France monitors potential Algerian trade restrictions

France is closely monitoring its trade relations with Algeria after reports of possible restrictions on imports and exports. On Thursday, France’s Foreign Ministry spokesperson Christophe Lemoine stated that while no official measures had been imposed, the situation would be watched carefully.

Tensions between the two nations have escalated recently following France’s recognition of Morocco’s sovereignty over the disputed Western Sahara region. Algeria, which supports the Polisario Front’s bid for independence in the area, expressed anger over France’s stance.

“We are not aware of any such measures but will remain vigilant for our companies operating in Algeria,” Lemoine told reporters. His comments came amid a growing diplomatic rift that has cast a shadow over their economic ties.

Algeria’s Prime Minister’s office swiftly denied rumors, which were fueled by a post on X (formerly Twitter) by France’s former ambassador to Algeria, Xavier Driencourt. The post allegedly shared a document hinting at trade restrictions, though Reuters could not verify the authenticity of the document.

Diplomatic sources revealed that, despite the denial, Algeria has taken steps in recent months to make the business climate more challenging for French companies, particularly wheat exporters. There are growing concerns that specific French imports and exports might be targeted, though no official announcements have been made.

The reported trade obstacles are reminiscent of a previous diplomatic dispute in 2021, which led to France being excluded from Algeria’s wheat tenders. Despite these tensions, trade between the two countries increased by over 5% in 2023, with Algeria’s hydrocarbon exports to France rising significantly.

While no French companies have officially reported issues, experts warn that the situation remains fluid as both sides navigate this evolving diplomatic and economic landscape.

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