Zitouni Responds to the EU: “Algeria Is a Sovereign Country”

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Minister of Trade and Export Promotion Tayeb Zitouni affirmed that Algeria has not stopped imports, but rather adopted the principle of rationalizing its imports in parallel with the development of national production. He stressed that “Algeria is a sovereign country” and that “it does not need any dictation.”

Mr. Zitouni spoke in an interview with Algerian television, on the sidelines of the opening on Monday of the 55th edition of the Algiers International Exhibition,  which is being held from June 23 to 29, with the participation of nearly 700 national and foreign exhibitors.

“Algeria has not closed imports. What we produce, we do not import. As for the products we do not produce, we import them. The proof is that our imports amount to 45 billion dollars per year, including more than 22 billion dollars from the European Union,” he said, stressing that “Algeria has rationalized its imports and has not closed them, which would be an unreasonable measure.”

Referring to the self-sufficiency in durum wheat that Algeria achieved this year, he explained that this will allow the country to save $1.2 billion, which means a reduction in the import bill for this raw material. And this cannot be described as an import ban.

Mr. Zitouni added that “Algeria is a sovereign country, it has no external debt and does not need any dictation. We have partners with whom we cooperate, whether they are countries with which we have bilateral partnerships, the European Union, the economic areas to which we belong on the African continent, or Arab countries.”

The minister recalled the statement of the President of the Republic, Abdelmadjid Tebboune, according to which Algeria is a country that belongs to the world and not to an isolated village, and that there is a popular will and a will of national institutions to develop national production.

He added that the policy of rationalizing imports and protecting local production is not a policy specific to Algeria, but is applied by all countries in the world, such as the United States, and China, and economic areas such as the European Union.

Trade: EU engages in standoff with Algeria

The measures taken in recent years by the Algerian authorities to regulate imports and investments have not pleased the European Union, which has engaged in a standoff with Algeria.

On Friday, June 14, Brussels opened proceedings against Algeria, accusing it of restricting EU exports and investments since 2021 and requesting consultations with the Algerian authorities.

“The EU has launched a dispute settlement procedure against Algeria,” the European Commission announced in a statement. “The aim is to engage in a constructive dialogue to lift restrictions in several sectors ranging from agricultural products to motor vehicles,” the European executive said.

Brussels denounces in particular “a system of import licenses having effects equivalent to an import ban, subsidies conditional on the use of locally manufactured parts for car manufacturers and a ceiling on foreign participation in companies importing goods into Algeria”.

“Given the unsuccessful efforts to resolve the matter amicably, the EU has taken this initiative to preserve the rights of affected European companies and exporters operating in Algeria. The Algerian measures also harm Algerian consumers through an unduly restricted choice of products,” the European Commission said.

The EU considers that the restrictive measures introduced by  Algiers in 2021 violate its commitments under the EU-Algeria Association Agreement. This agreement was signed in 2002 and entered into force in 2005. It establishes a framework for cooperation in all areas, including trade.

According to AFP, the procedure announced on Friday is provided for in the framework of this agreement. If no solution is found, the EU will be entitled to request the establishment of an arbitration panel. All EU trade agreements include a dispute settlement mechanism.

In 2023, the European Union accounted for approximately 50.6% of Algeria’s international trade. In recent years, the total value of EU exports to Algeria has steadily declined, from €22.3 billion in 2015 to €14.9 billion in 2023, according to figures released by the European Commission.