DayFR Euro

not informed of Algeria's trade retaliation measures

by John Irish and Gus Trompiz

(Reuters) – said on Thursday that it was not informed of any official decision from Algeria on trade between the two countries even though, according to diplomatic sources, Algiers could be preparing to restrict them.

Relations between France and Algeria have further deteriorated in recent weeks with the recognition by of Morocco's sovereignty over Western Sahara, which aroused the anger of Algiers, support of the separatists of the Polisario Front.

“Such measures have not been officially brought to our attention, but we are obviously following the situation of our companies in Algeria with great vigilance,” declared Christophe Lemoine, spokesperson for the French Ministry of Foreign Affairs, during a weekly press briefing, on the subject of possible Algerian commercial retaliatory measures.

The services of the Algerian Prime Minister, Nadir Larbaoui, denied in a press release the content of a message broadcast on the X network by Xavier Driencourt, former French ambassador to Algiers, showing a screenshot of a document appearing to announce the cessation of processing by banks in Algeria of imports and exports with France.

Reuters was unable to authenticate this document and Xavier Driencourt did not immediately respond to requests from Reuters.

“Following the false allegations peddled by the former French ambassador to Algiers (…) regarding alleged trade restrictive measures, the communications unit with the Prime Minister wishes to provide a categorical denial of this erroneous and totally unfounded information “, declare Nadir Larbaoui's services.

FRANCE IGNORED FOR CEREAL TENDERS?

According to three diplomats, Algeria has undertaken a concerted effort in recent months to toughen the economic environment for French companies in Algeria, particularly for wheat exporters.

These diplomats also cited signs in recent days that Algiers may consider specifically targeting French imports and exports, although there is no official confirmation at this stage.

Algerian authorities did not respond to requests for comment from Reuters.

Le Figaro reported on Wednesday that the Professional Association of Banks and Financial Institutions (Abef), the Algerian body regulating the sector, had summoned banks on November 4 to inform them of the cessation of processing of import and export transactions. export with France.

Two diplomats told Reuters they were aware of the meeting but cautioned that Abef does not have the authority to take such a step unilaterally.

Contacted by Reuters, several French companies present in Algeria said they had not received any new directives and French authorities say that at this stage no companies have contacted them due to specific problems.

Grain market traders report that Algeria ignored France in its wheat tenders last month due to diplomatic tensions between the two countries. The Algerian Interprofessional Cereals Office (OAIC) ​​ensures that it has treated all suppliers fairly and has applied technical criteria to cover its import needs. [GRA/TEND]

A previous diplomatic dispute three years ago led to France being sidelined for several months from Algerian calls for tenders for wheat.

Trade between the two countries increased by more than 5% in 2023, notably with an increase of around 15% in hydrocarbon exports from Algeria to France while Algerian imports from France fell by 0.5%, according to data from the French Ministry of Finance.

(With Sybille de la Hamaide, Mathieu Rosemain, America Hernandez in Paris, Michael Hogan in Hamburg and Lamine Chikhi in Algiers, French version Bertrand Boucey, edited by Jean-Stéphane Brosse)

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