We all know that Tunisia enjoys the EUR1 benefit from EU. A EUR-1 certificate is an origin form with which a reduction or exemption on the import duties can be obtained in the country of destination. These reductions or exemptions are part of a preferential agreement. The tariff preference on the ground of a EUR-1 Certificate is only granted in those countries with which the European Union have concluded a free trade agreement. These foreign countries are
Turkey (only for expressly named agricultural goods and EGKS products)
Ceuta and Melilla
West Bank/ Gaza strip
Tunisia has become a large center for production for conversion of fabrics received from EU countries and exporting the garments back to EU.
Lets see how much denim fabric is being sent from EU to Tunisia for conversion in the last couple of years .
Denim fabric Imported Into Tunisia From EU 2008-2010
Over the 3 years from 2008 to 2010, the fabric being sent from EU to Tunisia has reduced by over 20% – showing a logical reduction in manufacturing activity in Tunisia related to denim garment manufacturing due to increasing costs and also the effect of EU slowdown. However, we have seen that in the year 2011 , the imports of denim jeans into EU has actually increased. Hence , the reasons for reduced conversion in Tunisia are related more to increasing costs than the economic situation in EU.