Foreign Affairs emphasizes that trade is a competence of the EC and reiterates its desire for better relations with Algeria
BRUSSELS/ 14 ()
The European Commission has asked the Government of Algeria for explanations for the obstacles to investments and exports that companies from several European Union countries have encountered since 2021, including Spain; a step that involves launching the bilateral dispute mechanism and that, ultimately, may lead to the suspension of the Association Agreement between the EU and Algeria.
“We have invited Algeria to begin consultations to seek a mutually acceptable solution. If this is not achieved, arbitration will be the next step,” said Commerce spokesperson Olof Gill in a press conference, who specified that the response of the Community executive responds to a “broader” dispute than the one affecting Spain.
The first step in the dispute framework provided for in the bilateral agreement involves community services contacting the Algerian authorities to request consultations on the controversial measures and, if the dialogue does not produce results, moving to the next phase and creating an arbitration panel. .
Brussels, which speaks on behalf of the 27 in trade matters, considers that Algeria is not respecting its trade liberalization commitments due to a series of restrictions that it imposes on the European trade flow “from 2021″; some obstacles among which community sources point out the restrictions on the trade of goods exported and imported from Spain” and on the “movement of capital between Algeria and Spain.”
Among the measures that concern the European Union and for which the Community Executive has requested consultations is the non-automatic import licensing system (ALGEX) managed by the Algerian Ministry of Commerce and which requires importers to present a certificate to be able to carry out commercial exchanges. Brussels warns that this requirement contravenes the liberalization provisions of the association agreement and, furthermore, the document required of them often arrives late or they do not even receive it.
Other barriers have to do with imports of marble and ceramic products, the requirement of at least 30% of national parts in the manufacture of automobiles or making the granting of public subsidies subject to the use of national material.
Nor are the tariff quotas provided for in the EU-Algeria Association Agreement, in force since 2005, being applied, according to community sources who also point out problems such as the 49% foreign ownership limit for companies that import into Algeria or other measures that, In short, Brussels sees them moving towards replacing imports with local productions.
In the case of Spain, the Government went to Brussels in June 2022 after the Algerian president, Abdelmayid Tebune, proceeded to suspend the bilateral Treaty of Friendship and an order was issued freezing foreign trade operations, preventing any transaction. banking. This decision was motivated by the support of the Spanish Executive for the Moroccan autonomy plan for the Sahara in March 2022.
Although Algiers later assured that the measure that prevented transactions had been revoked, the truth is that commercial exchanges, with the exception of the export of Algerian gas, were reduced to a minimum, although at the start of 2024 there seemed to be a timid recovery after an attempt to thaw between the two countries, abruptly stopped with the suspension of the trip of the Minister of Foreign Affairs, José Manuel Albares, to Algiers in February.
Spain sought a forceful response from the European Commission when the bilateral conflict broke out, because trade policy is a matter of community competence, but the Community Executive had until now chosen to call for dialogue between Spain and Algeria for a bilateral solution.
From Foreign Affairs, they have recalled that “trade policy is an exclusive competence of the European Commission.” In this sense, the sources consulted by Europa Press did not want to assess the decision adopted by Brussels, beyond pointing out that it is a “procedure provided for in the Association Agreement” and that it covers the interests of several member states, not only from Spain.
However, the department headed by José Manuel Albares has assured that “the Government will always defend Spanish companies” with interests in Algeria, while reiterating the desire to “have the best commercial relations” with this Maghreb country.
The bilateral relationship has been at a standstill since February, after Albares’ visit was canceled less than 24 hours before, whose main objective was precisely to stage reconciliation. Algiers sent its ambassador back to Madrid in mid-December, after having withdrawn the previous one following the letter from the President of the Government, Pedro Sánchez, to Mohamed VI supporting the Moroccan autonomy plan for the Sahara as “the most serious basis, credible and realistic” to resolve the conflict.
After the return of the Algerian ambassador, Algiers also proceeded to lift some of the trade restrictions imposed on Spanish exports in the poultry and bovine sector.
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