Libya, Tunisia deepen trade relationship

Tunisia’s latest trade figures reveal a complex picture of interwoven strengths and vulnerabilities. While the North African nation benefits from substantial trade surpluses with key partners, it simultaneously grapples with significant deficits that underscore the challenges facing its economy.

Data for the first nine months of 2023 show Tunisia’s trade deficit reached 13.5 billion dinars ($4.2 billion). This imbalance is largely attributed to substantial import bills from countries like Russia, China, and Algeria, where outbound trade flows significantly outweigh Tunisian exports.

However, these figures are counterbalanced by notable successes in other markets. Tunisia enjoys a robust trade surplus with Libya, amounting to 1.55 billion dinars ($486 million). This positive trend is mirrored in its relationships with European partners, with surpluses of 3.9 billion dinars recorded with France, 1.56 billion with Italy, and 1.68 billion with Germany.

These positive balances provide a crucial buffer, mitigating the impact of the overall deficit and highlighting Tunisia’s competitive advantages in certain sectors. Nevertheless, the persistent deficits with major economies like China and Russia expose a reliance on imports and underline the need for Tunisia to further diversify its export base and strengthen its international competitiveness.

The trade data offers valuable insights into the complexities of Tunisia’s economic landscape, showcasing both promising partnerships and areas requiring strategic focus to achieve a more balanced and sustainable trade position.