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Import safeguards measures

Import safeguards measures are taken by the the Ministry of Trade and Export Development after consulting with the National Foreign Trade Council. They consist of raising customs duties or applying a quantitative restriction or a tariff quota.

This makes it possible to deal exceptionally and urgently with a massive increase in imports of a given product causing serious injury or the threat of serious injury to a domestic industry that locally manufactures a similar or directly competitive product.

In order to be able to take safeguard measures, it is essential to fulfill the following conditions
The existence of injury must always be based on “positive evidence” and involve an “objective examination” of the following elements:
Actual and potential decrease in turnover, profits, production, market share, productivity.
Reduction in the use of production capacity.
Delay in implementing specific production plans
Delay or abandonment of the extension of the planned facilities or the acquisition of additional machinery by local producers
Order losses
Erosion, compression or gradual deterioration of price
Negative effects on cash flow, inventories and wages
Delay in the creation or establishment of an industry in Tunisia even though feasibility studies have been completed as well as equipment acquisition contracts and credit agreements
Decline in employment
Impossibility of achieving planned targets for increased profits, production, staff, sales, etc.
Market share of local producers is growing at a slower pace than the market growth rate
Inability to raise capital for investment
The procedural phases relating to
import safeguards measures
  1. Presentation of a request from a national industry or instruction from the Minister responsible for trade
Verification
Notification of admissibility of the file:
Check whether the file is complete or not.
Transmission
Carry out a preliminary examination: verify the accuracy and adequacy of the evidence provided.
Sufficient evidence and conditions fulfilled therefore opening of an investigation after the opinion of the Ministry of Commerce. Possibility of provisional safeguard measures in critical cases.
Verification
Insufficient or inaccurate evidence. Legal conditions not fulfilled. In this case, the file is either classified or sent to another department.
Publication of the decision to initiate an investigation/any provisional measures taken in the J.O.R.T. OMC notification. Sending inquiries to foreign parties
Verification
Verification of information provided by foreign parties. Investigative operations with possibility of on-site visits and hearings
Verification
Institution of safeguards measures, Notification of the OMC, Publication in J.O.R.T, Monitoring of the application of the measures taken
Reception
Termination of the investigation in case of insufficient evidence concerning increased imports and their harmful effects on local production
Notification of the OMC, Publication in the J.O.R.T

Geographical distribution of foreign trade

80.0% of Tunisian exports are destined for the EU and UMA during the year 2020, despite the drop in our exports to these two destinations (EU: -11.3%, UMA: -22.3%).

Our national exports also fell to the Agadir zone (-14.5%, share: 2%), sub-Saharan Africa (-3.5%, share: 2.7%) and Asia (-13.2%, share: 4.0%).

On the other hand, our exports recorded an increase to Turkey (+13.1%, share: 1.2%).

Outside the EU, the trade deficit worsens, reaching in terms of value 15819.3 MD (instead of 12757.8 MD), this result shows the importance of our foreign trade with our main partner the EU (ranking first: customer and supplier) and its effect on the national trade balance.

The trade balance deficit recorded in 2020 of around -12757.8 MD is largely explained by the deficit recorded with certain countries:

China: -5393.8 MD

Turkey: -2140.6 MD

Algeria: -1719.5 MD

Ukraine: -1431.9 MD

Russia: -1007.0 MD

India: -608.3 MD

On the other hand, a trade balance surplus is recorded with other countries:

France: 3515.8 MD

Germany: 1217.0 MD

Libya: 1096.3 MD

Morocco: 294.6 MD

SECTORAL ANALYSIS OF EXPORTS

The analysis of exports by sector of activity during the year 2020 shows the following observations:

Selon la structure des exportations le secteur des IME est classé le premier avec une part d’environ 45.4% et une baisse des exportations de -14.0%.

The decline in exports concerns several sectors of activity. The rates vary between -24.4% (Mining, phosphates and derivatives sector) and -9.4% (Energy sector).

On the other hand, the sector of Agriculture and agro-food industries recorded an increase of 12.0% following the increase in our sales of olive oil.

 Excluding the Energy, Phosphate Mines and drift sectors, foreign trade during the year 2020 is characterized by:

Trade deficit : 9120.8 MD (instead of 12757.8MD)

Decrease in exports of around 11.4% (instead of -11.7%)

Fall in imports of around 15.0% (instead of -18.7%)

Coverage rate of 79.4% instead of 75.2%

Analysis of imports by product groups:

The food product group recorded a slight increase of 0.6% (share: 11.1%) following the increase in our imports of durum wheat, barley, corn and soybean meal.

On the other hand, the rest of the product groups recorded a decline during the year 2020: Raw material & Semi-finished products (-14.5%, share: 32.6%), Consumer goods (13.8%, share: 25.0%), Goods Equipment (-24.6%, share: 18.9%), Energy (-37.2%, share: 12.4%).

TRADE BALANCE

During the year 2020, exports recorded a decrease of 11.7% against an increase of 7.0% in 2019.in terms of value they reached 38705.9 MD against 43855.4 MD in 2019.

As for imports, they recorded a drop of 18.7% against an increase of 5.5% in 2019, in terms of value they reached 51463.7 MD against 63291.6 MD in 2019.

Thus, the trade deficit is reduced by 34.4% or 6678.4 MD. The coverage rate stands at 75.2% (against 69.3% in 2019) recording an improvement of 5.9 points.

Foreign Trade according to the Regime:

The Off shore regime::

Decrease in exports of around 14.3% against an increase of 9.4% in 2019

Imports fell by around 18.5% compared to an increase of 5.9% in 2019

The general regime:

Decrease in exports of around 4.2% against an increase of 0.4% in 2019

Decrease in imports of around 18.8% against an increase of 5.3% in 2019

Trade Balance Analysis:
During the year 2020, the trade balance is in deficit by approximately 12757.8 MD (compared to -19436.2 MD in 2019).

According to the foreign trade regime, we note:

The general regime: trade deficit of about 23760.9 MD
The Off shore regime: trade surplus of about 11003.1 MD

Trade Defense Instruments Manual

This manual aligns with this observation by defining the requirements, processes and minimum conditions required to enable national industrial producers, regardless of their fields of practice and branches of production, to easily resort to the instruments and mechanisms of trade defense as stipulated in the agreements of the World Trade Organization, the law relating to the defense against Unfair Import Practices as well as the law on Import Safeguards.

Trade defense measures

Anti-dumping
measures

Import safeguard
measures

Subsidies and countervailing
measures

Trade defense measures

Mesures de sauvegarde

Import safeguard measures

Défense contre les pratiques déloyales à l’importation

Les mesures anti dumping

Anti-dumping measures

Les subventions et mesures

Subsidies and countervailing measures

Rights and obligations of the parties concerned

    • Right of local producers or their representatives to submit a request to the Ministry responsible for trade.
    •  Right of parties who provide confidential information in their application or during the investigation to the confidentiality of such information.
    • Right of the parties concerned by the investigation to be present at the hearings granted by the Ministry of Commerce to allow the confrontation of opposing views.
    • Right of each party interested in the investigation to refuse to attend the hearings.
    •  Right of parties interested in the investigation to present and defend their views in writing or orally.
    •  Right of interested parties to request a judicial review of an action taken, within a maximum period of 20 days from the date of publication of the notice in the JORT, in the case of unfair import practices.
    •  Importer’s right, where applicable, to reimbursement of duties collected in excess of the definitive dumping margin or the amount of the definitive countervailing duty.
    •  Right of the importer to the possibility of reimbursement of the increase in customs duties collected as a provisional safeguard measure in the absence of a definitive safeguard measure.
    • Obligation of the foreign exporter to respond to requests for information sent to him by the services of the Ministry responsible for Trade. Such requests shall be answered within the time limits and in the form
      specified in such requests.
    • Obligation of foreign parties submitting undertakings to communicate them in a non-confidential form for dissemination to the parties concerned by the investigation (case of unfair import practices).
    •  Obligation to collaborate with the services of the Ministry of Trade and to provide them with the necessary information during all stages of the investigation

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