These Are The Points Of Contention Between Algeria And Brussels Over Association Agreement

The economic expert, Abderahmane Mabtoul, believes that the dispute between Algeria and the European Union regarding the association agreement that entered into force in September 2005 is caused by the Algerian party’s conviction that “Brussels” has not fulfilled its obligations, with its continuous attempts to invest in the increasing imbalance in the intra-oblique exchanges and this for the benefit of the European side only, without taking into account the Algerian interests.

The most prominent point in this dispute is the “exit” of the European Union, which insists on introducing Algerian exports of hydrocarbons into the account of the balance of trade exchange, which Algeria categorically rejects, because Algerian energy exports are not manufactured products similar to the goods that come to Algeria from other countries. The European Union, as is the case with some exports, such as phosphates, for example, which remain semi-manufactured.

According to the former official at the Ministry of Energy, one of the contentious issues that Algeria blames on the European Union is its lack of commitment to “promoting the diversified economy, which Algeria has always called for to promote dialogue and consultation within the framework of the “win-win rule”, which is the slogan raised by the two parties during the signing of the association agreement”.

In terms of numbers, Mr. Mabtoul said in an interview with “Echorouk” yesterday: “The figures recorded under the title of trade exchanges between Algeria and the European Union over a period of ten years, between 2005 and 2015, show that Algerian exports outside hydrocarbons to the European Union amounted to 14 billion dollars, while Algerian imports from the European Union amounted to 220 billion dollars, with an annual average equivalent to 22 billion dollars, and this means that the partnership agreement caused a loss of more than 700 billion dinars in Algerian customs revenues during the same period.

The economic expert confirms that “the rationalization of imports and the implementation of some restrictive measures adopted by the Algerian government in a very specific context before the spread of the new Corona virus pandemic, is not specific to our country, but rather a large number of countries, including the major ones, such as the United States of America work in it,” noting that Algeria’s demand to re-evaluate the association agreement “does not aim at questioning the framework agreement, but rather aims to search for a positive interpretation of its provisions in a way that leads to restoring the balance that is now absent in this agreement”.

But the European Union, said Mabtoul, is trying to exploit the special figures in the trade exchanges between Algeria and China, which remain tilted in favor of the Chinese party by about 40 billion dollars, to demand reciprocity, and the European Union argues that it buys about 60 percent from Algeria, the opposite of what is happening with China.
For Algeria, which has always respected its international commitments, said Mabtool, the goal is to promote a win-win partnership, through which the European view of Algeria as a traditional market for European goods without controls or customs borders, while leaving energy cooperation, based on a specific protocol.

According to the economic expert, “Brussels hailed some of the measures taken by Algeria in the context of responding to European demands, especially at the level of investment that affected the 49/51 rule, at least for the non-strategic sectors that must be precisely defined, and which are still awaiting the implementing decrees of the law notably the New Investment Law.

But how did the partnership agreement stand in the current situation in light of each party’s adherence to its position, our interlocutor replied: “The agreement is still under negotiation, and according to President Abdelmadjid Tebboune’s statements during a recent interview with the national press, Europe is a major partner for Algeria.

As for the European Union, speaking during a recent press interview, the European Union ambassador to Algeria expressed his optimism about shoring up relations between Algeria and the European region.