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Trade between France and Algeria collapses as diplomatic crisis deepens
French exports to Algeria have fallen sharply as a diplomatic crisis between Paris and Algiers deepens, leaving French businesses facing rejected import authorisations and shrinking orders. The deterioration in trade has accelerated since relations worsened, following France’s recognition of Moroccan sovereignty over Western Sahara in July 2024 and a renewed dispute this summer.
French customs data show exports worth €466 million in August and September, down 34% from the same months in 2025 and 43% from 2024. The latest escalation followed a Paris court’s refusal on 8 July to release an Algerian consular official held in connection with the kidnapping of an Algerian government critic. An internal memo at an Algerian state-owned company also instructed staff to bar trade with countries deemed hostile, though it did not name France.
In short
- French exports to Algeria dropped 34% year on year in August and September.
- Trade has worsened amid a deepening diplomatic dispute.
- French businesses say Algerian import authorisations are being denied.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
France’s recognition of Moroccan sovereignty over Western Sahara and the court’s decision in the consular official’s case can be defended as decisions made on their respective merits, rather than matters that should determine ordinary commercial access. Restricting trade risks harming businesses and workers while narrowing the economic ties that could help preserve channels for dialogue.
The case against
Algeria can argue that trade policy is a legitimate way to respond to decisions it regards as hostile to its interests, particularly on the sensitive Western Sahara dispute. Limiting commercial ties may signal the seriousness of its objections and apply pressure without resorting to more direct forms of confrontation.
Explained simply
France and Algeria are neighbouring countries with long-standing ties shaped by France’s colonial rule in Algeria and the large Algerian community in France. They trade in goods such as food, machinery and medicines, and French firms have relied on access to Algerian buyers.
Their governments have disagreed over Western Sahara, a territory claimed by Morocco and the Sahrawi independence movement. France’s 2024 recognition of Moroccan sovereignty over the territory added to tensions with Algeria, which supports Sahrawi self-determination.
Diplomatic disputes can affect trade when officials delay or reject permits and companies reduce orders. The strained relationship matters to businesses in both countries and to communities with family or economic ties across the Mediterranean.