VZCZCXYZ0001
PP RUEHWEB

DE RUEHTU #0827 3161423
ZNR UUUUU ZZH
P 121423Z NOV 09
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 6969
INFO RUCNMGH/MAGHREB COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/USDOC WASHDC

UNCLAS TUNIS 000827 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG 
STATE PASS USTR (BURKHEAD) AND USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (MASON), ADVOCACY CTR (TABINE), AND 
CLDP (TEJTEL AND MCMANUS) 
USDOC PASS USPTO (ADAMS, BROWN, AND MARSHALL) 
CASABLANCA FOR FCS (KITSON) 
 
E.O. 12958: N/A 
TAGS: EAIR ETRD ECON TS
SUBJECT: TUNISIAN FINANCE MINISTER DISCUSSES OPEN SKIES AND 
FRANCHISING 
 
REF: A. TUNIS 696 
     ¶B. TUNIS 608 
 
Sensitive but Unclassified.  Please protect accordingly. 
 
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Summary 
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¶1. (SBU) The Ambassador and Tunisian Minister of Finance 
Mohamed Rachid Kechich discussed the U.S.-Tunisian trade 
relationship, Open Skies, franchising, and the possibility of 
a U.S. trade delegation in early 2010.  Kechich expressed a 
strong desire to improve the bilateral trade relationship, 
but was not willing to go into specifics on key trade and 
investment mechanisms such as Open Skies and the newly-passed 
franchising legislation.  End summary. 
 
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Focused on Trade and Investment, Blurry on Details 
--------------------------------------------- ----- 
 
¶2. (SBU) The Ambassador paid a courtesy call on Minister of 
Finance Mohamed Rachid Kechich on November 11.  Kechich 
opened with a positive description of Tunisia's economic 
climate and its economic relations with the United States. 
He said he wanted to expand the U.S.-Tunisian trade 
relationship, which has been growing but is currently 
unbalanced in favor of the United States.  He said Tunisia is 
a stable and open country that offers U.S. investors 
protection from double taxation.  He described the Tunisian 
dinar as "almost convertible, more so for companies than for 
individuals," and opined that further economic development is 
needed before Tunisia can fully liberalize its currency. 
 
¶3. (SBU) Minister Kechich raised the issue of an Open Skies 
agreement, indicating that such an agreement would help boost 
U.S.-Tunisian economic ties, particularly through tourism. 
The Ambassador noted that the U.S. was interested in 
concluding an Open Skies agreement with Tunisia and had 
forwarded for consideration a revised draft agreement to the 
Ministry of Foreign Affairs on September 14 (ref A).  Kechich 
said he aimed for an agreement that "protects the interests 
of both sides."  (Note: Tunisair announced last month that it 
had signed General Sales Agreements with companies in the 
United States and Canada as a precursor to direct flights 
following the delivery of new Airbus A330-200 aircraft in 
¶2011.  End Note.) 
 
¶4. (SBU) The Ambassador asked Kechich how the Government of 
Tunisia (GOT) planned to implement the recent law on 
franchising (ref B), particularly with respect to 
repatriation of royalties.  In a vague answer, Kechich said 
that implementation of the franchise law would need to 
"benefit both sides" and that investors were already becoming 
aware of the rules in place.  He said there would be no tax 
discrimination against franchises. 
 
¶5. (SBU) The Ambassador noted the potential visit in February 
2010 of a U.S. trade mission to Tunisia.  Kechich said he 
wanted to reach out to U.S. investors, and offered to 
organize information sessions for the potential U.S. 
delegation. 
 
GRAY