According to Climent, the Ministry of Sustainable Economy, Algeria has since 8 June decided to break the Friendship Agreement with Spain and block the shipment of goods. The situation lasted for almost three months.
From the first minute, Minister Climent asked the central government A swift and serious diplomatic response to the crisis in relations with Algeriaalso to call on autonomous communities to report on the economic impact resulting from this situation and the measures necessary to alleviate the uncertainty of exporting companies.
From the Ministry of Economy, Valencian companies are engaged in a personalized way through the Ivace infrastructure in Algeria. until date 35 Valencian companies from various sectors participated in the destination.
In addition, the Directorate-General for Internationalization convenes the Monitoring Commission next week in defense of Valencia’s productive interests. Regaining the voice of the most affected export sectors and proposals to pass it on to all institutional levels, after receiving new information in recent weeks about concerns about the consequences of this blockade across different economic sectors.
The Algerian market is a strategic market for various export sectors of the Valencian Community, such as frits and glazes, ceramic products and mechanical machinery. Other sectors that will be affected by the blockade are electrical machinery, footwear components, clothing, plastic materials and chemical products.
Exports from the Valencian Community amounted to 442 million euros in 2020 and 416.4 million euros in 2021.. In the first half of 2022, sales reached a value of 218.96 million euros, representing an increase of 5.39%, which was abruptly interrupted by the blockade imposed by the country of Algeria and could cause damage if continued. More than 250 million Euros for the Valencian sectors.
To these losses in the value of Valencian exports, Minister Climent ” decline in the competitive position of our companies due to loss of customersin a market that has traditionally been strategic for our export sector”.
Among the most affected sectors are ceramic machinery, whose association estimates a loss of 20 million euros in exports in this market. The same amount is encrypted by the association. shoe components in a recent report.
A conflict resolution is required for the frit and glazes industry, another of the key industries affected, that puts the industry in a vulnerable position relative to other international competitors who do not have to face this unpredictable situation.
ivac support
“In these months, 35 companies participating in a personalized way with the Ivace antenna in Algeria, with the development of procedures with different organizations such as Customs, banks and the Ministry of Agriculture, to be able to unblock some shipments. was already on the march”, explained Climent.
In the same way, companies were informed about the status of operations, alternatives to salvage the operations in question, recommendations about risks, returns, in order to mitigate the negative consequences of the situation, from the Ivace antenna in the North African country.
“Amount Blocked shipments from companies serviced by Ivace exceed 6 million euros “It gives an idea of the importance of finding a solution to this conflict – which corresponds to 30% of June exports – and being able to continue exporting to a strategic destination like Algeria,” he said.