Algeria Trade Flows Update 2011

As of the end of 2009, Algeria’s trade to GDP ratio was 70.7. The country exported $45.2 billion in merchandise while it imported $29.3 billion in merchandise, making it a net exporter of merchandise. On the other hand, Algeria exported $3 billion in commercial services while importing $10.9 billion, making it a net importer of commercial services.

Major Export Partners

Algeria’s major export partners are:

• European Union (51.3%)
• United States (22.9%)
• Canada (5.4%)
• Turkey (4.4%)
• Brazil (3.2%)

Major Import Partners

Algeria’s major import partners are:

• European Union (52.4%)
• China (12.1%)
• United States (5.1%)
• Turkey (4.4%)
• Japan (3.0%)

Emerging Economic Partnerships

Like many African countries, Algeria has for many years maintained what are referred to as “traditional” partnerships with countries of the European Union (EU) and the United States. In the past few years new forms of economic and trade relationships have developed and intensified with so-called emerging countries such as China, Russia, Brazil, Turkey, Malaysia, South Korea and Saudi Arabia. Partnerships established between Algeria and emerging countries are aimed at opening up a wider market complementing the major programme of public investment. Conscious of its strong dependence on Europe, Algeria is encouraging these new partnerships to diversify its partner base.

In 2004 Algeria and China signed several economic and technical co-operation agreements, in particular in the areas of oil and gas. The Forum on China-Africa Cooperation (FOCAC) and the forum for co-operation between China and Arab countries, the China-Arab States Cooperation Forum (CASCF) both contribute to strengthening relations in the field of co-operation not only between China and Algeria but with other African countries too. Co-operation between China and Algeria extends across several fields of activity: economic, cultural, health, hydraulics, energy and education. Chinese companies are present in Algeria in the housing, civil engineering, telecommunications and hydraulics sectors among others. Statistics show that the volume of trade between the two countries has been in constant increase and is worth USD 5.7 billion with a growth rate of 11.3% in 2010. Several Chinese companies regularly respond to invitations to tender and carry out projects. In 2009 China accounted for 12% of Algeria’s imports and absorbed 1.9% of its exports. There has been an extremely successful health co-operation agreement between Algeria and China in place since 1963. Chinese medical teams practise in Algeria, and China has built more than 10,000 homes, ten university student campuses as well as hospitals. China has investments worth USD 1 billion. In 2009 the Chinese community living and/or working in Algeria was estimated to number more than 35 000. Chinese television plans to open a bureau in Algiers and plans organising exchange and information events between the two countries.

The work of the commission overseeing  economic, commercial, scientific and technical co-operation between Algeria and Russia, (the 4ème Commission intergouvernamentale mixte de coopération économique, commerciale, scientifique et technique algéro-russe) made it possible to establish to what extent decisions taken during the previous session in November 2008 in Moscow had been implemented. On the sidelines of the visit by the Russian president to Algeria in 2010 five agreements were signed: a Memorandum of Understanding on co-operation between the respective foreign ministries, a Memorandum between the Algerian human development body, the Conseil national économique et social (CNES) and Russia’s Civic Chamber; and a co-operation agreement in the field of maritime transport. The other two agreements were linked to the energy field. The two countries also signed agreements in the military and technical fields, which considerably expanded trade between them. In the field of oil and gas, Gazprom signed an exploration contract for the El Assel – Berkin Basin zone in the east of the country.

Algeria signed a scientific, technological and technical framework agreement with Brazil in June 1981. This agreement was supplemented by a further agreement signed in Algiers on 23 June 2008. Brazil is active in the field of handicrafts and shortly a pilot gemstone cutting school will open in the region of Tamanrasset to develop mineral handicrafts and the manufacture of different types of jewellery. An international seminar on the transfer of knowledge concerning the production of polished gemstones and jewellery was held in 2010 at Tamanrasset University in the presence of Brazilian experts. In 2009 Brazil accounted for 2.2% of Algeria’s imports and took 3.2% of its exports.

Turkey and Algeria enjoy special links. The friendship and co-operation treaty signed between the two countries in 2006 was the fourth signed by Algeria after similar accords with Spain, Portugal and Italy. Turkey is present in Algeria in the field of information and communications technology, in particular through the project to build in the Sidi Abdallah technological park, which was awarded to the company Kontek. Turkish operators are also present in Algeria in the spare parts business. In 2009 the volume of trade between the two countries reached USD 3.8 billion, ranking Turkey sixth among Algeria’s customers (USD 2.06 billion in exports) and seventh among its suppliers (USD 1.7 billion in imports).

Algeria and Malaysia are linked by political and economic ties. The two countries signed three co-operation agreements in 2003, in particular in the field of telecommunications. Algerian telecoms, Algérie Télécom and the Cyber Parc de Sidi Abdallah of the national agency for the promotion of technology parks (ANPT) are working with Multimedia Super Corridor (MSC) and Malaysian telecoms operators. India has a presence in Algeria through the steel industry. Cars manufactured in Asian countries are gaining greater market share in Algeria. In the past five years the United Arab Emirates, Saudi Arabia and Kuwait have strongly intensified their relations with Algeria, in particular in trade and services.