Relations between the European Union (EU) and Algeria are increasingly strained due to a dispute over trade. On June 14, 2024, the EU initiated dispute settlement proceedings against Algeria, requesting consultations with Algerian authorities to lift several trade restrictions that hinder European exports and investments. The EU accuses Algeria of having imposed measures since 2021 contrary to the commitments made within the framework of the EU-Algeria association agreement. The European Commission announced this decision through a press release.
Despite the fact that it aspires to constructive collaboration with Algeria, the EU sees itself imposing conditions to reduce these barriers in various economic sectors, ranging from agricultural products to motor vehicles. EU complaints include the removal of the import licensing system, which amounts to a ban, subsidies reserved for car makers requiring local inputs, and a cap on foreign ownership in strategic companies.
Algeria’s main trading partner, the EU signed an association agreement in 2002 – put into force in 2005 – establishes a framework for economic exchanges and cooperation in several sectors. If the consultations fail, the EU could request the formation of an arbitration panel under the terms of the agreement.
Algeria, for which the EU constitutes the largest trading partner representing around 50.6% of Algerian foreign trade in 2023, runs the risk of harming its own consumers. The Algerian restrictions, according to the EU, unreasonably reduce the choice of products available to Algerians and jeopardize the rights of exporters and European companies operating in Algeria.
