“The Objective” Reveals Spain’s Economic Losses After The Crisis With Algeria
A Spanish online newspaper revealed the size of Madrid’s economic losses as a result of the diplomatic crisis with Algeria within two months.
The Spanish “The Objective”, said that, based on the figures of the Spanish Ministry of Trade, exports to Algeria decreased by 235 million euros in June and July, during which a ban on the entry of Spanish products into Algeria was applied after the decision to suspend the friendship treaty between the two countries.
The newspaper quoted the Spanish Ministry of Trade as saying that the export of Spanish products fell to 28.6 million euros in July, compared to 155.6 million in the same month last year, and to 66.6 million euros in June, compared to 174 million in the same period of 2021.
By adopting the percentages, the decline in exports reached 81% in July and 71% in June, compared to the same periods of last year.
The Spanish newspaper explained that what is worrying is that what it described as the Algerian blockade is going in one direction, as the Spanish government is not able to deal reciprocally with its Algerian counterpart, because it is in dire need of gas coming from Algeria.
Data indicate that the value of Spanish imports from Algeria amounted to 514.6 million euros in July, an increase of 41.9% over the same month last year. In June, imports amounted to 663.1 million euros, a growth of 49.1%, while Spanish imports from Algeria increased by 45.8% in two months, Spanish companies lost 70% of their sales in the Algerian market.
The newspaper added that Spanish exports to Algeria decreased by 235 million euros in June and July, during which a ban on the entry of Spanish products into Algeria was applied.
It explained that the most affected sectors in Spain are the ceramic factories, whose losses amounted to 40 million euros, according to the Professional Association of Manufacturers.
The source indicated that Algerian importers are not even accepting the products of Spanish companies manufactured in other countries, a solution that was used in the past to avoid the ban on products coming directly from Spain to Algeria.
According to Spanish media, Spanish ceramic producers fear a complete break in relations with their Algerian customers, especially since Algeria, after Italy, was the main market to which Spanish companies exported their products.
This crisis completely overturned the market at a time when ceramic manufacturers were hoping to reach 120 million euros in exports, they found themselves incurring losses of about 25 million euros in just 50 days.
All of this led the Spanish industrialists to appeal to Prime Minister Pedro Sanchez to find a solution to the crisis with Algeria and stop the destruction of Spanish companies.
