The Cost of Excessive Trade Regulation: How Tunisia is Losing Money

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Tunisia suffers from the illegal trade of merchandise that reduces its potential for more state income. Most of illicit trade comes through its borders with Algeria and Libya. Each year, millions of dollars of illicit products enter Tunisia without control or government oversight. This situation is a continuation from decades of government-endorsed illegal trading practices that were designed to provide income for the allies of ousted President Ben Ali. Today, the government has no appetite for cracking down on such practice, but MEA Risk sees the situation worsening as Tunisia works on reducing state subsidies. This means that the Tunisian consumer will be more attracted to lower-priced products coming from neighboring countries, through a trade that escapes government, and that means millions of dollars of loss for the State.

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