The close ties between Alicante and Algeria, shaped by geographic proximity and maritime routes, are intensifying the economic impact of the trade blockade. This disruption stems from the Spanish government’s shift in policy on Western Sahara and is already prompting a noticeable decrease in export activity. Local companies have halted about 35 million euros in shipments to the African nation, with footwear, textiles, and plastics among the most affected sectors. Business leaders are calling on the central government to take decisive diplomatic steps to end a long-standing veto and restore normal trade flows.
Last June Algeria froze most business dealings with Spain, reserving only gas-related activity after President Pedro Sánchez supported Morocco’s autonomy plan for Western Sahara. What began as a temporary incident has persisted and broadened, with no lasting solution in sight. The interruption accounts for roughly half of Spain’s exports to Algeria, underscoring the severity of the disruption in a key market.
In Brussels this week, Generalitat President Ximo Puig used a meeting with European Commission Vice-President and High Representative for Foreign Affairs Josep Borrell to urge the signing of a trade agreement between the European Union and Algeria. Borrell announced plans to travel to the region to push for progress on this issue.
Meanwhile, losses accumulate for Alicante businesses. Exports fell 37 percent against 2019, the last year that allows a fair comparison outside the pandemic period. Plastic materials and their production dropped from four million euros to about 700,000 euros, while footwear exports nearly halved from five million. Textiles faced a similar decline, shrinking to around four of seven million euros in a bleak indication of market erosion.
The business community expresses growing indignation. Salvador Navarro, head of the Valencian Community Business Confederation, recalls persistent requests for government action, most recently in December during a meeting with the Foreign Minister José Manuel Albares. Navarro notes that steps must be taken to redirect the situation, as some firms have lost market share to competitors abroad and face a difficult path to recovery. While he appreciates EU involvement, he emphasizes that the national administration must lead and has criticized the lack of decisive action.
Conflict with Algeria left 135 million in Alicante exports in the air
Héctor Torrente, director of the Ibi and Foia de Castalla Entrepreneurs Association, which concentrates much of the province’s plastics industry, describes the Algeria issue as another obstacle in a fragile global context. Marian Cano, president of the Valencian Association of Shoe Entrepreneurs, stresses that losing any market cannot be afforded. Pepe Serna, president of the Valencian Textile Entrepreneurs Association, calls for restoring commercial fluidity as soon as possible and urges more intensive use of diplomatic channels to advance business aims.
Real estate
The Algeria crisis raised alarms in the real estate sector, since Maghrebi buyers purchase around a thousand homes in the province each year. Yet the blockade’s impact turned out to be less dramatic than feared, according to Marifé Esteso, president of the Alicante Association of Realtors. She notes that the conflict did not gain the feared traction and remained almost imperceptible in statistical terms.
The sea link remains modest, with one ship per week. The Alicante port’s weekly connection to Algiers continues to operate at a reduced tempo due to passenger shortages. Felipe López, chair of the Alicante Chamber Navigation Commission, explains that the latest Bosphorus crossing was modest in scale, with a single ship in operation, while summers prior saw three or four vessels. In this environment, goods traffic with Algeria remains largely paralyzed by the trade blockade.