Relations between Algeria and Spain have been going through a period of great turbulence since the decision of the Spanish government to radically change its position on the conflict in Western Sahara.
On March 18, the Moroccan royal cabinet announced that Spain has decided to support the Moroccan autonomy plan for the occupied Saharawi territories. Madrid has thus made a radical change and put an end to its historical neutrality in this conflict which poisons relations between Algeria and Morocco.
In retaliation, Algeria recalled its ambassador to Madrid and on June 8, the Algerian presidency announced the suspension of the Treaty of Friendship with Spain which was signed in 2002.
On the same day, the Association of Banks and Financial Institutions (Abef) asked its members to suspend bank direct debits for imports and exports of products and services from and to Spain. Only deliveries of Algerian gas to Spain are spared.
The measure hurt the Spanish economy, of which Algeria represented an annual market of three billion dollars. The Spanish government has denounced the measure suspending foreign trade with Algeria. He requested and obtained the support of the European Union, which sided with Spain in this showdown, which Algeria denounced.
Back to normal
The sudden suspension of foreign trade with Spain has also impacted Algerian companies that have commercial links with their Spanish counterparts. The application of the measure has also posed many problems and Algerian Customs has asked the government to specify the terms of application, in particular for non-Spanish products transiting through Spain and Spanish products imported from other countries.
Almost two months after the entry into force of the decision to suspend foreign trade with Spain, the Algerian authorities have taken stock and decided to lift the freeze. The decision was made this Thursday, July 28. The Abef indeed addressed this Thursday a note to the Algerian banks and financial establishments to announce to them a return to normal with Spain.
“At the end of the evaluation of the device”, relating to the freezing of foreign trade with Spain, and “in consultation with the actors concerned in foreign trade, the precautionary measures mentioned in the subject are no longer in order”, has writes the Abef in its note consulted by TMT.
The subject of the new note from the Abef concerns the freezing measures for bank direct debit operations for foreign trade operations in products and services from and to Spain.
