If the coronavirus pandemic, the war in Ukraine and the unstoppable increase in energy costs and raw materials weren’t enough, now the breaking of relations between Algeria and Spain has come into play. How could it be otherwise, the economic fabric of the province met this with a mixture of anxiety and anger. And this Conflict remains in the air, 135m euros per year from the start in Alicante exportsAmong the hardest hit are industries such as metals, textiles, footwear or food. As the businessmen themselves have stated, the situation is very worrying, so they are demanding diplomatic action from the Government that will lead to an immediate solution. Economy Minister Rafa Climent also came forward, urging the central Executive to bring together different autonomous communities to report on the impact this new issue will have.
Algeria’s suspension of the friendship treaty with Spain due to its location in the Sahara and the consequent freezing of the banking stock markets will have a significant impact on a province like Alicante. has maintained historically significant trade relations with the North African country.
According to a report provided by Carlos Baño, vice-president of the Chamber of Alicante, exports from the province to Algeria represent 2.2% of the total, placing this country in 11th place in the ranking of main destinations. Consumer manufacturing is 29.7%, semi-finished products are 18.4%, capital goods are 17.5%, food, beverages and tobacco are 10.9%, and durable consumer goods are 5.7%. When it comes to specific sectors, metal, textiles, shoes, food and even plastic, leading the highest sales volume. Likewise, Algeria realizes approximately 60% of provincial exports, 35% of mobile phone exports, 35% of white goods exports and 16% of clothing and clothing accessories.
Imports are 21 million euros.Fish, crustaceans and mollusks top the list, especially fertilizers and edible fruits.
With all this, the backlash of the business fabric has been disgust and apprehension about what might happen, a fact evident at the Benidorm Tourism Conference, which brought together a significant number of industry officials this Thursday. Among them was Salvador Navarro, president of the Valencian Business Confederation (CEV), who warned of the immediate effects on the regional economy and the more than predictable. Increase in Algerian natural gas long-term. Therefore, it demands urgent diplomatic action “to reach a solution as soon as possible”.
The head of the Chamber, Juan Riera, says the 135 million from exports is “an insignificant amount” and regrets that companies with interests in Algeria are “currently subject to tremendous uncertainty”. In addition, José Vicente Morata, chairman of the Valencian Community Chambers Council, regrets that the 1,300 companies in the entire autonomous region selling to this country worth 440 million “may suffer a significant economic blow”.
Metal, which exports machinery and electrical appliances, among other products, is one of the sectors concerned about what is going on. Luis Rodriguez, president of Alicante businessmen, they suffer from a “problem completely foreign to them”.“. Provincial marble head David Beltrá also points out that “our industry exports blocks and engineered stone from Vinalopó, which is of course not good news”.
Pepe Serna, head of the Ateval employers association from the textile industry, said that the conflict Resulted from a change in the government’s diplomatic strategy Marián Cano, president of the Valencian Footwear Entrepreneurs Association (Avecal), points out that despite Algeria’s absence, “no one understands” and at a time when gas supply is of paramount importance. such a conflict between the main export destinations in the industry creates uncertainty and can “decrease the pace of recovery”.
At the tourism level, Nuria Montes, general secretary of the Hosbec employers’ association, adds that while Algerian visitors account for about 2% of the total, and this rate is not very high, “it adds new elements of uncertainty.” Similarly, Jesualdo Ros, secretary of the Provincial Housing Supporters Association (Provia), said: While confirming that the impact on the purchase of new housing will be minimal, he warns that “all these conflicts do not contribute to housing a good thing”. Carlos Baño, president of the provincial trade association (Facpyme), also admits that there are no outstanding customers from Algeria, “but this will affect the economy in general“.
Its research director, Francisco Llopis, of the Economic Research Institute of the Province of Alicante (Ineca), said that Alicante’s direct trade relationship with Algeria total sales of the province abroad 6.200 millioneven though it warns against collateral effects that may arise from the impact on other provinces whose products are consumed here.
Finally, the conflict also led to Concern within the councilAs explained by Economy Minister Rafa Climent, who urged the central government to call on the different communities to inform. “Valencian companies are affected by the state of uncertainty with Algeria due to the diplomatic crisis and we would like to know in detail what the real situation is,” he emphasizes.
Flights to Oran and Algiers and Operation Strait Crossing not a single ship
The suspension of the friendship treaty between Algeria and Spain due to its location in the Sahara will leave the province’s communication with the African country just as precarious as it is today. Hopes of recovering flights from Alicante-Elche airport have waned and no reinforcements will be made for the sea connection.
The province had eleven regular flights to Algeria, five to Oran, and six to Algeria, and these flights have ceased to be operational due to the closure of the agreed borders as a result of the Covid crisis. It was planned to save them after the worst of the pandemic was over, but the conflict now erupting has thrown any possibility to the ground, at least for now.
Something similar happens with maritime connections. Until the outbreak of Covid, there were three ships interfering with the transfer of both passengers and vehicles during Operation Crossing the Bosphorus (OPE). The Government Sub-Delegation recently announced that this frequency would be brought back this summer, but as with airplanes, these supplements were excluded from the start.
In this context, the shipping company Baleà ria, which currently has an operational line with the North African country, saw how around 5 million euros were kept in its accounts in Algeria following the authorities’ decision to cancel the banking exchanges.
This was stated by the shipping company president, Adolfo Utor, who attended the IX Benidorm Tourism Conference on Thursday. As explained, the above-mentioned funds correspond to the sale of tickets for the passenger traffic connection between the ports of Valencia and Mostaganem, with two weekly routes, each in one direction. The amount includes advance sales of summer cruises currently in the air and, depending on the course of events, in the framework of Operation Crossing the Strait (OPE).
Utor is confident that the line can remain operational anyway. In fact, the next ship is scheduled to leave Valencia next Saturday with a transit of 800 to 900 people.
The head of Baleà ria recalled that before the pandemic, the company had seven weekly trips to Algeria, all from Valencia and Barcelona, ​​where they hope to recover. But this diplomatic crisis has complicated everything.
Source: Informacion
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