.

CHIEF IMPORTS:

Textiles, mechanical and electrical equipment, vehicles, petroleum and derivatives, iron and steel, plastics, cereals.

GROSS DOMESTIC PRODUCT:

US$52.6 billion (purchasing power parity, 1999 est.).

BALANCE OF TRADE:

Exports: US$5.750 billion (1998). Imports: US$8.338 billion (1998).