French Interests Falter In Algeria, While Spanish Interests Advance

While the situation of French exports to Algeria is becoming more complicated due to the escalating political and diplomatic crisis between the two countries, Spanish companies are taking advantage of the situation and gaining more ground, after overcoming the crisis that erupted between Algeria and Madrid following the change in Spain’s position on the Saharan issue, nearly three years ago.

Since the beginning of 2025, economic and trade exchanges between Algeria and Spain have resumed remarkably, after a difficult period for Spanish exports to Algeria, which, as is well known, led to the bankruptcy of many Spanish companies that dealt extensively with Algeria, and created troubles for Pedro Sánchez’s government, who was forced to provide compensation to those institutions to save what could be saved.

According to what the Spanish newspaper “Expansión” reported on Sunday, August 24, during the first half of 2025, exports from Spain to Algeria increased dramatically, reaching 190.1 percent compared to the same period of the previous year, in a clear indication of the improvement in relations between Algeria and Madrid, and its repercussions on the economic dimension, as the situation is heading towards restoring the pre-crisis stage between the two countries.

The increase in Spanish exports to Algeria was an exception compared to other countries, including those known for their huge economies, such as China and to a lesser extent India, as exports to China only increased by about 13.7 percent, and 14.2 percent with India, and 62.5 percent with the United Arab Emirates.

The increase in Spanish exports to Algeria allowed Spain to increase its exports by 1 percent, despite the decline recorded in other markets such as France and Germany and the difficult trade context resulting from the customs tensions raised by US President Donald Trump, according to “Expansión”.

Notably, Spanish exports to France decreased by 5.9 percent in the first six months of 2025, compared to the first half of 2024, according to the foreign trade report issued by the Ministry of Economy and Trade.

This decrease is estimated at about 1.7 billion euros, the same source adds, and the same applies to Spanish exports to Germany and Italy, by 3.5 percent and 4.9 percent respectively, and 4.8 percent for Morocco.

This development comes at a time when French exports to Algeria are experiencing a sharp decline, accompanied by significant difficulties faced by French companies operating in Algeria, after losing many of the exclusive privileges they enjoyed in previous times.

Meanwhile, French businessmen active in Algeria held their country’s authorities responsible, due to their failure to establish balanced relations in the Maghreb region, since French President Emmanuel Macron decided to engage in the Moroccan regime’s thesis regarding Western Sahara more than a year ago.

Michel Bizac, President of the Algerian-French Chamber of Commerce and Industry, along with French businessmen, had received French parliamentarians at the Chamber’s headquarters in Algeria, and informed them of the concerns of investors working in Algeria and the difficulties they face, which was considered a cry directed at their country’s authorities.

However, nothing has changed since then, as a new escalation was recorded by the French side last week, which was considered gratuitous because it raised an issue that had already been settled, related to the cancellation of the agreement that allows diplomats to travel between the two countries without a visa, which Algeria considered a provocation.