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Amid tensions, Algeria’s Tebboune seeks to re-negotiate EU association agreement

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The Arab Weekly | 15 janvier 2024

Amid tensions, Algeria’s Tebboune seeks to re-negotiate EU association agreement

Against a background of tensions with key European partners, Algeria is advocating a review of its 2002 Association Agreement with the European Union (EU).

The review of the agreement was the subject of a meeting chaired earlier this month by Algerian President Abdelmadjid Tebboune

The meeting was ” dedicated to monitoring the progress on preparations ahead of the revision of the association agreement with the European Union,” said an official statement.

Although the EU is a key destination for Algeria’s natural gas exports and the North African country’s top trading partner (more than 50 percent of its trade in 2023), the Algerian government believes a review of the relationship has become “necessary”.

Algeria complains about restrictions on its farming and manufacturing exports to the EU, lack of progress in terms of technology transfer and “insufficient’” European direct investments.

Economic expert Brahim Guendouzi, writes in the pro-government daily El Moudjhid that, “Regarding FDI and despite the guarantees and incentives offered by the new Algerian investment law, European capital flows remain insufficient”.

He adds, “The current Association Agreement has not helped re-balance trade between Algeria and the European Union. Although the volume of trade has reached $1 trillion by 2023, European investments in Algeria remain low, with only $13 billion registered between 2005 and 2023, of which $12 billion was repatriated in the form of dividends”.

According to Dalia Ghanem, senior analyst at the European Union Institute for Security Studies (EUISS), “Trade is the primary point of contention between the EU and Algeria. The Algerian leadership has repeatedly criticised the 2002 Association Agreement (AA) for failing to deliver the promised “win-win” relationship. They complained that the agreement has not generated significant foreign direct investment, job creation, or economic growth, leaving Algeria’s trade balance heavily tilted in favour of the EU.”

Another contentious issue is illegal migration with Algeria perceiving any cooperation on the issue as infringing on its sovereignty, although it continues itself to receives hundreds of illegal migrants from sub-Saharan Africa who end up trying to cross to Europe directly or via the shores of next-door Tunisia.

According to Ghanem a stumbling block from the EU’s perspective is “the lack of a formal readmission agreement between the EU and Algeria,” which “would require Algeria to take back its citizens who are found irregularly residing in the EU”. There was no progress made on this point and negotiations have “stalled”.

Last October, Tebboune said that the association agreement between Algeria and the European Union (EU) would be revised in 2025.

He was quoted by official media as saying that this review has become “necessary”.

“At the time, industry’s contribution to national income was barely three percent, and we imported agricultural products without exporting any. In other words, Algeria at the time had no export capacity”.

He argued that ‘the situation has changed, with Algeria now producing and exporting a wide variety of manufactured products, household appliances and others’.

Some European experts say the exports are not up to European standards or do no meet EU import criteria.

Tebboune added: “Today, we are asking for a review, because the very essence of the agreement with the European Union is based on free trade, and we wish to do so in a spirit of friendship without entering into conflict”.

According to the Algerian president, the review will be undertaken “with flexibility and in a friendly spirit without entering into conflict”.

Tebboune tried to put the best face on relations with European nations, saying, “we maintain normal relations with the (European Union) states, including France”.

In reality there is no shortage of tensions with a number of European nations. The relationship with France, in particular, has turned into a cycle of endless crises fuelled by Algiers’ unhappiness over President Macron’s decision to back Morocco’s autonomy plan as the best solution to the West Sahara conflict.

Relations have also deteriorated between Algiers and Spain over the same issue.

Algerian Minister of Minister of Foreign Affairs Ahmed Attaf, received a phone call from European Commissioner for Mediterranean Affairs, Dubravka Suica, according to a statement from the Algerian ministry.

The conversation allowed for “an exchange of analyses and views on several regional and international issues of mutual interest, particularly those related to security, development, and stability in the Euro-Mediterranean region,” it added.


 source: The Arab Weekly