French exports to Algeria decline sharply amid diplomatic crisis

The diplomatic crisis between Algeria and France has had significant repercussions on their economic relations, with French exports to Algeria experiencing a sharp decline. According to a report by French newspaper Le Monde, citing French customs statistics, exports from France to Algeria fell by 34% in August and September 2026 compared to the same period the previous year. This represents a loss of €241 million, with exports dropping from €707 million to €466 million.

The decline in French exports to Algeria is widespread, affecting various product categories. Iron and steel products saw a 52.3% decline, food products 50.9%, clothing 31.3%, refined petroleum products 28.3%, automotive products 25%, chemical products 22.7%, and machinery and equipment 22.3%. This downturn has raised concerns among French businesses about their ability to maintain a presence in the Algerian market.

The Algerian market has been a significant outlet for French products, particularly grains. France's soft wheat exports to Algeria have been severely impacted, with exports becoming "virtually non-existent" after averaging 6-8 million tons per year between 2018 and 2023. This shift has been attributed to the diplomatic tensions between the two countries, which have led to a reorganization of Algeria's trade partnerships and a diversification of its import sources.

The decline in French exports has also been linked to Algeria's new import regulations, including the Prior Import Prediction Program (PPI) introduced in summer 2025. This program aims to regulate import operations, combat fraud, and protect foreign exchange reserves. As a result, requests to import certain French products have been rejected, further challenging French exporters in the Algerian market.

The impact on French businesses is significant, with around 600 companies, or 12% of the 5,000 French companies operating in Algeria, facing bankruptcy. This has raised concerns about potential job losses in France if the trend continues. The French economy may suffer if companies relocate their production to other European countries to avoid difficulties associated with their products' country of origin.

The changing landscape of Algeria's trade partnerships is evident, with France's share of the Algerian market declining. In 2023, France was the second-largest supplier to Algeria, with an 11.7% share, compared to Italy's 7.4%. However, this ranking may change as Algeria increasingly turns to other countries, such as China, Turkey, Germany, and Spain, for its imports.

The French government's efforts to support its businesses operating in Algeria have been scaled back, with the number of staff at the Business France agency decreasing from 13 to three. This reduction reflects the challenging environment for French companies in Algeria. Meanwhile, Algeria has issued guidelines to its state-owned enterprises, instructing them to avoid importing goods and services from countries with which it has strained diplomatic relations.

Key points

• French exports to Algeria have declined by 34% in recent months due to the diplomatic crisis between the two countries.
• The decline affects various French industries, including iron and steel, food products, and automotive products.
• The crisis has led to a reorganization of Algeria's trade partnerships, with the country increasingly turning to other countries for its imports.