09 Apr Eu Algeria Association Agreement
Algeria is weighing its losses on a trade agreement with the European Union, while its government plans to deepen relations with Africa in order to break the country`s economic stalemate. President Abdelmadjid Tebboune asked Kamel Rezig “to make an assessment… the issue of the Association Agreement with the EU, which must be given special attention in order to defend our interests for balanced relations,” says an official statement issued late on Sunday 9 August. Ali Bey Nasri, president of the Algerian Exporters Association, “was badly negotiated from the beginning.” Since 2005, Algeria has been a party to a trade agreement with the European Union, which has been extended to a free trade agreement. However, the heads of state and government expressed frustration with what they described as “unbalanced conditions”. They said the agreement would open the Algerian market to EU imports, but hurt local sectors of agriculture and processing. According to Ali Bey Nasri, president of the National Exporters Association, Algeria imported 240 billion euros worth of goods from the EU between 2005 and 2017, while exports, mainly of petroleum products, reached only 10 billion euros. Algeria`s president has asked the country`s trade minister to reassess an agreement with the EU in anticipation of a free trade agreement due to come into force on 1 September. Algeria has been engaged in an association agreement and a free trade agreement with the European Union since 2005.  Analysts said Algeria signed the agreement while the country was isolated while waging a war against the jihadists, which claimed the lives of 200,000 people. You said that bureaucracy, corruption and the central control of the economy have since prevented Algeria from diversifying its economy and taking full advantage of the European agreement.
“The free trade agreement signed in 2017, which will come into force in September 2020, will be a disaster for the national economy,” said Ali Bey Nasri, president of the Algerian Exporters Association. He said Algeria`s imports from the European Union have been $283 billion since 2005, but exports amounted to $12 billion, mainly in petroleum products. On 1 September 2005, Algeria and the EU created a free trade area as part of an association agreement that defines economic, social, cultural and judicial cooperation. The Algerian majority opposes the agreement coming into force. Algiers has repeatedly called for renegotiating the terms of the agreement. The EU and Algeria meet regularly on committees to discuss issues and best practices in implementing the agreement. The long-planned activation of a long-planned free trade agreement between Algeria and the European Union on 1 September seems uncertain, given the many objections raised in the North African country. On Wednesday, Prime Minister Abdelaziz Djerad promised a major overhaul of the country`s trade conditions, promising to review all economic and trade agreements “harmful to the country.” The agreement between Brussels and Algeria came into force in early September 2005, provided that both markets were opened in anticipation of the creation of the free trade area. “Under the already unbalanced terms of the agreement, the 110 clauses of the agreement only complied with the import aspects. Other clauses, including technology transfer and the free movement of people, are ignored,” he said. In early August, President Abdelmadjid Tebboune asked Trade Minister Kamel Rezig to re-evaluate the agreement on the European Union.