Algeria wants to "reassess" the free trade agreement with the European Union

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2 min

In theory, on September 1, the free trade area between Algeria and the European Union should come into force. However, the Algerian President, Abdelmadjid Tebboune, asked his government, Sunday August 9, in the Council of Ministers, to “reassess” the association agreement. It is necessary, according to him "to assert the interests of Algeria". Part of the business community is worried about an agreement that could put entire sectors of the Algerian economy in difficulty.

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Signed in 2005, the free trade agreement between Algeria and Europe provides for a reciprocal disappearance of customs duties and tariff barriers.

Faced with the complexity of the issues, the EU has agreed to extend the adjustment period from twelve to fifteen years, until September 2020, in order to allow the Algerian economy to prepare. But for several months, voices have been rising within Algerian employers to denounce an unbalanced agreement and the risks of business bankruptcies in Algeria after September 1.

President Tebboune therefore asked his Minister of Commerce to carry out an assessment of the agreement which, according to him, should ensure balanced relations.

Some Algerian economists - who prefer to remain anonymous - stress, however, that Algerian leaders have been light-hearted in recent years by neglecting to activate the safeguard clauses contained in the agreement, clauses which would have enabled them to better protect certain sectors considered vital. These same economists also consider that the current debate on the free trade agreement is a smokescreen intended to hide the cruel lack of support plan for Algerian companies, victims, as everywhere else, of the Covid-19 pandemic.

With or without a free trade agreement, the Algerian economy is currently on the brink of collapse.

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• Algeria
• European Union