This Spain’s foreign policy It hurt some companies in North Africa. This Export to Spain Algeria last year, they were reduced by 45.9% to 1,021.2 million euros, and with only 10 million euros in exports this year, expectations did not improve in the face of a political conflict in the business environment that demanded an urgent solution.
According to United Nations data, Spain was the second world customer in 2021. Algeria Behind Italy (petroleum products rule). But last year, the Head of Government Pedro Sánchez, King of Morocco VI. He conveyed to Mohammed his support for the autonomy of Western Sahara. Algeria suspended the good neighborly agreement and supported the blockade of foreign trade operations with Spain.
This Spanish diplomatic strategy, bleeding A country considered by Spanish companies that trust their Algerian customers. Algeria blocked financial transactions between countries and effectively blocked collection and payment transactions between companies.
At least twenty Spanish exporters have initiated procedures to file property lawsuits against the State for the consequences of the Sahara-related change of position. According to preliminary calculations, the loss for them is more than 800 million euros. Algerian-Spanish Commercial and Industrial Environment (CCIAE). However, the number of Spanish companies exporting to Algeria is over 600 and has a physical presence in more than a hundred countries.
But his fault Algerian government It was considered high caliber by the North African regime. In fact, European Commission Vice-President and High Representative Josep Borrell traveled to Algeria on 14 March to try to resolve trade issues that have arisen since 2012. Change of position of the Spanish Government with the Sahara. But no result in sight. The tile sector is one of the most affected sectors, but according to the data of the Ministry of Commerce, the paper, cardboard and manufacturing sectors were most affected.
Effects
Organization of internationalized industrial companies amec They acknowledge that a short-term solution is not yet on the horizon, but they note that “some agreement principles are possible between the Algerian government and Spain to change the situation of a particular property blockade, but negotiations are progressing slowly”. Amec’s assessment of the situation is that some companies are still blocking supplies at the port of Algiers and are “considering abandoning it due to the costs of storage at destination”. There are also stopped orders, mainly for spare parts, at the factories. “Some Algerian companies are already looking for alternatives with Italian and French suppliers due to the blockade on Spain,” warns Amec. “The impact on companies is not short-term: Spanish companies’ distributors and customers are looking for alternatives. When this situation is resolved, they will already have other suppliers. This makes us lose this market. Companies may have lost customers,” explains Amec’s CEO, Joan Tristany.
This lobbies They admit they were fully active in Brussels to find a solution to the diplomatic and trade crisis in Spain, with Algeria “pressing the European Commission to ease sanctions,” according to commercial sources. The situation affects Algerian companies as well as Spanish companies, so whatever the path of the political conflict in Western Sahara, it is the business community that demands an immediate solution in favor of both countries. The possibility of providing some form of assistance to Spanish companies trapped in the conflict is on the table.
Industries and companies
The main exports from Spain to Algeria are paper, cardboard and finished goods (approximately €185m); oils (156.04 million); machines and mechanical devices (143.77 million); tannins, dyes (104.63 million); and plastic (103.1 million), according to DataComex. In terms of companies, the presence of Spanish companies in Algeria is diverse. From large energy companies such as Naturgy, Repsol, Cepsa or Iberdrola to other important companies such as Indra, Técnicas Reunidas (oil refinery construction), Sacyr and Acciona (construction and operation of three desalination plants). Companies with extensive business relationships or industrial presence include Vicky Foods (formerly Dulcesol); CAF train manufacturer; Cinfa laboratories from Navarre; Gallina Blanca group; construction companies FCC, Ortiz and the Cobra group; or the elevator manufacturer Omega and the tourism technology provider Amadeus. Mapfre, Axa, Sabadell and CaixaBank are also located in Algeria. As an international survival strategy, some companies Business relationships, sells indirectly to Algeria from its subsidiaries in other countries. Spain, however, chose that in its future there is more possibility for the growth of exchanges with Morocco than with Algeria. Except for surprises.