Algeria

Development challenges

The government has continued its policy of gradual economic liberalisation in recent years. While the country continues to benefit from the oil boom, Algeria still faces a number of challenges for development:

• the economy is dominated by oil and gas, still accounting for 98% of exports, and with services accounting for less than a third of GNP;

• oil and gas price volatility creates a very uncertain economic policy environment;

• the successive depletion of the natural resources requires heavy investment in the diversification of the economy, but the current dominance of oil and gas makes it difficult for other sectors to develop and become competitive.

Key trade issues

In the field of trade, the key challenges are to:

• increase the range and quality of goods and services on offer for the world market;

• secure access to those markets;

• create a business environment that helps enterprises create and profitably develop their export business.

Government priorities

The government’s priorities remain:

• implementation of trade association agreements with the EU;

• finalisation of the negotiations for WTO membership;

• implementation of the broad structural reform programme, including financial sector reform, privatisation, economy and export diversification, opening further the infrastructure sectors to private operators.

In particular, there is a need to:

• review the products - whether goods or services - and markets where Algeria could have an advantage in developing its exports;

• develop the mechanisms and institutions for continuously remaining informed about market developments and reflecting this in trade policies and in export strategies, both at the national and sector level;

• ensure that Algerian firms are knowledgeable about foreign markets and how to approach them;

• help enterprises access and use the approaches, tools and resources needed for supplying what the markets request;