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Algeria

Algeria

The EU-Algeria Association Agreement was signed in April 2002 and entered into force in September 2005.

This agreement sets out a framework for the EU-Algeria relationship in all areas including trade.

The EU and Algeria adopted their shared Partnership Priorities at the Association Council of 13 March 2017. The partnership priorities set up a renewed framework for political engagement and enhanced cooperation. The Partnership Priorities in the context of EU-Algeria relations up to 2020 focus on the following areas: political dialogue and good governance, cooperation, socio-economic development, including trade and access to the European single market, energy, the environment and sustainable development, strategic and security dialogue, and the human dimension, including cultural and inter-religious dialogue, migration, and mobility.

Algeria is in the process of accession to the WTO , with strong support from the European Union.

Exporter stories

See how the EU-Algeria trade agreement benefits companies and communities across the EU

Read the exporters' stories

Trade picture

  • The European Union is Algeria's largest trading partner and absorbs the major part of Algerian international trade (54,1%). Total trade between the EU and Algeria amounted to €37,4 billion in 2016. Algeria is the EU's 22nd partner for imports and 20th partner for exports.
  • EU-Algeria trade has decreased by 13,3% between 2015 and 2016, in part due to lower oil prices.
  • With 94,0% of EU imports from Algeria in 2016 being fuel and mining products, Algeria ranked as EU's third largest energy provider in 2016, at a value of €15,5 billion. Chemicals represented the second most important exported product, although amounting for only €0,5 billion (3,6%) of Algeria's exports to the EU.
  • EU exports to Algeria are dominated by machinery (€4,5 billion, 21,5%),  transport equipment (€2,4 billion, 11,6%), agricultural products (€2,9 billion,14,3%), chemicals (€3,1 billion,14,9%) and iron and steel (€1,7 billion, 8,4%).

EU-Algeria: Trade in goods

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 29.5 23.4 -6.1
2015 20.9 22.2 1.3
2016 16.5 20.9 4.4

EU-Algeria: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 1.5 2.9 1.4
2014 1.8 3.4 1.6
2015 1.6 3.2 1.6

EU-Algeria: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 2.1 16.5 14.3

Date of retrieval: 15/02/2017

More statistics on Algeria

EU and Algeria

Algeria already has a Free Trade Agreement with the EU and will accordingly cease to benefit from preferential access to the EU market under the Generalised System of Preferences (GSP) scheme from January 2014. (more details on the EU's new GSP scheme)

Algeria in Euromed

Algeria is one of the partners of the Euro-Mediterranean Partnership (Euromed).

Euromed is one of the key initiatives of the European Neighbourhood Policy, through which the EU offers its neighbours a privileged relationship, building upon a mutual commitment to common values (including democracy and human rights, rule of law, good governance, market economy principles and sustainable development). These objectives are reflected in the EU cooperation programme for Algeria 2014-2017.

Euromed is an essential component in the pursuit of greater economic integration in the Mediterranean region, including among Mediterranean partners themselves.

More information on the Euro-Mediterranean partnership

The pan-Euro-Mediterranean cumulation and the PEM Convention on rules of origin

The pan-Euro-Mediterranean cumulation system of origin was created in 2005. It brings together the EU, Algeria, and other partners in Europe and the Mediterranean to support regional integration by creating a common system of rules of origin. Rules of origin are the technical criteria which determine whether a specific product qualifies for duty free or other preferential access under a given trade agreement.

Cumulation of origin means a product coming from one partner country can be processed or added to a product of a second partner country and still be considered an “originating product” of that second partner country for the purposes of a particular trade agreement.

The pan-Euro-Mediterranean system allows for diagonal cumulation (i.e. cumulation between two or more countries) between the EU, EFTA States, Turkey, the Western Balkans, the Faroe Islands, and any country which signed the Barcelona Declaration of 1995.

The system was originally based on a network of Free Trade Agreements having identical origin protocols. These individual origin protocols are being progressively replaced by a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), which was established in 2011 to provide a more unified framework for origin protocols. Algeria acceded to the Regional Convention on 1 March 2017.

More information on Mediterranean preferential Rules of Origin

Trading with Algeria