Algeria, EU Hold Talks to Revise ‘Partnership Agreement’

Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
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Algeria, EU Hold Talks to Revise ‘Partnership Agreement’

Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)
Former Foreign Policy Representative in the European Union Josep Borrell meets with Algerian President Abdelmadjid Tebboune. (Algerian Presidency file photo)

Algeria and the European Union last week launched the first round of talks aimed at reviving their 20-year “Partnership Agreement.”

The talks were initiated at the request of Algiers.

The Delegation of the European Union to Algeria said on Friday that a delegation headed by Florian Ermacora, head of the North Africa Unit at the Directorate-General for Neighborhood and Enlargement Negotiations of the European Commission, paid a working visit to Algeria from January 27 to 30.

The delegation met with representatives of several Algerian ministerial departments, including Foreign Affairs, Energy and Mines, Water Resources, Industry, Trade and Finance. The European officials were also received at the Algerian Investment Promotion Agency (AAPI).

In addition to the EU Neighborhood department, the delegation included representatives from the EU departments for Energy, Home Affairs, Migration and Foreign Affairs.

Discussions focused on future cooperation between the EU and Algeria in the fields of investment, trade facilitation, renewable energy, migration, culture and job creation.

During the visit, Head of the North Africa Unit, EU Directorate-General for Neighborhood and Enlargement Negotiations Florian Ermacora reaffirmed the EU's willingness to give new impetus to cooperation between Algeria and the European Union in the context of the development of a new pact for the Mediterranean, the EU mission said.

It noted that the visit aims to hold consultations on cooperation between the European Union and Algeria for the period 2025-2027.

The new Agenda for the Mediterranean was launched by the European Union in 2021 to strengthen the strategic partnership with its Southern Neighborhood partners in trade and renewable energies, upgrading facilities and infrastructure, and managing migration and counter-terrorism issues.

The European delegation's visit was not announced by Algerian officials.

Also, the statement issued by the EU delegation did not mention whether talks with representatives of the Algerian ministries addressed the country’s request to revise its partnership agreement with the EU and to rebalance the mutual interests of the two parties.

In late 2024, ambassador of the EU in Algeria Diego Mellado Pascua said 2025 could be a very important year for both parties to consult on their mutual relations within a comprehensive framework.

Last June, the EU said it launched a dispute settlement case against Algeria and requested consultations with Algerian authorities to address several restrictions imposed on EU exports and investments.

“The EU considers that, by imposing these trade restrictive measures since 2021, Algeria is not respecting its trade liberalization commitments under the EU-Algeria Association Agreement,” it said in a statement.

The EU’s aim is to engage constructively with Algeria with a view to removing the restrictions on several market sectors, spanning from agricultural products to motor vehicles.

These include an import licensing system with the effects of an import ban, subsidies contingent on the use of local inputs for car manufacturers, and a cap on foreign ownership for companies importing goods in Algeria.

A European diplomat in Algeria, who declined to be named, told Asharq Al-Awsat that the EU is seeking to assess Algeria's prospects and the extent to which the agreement can be modified.

He said the statistical office of the European Union, Eurostat, confirms that Algeria's exports to the 27 Member States of the Union amounted to 18.747 billion euros and its imports from these countries were around 12.648 billion euros.



Fitch Affirms Israel's 'A' Rating with Negative Outlook

Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)
Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)
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Fitch Affirms Israel's 'A' Rating with Negative Outlook

Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)
Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)

Global ratings agency Fitch reaffirmed Israel's long-term foreign-currency rating at "A" with a negative outlook on Friday, adding that rising public debt levels and ongoing war-related risks could weaken the country's ⁠fiscal trajectory.

Fitch forecast ⁠military expenditure will remain high in 2026, well above pre-war levels, as Israel's involvement in Lebanon intensifies ⁠and operations continue.

It also expects Israel's central government cash budget deficit to widen this year before narrowing in 2027 as military spending declines.

"Israel's recent and ongoing military operations have somewhat diminished geopolitical risks ⁠to ⁠the ratings and demonstrated a highly effective defensive capability", the ratings agency said, although it warned the duration and scope of the current conflict remains uncertain.


SoftBank Secures $40 Billion Loan to Boost OpenAI Investments

FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025.  REUTERS/Issei Kato/File Photo
FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo
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SoftBank Secures $40 Billion Loan to Boost OpenAI Investments

FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025.  REUTERS/Issei Kato/File Photo
FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo

Softbank Group said on Friday it has secured a $40 billion bridge loan to bolster investments in ChatGPT-maker OpenAI and for general corporate purposes, marking another significant step in its artificial intelligence strategy.

The Japanese investment conglomerate, led by founder Masayoshi Son, continues to strengthen ties with OpenAI as global tech firms race to gain an edge in the increasingly competitive ⁠generative AI space.

The Japanese investor has previously agreed to invest $30 billion in OpenAI through its Vision Fund 2. The bridge loan is unsecured, the company said.

The loan, which matures in March 2027, was arranged with lenders including JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corp and MUFG Bank.

OpenAI, backed by Microsoft, has emerged as a leading player following the ⁠widespread adoption of ChatGPT, prompting a surge in investment across the sector.

The loan underscores Son's increasingly aggressive bet on AI following years when SoftBank swung between outsized gains and heavy Vision Fund losses.

SoftBank ⁠and OpenAI were among the companies behind the Stargate Project last year, which said it aimed to invest up to $500 billion over ⁠four years to build AI infrastructure in the United States.

Son and then President-elect Donald Trump announced in December 2024 ⁠that SoftBank planned to invest $100 billion in AI and related infrastructure in the US over four years.

Giant Alliance

In a related development, Japanese industrial conglomerate Toshiba said on Friday it will start negotiations with Mitsubishi Electric and chipmaker Rohm to merge their power semiconductor businesses, as international competition over the sector heats up.

The move comes as Japan has been pushing for a greater presence in the global semiconductor market.

If realized, the alliance would create the world's second-largest power chip group, according to local media.

Billed as able to drastically reduce power loss, power semiconductors are seen as pivotal to sectors ranging from railway to automotive and renewable energy.

Toshiba Electronic Devices & Storage Corporation (TDSC), a subsidiary of Toshiba, signed a memorandum of understanding to begin discussions with Mitsubishi and Rohm.

“As the global competition over the semiconductor industry keeps intensifying, TDSC and Rohm have long explored the possibility of coordinating in the power semiconductor sector,” Toshiba said.

With Mitsubishi Electric now on board, too, a merger would make “our business scale and technological infrastructure competitive in the global market,” Toshiba said.

The agreement was also signed by Japan Industrial Partners and TBJ Holdings.

Japan currently holds less than 10% of the global chip market, but the government is investing heavily in new factories in a bid to change that.

Earlier this month, Prime Minister Sanae Takaichi's administration set a new sales target for domestically produced microchips, aiming for an eightfold increase by 2040 compared with 2020 levels.

The 2040 target of 40 trillion yen ($250 billion) far exceeds sales of around five trillion yen in 2020, according to figures from the ministry of economy, trade and industry.


WTO Reform Talks Face US-Indian Obstacles

Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)
Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)
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WTO Reform Talks Face US-Indian Obstacles

Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)
Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)

Large differences remain between most countries and the US and India as trade ministers meet to discuss reforms at the World Trade Organization, two diplomats told Reuters on Friday.

The ministers are meeting in Yaounde, Cameroon, as the organization faces a critical test to its future amid a year of tariff-fueled trade turmoil and major disruption to shipping, energy prices and supply chains due to the Middle East conflict.

“There is a real commitment among ministers to reach an agreement on reforms, but there is a big elephant in the room blocking: India and the US,” a senior diplomat told Reuters.

Another diplomat from an African country said India so far has not shown signs of a change in position. Some flexibility, however, might be possible, the person added. The diplomats declined to be named due to the sensitivity of the negotiations.

While the US and India acknowledge the need to reform the global trading system, they have resisted proposals of a substantive workplan on reforms.

“Unfortunately on reform I don't see much room for maneuver between ⁠the US and India's positions,” said the senior diplomat.

India has also opposed an agreement to aid investment into developing countries and the US desire to permanently extend an e-commerce moratorium on customs duties on electronic transmissions like digital downloads, which expires this month.

“The US, China, EU and UK positions are reasonable, but there is one party that we need to see compromise from to make progress - India,” said Chris Southworth, the Secretary General of the UK International Chamber of Commerce.

“I think frustration among members will start to spillover here in Yaounde if we see no progress,” he added.

India’s Position

India's Minister of Commerce and Industry Piyush Goyal has cast doubt on US efforts to extend the e-commerce moratorium, saying it warranted a “careful reconsideration.” India is concerned about a loss of tariff revenue.

US Trade Representative Jamieson Greer said on Thursday Washington ⁠was not interested in a temporary extension to the ban, only a permanent one.

Goyal has also challenged moves by the EU, US, Canada and others for a subset of members to take decisions plurilaterally, saying any outcome should be agreed by consensus.

That has cast a shadow over whether an Investment Facilitation for Development Agreement to encourage foreign direct investment in developing and least-developed countries can be incorporated into the WTO rule book in Yaounde.

Türkiye on Thursday lifted its opposition to it.

Goyal's position showed India wants to protect the WTO's core architecture, said Ajay Srivastava, founder of think ⁠tank Global Trade Research Initiative and a former Indian negotiator.

“Together, these risk turning the WTO from a rules-based body into one driven by power and selective coalitions,” he said.

There is also deadlock over one of New Delhi's key priorities: a permanent solution on public stock holding to allow developing countries to give subsidies to rice and wheat farmers through a price support mechanism.

Big agricultural exporters ⁠like the US, EU and Australia fear it would let countries like India build large stocks of foodstuffs and dispose surpluses, potentially distorting trade.

Randa Sengupta, a senior researcher at think tank, the Third World Network, said PSH was important for supporting farmers and enabling food security for poorer communities in India.

‘Constructive’ Talks

Still, a concrete reform workplan was within ⁠reach, Norway's Foreign Minister Espen Barth Eide told Reuters.

“People are beginning to engage in the real questions,” he said, pointing to talks on the WTO's Most Favored Nation principle to treat states equally, while allowing exceptions to national security.

Similarly, Britain's Business Secretary Peter Kyle said a text on reforms was emerging and that constructive talks were taking place to ensure broad agreement.

Caption: Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026. (WTO/Handout via Reuters)