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Image header Agence Europe
Europe Daily Bulletin No. 11391
Contents Publication in full By article 10 / 26
EXTERNAL ACTION / (ae) algeria

Algiers advocates process of evaluation and adaptation for association agreement

Brussels, 17/09/2015 (Agence Europe) - On Wednesday 16 September, High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini started a two-day visit to Algiers, which will focus on relaunching and deepening bilateral cooperation, and on exchanging views on the situation in the region (see EUROPE 11390).

The tone was set from the start of this visit (Mogherini's first) by Algeria's official news agency APS, which sets out in a long article the Algerian demands that were made during the most recent Association Council (June 2015). Algeria officially demands “the opening of discussions on a joint and objective evaluation of the implementation of the association agreement”, APS writes. The process of evaluation “does not at all aim at questioning the agreement” but at “using it fully” while “enabling links to be rebalanced”.

According to Algeria's Foreign Affairs Minister Ramtane Lamamra, “Algeria has given more than it has received in this partnership”. APS similarly states that “the EU's trade position has increasingly become stronger, to the detriment of the national economy. In 2010, this situation led the Algerian government to proceed to a unilateral freeze on the tariff concessions granted to the EU under the association agreement”. After long negotiations a “compromise was found on postponing free trade until 2020, when it was originally planned for 2017”. Nevertheless, APS adds, “the trend in the growth of the trade deficit has continued, except for hydrocarbons”, and “the inflow of EU investors to Algeria” has remained “weak”.

Echoing an official point of view ahead of Mogherini's visit, the same source states that “while Algeria has made the choice first to conclude the association agreement with the EU and then to negotiate WTO membership, this is to be able to benefit from the support of our European partner in this negotiation. This has thus far not been understood.” This weak support for Europe contrasts with the affirmation of duty, for Algeria, of joining the WTO, ahead of the adoption of an “action plan on the European neighbourhood policy (still) under discussion”.

Algeria risks experiencing treasury difficulties in the long term following the fall in hydrocarbon prices, and it would be disappointed by low allocations of EU aid for its economy. Admittedly, “the EU remains the first donor of funds with a total allocation of nearly €1 billion since the 1980s, all subsidies combined. However, in the new budget programming (2014-2017), Algeria only benefits from €120-148 million, compared with €890 million for Morocco and €246 million for Tunisia”. And Algeria “has not hidden its displeasure at this allocation, which is ill-suited to the ambitious objectives set by the two parties”, APS states, mentioning in particular Algeria's contribution to “maintaining peace and security in the region, contributing directly to the neutralisation of scourges and threats affecting our European partner”. (Fathi B'Chir)

Contents

ECONOMY - BUSINESS - FINANCE
EUROPEAN PARLIAMENT PLENARY
EXTERNAL ACTION
SECTORAL POLICIES
SOCIAL AFFAIRS
COURT OF JUSTICE OF THE EU
NEWS BRIEF