ABSTRACT

The agricultural sector is very important for the Tunisian economy as it absorbs 10% of the total investment, generates 12% of the Gross Domestic Product (2002–2006), and employs 16% of the total labor force while the agro-food exports represent 10% of the total exports.

The aim of this article is to review: (a) the agreements related to the exports of olive oil between Tunisia and the European Union (EU) and (b) the agricultural policies and incentives enforced by the government to increase the exports of olive oil.

For the above-mentioned aims, we obtained and analyzed data from the Ministry of Agriculture in order to shed light on the policies and incentives that help to increase olive oil exports. Specifically, we studied the olive oil export function and factors that affect it.