HomeAfricaAlgeria-Spain Trade: The Vagueness Persists

Algeria-Spain Trade: The Vagueness Persists

Algeria’s freezing of the Friendship Treaty with Spain resulted in the  suspension of foreign trade between the two countries. But the application of the measure remains vague in some of its aspects, including for the Algerian customs services.

Algeria decided on June 8 to suspend the Treaty of Friendship, Good Neighborliness and Cooperation signed with Spain in 2002, in reaction to the persistence of the Spanish government in defending its historic reversal of March 18 on the question of Western Sahara.

At the same time, a note from the Association of Banks and Financial Institutions (ABEF) instructed banks to no longer accept the domiciliation of commercial transactions from and to Spain.

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The Spanish government relied on Brussels denouncing a breach of the clauses of the association agreement between Algeria and the EU and the latter gave its support to Madrid.

“The EU is ready to oppose any type of coercive measures applied to any Member State of the European Union,” said Josep Borrell, the EU’s highest representative for Foreign Affairs and Valdis Dombrovskis on June 10. , Vice-President of the European Commission.

What the Algerian representation in Brussels retorted by indicating in particular that “the alleged measure of stopping by the government of the current transactions with a European partner, it exists in fact only in the spirit of those who claim it and those who hastened to stigmatize it”.

Clarifications

Several weeks later, it seems that certain aspects of the question have not been sufficiently explained to the services concerned. This is at least what we deduce from reading correspondence from the Algerian Customs, seeking clarification from the government.

The document dated June 23 reports ” difficulties ” encountered “as to the interpretation and application of a note from the Ministry of Finance relating to the immediate suspension of the Treaty of Friendship, Good Neighborhood, and Cooperation with Spain.

According to the document, the Customs services do not yet have the terms of application related to the application of the measure relating to the suspension of the Treaty of Friendship with Spain in its commercial aspect.

He cites the case of products having been “subject to domiciliation or dispatch” to Algeria before the date of suspension of the Treaty of Friendship, products of Spanish origin but from countries other than Spain and those coming from Spain but originating from countries other than Spain.

According to our sources, Algerian Customs have not yet received a response from the government on the terms of application of the measure suspending the Treaty of Friendship with Spain.

A situation that puts Algerian companies that have economic ties with Spain in total limbo.

The Spanish government is highly criticized internally for its unilateral decision to support the Moroccan autonomy plan for Western Sahara and especially for having jeopardized relations with Algeria, an important economic partner of Spain.

Algeria was historically Spain’s leading gas supplier. Even falling to third place behind  the United States and Russia, it still supplies more than 20% of its needs.

Before the Covid-19 health crisis, Spain shipped nearly $3 billion worth of goods to Algeria. Spanish companies won major construction contracts during the 2000s in Algeria.

The government of Pedro Sanchez is decried simultaneously by the political opposition and economic operators. At the end of June, the Parliament (congress of deputies) adopted a  non-binding motion  calling for the return to Spain’s historic neutrality vis-à-vis the Sahrawi question and normal relations with Algeria.

At the same time, the former president of the government José Maria Aznar warned that Spain will “pay dearly” for the current crisis with Algeria.

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