Diplomatic and Economic Strains Between Spain and Algeria

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On July 18, a post from the Spanish Office of Economy and Trade in Algeria announced a practical offer: using the meeting room at the Algeria Business Center for discussions with distributors in Algeria. A separate item linked to Maghrebemergent.net suggested the move could unlock external financing for the Solar1000MW project. Another update from the same week flagged that Algeria would host its first e-commerce fair and online services event from September 20 to 23.

All of these messages were removed after inquiries about the newspaper’s reports. The exchanges occur amid a broader commercial and diplomatic dispute triggered by Algeria’s decision to suspend imports from Spain following Spain’s shift on Western Sahara. The political narrative in Algeria has shifted alongside a broader press blackout that has limited the newspaper’s ability to report on the current situation. A formal information request filed through the Transparency Portal remains unanswered, and the Spanish Institute of Foreign Trade declined a meeting with business advisor Rafael Linde in Algeria.

The situation is framed in Spain as a matter of ongoing foreign trade concerns with Algeria, with officials in daily contact with Brussels. As stated by Xiana Méndez, Spain’s Minister of State for Trade, foreign trade operations with Algeria have been nearly paralyzed according to remarks made during a parliamentary session.

There is speculation that Madrid might route each business event to the individuals responsible for trade decisions in relation to whether the European Union should facilitate the sending or receipt of goods or payments to Algeria. No reliable count of incidents has been published.

In the wake of the crisis, Foreign Minister José Manuel Albares met with Commission Vice-President Valdis Dombrovskis and the EU official responsible for trade agreements with non-EU partners. The Brussels office signaled support for Spain while warning Algeria that a European partner cannot face discrimination. Last year, Spain exported roughly 2,000 million euros in goods to Algeria.

The administrative coverage from the Algerian Office of Commerce offers limited practical guidance amid the confusing climate facing Spanish firms engaged in trade with Algeria. Some exceptions exist. For instance, Argelia Ferries announced that starting the next 31st, passengers traveling from Alacant to Oran would be required to declare and document the items they carry before departure.

Coverage also recalls Spanish media notes about complaints to their own governments regarding Algeria’s unclear customs criteria for Spanish goods. Algerian authorities have not clarified the criteria for exemptions after June 8 when the Association of Banks and Financial Institutions of Algeria directed banks and related entities to pause direct debt for foreign trade operations involving Spain.

A briefing from a France-based TSA note on Spain-Algeria trade described the ongoing confusion as placing Algerian companies with ties to Spain into a stalemate.

Diplomatic and political tension

Spain has turned management of its trade dispute with Algeria over to the European Union, relying on the EU to enforce bilateral provisions and penalties under the 27-nation framework and the Maghreb agreements. In orchestration of diplomatic messages, High Representative for Foreign Policy Josep Borrell and Albares supported a unified approach with Dombrovskis, while urging Algeria to reinitiate dialogue to resolve the quarrel.

The episode has reverberated within Spain as well. Government officials have accused opposition parties of meddling in state policy and using the Algerian issue to stoke political opposition. A leading member of the popular group dismissed the situation as nonsensical and criticized energy diplomacy that ties with foreign policy, noting that Algeria’s energy relationships are shaping broader policy debates.

Analysts observe that the flare of tensions touches both energy supply policies and broader regional diplomacy. The interplay between trade routes, sanctions rhetoric, and political messaging has created a complex set of pressures for both Madrid and Algiers, with potential implications for European energy security and North African economic ties.

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