Algeria Bans Trade Through Moroccan Ports, Escalating Economic Tensions

Algeria has recently banned its economic operators from carrying out any transshipment or transit operations via Moroccan ports, in reaction to Morocco’s "hostile actions". Are we heading towards a breakdown in trade relations between the two countries, after the diplomatic ones?
This decision by the Algerian authorities will have a negative impact on the prices and duration of the transport of goods from Morocco to Algeria and vice versa, analyze observers, noting that on the one hand, transit via the port of Tangier is less expensive compared to other Mediterranean ports, and on the other hand, this decision by Algeria comes in addition to the European one prohibiting ships that do not comply with environmental standards from arriving in European ports.
Algerian consumers will be the most affected by this decision, the observers add, recalling that Moroccan exports to Algeria reached $133.8 million in 2020, or 1.5% of Morocco’s total exports ($27.7 billion). The Moroccan products most exported to Algeria in 2020 are iron and steel ($38.3 million), fertilizers ($18.3 million), and clothing ($16.4 million).
During the same period, Algerian exports to Morocco amounted to about $433.4 million, or 2% of its total exports (about $20.9 billion). The Algerian products most exported to Morocco are hydrocarbons ($368 million), fruits and nuts ($29 million) and organic and inorganic chemicals ($16.6 million).
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