Algerian Businesses Face Import Challenges Despite Eased Spain Trade Restrictions

"We are in a complicated situation, and we are entering a critical period where we will have to lay off (employees), because stocks are running out," Djamel Eddine Bouabdellah, president of the Algerian-Spanish Chamber of Commerce and Industry (CCIAE), told EFE on Sunday, complaining about the lack of raw materials in the ceramics sector, which mainly imports from Spain.

The ceramics and food sectors continue to be affected in Algeria, despite the lifting of ABEF restrictions on July 29. This situation "affects Algerians more than Spaniards," explained the CCIAE president, noting that Algeria imports 60% of its chicken from Spain and that the price of this product has already increased by 50% due to the lack of restocking.

Algeria and Spain are going through a serious diplomatic crisis since Spain declared its support for Morocco’s autonomy plan for the Sahara in March. In retaliation, Algeria suspended on June 8 the Treaty of Friendship, Good Neighborliness and Cooperation with Spain. A day later, the ABEF announced the freezing of deductions, a preliminary operation for any import or export of goods and services to and from Spain, a measure it lifted on July 29.

The Algerian news agency APS disavowed the ABEF on July 31, noting that it is not competent to make decisions "concerning financial and commercial issues that commit the State" and that, consequently, the Treaty of Friendship with Spain remains suspended. The CCIAE president hopes for a "arbitration" by the Algerian government in the coming days.