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EU-Algeria Association Agreement: Josep Borrell “Reluctant” to Renegotiation

Considered unbalanced and above all unfair,  the Association Agreement between Algeria and the European Union (EU) has often been castigated by the Algerian authorities and by economic experts. Its renegotiation has been demanded in recent years by the high authorities of the State. A demand which has not had an echo up to now from the European partner, even if the position of the EU has evolved recently. 

On a visit to Algeria on 12 and 13 March, the High Representative of the EU for Foreign Affairs and Security Policy/Vice-President of the European Commission, Josep Borrell, spoke on the issue of the agreement association EU-Algeria. The European official defended this agreement in an interview with the Arabic-language newspaper El Khabar. He affirmed that this agreement is essential in the cooperation between the European Union and Algeria . A cooperation that the European Union wants to be “solid and strategic” with an important neighbor.

Josep Borrell also stressed that this agreement is sufficient both legally and institutionally to achieve the common objectives of both parties. He insisted on the need to implement these agreements. A point that must be discussed, according to this European official, and which should also focus on how both parties can capitalize on the potential offered by these agreements in a pragmatic and realistic way in all areas

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Josep Borrell recalls that in 2015 and 2016 the two parties did a great job in this direction and the resolutions reached by Algeria and the European Union are valid today. Moreover, with regard to the commercial aspect of this agreement, the European official underlines that European exports to Algeria have fallen by 45% since 2015 and that the trade balance is in favor of Algeria. Josep Borrell indicates on this point that the European Union has guaranteed outlets for hydrocarbons to Algeria, which explains the imbalance in the trade balance. Still on the commercial side, the European official asserts that the two parties have not exploited all the possibilities offered by the association agreement.

It was only after all these explanations that Josep Borrell managed to open the doors to possible renegotiations of the agreement . A way of saying that before any renegotiations it is necessary to implement this agreement in its entirety.

It should be noted that since the implementation of the agreement in 2005, the cumulative Algerian exports to the EU, excluding hydrocarbons, have not reached 14 billion dollars, while in the opposite direction (cumulative imports) , the figure is 220 billion dollars. Which is considered disadvantageous by Algeria. Thus, Algeria is taking advantage of the current context, marked by the energy crisis, to impose the revision of the agreement . For its part, Europe, which finds itself faced with the risk of a gas shortage, is eyeing the Algerian side. The European Union is thus taking a small step towards Algeria.

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