Oil and gas dependent Algeria launched the first episode of its trade war against France by banning imports of French wheat. The Algerian military-held state criticizes France for its sovereign decision to back Morocco’s sovereignty over the Sahara. Meanwhile, most of French exports to Algeria are manufactured goods and foodstuff. Algeria’s trade war with France could further undermine the Algerian economy which reported a surplus of some 2.5 billion euros in trade with France. While France can easily replace Algerian gas, if need be, Algeria cannot find alternative markets to import fresh produce and manufactured goods without affecting prices domestically, where inflation is already double digit.

Source: The North Africa Journal October 11, 2024 13:22 UTC