Tunisia's Exports to Algeria: A Concerning Performance
A recent analysis note from the Tunisian Institute of Competitiveness and Quantitative Studies (ITCEQ) reveals a concerning competitive performance of Tunisian exports in the Algerian market. Tunisia struggles to impose itself, with a market share that does not exceed 1% on average annually over the period 2011-2021, and a significant decline in its ranking among Algeria's suppliers.
Tunisia's market share in Algeria for goods exports is deemed "too low," reaching only 0.69% in 2021, compared to 0.96% in 2011, representing a 4.6% decrease. This figure is all the more concerning since Tunisia is outperformed by many countries, including China, France, Germany, Spain, Italy, and Turkey.
In 2021, Tunisia ranks 25th among Algeria's suppliers, significantly dropping compared to its 16th position in 2016, where it held a 1.4% market share. In comparison, China has risen to first place in 2021 with an impressive 18.5% market share, significantly progressing from 9.4% in 2011. France (2nd), Spain (3rd), Germany (4th), and Italy (5th) maintain dominant positions, while Turkey ranks 6th. Only two Arab countries, Saudi Arabia (14th) and Egypt (18th), feature among the top 20 suppliers, having improved their market share.
Dynamism of Algerian Demand and Tunisian Comparative Advantages
The analysis of Algerian demand reveals that 41 products, out of the 72 studied, are considered dynamic, meaning their imports increase more rapidly than the overall goods. These products represent approximately 49% of Tunisia's total exports to Algeria.
Among these dynamic products, Tunisia has a comparative advantage in the Algerian market for several categories, including plastic articles, basic mineral chemistry, measuring instruments, hardware, glass, and paper. These products constitute more than 40% of Tunisia's total exports to Algeria. However, the study highlights that most of these products suffer from a comparative disadvantage at the international level, with the notable exception of basic mineral chemistry, measuring instruments, minerals, fertilizers, and carpets.
On the other hand, Tunisia has a comparative disadvantage in the Algerian market for products such as pharmaceuticals, vegetable preserves, and certain agricultural products, which represent approximately 9% of goods exports. It is interesting to note that some of these products, such as clothing and knitwear, enjoy a significant comparative advantage at the global level. The ITCEQ suggests that Tunisia should redouble its efforts to exploit this potential and adapt to the dynamism of Algerian demand.
