Tunisia's Export Industry at Risk Due to Delay in Ratifying Revised Pan-Euro-Med Agreement
With only a week left before the December 31, 2025 deadline, Tunisia's delay in ratifying the revised Pan-Euro-Med (PEM) agreement is putting the country's export industry in jeopardy. This agreement allows Tunisian companies to export their products to the European Union, benefiting from the Euro-Mediterranean rules of origin, without being subject to taxation upon entry into the EU. Without ratification, as of January 1, 2026, the affected products will be subject to taxes of up to 12%.
In a letter addressed to the Minister of Industry, Mines, and Energy on December 15, Haithem Bouagila, President of the Tunisian Federation of Textile and Clothing (FTTH), warned of the economic impacts: loss of competitiveness for industrial companies, an estimated decline in exports of several hundred million euros, and difficulties for hundreds of companies across the country, threatening around 60,000 jobs.
The textile and clothing sector employs over 155,000 people directly and exports nearly three billion euros. Given the already tense international situation and strong competition from Egypt and Turkey, Tunisian companies risk losing market share if the agreement is not ratified.
The FTTH explains the situation with a concrete example: a Tunisian industrial company founded 40 years ago, employing 5,000 people and exporting around 95 million euros, uses 50% of fabrics imported from Turkey. Without ratification of the PEM, it will have to apply a 12% tax on its exports to the EU, putting half of the company's jobs at risk and favoring Egyptian competition.
Haithem Bouagila calls on the state to intervene quickly, emphasizing that the delay in ratification undermines the confidence of international partners and threatens the country's socio-economic balance. He also denounces the lack of concrete responses despite repeated warnings over the past three months to the ministries of trade, industry, and economy.
