A serious trade crisis is looming between Algeria and France, according to information collected by Le Figaro. The Algerian authorities are reportedly considering outright banning import-export operations with France, a measure which would amount to a total suspension of bilateral economic relations.
According to the Professional Association of Banks and Financial Institutions (Abef), a public Algerian institution serving as a voice for the authorities, local banks were summoned on Monday November 4 and informed of this new decision, explains the French daily. Although no official memo has yet been issued, an unauthenticated document summarizing this meeting quickly circulated in the business community, fueling worst fears.
This escalation comes in a context of diplomatic tensions between Algiers and Paris, revived by France’s decision to recognize Morocco’s sovereignty over the Sahara.
Economic operators fear the disastrous consequences of such a measure, which would affect both imports and exports. “It would be a disaster for date producers who are in full harvest and who are preparing to export to Rungis (international fresh produce market located near Paris, editor’s note). And then we obviously think of gas,” alarms a Franco-Algerian operator in the columns of Figaro.
Indeed, the new measure would affect three categories of imports: consumer goods, raw materials and industrial inputs, as well as services. All these transactions depend on bank domiciliation which would now be impossible for French companies.
The most impacted sectors would include industry, chemicals, automobiles and the food industry. Algerian exports to France, particularly gas, would also be affected, even if the authorities assure that this scenario is “unlikely”.
Algerian economic circles are also worried about the image of the country which risks being “a little more degraded, especially in the eyes of the foreign investors that we dream of attracting”. They call on governments to quickly find a compromise to “avoid too much damage in Algerian society”explains to Figaro a French business executive.
Indeed, the repercussions would affect the daily lives of Algerians, from the consumption of food products to banking services and public security. French people living in Algeria are also alarmed by the consequences on their activities, as well as the diaspora.
Faced with this situation, the business community fears that “It’s not our competitors who benefit from it.” Some clients have already been approached by German companies to offer them new opportunities.
