APIP Agricultural Policy Implementation Project

An agreement between CEPEX and Tunis Air provides for reduced rates for
export shipments on Tunis Air and Compagnie Tunisienne de Navigation (CTN). For
air shipments exporters receive a 50 percent reduction in transport rates. The
shipper must pay the full rate at time of shipment and but receives a 50 percent
rebate from CEPEX. The principal problem with this program is late reimbursement
by CEPEX. Some exporters noted that they had waited as long as one year to
receive their rebates. In addition to the delay exporters pointed out that they
incurred additional costs during the lengthy process of pursuing their claims.
This appears to be a case where the administrative procedures are negating some
of the incentives which the policy sought to create for flower exporters.
CEPEX's export promotion activities such as marketing research, dissemination
of commercial information, and participation in international trade fairs
are limited by scarce resources. Given the very small scale of the cut flower
sector, CEPEX's export promotion activities have been limited to attendance at
international fairs. It is not currently able to undertake research on cut
flower markets inEurope or provide detailed commercial information to Tunisian
flower exporters.
5.2. Agence de Promotion des Investissements Agricoles (APIA)
APIA is a public agency whose main role is to promote investment in the
agricultural and fisheries sectors. APIA provides four principal services:
1. Disseminating Information. APIA serves as a source of
information on the agricultural investment code for
Tunisian and foreign investors.
2. Identifying Investment Opportunities. APIA helps interested
parties identify promising agricultural initiatives,
especially those oriented toward exports. It also acts as
liaison between potential fereign investors and Tunisian
partners.
3. Resolving administrative problems. APIA provides advice to
business on how to take advantage of different provisions of
the investment code and assists them in completing their
paperwork.
4. Advising on financing. APIA helps potential investors apply
for financing from the National Agriculture Bank (BNA). Since
this bank handles about 90 percent of credit funds for
agriculture, it is essential that investors learn to access
this source of financing.
Cut flower producers report that APIA's performance in carrying out the
functions listed above has been inconsistent. For firms to be eligible for the
benefits of the agricultural investment code, they must receive prior APIA
approval. Several of the cut flower producers mentioned that the APIA approval
process was long and troublesome. In two specific cases producers decided to
forego the benefits available to APIA-approved enterprises because the process
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