The European Union (EU) announced in June last year the initiation of arbitration proceedings against Algeria, but it seems that both parties have chosen a different path to resolve their trade dispute, opting for consultations.
Algeria and the EU are considering starting technical consultations this November 2024 to renegotiate the association agreement dating back to 2005, as revealed to the EFE agency by the new EU ambassador to Algeria, Diego Mellado, on Friday, November 1st.
“There is a clear commitment” in Brussels for a strategic relationship with Algiers as a “reliable partner,” said the diplomat who presented his credentials to the President of the Republic, Abdelmadjid Tebboune, about ten days ago.
On June 14 of last year, the European Commission had announced the opening of arbitration proceedings against Algeria, criticizing the measures taken to rationalize imports and regulate investments.
The Commission cited import licenses “having effects equivalent to an import ban,” the requirement to use locally manufactured parts for car manufacturers, and capping foreign participation in the capital of Algerian import companies.
“The initiated procedure provides for arbitration, but we are not even at that phase yet; rather, we are at an initial stage of exchange where the European viewpoint can be explained, and the Algerian arguments can be elucidated,” assures the EU ambassador.
An EU delegation will start negotiations in Algiers on this dispute in the coming weeks, he specified.
Algeria also has grievances against Europe, particularly concerning the association agreement signed in 2002, which is considered unbalanced by Algiers.
“The agreement did not allow Algeria to diversify its trade,” and although it is “very favorable” when including hydrocarbons in the trade balance, “there are imbalances with the rest of the goods,” acknowledged Diego Mellado.
Algeria and the EU Choose Negotiation to Smooth Over Their Trade Dispute The diplomat has expressed an optimistic outlook since his arrival in the Algerian capital.
“I found a president very interested in the European Union, very aware of the importance of this relationship for both Algeria and the EU,” he declared after being received by President Tebboune, to whom he presented his credentials on Monday, October 21.
“Very happy to begin my mission as the EU Ambassador in Algeria, with the will to strengthen our already strong ties and to build new common projects together,” the ambassador emphasized on X on October 28.
Mellado also acknowledged that the EU has “recognized,” since the outbreak of the war in Ukraine, the “strategic importance” of Algeria, and “especially its reliability as an energy partner.”
The ambassador indicated that a new commissioner dedicated exclusively to the Mediterranean will be appointed by December 1. “This will allow us to strengthen the relationship with Algeria and countries in the region within a new framework. The Algerians have realized that they must play a much more significant role,” he said.
According to Mellado, European geopolitics and historical association frameworks need to be reconsidered to relaunch competitiveness, the economy, and strategic security in the current unstable context. In this new pact, the EU will look towards its closest neighbors, like Algeria, he predicts.
The ambassador also recognizes Algeria as a “fundamental actor” in the situation in the Sahel, being the main regional power with a substantial defense budget and good border control.
Diego Mellado particularly emphasizes Algeria’s peaceful approach and its commitment to the development of the Sahel, where it has allocated a fund of 1 billion dollars.
For the diplomat, this is the ideal time to “collaborate and have joint actions with Algeria in the Sahel,” indicating that the EU is also looking to assist Algeria in managing the migration crisis.
