II. Leading Trade Prospects for U.S. Business

Telecommunications:  The Ministry of Communications is planning
an expansion of Tunisia's limited cellular telephone network.  We
expect a tender to be issued in 1995/6 after new mobile cellular
telephone switches are installed under the just completed
switching center competition.  The Ministry is also planning a
further 500,000 line expansion in 1997/98.  There is also a
sizable unexploited market for private switchboards for hotels
and businesses.

Dam Construction:  Beginning in 1991, the Government of Tunisia,
supported by the African Development Bank (AFDB) and the World
Bank, embarked on a decade-long program to construct 21 large and
medium sized dams and 100 smaller sized dams.  The program was
privatized in 1992 and offers good opportunities for U.S.
construction and engineering firms.  One American company is
already involved in the sector.

Port of Bizerte Container Terminal:  The National Port Authority
(OPNT) is planning the construction of a free zone and container
terminal for the port of Bizerte.  The U.S. Trade Development
Agency is financing a feasibility study for the project using the
U.S. engineering company, Moffat Nichols.  We anticipate that
American firms should be well placed to compete for the ensuing
multimillion dollar tender.

Highways and Construction:  The Tunisian National Highway
Authority is preparing a feasibility study and terms of reference
for the construction of a 70 km highway linking Bizerte to Tunis.
The IX Economic Development Plan calls for construction of the
first section of the Tunis-Bizerte highway (22 km out of 70 km)
and the Tunis-Medjez El Bab-Bou Salem highway (34 km). Surveying
and a feasibility study are already underway and a tender is
expected to be issued in 1995/6.

Other major opportunities in the future are the construction of a
major sports complex for the 2001 Mediterranean games ($130-140
million), the national cultural center ($50 million), a science
city, and a major international conference center.

Medical Equipment and Services: The number of increasingly
sophisticated medical and dental clinics in Tunisia is growing.
In the last five years there has been a tremendous increase in
private sector care.  There are now approximately 15,000 beds in
public and 2,000 beds in private sector hospitals.  Opportunities
exist in both areas for equipment sales and there is mounting
interest in hospital management services.

Computer Equipment and Services:  The computer sector in Tunisia
is experiencing substantial growth.  U.S. equipment is preferred
over European and Asian alternatives.  Tunisians want to source
directly from American companies.  The market is becoming more
sophisticated and there is growing specialization, especially in
computer services.  Opportunities are available in both the
government and the private sector.  Notably, Sun Microsystems
signed a partnership agreement with the Tunisian company TMI to
develop its services in Tunisia.  U.S. firms may also want to
consider Tunisia as a regional base for marketing efforts in the
Maghreb, or even sub-Saharan Africa.

Agricultural Equipment and Livestock:  We believe that there is a
sizeable market for agricultural equipment in Tunisia.   A GOT
decision to privatize grain stockage has created a demand for
silos.  Privatization of state owned farms and government
incentives, including the new investment code, are spurring
growth in the poultry, dairy, and other industries, with the
consequent demand for equipment and livestock.

Environmental Equipment and Services: Tunisia continues to play a
leading role in regional environmental affairs.  It is signatory
to many environmental treaties and conventions, has hosted
environmental conferences in the past and will host another in
November 1994.  Tunisia has an active Ministry of the Environment
and has been selected for a USAID funded pilot project to educate
businesses on the economic advantages of installing pollution
prevention equipment.  American exporters of environmentally
related goods and services should find an interested and
receptive market.  The most likely areas of interest are clean
technology, environmental cleanup services and equipment, water
resource and solid waste management, hazardous material handling,
response to environmental accidents, and the prevention and
control of pollution associated with oil exploration and
development.

Packaging Machinery and Equipment: Tunisia produces many high
quality manufactured and agricultural products, both for the
local market and for export to Europe.  The reputation of some of
these products is marred, however, by inferior packaging.  Many
Tunisian manufacturers are realizing that they could command
higher prices and increase sales if their packaging was up to
international standards.  Given the importance of the export
sector, this area presents some real possibilities for American
firms.