When Algeria launched economic retaliation against Spain for its move in Western Sahara, Foreign Minister José Manuel Albares went to seek protection from Spain. European Union. According to the treaties, it is Brussels that has exclusive commercial powers and is responsible for concluding the agreement between the 27th and Algeria. Half a year later, little or nothing is known about the subject.. The European Commission has full discretion in what it does to pressure Algeria to return to normalcy. And although this is very burdensome for the hundreds of Spanish companies exporting to the Maghreb country and have been unable to do so in practice since the diplomatic war began: Spanish goods inflows have fallen by 82%.
Now, as El Periódico de España from the group Prensa Ibérica european resourcesAlgeria has committed to the Commission to deal with each of the complaints about Spanish shipments blocked at the border “on a case-by-case basis”. European Union Delegation, regularly transmit lists of events to the Algerian authorities Found by Spain. On 28 November 2022, he held a technical meeting with Algerian partners to discuss them. The Commission also raised the issue at the EU-Algerian Trade Subcommittee on 8 December 2022. On this occasion, Algeria promised to hold follow-up technical meetings and maintain contact regarding Spanish shipments that have been blocked since June 2022. Everything, sources according to the EU mentioned above.
The “special cases” that Algeria has agreed to examine in detail are those the Minister of Commerce has collected since the start of the conflict with its North African neighbor. In the first two months of the conflict, Madrid sent information to Brussels about 81 trade problems that Spanish companies had with Algeria, which could violate the agreement between the European Union and Algeria, according to information obtained by El Periódico de España of the Prensa Ibérica group. . With a petition from the Department of Commerce on the Transparency portal. These are “events occurring in paralyzed transactions at any stage of the commercial procedure, From the preparation of orders to direct blocking at customs without automatic payment and reconciliation of payments” informs the Ministry.
The Algeria-EU trade agreement is signed, among other things, by one of the EU members (as in this case for Spanish products) or hinder banking transactions to pay (something that also happens). However, the EU has so far not attempted to legally implement any of these articles. And politically, he remains almost completely silent, publicly. In fact, thanks to Ximo Puig, head of the Valencian Generalitat, it has been learned that the head of European diplomacy, Josep Borrell, will visit Algeria to dissolve the blockade on the export of Spanish products to this country. . Valencian companies, along with Catalan and to a lesser extent Aragon, are the companies most affected by Algeria’s boycott of Spanish products.
collapse of exports
The Algerian Government’s retaliation for Spain’s change of position in Western Sahara caused the collapse of Spanish exports to Algeria. since june Abdelmadjid Tebboune Executive Board decides on trade blockadeUntil last November, exports experienced a historic decline of 82.4%.
Between June and November, Spain recorded exports of only 165.4m euros, compared to 938m euros reached in the same period last year. According to the latest data from the Spanish Minister of Commerce, under the Ministry of Industry. So in just six months, Spain’s exports were cut by about 773m euros due to the diplomatic conflict between the two countries.
Spain exported 1,888 million euros to the Maghreb country in 2021, and in 2019, the last year before the restrictions imposed by the pandemic, the figure rose to 2.906 million. Currently, between January and November of last year, with the blockade in effect, sales were only 1,010 million euros, and business estimates show that they will not reach 1,100 million euros for the year as a whole.
The blow to trade is especially felt in Spain’s exports to Algeria, given that the Algerian government guarantees gas supplies to the Spanish market, which concentrates almost all imports of Spanish companies. In fact, national purchases from the North African country Algeria has continued to grow since trade blockade order. Between June and November of last year, Spain’s imports increased by 29.5% compared to the same period of the previous year, to 3 billion 616 million euros, also due to the increase in natural gas prices.
On 8 June, the Government of Abdelmadjid Tebboune suspended the Treaty of Friendship with Spain, which had been in effect since 2002. On the same day, Head of Government Pedro Sánchez defended his new position on the Spanish conflict in the House of Representatives. former Spanish colony: now sees Morocco’s plan to grant autonomy to Western Sahara, occupied since 1975, as the “most serious, realistic and credible” option for resolving the conflict.
Shortly after, the Algerian banking association ABEF issued a circular ordering all affiliates to freeze accounts reserved for commercial payments to and from Spain. This, along with historic declines in trade relations, has so far caused Spain’s exports to the North African country to collapse over the summer. On July 29, the bank employers’ association ABEF stepped back and demanded that accounts used to make foreign trade payments with Spain be dissolved. But the commercial blockade continued in practice, and relations are far from normal.
The role of the EU in the tension with Algeria
A few days after Algeria punished Spain with a trade blockade for surrendering the Sahara, Foreign Minister José Manuel Albares said: moved to Brussels to seek protection In this trade dispute, because it is the EU that has the trading powers.
Then, the Union’s High Representative for Foreign Policy Josep Borrell and European Commission Vice-President Vladis Dombrovskis issued a joint statement, announcing that they called for diplomatic dialogue: “The EU continues to favor dialogue. as the preferred way to resolve disputes. Brussels stresses that Algeria is “an important partner for the EU in the Mediterranean and a key actor for regional stability”. After Algeria’s decision to suspend the Friendship and Good Neighborhood Agreement signed with Spain, “EU, this decision’s EU-Algeria Association Agreement stands out from the Commission with questions from this newspaper.
When, on 28 July last year, the Algerian banking association ABEF issued a statement announcing the lifting of the freeze on banking transactions related to trade in goods and services to and from Spain, the Commission applauded the decision: “Full and normal trade between the EU and Algeria in accordance with the Association Agreement and We hope that these instructions will be fully implemented in the field to enable the resumption of investment relations.” Nine months later, it remains unclear whether transactions have been fully unblocked or whether other arbitrary blockages have been imposed at customs.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.