Algeria wages a trade war it can’t win on France

Oil and gas dependent Algeria launched the first episode of its trade war against France by banning imports of French wheat.

The decision comes amid worsening ties between Paris and Algiers. The Algerian military-held state criticizes France for its sovereign decision to back Morocco’s sovereignty over the Sahara.

In 2023, the bulk of Algeria’s exports is gas, which only represents about 8% of the French energy mix. Meanwhile, most of French exports to Algeria are manufactured goods and foodstuff.

Algeria’s trade war with France could further undermine the Algerian economy which reported a surplus of some 2.5 billion euros in trade with France.

While France can easily replace Algerian gas, if need be, Algeria cannot find alternative markets to import fresh produce and manufactured goods without affecting prices domestically, where inflation is already double digit.

The Algerian decision to weaponize gas shows once more the whimsical nature of the Algerian leadership, a military-civilian duo that is willing to self-harm in the pursuit of a separatist chimera in southern Morocco.