In the past, Tunisia's growth has fluctuated greatly with agricultural output
investment has been a major engine of growth although productivity has played an increasingly important role. On the one hand, with the ongoing implementation of the association agreement signed with the European Union (EU) in July 1995, tariffs on manufactured goods imported from the EU are being gradually removed. To compete against cheaper imports from the EU, domestic manufacturers who operated for decades behind high tariff barriers must improve competitiveness. In order to identify tariffs for Tunisia to realize its long term goal amidst competition challenges, the report is structured as follows: section one gives introduction
section two analyzes the factors that have contributed to economic growth in the past. Section three provides a framework for analyzing prospects for realizing faster growth in Tunisia and for achieving Organization for Economic Cooperation and Development (OECD) status in long term. Section four derives implications and structural changes required for faster growth to be achieved. Section fives gives some concluding remarks.