The stage is set for OPIC's Tunisia trade mission - Overseas Private Investment Corp

The United States and Tunisia signed a Bilateral Investment Treaty (BIT) earlier this month.

John T. McCarthy, the V.S. Ambassador to Tunisia, and Tunisian Foreign Minister Habib Ben Yahia, exchanged instruments of ratification of the Treaty on Jan. 8, which enters into full force on Feb. 8. At the exchange ceremony, Ambassador McCarthy welcomed Tunisia's commitment to encourage foreign investment in the promotion of economic growth and development through the attraction of capital, new technology, and marketing expertise. The Tunisian government is interested in attracting more U.S. investment, and American firms should find the investment climate most receptive in light of this treaty and other investment incentives.

The BIT is reciprocal in nature, and covers future as well as existing investments. It guarantees American investors:

* The right to establish investments on a basis no less favorable than that accorded to investors of third countries, and subject to existing laws, on a basis no less favorable than that accorded to domestic investors;

* Treatment of investment that is no less favorable than that accorded to domestic investments or to investors of nationals of any third country, which-ever is more favorable;

* International Law Standards for expropriation and compensation;

* Free transfers of capital (with three-year balance of payments exception limited to the proceeds from the sale or liquidation of the investment); and

* The right to submit disputes to international arbitration through the World Bank's International Center for Settlement of Investment Disputes.

On Jan. 5, President Ben Ali convened a cabinet meeting to approve measures to make foreign exchange more available to Tunisian households and businesses and to simplify administrative procedures. He is also pushing the drafting of legislation and implementing regulations needed to allow current account convertibility by the end of 1993.

Over the next few years, American firms will be able to take advantage of Tunisia's strategic location and preferential access vis-a-vis the European and North African markets. Tunisia's skilled and plentiful labor force is one of the nation's major exploitable resources.

Tunisia has managed its external debt well and has never requested rescheduling of its foreign debt. The tourism, agribusiness, food processing, apparel, and computer software services and manufacturing sectors offer good possibilities for U.S. traders and investors.

American firms interested in trade and investment opportunities in Tunisia should consider attending a meeting of the U.S.-Tunisia Trade Mission on Feb. 16, in Washington, D.C. The Overseas Private Investment Corporation (OPIC), the U.S.-Arab Chamber of Commerce, and the Tunisian Agency for Promotion of Industry (API) are hosting this mission. The visit follows a successful OPIC investment trip to Tunisia in April 1992. The mission will also make stops in Baltimore and Miami; Tunisian companies are participating and will present their investment opportunities. The program also includes guest speakers from the Tunisian government who will discuss trade reforms and investment incentives. For more information, contact John Hereford at OPIC at tel. (202) 336-8630, the U.S.-Arab Chamber at tel. (202) 331-8010, or API at tel. (202) 223-8580.

COPYRIGHT 1993 U.S. Government Printing Office
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