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Mass Consumption Products: Algerian Exporters Doubly Penalized

Algeria aims to further develop its non-hydrocarbon exports in order to reduce its heavy dependence on oil and gas.

In 2021, Algeria succeeded in doubling its non-hydrocarbon exports which reached, for the first time, 4.8 billion dollars.

The figure was given on February 20 in Doha by the President of the Republic during a meeting with members of the Algerian diaspora residing in Qatar.

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By 2022, Abdelmadjid Tebboune has set a more ambitious goal: to reach $7 billion in non-hydrocarbon exports. However, this objective may not be achieved due to the blocking of Algerian exports of several so-called mass consumption products.

This blockage has lasted since February 17, following a decision by the Ministry of Commerce to ban the export of so-called mass consumption products. According to our sources, this decision was applied with immediate effect, including for products that were about to be shipped for customers abroad.

In the absence of a detailed list of prohibited export products, the Algerian Customs have closed the floodgates. In the absence of a list of products with their tariff headings affected by the ban, many products considered to be widely consumed cannot be exported.

Exporters penalized twice

The problem is that products like biscuits or fruit juices that were about to be exported are labeled for the country of destination. They cannot, therefore, be sold in Algeria. And some of these products, especially food products, have short expiry dates, which are therefore quickly perishable.

A hard blow for many Algerian exporters who risk losing their products intended for export and their customers. Algeria’s image as a reliable exporting country risks being tarnished, especially as Algerian products other than hydrocarbons face competition from those of many countries.

The State is certainly sovereign to take the decisions it wants, but it is not normal to prohibit the export of consumer products without specifying which ones.

The term broad consumption encompasses many products, including those that are not food. It is not normal to suddenly stop exports of certain products, at the risk of heavily penalizing exporters. It was necessary at least to let the companies honor their contracts with their foreign customers, before closing the doors.

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