VZCZCXRO7870
PP RUEHTRO
DE RUEHTU #0263/01 0571509
ZNR UUUUU ZZH
P 261509Z FEB 07
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 2779
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0864
RUEHAS/AMEMBASSY ALGIERS PRIORITY 7431
RUEHLO/AMEMBASSY LONDON PRIORITY 1276
RUEHNK/AMEMBASSY NOUAKCHOTT PRIORITY 0865
RUEHFR/AMEMBASSY PARIS PRIORITY 1739
RUEHRB/AMEMBASSY RABAT PRIORITY 8340
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0063
RUEHCL/AMCONSUL CASABLANCA PRIORITY 4070
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 TUNIS 000263 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG (HOPKINS AND HARRIS) 
STATE PASS USTR (BELL), USPTO (ADLIN AND ADAMS), USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (NATHAN MASON), ADVOCACY CTR (JAMES), AND CLDP 
(TEJTEL) 
CASABLANCA FOR FCS (ORTIZ) 
LONDON AND PARIS FOR NEA WATCHER 
RABAT FOR FAS (FAY) 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAGR EFIN KFLU ELAB TS
SUBJECT: TUNISIA ECONOMIC HIGHLIGHTS: Feb. 1 - Feb. 15 
 
REF: A. TUNIS 143 
¶B. 06 TUNIS 2749 
 
¶1. (U) This cable contains highlights of recent economic 
developments in Tunisia on the following topics: 
 
¶A. AMU Considers Creation of Maghreb Debit Card 
¶B. GOT to Hire 12,000 Employees 
¶C. Avian Influenza: Tunisia Suspends Poultry Imports From Affected 
Countries 
 
-------------------------------------------- 
AMU Considers Creation of Maghreb Debit Card 
-------------------------------------------- 
 
¶2. (U) On February 8 and 9, representatives from Arab Maghreb Union 
(AMU) countries met in Tunisia to discuss harmonizing monetary 
regulations and, more specifically, the creation of a Maghreb debit 
card.  Currently, 5 million bank cards are in use in the five AMU 
countries and due to non-convertibility of currencies, debit cards 
are not always honored outside the country in which they are issued. 
 To promote Maghreb financial integration, the AMU goal is for 
Maghreb countries to double the number of cards in circulation -- to 
10 million -- by 2010. 
 
¶3. (SBU) Comment and Background: The increased use of credit cards 
in Tunisia reflects growth in the commercial banking sector. 
According to the Arab Tunisian Bank (ATB), there are roughly 1.1 
million bank cards currently in use in Tunisia, a 15 percent 
increase over 2005 figures. 
While this has facilitated a limited expansion in e-commerce, the 
non-convertibility of the Tunisian dinar continues to limit 
Tunisians' ability to make purchases outside Tunisia, including in 
AMU countries.  The GOT's recent decision to create a credit card 
("carte allocation touristique") for use outside of Tunisia (Ref B) 
and to raise the yearly foreign exchange allowance will permit 
Tunisians a greater degree of flexibility in spending money while 
abroad.  In addition, the upcoming implementation of reciprocal 
convertibility between Libyan and Tunisian dinars will facilitate 
economic integration between the two countries (Ref A).  The 
development of a bank card for use throughout the Maghreb would be a 
welcome step to facilitate commerce, though it remains to be seen 
how this will impact currency convertibility between the countries. 
End Comment and Background. 
 
---------------------------- 
GOT to Hire 12,000 Employees 
---------------------------- 
 
¶4. (U) On February 13, the Minister of Civil Service and 
Administrative Development announced that the GOT will hire 12,000 
employees in 2007 (a number corresponding to about 70 percent of 
this year's university graduates).  Half of the new jobs will be 
created in the Ministries of Education and Training, Higher 
Education and Scientific Research. 
 
¶5. (SBU) Comment: Lowering the unemployment rate and creating jobs 
for new graduates is a key priority for the GOT.  Although the 
official unemployment rate is 14.2 percent, unemployment among 
university graduates is significantly higher.  Creating jobs through 
public sector hiring provides a temporary solution that will not 
address the underlying issues behind Tunisia's high unemployment 
rate.  Rather than stimulate private sector growth through economic 
reforms, the GOT has chosen to remain the employer of last resort. 
End Comment. 
 
----------------------------------------- 
Avian Influenza: Tunisia Suspends Poultry 
Imports from Affected Countries 
----------------------------------------- 
 
¶8. (U) On February 11, the National Avian Flu Commission decided to 
suspend import of poultry and poultry products from Hungary, United 
Kingdom, Egypt and Nigeria -- countries recently reporting H5N1 
 
TUNIS 00000263  002 OF 002 
 
 
cases. 
 
¶9. (U) Comment and Background: This is not the first time the GOT 
has suspended poultry imports in response to avian influenza (AI). 
The GOT took similar measures in late 2005 following AI outbreaks in 
Europe and several African countries.  Tunisia relies on imported 
poultry stock (one-day chicks and hatchery eggs) -- mainly from 
Europe-- to sustain the domestic poultry sector.  End Comment and 
Background. 
GODEC