Algeria has excluded French companies from participating in its latest wheat import tender, intensifying diplomatic tensions between Algiers and Paris. According to trading sources, the country has specifically instructed that wheat of French origin must not be offered in bids submitted this week.
Algeria, one of the world’s largest wheat importers, has historically relied on France as a key supplier. However, the latest move follows deteriorating relations between the two nations, which have worsened after France recently endorsed a plan to place Western Sahara under Moroccan sovereignty. This decision has angered Algeria, which supports the Polisario Front in its push for an independent state in Western Sahara.
The tender, held on Tuesday by Algeria’s state grain agency, the Office Algérien Interprofessionnel des Céréales (OAIC), saw over 500,000 metric tons of wheat purchased, according to traders. Notably, French companies were absent from the list of invited bidders, and non-French suppliers were told not to propose wheat originating from France. This exclusion marks a significant shift, given that Algeria usually allows a range of suppliers to offer wheat from approved sources, including France.
While no official explanation has been given for the ban, it is widely believed to be a reflection of Algeria’s dissatisfaction with France’s stance on the Western Sahara issue. Diplomatic tensions between the two countries have continued to escalate since July, when France took a position that Algeria views as undermining its support for Western Sahara’s independence movement.
This is not the first time diplomatic issues have affected trade between Algeria and France. Three years ago, a similar dispute led to France being excluded from Algeria’s wheat tenders for several months. However, French wheat has faced challenges in recent months beyond political tensions. A poor harvest and higher prices have made it less competitive in comparison to other suppliers, particularly Russian wheat, which is now Algeria’s primary source of grain imports.
Even though French wheat was already unlikely to win significant contracts in the current tender due to these economic factors, Algeria’s move to prevent French firms from offering any wheat, regardless of origin, sends a clear signal of its displeasure with Paris. The extent to which this exclusion will continue remains uncertain, but the broader impact on trade relations could deepen if the ban persists.
Algeria’s wheat needs are immense, given its status as a major importer of the grain. The country has been increasing its purchases to meet domestic demand, and this latest tender is part of ongoing efforts to secure enough supply for its population. However, the exclusion of French companies from the bidding process may push Algeria to further diversify its sources of wheat, leaning more heavily on countries like Russia, which currently dominate its import portfolio.
In the context of broader geopolitical relations, Algeria’s decision to cut off France from its wheat tenders serves as a reminder of the fragile nature of trade agreements when politics come into play. As both nations navigate their complex diplomatic relationship, the question remains whether France will work to mend ties with Algeria or if this standoff will extend to other areas of their economic and political engagement.
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