Algeria suspends trade with France over Western Sahara

Algeria has ordered banks to suspend trade transactions with France and lifted a two-and-a-half-year ban on imports from Spain, News.Az reports citing Middle East Monitor.

The move marks Algeria’s first tangible response to France’s position on the Western Sahara dispute.

In July, Algeria withdrew its ambassador from France after Paris endorsed Morocco’s autonomy plan as the sole basis for resolving the Western Sahara conflict.

France’s former Ambassador to Algeria, Xavier Driencourt, said the Algerian decision was a “major blow to economic relations between the two countries” and warned that it could lead to serious consequences for both parties.

Algeria had previously suspended its 20-year Treaty of Friendship, Good Neighbourliness, and Cooperation with Spain due to Madrid’s stance on the Western Sahara issue. However, it reversed the decision in September. The Algerian Banking Association informed bank directors in a document that the previous suspension of financial transactions with Spain was no longer in effect.

Relations between Algeria and Spain have since improved, with Algeria recently appointing a new ambassador to Madrid after recalling the previous envoy.

News.Az