Economic ties likely behind Tunisia's exemption from visa requirements

06/02/2007

The recently announced visa regime for all Arabs travelling to Libya will not apply to Tunisians or Egyptians. The exemption is seen as part of Libyan measures to encourage economic integration by easing movement of travellers and lifting restrictions on the use of domestic currencies.

Jamel Arfaoui in Tunis contributed to this report – 06/02/07

[Getty Images] Libya will not impose the new visa regime on Tunisia or Egypt, Public Security Minister Salah Rajab al-Masmari Rajab announced Monday (February 5th).

Strong economic ties between Libya and Tunisia were likely behind Monday's (February 5th) decision to exempt Tunisians from new visa requirements. Libyan Public Security Minister Salah Rajab said Monday that Tunisia and Egypt -- two countries that border Libya -- will be exempt from visa requirements affecting all foreign and Arab travelers. The new restrictions were announced last week during an Arab interior ministers meeting in Tunis. The country said the efforts were put in place to fight organised crime and terrorism, as well as to curb illegal immigration and stem the influx of illegal foreign workers.

Although Libya did not elaborate on the reasons for this exception, Tunisians see it as part of recent measures establishing exceptions for Tunisian citizens, with the aim to strengthen economic ties between the two countries.

Last month, the Libyan government exempted Tunisians from the stipulation to have 500 Libyan dinars to enter the country.

Tunisians were also exempted from new measures affecting foreign investors. Libya recently decided to implement a Value Added Tax programme, as well as to establish a $50m price of entry for foreign investors. In a move to stimulate economic integration in the region, Tunisian firms desiring to invest in Libya will be exempted, requiring a commitment of only 500,000 Libyan dinars.

Tunisians were pleased by these measures. "We support what analysts in Tripoli believe… All that we ask of our Libyan brothers is for an exemption from the restrictions they place on foreign investors," Libyan-Tunisian Chamber of Commerce Secretary-General Ali Dauadi said, on his return from Libya.

Markets such as the Ben Kardan market would have made visa restrictions detrimental to the economies of both countries. The market is regarded as a de facto free-trade zone, established by local citizens without waiting for political approval. With more than 1,200 shops and 5,000 employees, it is a strong indicator of the volume of trade being conducted along the border.

The volume of planned investment may also have contributed to the easing of restrictions.

On January 9th, then Libyan Minister of Commerce Taieb Essafi announced his country's plans to establish a formal free-trade zone and resort town in the area of Zuwarah Abu Kammash, near the Tunisian border. Essafi also announced Libya's plans to invest $3 billion in the tourism and energy sectors. Speaking to the media in Tripoli, he said Libya and Tunisia are contemplating construction of an oil refinery and two new pipelines, further strengthening economic ties between the two countries.