Algeria about to lose $5bn

El Khabar | Sep 1, 2006

A year after the association agreement implementation

Algeria about to loose $5bn

The EU-Algeria association agreement states the customs dismantling between the two parties gradually along ten years, as of the second year from the agreement’ coming into force, i.e. current September, to abolish then all customs tariffs on the EU made products after Algeria entrance in the free zone exchange, by 2017.

This dismantle is expected to cause to Algeria a five billion dollar loss during the above mentioned period, the worst is the potential loss of 500 000 job opportunities in employment market owing to this agreement implementation, as a matter of fact of the excessive relying on the importation.

This agreement enshrines the “liberalization” of the national economy, and the opening of new markets, as well as freeing the energy sector given that Europe depends, in this frame, on the Algerian gas.

The association agreement defines a climax to the European party, which allows it to take advantage from tax-exemptions estimated at around 20% up to 100%, the first step procedures will lead to the widely consummated products prices decrease, but the industrial network will be threatened by the introduction of huge quantities of commodities and will inevitably bound these sectors oriented companies either to work at the best of their ability and keep pace with the competition or to perish.

Eventually, one may wonder: Is there, from now on, a room for this country’s sovereignty?

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source: El Khabar