How Tunisia Is Meeting the Challenges of Globalization

• Author: Abdellatif Saddem
• Position: Tunisia's Minister of Economic Development

Tunisia's approach to globalization was inspired by dramatic changes in the world economy at the end of the twentieth century: the end of the Cold War, which had governed international relations for nearly half a century; rapid technological progress, especially in information and communications; and the conclusion of the General Agreement on Tariffs and Trade (GATT) and creation of the World Trade Organization. The scope of these changes and the speed with which they occurred were unprecedented. Traditional alliances between nations were dissolved and new partnerships emerged, as the centers of power and influence shifted. Globalization accelerated and national policies became more interdependent. Countries around the world seeking to safeguard their interests in the new international configuration joined together to form regional groups.

In the wake of these developments on the international stage, markets have expanded and international trade and capital flows have soared, offering countries new opportunities for growth. At the same time, competition between developing countries seeking to position themselves in the world economy, preserve or increase their market share, and attract capital flows has been very strong. The integration of countries into the new global economy has thus not always been smooth, and countries unable to adapt to the international developments of the past 10 years risk being excluded or marginalized.

Tunisia's partners

Because of its geographic position, Tunisia has always played an important role in both the Mediterranean and the Arab-African regions. Now, more than ever, Tunisia is keenly interested in preserving its influence-an important asset in this constantly changing world-in both regions. Building a dynamic Arab Maghreb Union has always been a focus of Tunisia's policy. As regards cooperation with the countries of Africa, the speed with which Tunisia ratified the agreement to establish the African Union demonstrated its determination to work toward strengthening the continent.

In 1995, Tunisia was one of the first countries in the southern Mediterranean to draw up a partnership and codevelopment agreement with the European Union (EU). The agree- ment, which was the natural outcome of a long period of economic reform in Tunisia, called for liberalizing trade relations and tightening financial ties, as well as for deepening cultural exchanges and political cooperation. A key component of the agreement was the establishment of a free trade zone.

More than three-fourths of Tunisia's trade is currently with the EU, making the latter Tunisia's primary trading partner, and the EU is...