Regulatory approximation under ALECA: Assessing the economic and social effects on the Tunisian agricultural sector

The negotiations on a deep and comprehensive free trade area between Tunisia and the European Union (EU) - also known by its French acronym "Projet d'accord de libre-échange complet et approfondi" (ALECA) - have been ongoing since 2015. Beyond the bilateral reduction of tariffs and quotas, the EU proposes regulatory alignment of Tunisian legislation to EU regulatory standards to foster trade and economic growth. However, taking into account the additional compliance costs for Tunisian producers and the public sector, our impact assessment concludes that ALECA has significant downside risks, as value-added in Tunisian agriculture might decline by -8.3 %. These effects need to be considered in the negotiations and in the broader context for sustainable agricultural development in Tunisia.