• Two countries expected to sign a preferential trade agreement by January 2026

• Tunisia to grant tariff advantages to Indonesian agro-food products

• Indonesia to lower duties on Tunisian goods, including crustaceans and dates

Tunisia and Indonesia plan to sign a preferential trade agreement (PTA) covering agricultural and food products by January 2026. The news was reported on November 25 by the Jakarta Globe, citing Indonesian Trade Minister Budi Santoso, who said negotiations are nearly complete.

A PTA is an arrangement between countries that eases trade by offering tariff or administrative advantages on selected goods. Under the upcoming deal, Tunisia would grant preferential treatment to Indonesian palm oil, bananas, cocoa, frozen fish, and textile yarn.

In return, Indonesia would reduce import duties on a wide range of Tunisian products, from crustaceans to dates. Overall, the agreement is expected to benefit both countries by improving the competitiveness of targeted goods relative to other suppliers.

The deal’s entry into force should also support Tunisia’s olive oil sector as it looks to expand export markets in the 2025/2026 season. In October, the Tunisian government expressed its intention to diversify markets for cooking oil beyond its traditional destinations, targeting Asia and South America to absorb expected surplus output.

In 2024, Indonesia imported about $21 million worth of olive oil, with only 1% coming from Tunisia, which faces stiff competition from Italy, Spain, Egypt, and Turkey, according to Trade Map data.

The country may also seize opportunities for other food products. According to UNCTAD data, Indonesia imported an average of $23.3 billion in food products per year between 2021 and 2023.

Stéphanas Assocle