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Algeria
The European Union is Algeria's largest trading partner, absorbing just under two-thirds of Algerian exports.
Following the conclusion of negotiations in December 2001, Algeria and the EU signed an Association Agreement in the framework of the Euromed partnership in April 2002. This agreement which sets out a framework for the relationship in all areas including trade, entered into force in September 2005. A first evaluation of the EU-Algeria AA state of play frhas been prepared in 2009. Bilateral trade volumes increased by some 9.3% between 2003 and 2009, principally driven by rising oil exports. With 98% of EU imports from Algeria in 2009 being energy, Algeria ranked as the EU's fifth largest energy provider (5.1% of total EU energy imports), for a value of € 17.2 million in 2006. Algeria's main economic trade partners, apart from the EU, are USA, Canada and China.
Algeria is among the biggest EU trading partners in the Mediterranean region and an important member of the Euromed partnership
Trade in goods
- EU good exports to Algeria 2009: €14.6 billion
- EU goods imports from Algeria 2009: €17.3 billion
EU imports from Algeria consist notably of energy (98.4%), amounting to €16.9 billion and, for a 1.1%, of chemicals. In 2009 main EU exports to Algeria consist of machinery (28.9%), in particular non electrical machinery (16.5%), and transport equipment (13.2%) that together represent more than 40% of total EU exports to Algeria, followed by agricultural products (14.1%), iron and steel (13%) and chemicals (11.7%).
Trade in services
Algeria trade in services with the World amount to €6.9 billion in 2008, (exports: €2.1 bn and imports: €4.8).
Foreign direct investment
FDI stocks in Algeria have increased significantly from 2007 to 2008 registering an annual growth 2007-2008 of 29.5% for FDI inwards, that amount to €10.4 billion in 2008 and of 38.8% of outwards that amount to €0.9 billion in 2008.
South-South integration in the Southern Mediterranean
As part of the Euromed process, Algeria and the EU have as a joint goal the creation of new trade between the countries of the Southern Mediterranean rim. This region has the lowest level of regional trade of any region globally. Algeria endorsed the EU's new Pan-Euro-Mediterranean system of 'cumulation of origin' in September 2007. When applied, this system will allow producers to manufacture a product for export to the EU in more than one Euromed country without losing preferential tariff rates on the EU market.
The new ENP framework and Financial Assistance
The EU and Algeria also work together in the context of the new European Neighbourhood Policy (ENP). The European Neighbourhood Policy launched in 2004 invites the countries neighbouring the EU to establish together an area of peace, stability and prosperity by proposing closer relations on security matters and in political, economic and cultural fields. The strategic framework for EU cooperation with Algeria is established by the Country Strategy Paper (CSP) under the European Neighbourhood and Partnership Instrument (ENPI) over the period 2007-2013. The ENPI has been endowed with €12 billion for the period for the period 2007-2013. The indicative amount for the 2007-2010 NIP is €220 millions allocated to support the following priorities: 1. reform of the justice system; 2. economic growth and employment; 3. improvements in basic public services. The Algerian NIP for the period 2007-2010 includes support for small businesses, economic diversification, strengthening government and legal institutions and improving education and water treatment. Algeria is anticipating some parts of the ENP but its current priority is implementation of the AA, for this reason still no Action Plan has been adopted.
WTO
Algeria is in the process of accession to the WTO, with strong support from the European Union. Negotiations started in 1998.
Bilateral relations
Trade relations with key trading partners
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