The European Union has accused Algeria of restricting EU exports and investments since 2021 and called for consultations with the country’s authorities.
“The EU has launched a dispute settlement procedure against Algeria,” the European Commission announced in a press release. “The objective is to initiate a constructive dialogue with a view to lifting restrictions in several sectors ranging from agricultural products to motor vehicles,” said the European executive.
Brussels denounces in particular “a system of import licenses having effects equivalent to an import ban, subsidies conditional on the use of locally manufactured parts for automobile manufacturers and a ceiling on foreign participation in companies importing property in Algeria.
“Given the unsuccessful efforts to resolve the matter amicably, the EU has taken this initiative to preserve the rights of European companies and exporters operating in Algeria that are affected. The Algerian measures also harm Algerian consumers due to an unduly restricted choice of products”, argues the Commission.
The EU considers that the restrictive measures introduced by Algiers since 2021 violate its commitments under the EU-Algeria Association Agreement.
This agreement was signed in 2002 and entered into force in 2005. It establishes a framework for cooperation in all areas, including trade.
The procedure announced on Friday is planned as part of this agreement. If no solution is found, the EU will be entitled to request the establishment of an arbitration panel. All EU trade agreements include a dispute settlement mechanism.
The European Union is Algeria’s largest partner and accounted for around 50.6% of the country’s international trade in 2023. In recent years, the total value of EU exports to Algeria has steadily declined, falling from from 22.3 billion euros in 2015 to 14.9 billion euros in 2023, according to figures communicated by the European Commission.