Algerian – European conflict in the offing over partnership agreement review

The Algerian authorities have made a decision to cancel the preferential customs commodity measure for a wide range of European goods after 5 years of the putting into effect of the partnership agreement sealed in September 2005.

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• This is the second time that the Algeria authorities resort to make such a decision after setting up a list of more than 1200 customs nomenclature code as part of the Arab Free Exchange Zone.
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• The decision will come into effect as from January 2011 and will cover a large variety of agriculture products and food stuffs imported from the European Union countries including , sugar, dairy cows, fruits and vegetables, cheese and dairy products.
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• All these products have benefited from preferential customs tariffs as part of the partnership agreement sealed between the two parties in Valencia, Spain 2002.
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• In a declaration to “Echourok”, the economist Abderrehmane Mebtoul has qualified the decision as inappropriate, noting that the governmental move will have a direct impact on inflation and will put a discredit the Algerian authorities in the eyes of their European partners.
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• The Algerian move is designed to apply pressure on the European Union that grew reluctant to invest in the country according to the agreement, and their refusal to the adhesion of Algeria to the World Trade Organization.
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• In addition to the economic damage that cost Algeria more than $ 2 billion a year, the European Union has staunchly opposed the opening of its market to the Algerian products.
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