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EU Launches Trade Settlement Case against Algeria

The European Union (EU) issued a trade dispute settlement procedure against Algeria to address a series of restrictions affecting EU exports and investments to preserve the interests of European businesses operating in the North African nation, according to the European Commission  release.

The Commission has expressed worry about Algeria’s trading practices, which have been in force since 2021, saying that “Algeria is failing to meet its trade liberalization commitments under the EU-Algeria Association Agreement.”

The EU’s decision comes after unsuccessful efforts to resolve these concerns peacefully. “Given the unfruitful efforts to resolve the problem through dialogue, the EU has taken this step to protect the rights of EU exporters and companies operating in Algeria who are adversely affected,” the Commission said. 

It also emphasized the fact that these policies harm Algerian consumers by limiting their product option.

Algeria’s import licensing system, which effectively prohibits imports, subsidies for automobile makers who use local materials, and a cap on foreign ownership for enterprises importing goods into Algeria are all major grounds of dispute.

If the dispute resolution mechanism fails to provide a resolution, the EU “will have the right, under the EU-Algeria Association Agreement, to request the establishment of a special arbitration panel,” according to the statement.

In recent years, the European Union has repeatedly expressed concerns to Algerian authorities about trade barriers in a variety of areas, but these appeals have yielded no meaningful results.