The swerves of the Government of Pedro Sanchez in diplomatic matters they already take their toll on the Spanish economy. Algeria’s retaliation for the turn of the Sahara put in check almost 2,000 million euros in exports from our country to Algeria, when the Executive sold until a few days ago that there was no problem.
The suspension of trade between territories decreed by the Algerian Executive threatens Spanish companies with interests there. Likewise, the productive fabric with commercial relations with the African country has set off all the alarms at the possibility of even do not charge for deliveries already made due to business breakdown. By sectors, those that maintain the most business there are semi-manufactures, with exports of almost 860 million euros in 2021; It is followed by food and beverages with almost 410 million.
Companies with interests in Algeria they come to feel betrayed by how the Sánchez government has treated the situation. The reason? That from the Executive they have transmitted on several occasions that diplomatic relations were solid and that there was no need to fear problems with that country. Finally, with the sahara decision in substance, Algeria chose to immediately suspend the so-called Treaty of Friendship, Good Neighborhood and Cooperation that Spain and Algeria signed in October 2002. Likewise, the Algerian bank ordered on the night of June 8 to freeze relations banks for foreign trade between countries.
Among the main fears of businessmen is the future business that will be lost due to this diplomatic crisis, but also the possibility of not charging for orders already delivered. That is, there are companies that have already delivered goods to customers in Algeria but now they cannot collect the price for blocking commercial transactions.
And the blow is not only in terms of exports, but in terms of imports, Spain will also be affected. While in 2021 the former were almost 2,000 million, the latter exceeded 4,700 million. In total, trade between countries amounts to about 6,700 million. Quantities that are not particularly relevant in the Spanish foreign business as a whole but that already damage the productive fabric.
By sectors, at the level of imports, energy stands out above the rest. In 2021, purchases from Algeria in this area exceeded 4,300 million euros, especially due to the dependence of the Iberian country on Algerian gas. In April this year it accounted for 23.4% of all natural gas imports. After energy, the manufacturing sector was established, with imports valued at 360 million euros. And already in third place and very far away was the beverage and food sector, with 54 million.
At the level of exports, the protagonist is the manufacturing sector, with 856 million. It is followed by food and beverages, with 407 million euros, and capital goods, with 305 million euros.
George is Digismak’s reported cum editor with 13 years of experience in Journalism