Following a decision announced on 8 June, Algeria and Spain entered a period of tense diplomacy as Algeria halted Spanish shipments. The move, described by officials as a broad blockade, persisted for nearly three months and had wide implications for trade flows with Valencia and beyond.
From the outset, Minister Climent urged the central government to respond swiftly and decisively to the diplomatic crisis with Algeria. There was a clear call to report the economic impact to autonomous communities and to identify measures that would alleviate uncertainty for exporting companies across the region.
Valencian authorities, working through Ivace, mapped out a personalized support strategy for firms engaging in Algeria. To date, around 35 Valencian companies from different sectors participated in activities designed to sustain trade links and explore practical steps to resume shipments under the new conditions.
The Directorate-General for Internationalization convened a Monitoring Commission to defend Valencia’s productive interests. The goal was to amplify the voices of the sectors most affected by the blockade and to translate those concerns into concrete proposals for all levels of governance, incorporating fresh information gathered in recent weeks about the blockade’s consequences for multiple industries.
Algeria represents a strategic market for several Valencian export sectors, including frits and glazes, ceramic products, and mechanical machinery. Other sectors likely to feel the impact include electrical machinery, footwear components, clothing, plastic materials, and chemical products. The disruption threatens a diversified, regional export portfolio and invites coordinated mitigation efforts to preserve long-standing trade relationships.
Exports from the Valencian Community reached 442 million euros in 2020 and 416.4 million euros in 2021. In the first half of 2022, sales had risen to 218.96 million euros, a year-over-year increase of 5.39%, before the Algerian blockade interrupted momentum. If the blockade persists, these figures could suffer a sharp decline, with potential losses surpassing 250 million euros across Valencian sectors. The downturn poses a direct challenge to the competitiveness of local firms in a market that has historically been a strong partner for Valencia’s export ecosystem.
Among the most affected segments, ceramic machinery is projected to lose around 20 million euros in exports, with parallel losses estimated in the footwear components sector in a recent assessment. These figures underscore the vulnerability of a portion of the regional industrial base when a major partner market becomes unpredictable.
A peaceful resolution is essential for the frit and glaze industry, a key segment that faces intensified competition from international producers that do not confront similar disruptions. Restoring stable access to Algerian demand is critical to maintain balance within the regional supply chain and preserve employment levels tied to these export activities.
Ivace support
The Ivace team notes that during these months, roughly 35 Valencian companies maintained active engagement through Ivace’s Algeria office. They worked to streamline procedures with institutions such as customs authorities, financial institutions, and the agriculture sector to unblock shipments and keep operations moving under evolving regulations. This ongoing collaboration sought to minimize disruption and identify practical routes to resume normal trade flows as conditions allowed. The approach emphasized transparent communication about the status of ongoing operations, alternative strategies to salvage affected shipments, and risk management guidance to mitigate negative consequences in the interim, all coordinated from Ivace’s presence in Algeria.
Officials highlighted that the total value of shipments blocked for Ivace-serviced companies exceeded 6 million euros. That figure demonstrated the high stakes involved and reinforced the urgency of negotiating a resolution that would restore access to a market with strategic significance for the region’s export economy. The emphasis remained on maintaining momentum in June exports and ensuring that the region could continue supplying Algeria’s market under predictable terms, preserving a vital channel for economic exchange.