2010.01.18Algerian Protectionism threatens Tunisian exporters

"Tunisia and Egypt are the most affected by the Algerian decision regarding the suspension of importation of 1 141 products in the Arab area of free trade, the fact that 70% of Algerian imports from both countries. Although this procedure covers all Arab countries without exception, it is necessary to consider the fate of the preferential trade agreement signed with Tunisia in conjunction with our accession to the Greater Arab Free Trade Arabic. Such was the declaration of Slim Othmani, director general of the new canning Algeria (NCA) of Rouiba, the Algerian newspaper "El Khabar".
Here then is a statement that sums up everything for what is the rise of protectionism in Algeria. Another measure, after those relating to foreign investment in Algeria, which casts doubt on the future of bilateral trade between Tunisia and Algeria, although the two countries signed a preferential trade agreement in Tunis on 4 December 2008. Certainly, one should not venture to draw hasty conclusions. But, at least, the burning question that revert to the forefront is that relating to the relevance of the Algerian decision. In simpler terms, is it realistic for the Algerian government to take such a step at a time when leaders of both countries continue to appeal to exploit all the potential to complete the construction of the building Maghreb ?

Before entering the heart of the matter, it is useful to revert somewhat back. The Algerian Chamber of Commerce and Industry has recently established a list of products in 1141 including the Ministry of Commerce is seeking a ban on imports from member countries of the Arab Free Trade Area (AFTA) for a period of 3 to 4 years. A list, called "negative", which includes among others the sectors of food products, agriculture, textiles and electrical goods, cardboard and paper. They are products of sectors considered "priority", hence the need for protection for a specified period.

According to Algerian sources, it is indeed a period of truce that Algerians want to use the advantage of domestic production. Presumably, the Algerian authorities have not appreciated the fact that their accession to the Greater Arab Free Trade Arabic (GAFTA) is not on their behalf. Indeed, while the Algerian speech focused on the "deteriorating" terms of trade of Algeria. Figures for trade between countries of AFTA and Algeria, published by the Algerian Agency for the promotion of foreign trade have amply contributed to this discourse. According to these statistics, imports from Algeria grew 28% while non-oil exports fell by 63%. Indeed, during the first ten months of 2009, imports are estimated at 1.37 billion dollars, they were $ 1.05 billion for the full year 2008. It should be noted that 90% of Arab imports from Algeria were dominated by only 5 countries: Tunisia (which has repeatedly occupied the top ranking), Morocco, Saudi Arabia, Egypt and Jordan.

On the export side, they were $ 1.04 billion for the first ten months of 2009, when they were $ 2.18 billion for 2008 in its entirety. According to the report Algex, the market of Algeria in the AFTA is 75% dominated by Tunisia, Morocco, Libya, Kuwait, Syria and the UAE. Algerian exports to Tunisia are the order of 22.5%, ahead of Morocco (14.4%) and Libya (14%).

For Algerians, this accession may cause damage. Thus, developing a list, containing 1 141 products whose importation is suspended, the only alternative is to bind the bleeding and stop the descent into hell of their exports. The truce of 3 to 4 years will, accordingly, to protect domestic production. Moreover, the list includes agricultural products, textiles, paper and electronic, belonging to sectors deemed "priority" was developed by the Algerian Chamber of Commerce and Industry (CACI) in partnership with Representatives of Algerian companies. According Redouane Allili, adviser to the Algerian minister of Commerce, Arab countries have already succeeded on such list, namely Morocco and Egypt to respectively 804 and 709 products. After Syria and Tunisia in the order of 255 and 161 products. Finally, Lebanon and Jordan for 41 and 35 products.
Again, the Algerian decision puts the devil in the detail. The target countries are threefold: Tunisia, Egypt and Morocco. With regard to Tunisia, the "Black List" includes soybean oil (100% of Algerian imports from Tunisia), margarine, mineral water and various beverages, cement, cotton, clothing and footwear, glass and certain metals. A real problem looming on the horizon, according to Slim Othmani about the future of bilateral trade between Tunisia and Algeria. It seems that this new measure, too protectionist, with our Algerian brothers, would have an impact on the partnership relations between the two countries. How would this new situation addressed by the Tunisians? That is the question.

The Algerians, mindful perhaps of the magnitude of effects that may leave this position, have announced they will negotiate this list at the economic and social summit of the Arab League to be held in February 2010. However, some observers state that negotiations can only begin at the September 2010 session, since this issue is not listed on the agenda of the meeting next month. By September, one thing is sure. The Tunisian and Algerian operators involved in the high joint committee will have the opportunity to discuss it. Meanwhile, Tunisian exporters suspend their exports "blacklisted" and will challenge their projects. Like other Tunisian companies (Biat or GIF for example) who have suspended their presence in Algeria because of changes in rules in the middle part!

Source: businessnews.com.tn

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