Algeria orders a total commercial unblocking with Spain
Algeria has ordered a total trade unblocking with Spain after nearly 900 days of economic retaliation against the Spanish country for the decision of Pedro Sánchez's government to recognise Morocco's Autonomy Plan for Western Sahara as the most serious, credible and realistic option for resolving the Sahrawi dispute that has lasted almost five decades since the end of the Spanish colonial period in the Sahrawi territory.
The unblocking measure was announced by the Bank of Algeria in a communication addressed to Algerian banks so that they would take it into account when allowing transactions.
This decision by the Algerian state means the end of all trade restrictions that had been imposed in relation to Spain because of the political measure to punish the Spanish nation for its support of Morocco in the Western Sahara affair. A territory for which Algeria is asking for a solution other than its inclusion within the Moroccan kingdom, defending the opposing thesis of the Polisario Front, which demands the holding of a referendum on independence for the Saharawi people.
In June 2022, the Association of Banks and Financial Institutions of Algeria (ABEF) applied for the ‘freezing of direct debits of foreign trade operations of products and services with origin and destination in Spain’, as a punishment for Spain's support for the Moroccan kingdom on the Saharawi question.
Prior to this lifting of trade sanctions affecting all sectors, certain licences had been allowed for imports of meat, poultry products and cement, very important products for Algeria in terms of food and construction; Algeria also sent iron to supply the Spanish market. These areas were allowed to carry out certain transactions, but the rest was vetoed. Now comes full unblocking and trade liberalisation in all areas in order to allow full trade relations between Algeria and Spain.
‘Authorised intermediary banks should note that direct debit transactions for foreign trade to and from Spain must be processed in accordance with current foreign exchange regulations,’ the official communiqué from the Bank of Algeria said.
France's turn
This end to the trade veto on Spain comes just as Algeria has imposed the trade closure with France, after French President Emmanuel Macron reaffirmed French support for Morocco's proposal for Western Sahara by giving another important support to the Moroccan kingdom to defend the inclusion of the Sahrawi territory within the Moroccan kingdom. This was evident in the French president's state visit to Rabat at the invitation of King Mohammed VI.
Algeria may now need to open up its trade relations with an important country, Spain, after the interruption of exports and imports of products in the relationship with France, in order to compensate for a measure that could be a major economic blow to Algeria's coffers.
It is worth noting that this type of measure of cessation of trade relations between countries entails millions of dollars in losses for the companies of the nations involved. It is possible to speak of billions of euros in total because of the total closure of trade in practically all sectors. All of this, given the important historical and economic relationship that has existed for decades between Algeria and nations such as Spain and France. Above all, France, which has had a strong presence in the Maghreb country as its metropolis for many years.
