Lisbon pushes for swift deal with Algeria

Date: 11/05/2000

By Simon Taylor

PROGRESS towards striking a new trade and aid agreement with Algeria will be high on the EU's agenda at a top-level meeting in Lisbon this week.

Portuguese officials are keen to make as much headway as possible on an agreement by the end of the country's presidency of the Union in June, but admit that the range of obstacles means a final deal might not be reached until later this year.

The EU's three-man team of top external relations figures - Portuguese Foreign Minister Jaime Gama, Union foreign policy chief Javier Solana and French Foreign Minister Hubert Védrine - will meet Algerian Foreign Minister Youcef Yousfi tomorrow (12 May) to discuss a number of bilateral issues, including the state of negotiations on an association agreement with Algiers.

The main obstacles to an accord are Algeria's reluctance to sign up to a wide-ranging package of import tariff reductions and its insistence on the right for its citizens to live and work in the Union.

Algeria argues that it deserves exemptions from the usual requirement to lower tariff protection across most economic sectors, claiming that its industries are too weak to cope with foreign competition except in the oil and gas sectors. Petrochemicals account for 95% of its exports and 30% of its gross domestic product.

Usually, countries accept gradual liberalisation across most industrial sectors in exchange for better access to the EU's market for farm products and some manufactured goods, and development aid. The Union has indicated it is prepared to recognise the "special features" of the Algerian economy, but is not prepared to grant wide-ranging exemptions.

The two sides are also split over free movement of people, with the EU insisting that it does not want to discuss the issue at this stage.

Progress towards striking a new trade and aid agreement with Algeria will be high on the EU's agenda at a top-level meeting in Lisbon in May 2000.