Algeria partially withdraws the ban on importing Spanish products

Algiers has taken another step in the process towards the full normalization of relations between Spain and Algeria, which suffered strong turbulence after the Pedro Sánchez Government officially adopted the Moroccan theses in the Western Sahara conflict in spring 2021. Following the return of the Algerian ambassador to Madrid last December, the Algerian authorities have now lifted the blockade on the import of Spanish products in at least one sector, poultry, according to advanced The Independent and EL PAÍS has confirmed. Now, it is expected that the policy will soon extend to the rest of the economic sectors, predict Algerian sources close to the Government of the North African country.

The new policy has been reflected in a circular from the Algerian banking association, the entity in charge of blocking currency transfers between both countries to pay for commercial exchanges. The document, to which this newspaper has had access, reports that the import of poultry products from Spain is now “authorized,” expressly citing “broiler chicks, laying pullets and hatching eggs.” This was one of the important sectors among Spanish exports to Algeria before the trade blockade, along with ceramics and soybean oil.

“I think the authorities have started with this sector because the impact of the blockade has been strong, and has led to high inflation. The Government wants prices to drop, especially in the face of Ramadan,” comments Jamal-Eddin Buabdallah, president of the Algerian-Spanish Circle of Commerce and Industry (CCIAE). Specifically, the price of a kilo of chicken has gone from around 25 dinars (17 euro cents at the current exchange rate) in the summer of 2021 to more than 60 dinars (41 cents) today, that is, an increase of 140%. In some sectors, such as broiler chicks, it is estimated that Spain had a market share close to 60%. In total, exports of Spanish products to Algeria amounted to about 2.7 billion euros in 2021.

During the almost 20 months of blockade, no merchandise from Spain has entered Algeria. Some Spanish producers did manage to continue exporting their products to Algeria through the ports of other European countries, and thanks to the complicity of Algerian companies. On the other hand, throughout this period, Algeria has been able to continue exporting its most precious resource: natural gas. In fact, the latest figures suggest that Algeria will regain first place among the countries supplying gas to Spain in 2023, reaching a market share of almost 30%.

Both Buabdallah and Algerian sources close to the Government predict that the blockade on the rest of the economic sectors will soon be lifted. Now, this does not mean that a volume of commercial exchanges similar to that prior to the diplomatic crisis will once again be reached. “About a year ago, Algeria changed its economic policy to make it more protectionist so it could develop local industry. Now, a public body must approve all imports,” explains Buabdallah.

In a recent interview with the Arab network Al Jazeera, the Algerian Foreign Minister, Ahmed Attef, praised the current Spanish foreign policy and justified the diplomatic thaw between both countries in an alleged change in Madrid's position regarding the Western Sahara conflict.

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