Libya to support Tunisia with oil, cash

May 22, 2012

Michel Cousins


By Michel Cousins

TRIPOLI — It was becoming clear last night that there is more than first met the eye to the Libya-Tunisia accords signed this week. There are clear signs that Tripoli is seeking far closer ties with its francophone neighbor.
Though precise details are frustratingly scant, it has emerged that Libya is not only to supply Tunisia with oil, at low or minimal cost, but is also putting a significant injection of cash into the Tunisian economy. No detailed figures for the oil supply deal nor Libya’s financial subventions to its neighbor are yet clear.
First reports were merely that Libya’s Minister of Economy, Ahmed Khoshly had signed a memorandum of understanding with his Tunisian opposite number, which included a full range of earnest hopes and ambitions. The deals gave away except that both countries would try to tighten border security and the Tunisian judiciary would offer its assistance to Libyan lawyers and judges. Libya also agreed to give Tunisians priority in seeking to return to new or existing jobs in country.
There was also a meeting between Libya’s army chief of staff, Major General Yousif Mangoush and Tunisian Defense Minister, Abdul Karim Zubaid. These reportedly led to a deal on closer cross-border security and closer operational co-ordination.
A delegation of Tunisian businessmen is due in Tripoli later today looking at business opportunities. A Libyan delegation is slated to make a return visit early next month. Some manufacturers on both sides of the border are placing much store on the Free Trade Zone, due to be set up o an 150 hectare site at Ben Guerdane in the south-east of Tunisia.
According to a report published earlier this month by the African Development Bank “New Libya, New Neighborhood: What Opportunities for Tunisia?”, Libya’s neighbor lost half a percent of its gross domestic product during the revolution. Up to 60,000 Tunisian workers fled or were sent home. With the exception of agricultural food exports, which boomed as both the rebels and the Gaddafi regime sought supplies, the export of Tunisian goods to Libya came to a virtual standstill.
There has been an increasingly popular analysis that while Libya has the money and the highly skilled professionals, Tunisian has the artisans that Libya lacks while Egypt has the labor.
A diplomatic source in Tripoli commented last night that the fact that the interim government was prepared to pump money directly into the struggling Tunisian economy while providing crude oil on highly favorable terms made clear that the deals that have been cut “exceed the normal coin of ‘bilateral relations’ and ‘mutual benefits’.” — www.libyaherald.com


May 22, 2012
HIGHLIGHTS
SAUDI ARABIA
3 hours ago

Saudi Arabia welcomes signing of peace agreement between Rwanda and Congo

SAUDI ARABIA
3 hours ago

Saudi security forces arrest 13,532 illegals in a week

SAUDI ARABIA
4 hours ago

Hajj Ministry: Gulf citizens can perform Umrah at any time