EU set to freeze assets of Tunisia's Ben Ali

BRUSSELS Jan 28 (Reuters) - European Union foreign ministers are expected to agree on Monday to freeze the assets of Tunisia's former president and will look at offering better trade terms to Tunis to help strengthen the country's economy.

Senior officials from the EU's foreign service flew to Tunisia this week to meet the transitional government, unions and other sectors of society. They are due to report back before an EU foreign ministers' meeting in Brussels on Monday.

EU diplomats say the ministers are likely to agree on the need to freeze the assets of former president Zine al-Abidine Ben Ali, who was driven out by a popular revolt on Jan. 14, and his family. Ben Ali has sought refuge in Saudi Arabia.

"It will be done in consultation with the Tunisian authorities and it will look at freezing the whole family's assets," one diplomat said.

Trade preferences for Tunisia, which is part of the European Neighbourhood Policy, an EU programme designed to develop closer ties with non-EU nations, will also be considered.

"They want to speed up trade liberalisation, beyond the trade preferences Tunisia already gets under the neighbourhood policy, including on agriculture products," the diplomat said.

Since Ben Ali's overthrow, the EU has been left in a difficult situation, trying to carve out a new relationship with a country it developed strong trade and political ties with during Ben Ali's 23 years in power.

France, Tunisia's former colonial ruler, Italy and Spain have all had good relations with Ben Ali and his government in recent years, while at the same time urging democratic reforms.

It is not yet clear where the Ben Ali family's assets are held, although Switzerland has said it intends to freeze any assets deposited there. France has also announced measures to block any suspicious movements of Tunisian money.

Catherine Ashton, the EU's foreign affairs chief, spoke to Tunisia's foreign minister by telephone on Friday and invited him to come to Brussels next week to discuss how the EU can help the country as it tries to return to stability.

The EU also plans to send a team of experts to Tunisia in the coming weeks to help with planning for new elections. (Writing by Luke Baker, Editing by David Brunnstrom)