Algeria deepens economic isolation by anti-Moroccan ports measures

Following a meeting of its security council, Algeria took another self-defeating measure in a series of economic warfare measures against its western neighbout by banning its banks from engaging in financing any imports that engage in transit or transshipment in Moroccan ports.

The hostile decision adds to the halt of the gas supply to Morocco through a pipeline in 2021 and banning all Moroccan aircrafts from crossing its airspace.

The maritime restriction on Algerian imports was mainly targeting Tanger Med port, the largest container port in the Mediterranean and one of the five most performing deep-water container ports in the globe.

Analysts see the decision as detrimental to Algerian imports as it will increase shipping fares. It is not even clear whether container vessel operators will abide by the decision.

Trade between Morocco and Algeria is already at a very derisory level and the Algerian decision will only have a very minimal impact on Tanger Med port, which prepares for yet another expansion taking advantage of its strategic location.

Algeria, one of the least diversified economies in the world, has implemented import restrictions that left its people queuing for basic goods.

Banning transactions involving transit through Moroccan ports would also deepen Algeria’s economic isolation and its perception as an investment unfriendly country.

Algeria is among the 14 countries that are yet to join the World Trade Organization on par with North Korea and Eritrea.