Algeria is reportedly on the brink of severing all trade relations with France by enforcing an embargo, news outlet “Le Figaro” reported on Thursday.
According to a document shared with Le Figaro, Algeria’s Professional Association of Banks and Financial Institutions (Abef) informed local Algerian banks of a new measure on Monday: “Import and export operations to and from France will no longer be processed,” Le Figaro said.
Abef is a government institution that represents the interests of banks and financial institutions in Algeria.
However, the Algerian institution does not have the authority to make such drastic decisions. Although Abef can influence international and national trade policies under its capacity as a liaison between the banking sector and governmental authorities.
The source added that “no official note exists,” from Abef. Le Figaro said: “But an authenticated document summarizing what was said at the meeting has circulated widely in the French community,” making investors anxious for their investments.
The alleged decision is likely tied to France’s recognition, on July 30, of Morocco’s sovereignty over its Sahara, the news outlet suggests.
Since then, Paris and Rabat’s rapprochement angered Algeria, which supports the separatist Polisario militant group, who attempt to falsely challenge Morocco’s sovereignty over its southern provinces.
If Algeria does enforce a trade embargo on France, the nation will lose its second-largest trade partner, the first one being Italy, according to the World Bank.