VZCZCXRO2892
PP RUEHTRO
DE RUEHTU #0591/01 1311800
ZNR UUUUU ZZH
P 111800Z MAY 07
FM AMEMBASSY TUNIS
TO RUCPDOC/USDOC WASHDC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 3138
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0892
RUEHAS/AMEMBASSY ALGIERS PRIORITY 7470
RUEHLO/AMEMBASSY LONDON PRIORITY 1295
RUEHNK/AMEMBASSY NOUAKCHOTT PRIORITY 0880
RUEHFR/AMEMBASSY PARIS PRIORITY 1760
RUEHRB/AMEMBASSY RABAT PRIORITY 8388
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0097
RUEHCL/AMCONSUL CASABLANCA PRIORITY 4091

UNCLAS SECTION 01 OF 03 TUNIS 000591 
 
SIPDIS 
 
SIPDIS 
 
NEA/MAG FOR HOPKINS AND HARRIS, EB/CBA (WINSTEAD), ECA, 
NEA/PPD (FERNANDEZ AGNEW) 
STATE PASS USTR (BELL), USPTO (ADLIN), USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (NATE MASON), ADVOCACY CTR (JAMES), 
AND CLDP (TEJTEL) 
CASABLANCA FOR (FCS ORTIZ) 
 
E.O. 12958: N/A 
TAGS: EAID ECON ETRD KPAO SCUL TS
SUBJECT: SFAX FACTS: TUNISIA'S BUSINESS CAPITAL WANTS 
GREATER COLLABORATION WITH THE UNITED STATES 
 
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Summary 
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¶1. Ambassador conducted a familiarization tour of the 
southern governorate, and second largest city, Sfax from 
April 4-8.  The visit included economic/commercial, public 
affairs, and humanitarian components.  Interlocutors at every 
stop pressed for increased collaboration and assistance from 
the USG, including branch offices for AMIDEAST (English 
language programs) and TACC (Tunisian American Chamber of 
Commerce), biotechnology and university linkages, and trade 
delegations from US business and government officials.  The 
Sfax governorate aggressively seeks the attention that its 
citizens believe Tunisia's economic, industrial, and 
agricultural hub should command.  Sfaxians with whom the 
Ambassador met were supportive of a Free Trade Agreement 
(FTA) with the United States.  Many also made the case that 
Sfax represents an ideal base for US companies wishing to do 
business in the region --- especially with Libya.  The 
Embassy is following up on the visit by considering ways to 
increase interaction with Sfax, including the possible 
creation of a Virtual Presence Post.  We are also working 
with AMIDEAST and TACC to encourage establishment of branch 
offices.  End summary. 
 
-------------------------- 
Ready for a US/Tunisia FTA 
-------------------------- 
 
¶2.  In his meeting with the Governor of Sfax Kamel Somai, the 
Governor touted the Sfax governorate as: 
 
     -- an agricultural center, with 6.2 million olive trees, 
as well as almond and pistachio cultivations.  Sfax also 
accounts for 30 per cent of Tunisia's chicken production and 
40 per cent of its egg production 
 
     -- a fisheries center, with 20 per cent of the national 
production and 70 per cent of its fish exports 
 
     -- Tunisia's industrial capital, with approximately 2400 
small and medium-sized business representing all industrial 
fields:  textiles, plastics, electric and electronic 
components, mechanical components, chemicals (phosphates, and 
oil and gas), and food processing; 80 per cent of Tunisia's 
energy production comes from the Sfax Governorate. 
 
     -- a university center, composed of 20 higher education 
institutes, 25,000 students, and 2 research institutes (one 
olive oil research center and a biotechnology research 
center). 
 
¶3.  The Ambassador opined that free trade is essential to 
prosperity and that he was in Sfax to listen and to learn 
about the prospects and opportunities of the Sfax 
governorate.  Somai replied that it was time for an FTA with 
the United States, and that he looked forward to developing 
good relations with US businesses.  He cited the lack of 
English language capabilities among Sfaxians as the primary 
obstacle to attracting increased US investment to Sfax and 
requested USG assistance in bringing English language 
teaching resources to Sfax.  The Ambassador mentioned that he 
hoped to bring an economic delegation to Tunisia.  He also 
stated that he wanted to promote greater US/Tunisian 
collaboration and strengthened ties via US economic 
delegations and US trade missions to Tunisia and vice versa. 
He broached the possibility of including Sfax in the program 
of any such delegations. 
 
------------------------------------------- 
Taparura Project - Investment Opportunities 
------------------------------------------- 
 
¶4.  Somai said he hoped that future opportunities in urban 
development and tourism related construction projects, 
 
TUNIS 00000591  002 OF 003 
 
 
associated with the Taparura Project, would help attract 
greater US investment to Sfax.  Taparura is a major 
environmental clean-up and beach rehabilitation and urban 
development project currently underway along the northern 
coast of Sfax.  What was once a toxic phospho-gypsum 
wasteland is envisioned to become a tourist venue with green 
zone parks, residential zones, an oceanographic museum, a 
nautical club, and an aqualand amusement park.  Major roads, 
hotels, business convention facilities, a cruise or pleasure 
boat port, and an extension of the Sfax airport are also 
planned parts of this project.  The tender for the first 
phase (environmental clean-up, dike construction, ground 
surface preparation) has been awarded to Jean de Nul 
Belgique-Envisan in collaboration with Somatra (a Tunisian 
public works company).  This phase of the project is 
projected to be completed by the end of 2008.   According to 
Somai, new public tenders will then be launched for the 
second phase -- urbanization and tourism development -- of 
the Taparura Project. 
 
¶5.  The Ambassador visited the project site and asked the 
Governor and the project leader to inform the Embassy when 
major tenders are about to be released.  The Embassy would 
then notify US investors of the opportunities to participate 
in the Taparura and other major development projects. 
 
--------------------------- 
United States - We Want You 
--------------------------- 
 
¶6.  Throughout the visit, the Ambassador heard calls for 
strengthened bilateral ties, investment, and collaboration 
with the United States.  Meetings with the Chamber of 
Commerce, UTICA (Employers' Union), CJD (Centre des Jeunes 
Dirigents - young entrepreneurs group), the University of 
Sfax, the Center of Biotechnology (CBS), and local businesses 
all reiterated common themes:  Sfax has the infrastructure, 
educated work force facilities, stability, and location to 
make it an ideal base for US business operations targeted at 
Libya, the Maghreb, European Union, African, and/or Middle 
Eastern markets.  Sfax seeks US investment, increased ties to 
the United States and to US businesses and universities, 
increased scientific exchanges between CBS and US 
Universities, US delegations to visit and explore cooperative 
opportunities and Sfaxian delegations to visit the United 
States to do likewise.  Sfaxians also pressed for a branch of 
AMIDEAST offering English classes (particularly business and 
legal English), and a branch of the Tunisian American Chamber 
of Commerce (TACC).  The President and faculty at the 
University of Sfax stressed their need for assistance in 
building the "spirit of entrepreneurship" among their 
students.  Sfaxian businesspeople also requested US 
assistance both in financing imports from the United States 
and exports to the United States, and technical assistance. 
They indicated that they want to work with the Embassy to 
encourage collaboration and to augment trade between the 
United States and Tunisia. 
 
¶7.  In all of his meetings, the Ambassador expressed interest 
in strengthened ties with Sfax.  In follow-up to his visit, 
he discussed the possible establishment of both TACC and 
AMIDEAST branch offices in Sfax with their respective 
directors.  He said that he believed that such branch offices 
will permit the creation of a solid base upon which to build 
increased business ties between the United States and Sfax. 
The Ambassador told his interlocutors that he and the US 
Embassy team will work to encourage business and university 
partnerships between Sfax and United States counterparts.  He 
pointed out that there are many avenues to exchange 
information and to foster strengthened relations. 
Specifically, the United States offers many programs and/or 
technical assistance that can help meet the needs of Sfax 
business and university entities such as the International 
Visitor Program, Trade Development Agency programs, the 
Business Facilitation Incentive Fund, Commercial Law 
Development Programs, USDA programs and Export/Import Bank 
 
TUNIS 00000591  003 OF 003 
 
 
programs.  The Ambassador also stated that he would be happy 
to write letters to the US Chamber of Commerce, US University 
presidents, and others to encourage them to visit Tunisia -- 
and Sfax in particular -- in order to explore collaboration 
and partnership possibilities. 
 
---------------------------------------- 
HIV/AIDS Prevention and Treatment Center 
---------------------------------------- 
 
¶8.  The Ambassador visited an HIV/AIDS Prevention and 
Treatment Center in support of Tunisia's efforts to encourage 
civil society participation in the promotion of HIV/AIDS 
awareness among youth.  Construction was funded via a USD 
250,000 grant from the US Department of Defense Humanitarian 
Assistance Program.  The center will serve as a youth center 
for diverse social activities but will specialize in HIV/AIDS 
information dissemination and confidential HIV/AIDS testing. 
The Tunisian association for the Prevention of AIDS and 
Sexually Transmissible diseases in Sfax (ATL/MST/SIDA), the 
NGO that will be responsible for operating the center, is 
currently working with the Tunisian Ministry of Public Health 
and UNAIDS to finalize the operational plan that will enable 
it to open its doors to the public in the near future. 
During his visit, the Ambassador toured the facility and 
observed various HIV/AIDS youth awareness activities 
initiated by the association.  The Ambassador presented Dr. 
Zahaf, Director of ATL/MST/SIDA Sfax with a plaque 
acknowledging the USG contribution to this project and 
commended the collaborative efforts of the Ministry of Public 
Health, ATL/MST/SIDA, and UNAIDS for the design and future 
successful operations of the center.  The Ambassador cited 
the project as a true symbol of Tunisian-American cooperation. 
 
 
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Comment 
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¶9.  This trip provided the Ambassador with an excellent 
introduction to the commercial capital of Tunisia and its 
second largest city.  We were struck by the oft-repeated 
mantra that Sfax is the perfect platform for US companies 
wishing to expand their business in the region, especially 
towards Libya, and Embassy's Econ/Commercial Officer will be 
following up on relevant leads in this regard.  The 
Ambassador's visits to CBS, the University of Sfax, and the 
HIV/AIDS Center provided him with a first-hand view of the 
fruits of the various USG-funded technical and humanitarian 
assistance projects in the region.  Post will follow-up on 
the various possibilities for additional linkages, including 
the possible establishment of a Virtual Presence Post and 
branches of TACC and AMIDEAST in Sfax.  The Executive 
Director of TACC subsequently told Econ/Commercial Officer 
and P/E Counselor that TACC is moving towards establishing a 
branch office in Sfax.  End comment. 
GODEC