Warnings of huge economic impacts due to escalating tensions between Algeria and France

The French-Algerian Chamber of Commerce and Industry expressed its regret over the escalation between France and Algeria, which it fears could ultimately threaten approximately 5 billion euros in French exports to Algeria.

In a statement, Chamber of Commerce and Industry President Michel Pessac noted the renewed tension between the two capitals, just a few days after the resumption of constructive dialogue between Presidents Abdelmadjid Tebboune and Emmanuel Macron.

“We strongly condemn this escalation, which stems from a political issue,” he added.

He said the Chamber calls on “all economic actors, French companies, Algerian companies, and companies from abroad, to join the process initiated by the two presidents to preserve economic relations and protect them from the consequences”.

He added, “If Algeria really gets angry, we will immediately lose $5 billion in French exports,” asking, “Do we have the capabilities?”

In its statement, the Algerian-French Chamber of Commerce and Industry encouraged “companies affected by this deterioration in the business climate, and operating from France with Algerian partners, to contact the relevant authorities to confirm their desire to maintain their partnerships, which…also seek to maintain stable jobs in France”.

In this context, the Algerian Economic Renewal Council, a major organization of Algerian employers, canceled a meeting scheduled for Tuesday in France with its counterparts from the French Employers’ Union.

The council indicated that it acted in this manner because French authorities prevented the director of a French shipping company from traveling to Algeria to implement an investment project.

Pessac explained that the person in question was Rodolphe Saadé, CEO of the shipping company CMA CGM, noting that he was scheduled to meet with President Tebboune to discuss significant investments in Algerian ports.

French-Algerian trade amounted to €11.1 billion in 2024, according to the General Directorate of the Treasury, including €4.8 billion in French exports to Algeria and €6.3 billion in imports, mainly consisting of hydrocarbons.

Algeria declared 12 French embassy employee’s “persona non grata” on Sunday in response to the arrest and subsequent detention of an Algerian consular employee in France.