Algeria won’t freeze free trade agreements with European Union

The Algerian Ambassador in Brussels, His Excellency Mr Amar Belani, has declared that the reading by the Algerian Customs services of certain aspects of the Algeria-European Union Association Agreement is “totally wrong as there was an error in interpretation”.

“These pertain to old import certificates in cement-free, reinforcing rod products and motor vehicles, which have become obsolete because of the introduction of the new legal regime for import licenses,” he indicated.

Speaking in a telephone conversation with “Echorouk”, Mr Amar Belani  asserted that “a simple correction is needed to be fully in line with the new regulatory framework” and “there is no question of canceling the Association Agreement or freezing the customs agreements” with the European Union, as reported “wrongly” by the national press, as he put it.

Before Mr Belani’s denial, media outlets quoted very reliable sources as saying that the authorities are pressing for a reassessment of the EU-Algeria Association Agreement because the spin-offs for Algeria under this unbalanced agreement have been rather flimsy.

As a matter of fact, since the holding of the 9th session of Algeria-European Union Association in June 2015, Algeria hasn’t relented in calling for a reassessment of the Algeria-EU Association Agreement, in force since September 2005.

Based on statistics reflecting the trade between the two sides, the Algerian government has finally realize that the agreement in question has mostly benefited the European side. 

“In this partnership, Algeria has given more than it has received (…), it’s been ten years since we entered into the Agreement and any assessment is required”, said the Minister of State, Minister of Foreign Affairs and international Cooperation, Mr Ramtane Lamamra, after the closing of the 9th joint session.

For him, the fall in customs revenues for Algeria due to tariff scrapping of the imports from EU countries has not so far been translated with Algerian products having free access to the European market, even though it is clearly stipulated by the Association Agreement.

 “It is clear that we haven’t had access as we wanted to the European market. There are tariffs and other non-tariffs on the way, there are still bureaucratic hurdles and other obstacles that make Algerian public and private producers not being able to achieve their export potential onto Europe”, noted the minister.

Last October, a Council of Ministers also considered necessary to reassess the economic and trade aspects of the Association Agreement with the EU “which did not achieve the expected goals of European investments in Algeria.” 

A recent assessment of the impact of the Association Agreement (2005-2014), conducted by the National Foreign Trade Promotion Agency (Algex), has, in fact, noted that the Algerian non-hydrocarbon exports to the EU amounted to only $ 12.3 billion over 10 years, against $ 195 billion of Algerian imports from the Eurozone.

With its entry into force in 2016, a new classification of products subjected to import licensing procedures, the European Union was quick to react through its representative in Algeria, Skolil Mark, who immediately indicated that an assessment will be made soon on the possible consequences of import licenses in line with the terms and contents of the Association agreement signed between Algeria and the EU.

On the Algerian side, the authorities argued that the implementation for assessment does however not call into question “the strategic, strong and perennial nature of our relations with the EU and its member states.”