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How Deep is the European Union’s Economic and Political Cooperation with Algeria? The Impact of the European Agreements

Year 2021, Volume: 10 Issue: 1, 151 - 169, 30.03.2021
https://doi.org/10.15869/itobiad.805415

Abstract

This paper examines the background of the economic and political ties between Algeria and the European Union (EU) and the tools that the EU uses. The EU-Algeria economic and political history is quite important to analyse as it is founded on important historical and colonial aspects with France, which is one of the founder countries of the EU. Within this context, the relations of Algeria with the EU have not been easy and have even been turbulent from time to time. EU’s cooperation with Algeria are five folded: The ‘Association Agreement’, the ‘Euro-Mediterranean Partnership’, ‘EU Neighbourhood Policy’, ‘Union for the Mediterranean’ and the ‘EU-Algeria Free Trade Agreement’. This study explores the tools used by the EU to forge a deeper and wider cooperation with Algeria and assesses the bilateral trade and investment status and the current political and economic problems. Our paper explores current and new cooperation opportunities, analyses trade and investment statistics, uses literature review with primary and secondary researches. EU reports and international documents are evaluated from a commercial and political perspective. Politically, we can say that the EU is longing for more cooperation from Algeria, especially on migration and security issues. Economically, we can say that the FTA is currently benefitting more the EU than Algeria’ because Algerian foreign trade balance is in deficit, the country imports more than it exports. Regarding foreign direct investments, we find economic engagement of not only European but also American investments in Algeria, especially regarding oil and gas exploring and production activities. We finally conclude our study with the recommendation of shifting towards a wider variety of economic activities for Algeria, so that it can obtain a more sustainable and balanced economic revenues

References

  • Aljazeera, “Algeria seeks apology from France Over Colonial Past”, https://www.aljazeera.com/news/2020/07/algeria-seeks-apology-france-colonial-president-200705062242863.html, (Access:15.09.2020).
  • Bensaid, Mourad., Ziani, Salah. (2015), “Elites, Power and Ideology in Algeria: Between State-Building and Political Change”, Contemporary Arab Affairs, V. 8, No. 3, p. 363–378.
  • Britannica, “Algerian War”, https://www.britannica.com/event/Algerian-War, (Accessed: 10.07.2020).
  • Caruso, D., Geneve, J. (2015). Trade and History: The Case of EU-Algeria Relations, Boston University İnternational Law Journal, Retrieved from: https://www.bu.edu/ilj/2015/02/17/trade-and-history-the-case-of-eu-algeria-relations/
  • Central Intelligence Agency, “World Fact Book”, https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html, (Access: 15.08.2020).
  • Cohen, William B. (1980), “Legacy of Empire: The Algerian Connection”, Journal of Contemporary History, V. 15, No. 1, p. 97-123.
  • Çelenk, A. A. (2009). Promoting Democracy in Algeria: The EU Factor and the Preferences of the Political Elite, Democratization, 16(1), 176–192.
  • Daily Sabah, Franco-Algerian Ties: A conflict of memory or love-hate relationship?, Retrieved from: https://www.dailysabah.com/op-ed/2020/02/17/franco-algerian-ties-a-conflict-of-memory-or-love-hate-relationship
  • Darbouche, H. (2010). Energising’ EU–Algerian Relations, The International Spectator, 45(3), 71-83.
  • Dinçer, N. N., Tekin-Koru, A. Yaş, P. (2018). Costs of a Missing FTA: The Case of Turkey and Algeria, Empirica, V. 45, p. 489–505.
  • Euractive, Algeria Wants To ‘Reassess’ EU Trade Deal, Retrieved from: https://www.euractiv.com/section/economy-jobs/news/algeria-wants-to-reassess-eu-trade-deal
  • European Commission, Countries and Regions: Algeria, Retrieved from: https://ec.europa.eu/trade/policy/countries-and-regions/countries/algeria/
  • European Commission, Euro-Mediterranean Partnership, Retrieved from: https://ec.europa.eu/trade/policy/countries-and-regions/regions/euro-mediterranean-partnership/
  • European Commission, European Neighbourhood Policy and Enlargement Negotiations, Retrieved from: https://ec.europa.eu/neighbourhood-enlargement/neighbourhood/countries/algeria_en
  • European Commission, European Neighbourhood Policy and Enlargement Negotiations, Retrieved from: https://ec.europa.eu/neighbourhood-enlargement/news_corner/news/eu-algeria-eu-adopts-%E2%82%AC40-million-projects-support-algerias-renewable-energy-public_en
  • European Commission, European Neighbourhood Policy, Retrieved from: https://ec.europa.eu/home-affairs/what-we-do/policies/international-affairs/european-neighbourhood-policy_en
  • European Commission, Negotiations and Agreements, Retrieved from: https://ec.europa.eu/trade/policy/countries-and-regions/negotiations-and-agreements/
  • European Commission, Trade in Goods with Algeria, Retrieved from:https://webgate.ec.europa.eu/isdb_results/factsheets/country/details_algeria_en.pdf
  • France Diplomacy, Algeria: Economic Relations, Retrieved from: https://www.diplomatie.gouv.fr/en/country-files/algeria/#:~:text=France%20remained%20Algeria's%20second%2Dlargest,%25)%20and%20Germany%20(7%25)
  • Global Economy, Algeria: Foreign Direct Investment, Retrieved from:https://www.theglobaleconomy.com/Algeria/Foreign_Direct_Investment/
  • Hamann, J. (2020). Algeria-EU Partnership Under Threat as Free Trade Agreement Approaches, Retrieved from: https://www.moroccoworldnews.com/2020/08/316536/algeria-eu-partnership-under-threat-as-free-trade-agreement-approaches/
  • Hamidani, S. (2020). Colonial Legacy in Algerian–French Relations, Contemporary Arab Affairs, 13(1), 69–85.
  • Jaumotte, F. (2004). Foreign Direct Investment and Regional Trade Agreements: The Market Size Effect Revisited, IMF Working Paper, WP 04/206, 1-32.
  • Lefèvre, R. (2015). A New Chapter in Relations Between Algeria and France?, The Journal of North African Studies, 20(3), 315-318.
  • Lloyds Bank, Investing in Algeria, Retrieved from: https://www.lloydsbanktrade.com/en/market-potential/algeria/investment
  • Lounici, R. (2011). The Relation Between the Military and the Political in Contemporary Algerian History”, Contemporary Arab Affairs, 4(3), 288–300.
  • Haddoud, M. Y., Salmon, K., Jones, P., Newbery, R. (2013). The Impact of Regional Trade Agreements on North African Countries’ Foreign Trade and Economic Welfare, Evidence from Algeria and the European Union Association Agreement, University of Plymouth, 1-34.
  • Santander Trade Markets, Algeria: Foreign Investment, Retrieved from: https://santandertrade.com/en/portal/establish-overseas/algeria/foreign-investment
  • The Algerian Story, Algeria Today, Retrieved from: https://sites.google.com/a/oxy.edu/the-algerian-story/post-revolution-algeria/algeria-2010-12
  • The Algerian Story, Post Revolution Algeria, Retrieved from: https://sites.google.com/a/oxy.edu/the-algerian-story/post-revolution-algeria/the-relationship-of-france-and-algeria
  • The North Africa Post, EU-Algeria FTA Deal Heading for Deadlock”, Retrieved from: https://northafricapost.com/43321-eu-algeria-fta-deal-heading-for-deadlock.html
  • The Observatory of Economic Complexity, OEC: Algeria, Retrieved from: https://oec.world/en/profile/country/dza
  • Trading Economics, Algeria, Retrieved from: https://tradingeconomics.com/algeria/gdp-growth,
  • Union for the Mediterranean, Who We Are, Retrieved from: https://ufmsecretariat.org
  • United Nations Conference on Trade and Development, World Investment Report 2020, Retrieved from: https://unctad.org/system/files/official-document/wir2020_en.pdf
  • USA International Trade Administration, Algeria’s Oil and Gas Hydrocarbons, Retrieved from: https://www.trade.gov/knowledge-product/algeria-oil-and-gas-hydrocarbons
  • Walsh, A. (2020). Algeria-Europe Economic Integration: Where Are We Now and Where Do We Go?, Middle East Institute, Retrieved from: https://www.mei.edu/publications/algeria-europe-economic-integration-where-are-we-now-and-where-do-we-go
  • World Bank, Algeria Overview, Retrieved from: https://www.worldbank.org/en/country/algeria/overview
  • World Trade Organization, Accessions: Algeria, Current Status of Accession, Retrieved from: https://www.wto.org/english/thewto_e/acc_e/a1_algerie_e.htm
  • Zardo, F., Loschi, C. (2020).“EU-Algeria (non)cooperation On Migration: A Tale of Two Fortresses, Mediterranean Politics, 1-23.

Avrupa Birliği’nin Cezayir ile Ekonomik ve Siyasi İş Birliği Ne Kadar Derindir? Avrupa Antlaşmalarının Etkisi

Year 2021, Volume: 10 Issue: 1, 151 - 169, 30.03.2021
https://doi.org/10.15869/itobiad.805415

Abstract

Bu makale, Cezayir ile Avrupa Birliği (AB) arasındaki ekonomik ve siyasi ilişkilerin arka planını ve AB'nin kullandığı araçları incelemektedir. Cezayir’in AB'nin kurucu ülkelerinden Fransa ile olan tarihi ve sömürge yönlerine dayalı bir geçmişi olması nedeniyle AB ile Cezayir arasındaki ekonomik ve siyasi tarihinin incelenmesi oldukça önemlidir. Bu bağlamda, Cezayir'in AB ile ilişkileri kolay olmamış hatta zaman zaman çalkantılı olmuştur. AB’nin Cezayir ile iş birliği beş aşamalıdır: ‘Ortaklık Antlaşması’, ‘Avrupa-Akdeniz Ortaklığı’, ‘AB Komşuluk Politikası’, ‘Akdeniz için Birlik’ ve ‘AB-Cezayir Serbest Ticaret Anlaşması’. Bu çalışma, AB'nin, Cezayir ile daha derin ve geniş bir iş birliği oluşturmak için kullandığı araçları araştırmaktadır ve ikili ticaret ve yatırım durumu ile birlikte mevcut siyasi ve ekonomik sorunları değerlendirmektedir. Makalemiz mevcut ve yeni iş birliği fırsatlarını araştırmakta, ticaret ve yatırım istatistiklerini analiz etmekte, araştırmada literatür tarama yöntemi kullanılmış olup birincil ve ikincil kaynaklardan yararlanılmıştır. AB raporları ve uluslararası belgeler ticari ve siyasi açıdan değerlendirilmektedir. Siyasi olarak, AB'nin Cezayir'den özellikle göç ve güvenlik konularında daha fazla iş birliği talep ettiğini söyleyebiliriz. Ekonomik açıdan ise Serbest Ticaret Antlaşması’nın hali hazırda Cezayir'den çok AB'ye fayda sağladığı tartışılabilir, zira Cezayir dış ticaret açığı veren bir ülke konumundadır; ülke ihracatından çok ithalat yapmaktadır. Yabancı yatırımlar açısından ise ülkede sadece Avrupalı değil, aynı zamanda Amerikan yatırımlarının da özellikle petrol ve gaz arama ve üretim faaliyetleriyle ilgili ekonomik varlığı dikkat çekmektedir. Son olarak, Cezayir'in daha dengeli ve sürdürülebilir ekonomik gelir elde edebilmesi için daha geniş bir ekonomik faaliyet çeşitliliğine geçmesi tavsiyesi ile çalışmamız sonuçlandırılmaktadır.

References

  • Aljazeera, “Algeria seeks apology from France Over Colonial Past”, https://www.aljazeera.com/news/2020/07/algeria-seeks-apology-france-colonial-president-200705062242863.html, (Access:15.09.2020).
  • Bensaid, Mourad., Ziani, Salah. (2015), “Elites, Power and Ideology in Algeria: Between State-Building and Political Change”, Contemporary Arab Affairs, V. 8, No. 3, p. 363–378.
  • Britannica, “Algerian War”, https://www.britannica.com/event/Algerian-War, (Accessed: 10.07.2020).
  • Caruso, D., Geneve, J. (2015). Trade and History: The Case of EU-Algeria Relations, Boston University İnternational Law Journal, Retrieved from: https://www.bu.edu/ilj/2015/02/17/trade-and-history-the-case-of-eu-algeria-relations/
  • Central Intelligence Agency, “World Fact Book”, https://www.cia.gov/library/publications/the-world-factbook/geos/ag.html, (Access: 15.08.2020).
  • Cohen, William B. (1980), “Legacy of Empire: The Algerian Connection”, Journal of Contemporary History, V. 15, No. 1, p. 97-123.
  • Çelenk, A. A. (2009). Promoting Democracy in Algeria: The EU Factor and the Preferences of the Political Elite, Democratization, 16(1), 176–192.
  • Daily Sabah, Franco-Algerian Ties: A conflict of memory or love-hate relationship?, Retrieved from: https://www.dailysabah.com/op-ed/2020/02/17/franco-algerian-ties-a-conflict-of-memory-or-love-hate-relationship
  • Darbouche, H. (2010). Energising’ EU–Algerian Relations, The International Spectator, 45(3), 71-83.
  • Dinçer, N. N., Tekin-Koru, A. Yaş, P. (2018). Costs of a Missing FTA: The Case of Turkey and Algeria, Empirica, V. 45, p. 489–505.
  • Euractive, Algeria Wants To ‘Reassess’ EU Trade Deal, Retrieved from: https://www.euractiv.com/section/economy-jobs/news/algeria-wants-to-reassess-eu-trade-deal
  • European Commission, Countries and Regions: Algeria, Retrieved from: https://ec.europa.eu/trade/policy/countries-and-regions/countries/algeria/
  • European Commission, Euro-Mediterranean Partnership, Retrieved from: https://ec.europa.eu/trade/policy/countries-and-regions/regions/euro-mediterranean-partnership/
  • European Commission, European Neighbourhood Policy and Enlargement Negotiations, Retrieved from: https://ec.europa.eu/neighbourhood-enlargement/neighbourhood/countries/algeria_en
  • European Commission, European Neighbourhood Policy and Enlargement Negotiations, Retrieved from: https://ec.europa.eu/neighbourhood-enlargement/news_corner/news/eu-algeria-eu-adopts-%E2%82%AC40-million-projects-support-algerias-renewable-energy-public_en
  • European Commission, European Neighbourhood Policy, Retrieved from: https://ec.europa.eu/home-affairs/what-we-do/policies/international-affairs/european-neighbourhood-policy_en
  • European Commission, Negotiations and Agreements, Retrieved from: https://ec.europa.eu/trade/policy/countries-and-regions/negotiations-and-agreements/
  • European Commission, Trade in Goods with Algeria, Retrieved from:https://webgate.ec.europa.eu/isdb_results/factsheets/country/details_algeria_en.pdf
  • France Diplomacy, Algeria: Economic Relations, Retrieved from: https://www.diplomatie.gouv.fr/en/country-files/algeria/#:~:text=France%20remained%20Algeria's%20second%2Dlargest,%25)%20and%20Germany%20(7%25)
  • Global Economy, Algeria: Foreign Direct Investment, Retrieved from:https://www.theglobaleconomy.com/Algeria/Foreign_Direct_Investment/
  • Hamann, J. (2020). Algeria-EU Partnership Under Threat as Free Trade Agreement Approaches, Retrieved from: https://www.moroccoworldnews.com/2020/08/316536/algeria-eu-partnership-under-threat-as-free-trade-agreement-approaches/
  • Hamidani, S. (2020). Colonial Legacy in Algerian–French Relations, Contemporary Arab Affairs, 13(1), 69–85.
  • Jaumotte, F. (2004). Foreign Direct Investment and Regional Trade Agreements: The Market Size Effect Revisited, IMF Working Paper, WP 04/206, 1-32.
  • Lefèvre, R. (2015). A New Chapter in Relations Between Algeria and France?, The Journal of North African Studies, 20(3), 315-318.
  • Lloyds Bank, Investing in Algeria, Retrieved from: https://www.lloydsbanktrade.com/en/market-potential/algeria/investment
  • Lounici, R. (2011). The Relation Between the Military and the Political in Contemporary Algerian History”, Contemporary Arab Affairs, 4(3), 288–300.
  • Haddoud, M. Y., Salmon, K., Jones, P., Newbery, R. (2013). The Impact of Regional Trade Agreements on North African Countries’ Foreign Trade and Economic Welfare, Evidence from Algeria and the European Union Association Agreement, University of Plymouth, 1-34.
  • Santander Trade Markets, Algeria: Foreign Investment, Retrieved from: https://santandertrade.com/en/portal/establish-overseas/algeria/foreign-investment
  • The Algerian Story, Algeria Today, Retrieved from: https://sites.google.com/a/oxy.edu/the-algerian-story/post-revolution-algeria/algeria-2010-12
  • The Algerian Story, Post Revolution Algeria, Retrieved from: https://sites.google.com/a/oxy.edu/the-algerian-story/post-revolution-algeria/the-relationship-of-france-and-algeria
  • The North Africa Post, EU-Algeria FTA Deal Heading for Deadlock”, Retrieved from: https://northafricapost.com/43321-eu-algeria-fta-deal-heading-for-deadlock.html
  • The Observatory of Economic Complexity, OEC: Algeria, Retrieved from: https://oec.world/en/profile/country/dza
  • Trading Economics, Algeria, Retrieved from: https://tradingeconomics.com/algeria/gdp-growth,
  • Union for the Mediterranean, Who We Are, Retrieved from: https://ufmsecretariat.org
  • United Nations Conference on Trade and Development, World Investment Report 2020, Retrieved from: https://unctad.org/system/files/official-document/wir2020_en.pdf
  • USA International Trade Administration, Algeria’s Oil and Gas Hydrocarbons, Retrieved from: https://www.trade.gov/knowledge-product/algeria-oil-and-gas-hydrocarbons
  • Walsh, A. (2020). Algeria-Europe Economic Integration: Where Are We Now and Where Do We Go?, Middle East Institute, Retrieved from: https://www.mei.edu/publications/algeria-europe-economic-integration-where-are-we-now-and-where-do-we-go
  • World Bank, Algeria Overview, Retrieved from: https://www.worldbank.org/en/country/algeria/overview
  • World Trade Organization, Accessions: Algeria, Current Status of Accession, Retrieved from: https://www.wto.org/english/thewto_e/acc_e/a1_algerie_e.htm
  • Zardo, F., Loschi, C. (2020).“EU-Algeria (non)cooperation On Migration: A Tale of Two Fortresses, Mediterranean Politics, 1-23.
There are 40 citations in total.

Details

Primary Language English
Subjects Economics, International Relations
Journal Section Articles
Authors

Dilara Sülün 0000-0001-8874-5194

Publication Date March 30, 2021
Published in Issue Year 2021 Volume: 10 Issue: 1

Cite

APA Sülün, D. (2021). How Deep is the European Union’s Economic and Political Cooperation with Algeria? The Impact of the European Agreements. İnsan Ve Toplum Bilimleri Araştırmaları Dergisi, 10(1), 151-169. https://doi.org/10.15869/itobiad.805415

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