Alicante’s strong bond with Algeria due to its proximity and maritime links is causing the conflict, which has arisen as the change in the Spanish Government’s position in the Sahara has had more than a significant economic impact. And this companies in the state are already accumulating losses of close to 50 million euros because exports have been blocked since last June, and some difficulties in the real estate sector should be added to this. In fact, the situation becomes unsustainable for the Chamber and employers’ associations, as well as some companies requesting it. urgent diplomatic efforts to resolve the issueAs well as the assistance promised by the Generalitat.
Algeria’s suspension of the friendship treaty with Spain due to its location in the Sahara has very negative consequences for Alicante companies, which have interests in the North African country. sectors such as metal, textile, shoes or food They maintain important trade relations with this market and have not been able to export since last June, when the crisis broke out. There is also some turmoil in the real estate sector. Although the Alicante Association of Realtors does not have specific data for the last three months, some agencies refer to this newspaper, Slowdown in Algerian demandIt provides sales of a thousand houses every year.
Taking all this into account, and the time that has passed, the accumulated losses from this conflict are already around €50m, which naturally leads to anger in the business world. Carlos Baño, President of the Alicante Chamber of Commerce, not only regrets the disruption to export traffic, but added that this is not causing problems at the moment, “threatens to sever prospective trade relationsConsidering that Algerians may be looking for other suppliers”. Similarly, Bath is urging Generalitat to honor its commitments to aid.
In addition, José Vicente Morata, President of the Valencian Community Chambers Council, regrets that whenever there is a political and diplomatic problem, it is commercial activities that pay the price first. It warns in this sense. There are companies out there that will see their income statements seriously affecteddemands an advance to lift the blockade.
More critical of the central government, the head of the Valencian Community Business Confederation (CEV), Salvador Navarro, criticizes it for its “arrogance”. In his own words, “They rule by decree without empathizing with the industries, and it is unfortunate that the Generalitat came to the rescue of Imserso when Minister Belarra said tourism is a predatory industry. The same thing happened because a conflict was created and there was no administration to resolve it“.
And what’s going on in companies? Izana Electronics from Alicante is a good example. Dedicated to the distribution of computer equipment, 90% of its turnover is located in Algeria. According to its manager, Javier Sanz, “after this three-month blockade, There are half a million euros of goods in our warehouses that we cannot take out., and losses currently amounting to one million Euros. The results are a reduction in staff, a loss of credibility with our international suppliers, and a seriously compromised vitality.”
Connection by sea is maintained until January
The only ship that remains operational once a week between the Port of Alicante and Algiers will be subject to maintenance until January, originally planned only until September. This was confirmed by Felipe López, chairman of the Alicante Chamber Navigation Commission, but confirmed that freight traffic with the North African country was completely paralyzed. There is also no sign that airlines, which need to recover after the pandemic, will resume operations in the short or medium term.
Source: Informacion
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