Algiers-Alicante tensions ripple through regional trade
Alicante’s ties with Algeria run deep, shaped by proximity and maritime routes, and recent shifts in Spain’s Sahara policy have amplified the economic impact. Local businesses report losses approaching 50 million euros as exports have stalled since last June, with additional strain on the real estate market. The situation is pressing the Chamber of Commerce and employers’ associations, and several firms are calling for urgent diplomacy to ease the standstill alongside the assistance pledged by the Generalitat.
Algeria’s suspension of the friendship treaty with Spain over the Sahara location has brought negative consequences for Alicante’s companies, which hold interests in the North African market. Sectors such as metal, textiles, footwear, and food maintain significant trade with Algeria and have not been able to export since the crisis began last June. Turmoil has also touched the real estate sector. While the Alicante Association of Realtors does not publish three-month specifics, local agencies cited in this publication indicate a slowdown in Algerian demand, with about a thousand housing transactions typically occurring each year.
Considering the elapsed time, cumulative losses from this conflict hover around 50 million euros, a figure that fuels frustration in the business community. Carlos Baño, president of the Alicante Chamber of Commerce, laments not only the disruption to export flows but warns that ongoing friction threatens future trade relationships as Algerians may seek alternative suppliers. He also notes that the Generalitat should keep its commitments to support the sector and stands ready to assist.
José Vicente Morata, president of the Valencian Community Chambers Council, regrets that political and diplomatic tensions always hit commercial activity first. He highlights that some companies will see income statements deteriorate unless relief measures, like a timely lift of the blockade, are provided.
Salvador Navarro, head of the Valencian Community Business Confederation (CEV), voices sharper criticism of the central government. He accuses authorities of ruling by decree without understanding the needs of local industries and points to a perceived inconsistency, noting that the Generalitat did intervene for Imserso after Minister Belarra described tourism as a predatory sector. In his view, the conflict escalated in the absence of a policy framework to resolve it effectively.
The conflict with Algeria left 135 million in the air in Alicante exports
What is happening with local companies illustrates the broader impact. Izana Electronics, based in Alicante and specializing in computer equipment distribution, exemplifies the disruption. About 90 percent of its turnover comes from Algeria. According to manager Javier Sanz, three months of blockade left roughly half a million euros of goods stranded in warehouses, while current losses reach around one million euros. The consequences include reduced staffing, fading credibility with international suppliers, and a weakened market position that threatens long-term vitality. (Citation: Alicante Chamber of Commerce)
Sea connections remain limited. The sole weekly cargo service between the Port of Alicante and Algiers continues, with maintenance scheduled through January after a plan that had anticipated service through September. The head of the Alicante Chamber Navigation Commission, Felipe López, confirms that freight traffic to Algeria is effectively paralyzed and signals that airline routes, slow to rebound post-pandemic, are unlikely to resume in the near term. (Citation: Alicante Chamber of Commerce Navigation Commission)