Algeria reinitiated trade with Spain in January, marking a significant diplomatic breakthrough two months after the reinstatement of the Algerian ambassador in Madrid.
In June 2022, Algeria withdrew its ambassador from Madrid following Spain's endorsement of Morocco's autonomy-focused plan to address the Western Sahara conflict.
This rupture led to a complete cessation of trade between the two nations, causing financial setbacks for various Spanish institutions and contributing to a shortage of certain products in the Algerian market.
On January 14, the Professional Association of Banks and Financial Institutions (ABEF) in Algeria, affiliated with the Ministry of Finance, rescinded a prior decision to suspend the localization of the import process for chicks and chicken eggs intended for hatching from Spain.
ABEF further communicated that the Ministry of Agriculture and Rural Development granted import licenses for the benefit of Algerian institutions and economic and commercial clients engaged in poultry farming.
This marks the poultry sector as the inaugural economic activity affected by the normalization of trade relations between Algeria and Spain.
During the ambassadors’ conference in Madrid, Spanish Prime Minister Pedro Sanchez said that Algeria is a “friend” and “strategic partner.” Sanchez also stressed the close ties with Algeria, which is why Spain will continue to work to maintain the best possible relations with this strategic partner.
In September, Algerian media spoke about meetings between the Algerian and Spanish delegations on the sidelines of the UN General Assembly meetings.
Algeria’s decision followed Spain’s shift in its stance on the disputed Western Sahara conflict between Morocco and the Algerian-backed Polisario Front. In 2022, Algeria suspended a 20-year-old friendship treaty with Spain.
The rift in relations between the two Mediterranean neighbors caused huge losses to institutions and businessmen. From the beginning of the crisis until mid-2023, the losses in exports and imports are estimated by activists to be about one billion euros.
The repercussions extended to a critical scarcity of various materials and commodities in the Algerian market, intensifying domestic pressures on the government and prompting a more conciliatory approach towards Madrid.
The economic crisis cast a wide net, impacting numerous sectors, notably the food industry and livestock meat production.
Amidst this turmoil, numerous Spanish private enterprises raised objections against the Sanchez administration, urging swift measures to resolve the commercial rift with their African Mediterranean partner.
