The repercussions of the Algerian authorities’ decision to stop exchanges with Spanish companies are still continuing. After the anger expressed by the European Union and its threat to take action against the Algerian authorities, a number of Spanish companies affected by the boycott imposed by Algeria in response to Pedro Sanchez’s support for the Moroccan initiative for the Sahara, the day before yesterday, Monday. By establishing an association, which I called the “Association of Crisis Companies with Algeria.”
These associations intend to move forward in defending their interests by claiming compensation from the Spanish government for the financial damages resulting from the closure of the Algerian market, since June 2022, to its exports, whose owners estimated their losses as a result of the Algerian boycott at about 300 million euros.
And Spanish media reported that the establishment of the association was the subject of talks in February between small companies, a victim of the Algerian authorities’ decision to prevent them from selling their products in Algeria.
After this first step, Sanchez’s government contacted the European Commission, with the aim of launching an assistance plan for companies affected by the decision taken by Algeria on June 9, to suspend all bank settlement procedures for import or export to and from Spain.
Since the beginning of the crisis, the Spanish government has informed the European Union of more than 150 cases of obstruction by the Algerian authorities against Spanish companies that export their products to the Algerian market.
This boycott was the most important topic on the agenda of the visit by Josep Borrell, the High Representative of the European Union for Foreign Affairs and Security Policy, to Algeria on the 12th and 13th of last March. However, it seems that this visit did not bear fruit to discourage Algeria from continuing its attempt to blackmail it into Spain. Regarding its position on support for Moroccan autonomy in return for the continuation of economic relations between the two countries.
Upon his return from this visit, the European Union denounced the maneuvers of the Algerian regime, which unilaterally froze trade exchanges with Spain in both directions since June 2022, stressing that this violation by Algeria of the Association Agreement with Brussels greatly harms relations between the two parties.
Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission, had confirmed in statements reported by Spanish media that imports from Spain had practically been suspended almost completely, which greatly harmed relations between Algeria and the European Union.
Borrell said that the current impasse is not in anyone’s interest, adding that he hopes, after exchanging views, that practical solutions can be found to get out of this situation.
The European Commission confirmed that it is ready to take action against Algeria’s violation of the association agreement concluded with Brussels, by continuing to unilaterally stop trade operations with Spain in both directions, since last June.
For her part, Miriam Garcia Ferrer, spokeswoman for the European Commission for Trade, confirmed in a statement she made to the Spanish news agency Europa Press that trade policy is the exclusive competence of the European Union, and therefore, Brussels is ready to take action against any measure applied against a country. member, referring to the case of Algeria.
García-Ferrer noted that the European Commission has, since last June, regularly expressed its concerns about the commercial repercussions of Algeria’s decision, especially the stopped shipments coming from Spain.
In this context, she indicated that Brussels will continue to coordinate with the Spanish government on this issue and will assess the repercussions of trade restrictions that may conflict with the association agreement between the European Union and Algeria.
The European Commission spokeswoman said that the EU will also continue to explore all possible means, including at the political level, to discuss Algeria’s trade barriers.
The measures to stop exchanges by Algeria came as an attempt to blackmail Spain in the wake of the announcement made on June 8 regarding the suspension of the Treaty of Friendship with Spain, in protest against the Spanish position in support of the autonomy scheme in the Moroccan Sahara; This is what Spain described as interference in its internal and sovereign affairs.