In the past, Tunisia's growthhas fluctuated greatly with agricultural output; investmenthas been a major engine of growth although productivity hasplayed an increasingly important role. On the one hand, withthe ongoing implementation of the association agreementsigned with the European Union (EU) in July 1995, tariffs onmanufactured goods imported from the EU are being graduallyremoved. To compete against cheaper imports from the EU,domestic manufacturers who operated for decades behind hightariff barriers must improve competitiveness. In order toidentify tariffs for Tunisia to realize its long term goalamidst competition challenges, the report is structured asfollows: section one gives introduction; section twoanalyzes the factors that have contributed to economicgrowth in the past. Section three provides a framework foranalyzing prospects for realizing faster growth in Tunisiaand for achieving Organization for Economic Cooperation andDevelopment (OECD) status in long term. Section four derivesimplications and structural changes required for fastergrowth to be achieved. Section fives gives some concluding remarks.
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