Trade relationships between Tunisia and the EU: the impact of free trade area implementation on the export demand for, and supply of dates, citrus and olive oil
1996
Belhadj Salah, S.
Tunisia and the EU are negotiating a reform of their trade policy by implementing a free trade area which consists of eliminating all the trade barriers between the two partners. This will affect the demand and supply for exports of agricultural products. An imperfect substitute model is constructed here to represent forces depicting Tunisian products trade with the European Union by estimating income and price elasticities of olive oil, citrus products and dates. The parameter estimates are then used to simulate the effect of the EU-Tunisian free trade agreement on the quantity exported of these traditionally exported products. Results indicate that: -exports demand was elastic for dates and inelastic for olive oil and citrus; -exports supply was elastic for dates and olive oil but inelastic for citrus.
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