French exports to Algeria experienced a significant decline of €600 million in 2025, dropping from €4.8 billion in 2024 to €4.2 billion. This decrease has brought attention to the commercial and economic interests tied to the Algerian-French relationship, which has been under strain. The relationship between the two countries has been tense, affecting not only diplomatic relations and migration but also trade and economic exchanges.
According to economist Othman Othamniye, France was once Algeria's primary trading partner, with continuous growth in trade between the two countries. In 2024, French exports to Algeria increased by 6.6% to reach €4.8 billion, out of a total trade exchange of €11.1 billion. The decline in French exports to Algeria is notable as it encompasses various products, including those related to automobile manufacturing, machinery, chemicals, pharmaceuticals, and food products.
Othamniye suggests that the decline in French exports may reflect a lack of confidence and uncertainty among economic operators due to the political situation between the two countries. The relationship between Algeria and France has been strained since July 2024, which may have contributed to the decline in trade. The economist emphasizes that political stability and clear policies are crucial for economic operators and investors, as they directly impact the development of trade and investment relationships.
The decline in French exports to Algeria may also be attributed to Algeria's strategy to diversify its trade partners. Algeria is seeking to open up to new partnerships and collaborations, looking for partners capable of contributing to technology transfer and localization, as well as direct investment. This strategic shift may have contributed to the decline in French exports, as France may no longer align with Algeria's new economic orientation.
Furthermore, Othamniye points out that the growth of local Algerian production in certain sectors has reduced the country's reliance on imports. For instance, the pharmaceutical industry has seen a significant increase in local production, allowing for a larger portion of the national market to be covered by domestically manufactured products. This development may have contributed to the decline in French exports to Algeria.
The Algerian government's measures to support national production and reduce dependence on imports may have also played a role in the decline of French exports. The Ministry of Trade and Export Promotion has implemented programs, such as the discretionary import program, which requires Algerian importers to submit estimated requests for their import needs. These measures, aimed at protecting national production, may have impacted the volume of imports and, consequently, French exports.
The decline in French exports to Algeria highlights the complexities of the trade relationship between the two countries. As Algeria continues to diversify its trade partners and promote local production, French exports may face further challenges. The situation underscores the need for both countries to navigate their economic relationship carefully, taking into account the interests of their respective businesses and industries.
Key points
- French exports to Algeria declined by €600 million in 2025, dropping to €4.2 billion from €4.8 billion in 2024.
- The decline may be attributed to various factors, including the strained political relationship between the two countries and Algeria's strategy to diversify its trade partners.
- The growth of local Algerian production and government measures to support national production may have also contributed to the decline in French exports.
