Brussels, 15/06/2011 (Agence Europe) - Algeria is calling on the EU to delay the full entry into force of the free trade arranged under the 2005 association agreement, which sets out a timetable for the gradual dismantling of customs barriers. According to sources in the Algerian capital, some branches of the Algerian media have reported official appeals to the EU for this deadline to be postponed from 2017 to 2020. This postponement is being pursued in an effort to allow Algerian companies to prepare for the opening up of the national market, according to an explanation provided by the Algerian minister for trade, Mustapha Bendada, who was speaking at the opening ceremony at the International Trade Fair in Algiers (FIA).
According to the El Watan newspaper, the postponement will be agreed and meetings are taking place in Brussels to “finalise the agreement on this subject”. The newspaper report draws on official sources at the foreign affairs department. The same source indicates that “this will mean continuing with the progress achieved by Algeria on 30-31 May. The two parties will be working together to attempt to finalise the overall agreement on 21 June in Brussels”, the date on which the Algeria-EU Association Council is taking place.
Algeria has already requested an amendment to the pace at which the dismantling of the tariff provisions and customs duties is carried out in the association agreement between the two parties. Algeria would like to extend all the deadlines by three years, explain economic pundits in the country. The online Maghreb publication explains that “sharp criticism was expressed from the outset by private companies concerned about the opening up of local industry. At the time, the government defended its choice and explained that companies had to adapt and that aid would be provided to help them do this… the Algerian authorities are, above all, counting on an impetus from direct European investment outside the hydrocarbons sector. Five years after the entry into force of the association agreement and with changes occurring in the area of economic policy, the Algerian authorities have given their support to private sector operators and Algerian experts, who consider that the results are negative overall to the Algerian economy”. Algerian experts quoted in the press state that “the dismantling of custom barriers left a shortfall of $2.2 billion in 2009, whereas European investment did not reach the half a billion mark”.
The same misgivings were noted in the WTO context, in which Algeria is pursuing its accession to the World Trade Organisation with little impetus. A parliamentary event organised on 5 June on the theme of “Algeria and the WTO: challenges and prospects” was supported by trade ministers and confirmed the reservations expressed by Algeria about relaunching the negotiations. The most recent negotiating session took place on 17 June 2008. Algeria points out that “the effective negotiating process took place over 10 years or so and is considered as the longest period in the organisation's history”. Media reports explain that the Algerian government is “refusing to sell off its economy and sovereignty through multiple concessions demanded by its partners, particularly with regard to the cost of domestic energy and the liberalisation of services”. It is demanding that its specificities are taken into consideration and that equal treatment be given to the candidates. One option would be to allow for a “truce” in opening up the market, which would convey at the same time “the determination of our country to join the WTO with more assurances and guarantees”. (F.B./transl.fl)