Friday, February 7, 2025
HomeEconomyAlgeria Advances in Renegotiating Its Agreement with the EU on Unprecedented Terms

Algeria Advances in Renegotiating Its Agreement with the EU on Unprecedented Terms

Algeria’s Minister of Domestic Trade and Market Regulation, Tayeb Zitouni, provided details on the progress of renegotiating the Association Agreement between Algeria and the European Union (EU). Speaking on Saturday, January 18, he confirmed that the government is actively working on this matter under the direct supervision of President Abdelmadjid Tebboune. This announcement, reported by the daily newspaper L’Expression, marks the first government communication since a special meeting at El Mouradia Palace.

Tayeb Zitouni emphasized that proposals for amending the association agreement are being finalized and highlighted several malfunctions in its implementation. According to the minister, nine chapters must be renegotiated to restore balance in trade relations between the two parties. He criticized the agreement’s imbalance, which does not account for the evolution of Algeria’s economy since it came into effect in 2005.

- Advertisement -

An Agreement Unsuitable for Algeria’s Current Economy

At the time of the agreement’s signing, Algeria was almost entirely dependent on hydrocarbons for its exports. However, in recent years, there has been significant diversification in national production, enabling the country to be competitive in several industrial sectors. Non-hydrocarbon exports have risen from $1.5 billion to $7 billion over four years, indicating an encouraging economic dynamic.

Despite this progress, Algerian exporters face numerous barriers in the European market. The EU imposes restrictive quotas or excludes some Algerian products from its contingency lists. The case of El Mordjene spread, which was blocked in Europe despite its quality, exemplifies this exclusion. This situation has led Algeria to drastically reduce imports to protect its growing domestic production.

Towards a Rebalanced Partnership

Recent developments show Algeria has successfully pushed for the need to amend the agreement. The EU has finally acknowledged this necessity, paving the way for discussions that could reestablish a more balanced trade relationship. Tayeb Zitouni indicated that upcoming meetings with European representatives will consider the qualitative and quantitative evolution of Algerian products. These discussions should also focus on investment aspects and technology transfer, deemed crucial for revitalizing economic relations between the two parties.

The minister affirmed that negotiations are moving in the right direction, driven by an Algeria determined to leverage its strengths. The Algerian market, with its diversified capabilities and quality products, no longer has anything to envy from those of other countries. While awaiting the finalization of amendments, Algeria continues its strategy of protecting local industry while preparing for a more equitable partnership with the EU.

- Advertisement -
Advertisement

Recent