French exports to Algeria are facing significant difficulties due to the escalating political and diplomatic crisis between the two countries. Meanwhile, Spanish companies are capitalizing on the situation, gaining more market share after overcoming the crisis that erupted between Algeria and Madrid following Spain’s changed stance on the Western Sahara issue about three years ago.

Since early 2025, economic and trade exchanges between Algeria and Spain have notably resumed after a difficult period that caused many Spanish companies heavily involved with Algeria to go bankrupt. This situation also troubled Pedro Sánchez’s government, which had to provide compensation to save what could be saved.

According to the Spanish newspaper “Expansión” on Sunday, August 24, Spanish exports to Algeria surged by 190.1% in the first half of 2025 compared to the same period last year, indicating improved relations between Algeria and Madrid and their economic impact, moving towards restoring pre-crisis conditions.

This rise in Spanish exports to Algeria is exceptional compared to other countries, including large economies like China (13.7% increase), India (14.2%), and the UAE (62.5%). The increase allowed Spain to raise its overall exports by 1%, despite declines in markets such as France and Germany and the difficult trade context caused by US President Donald Trump’s tariff tensions.

Notably, Spanish exports to France dropped by 5.9% in the first six months of 2025 compared to the same period in 2024, amounting to about 1.7 billion euros, according to the Ministry of Economy and Trade’s foreign trade report. Similar declines were recorded for exports to Germany (3.5%), Italy (4.9%), and Morocco (4.8%).

Meanwhile, French exports in Algeria are sharply declining, with French companies facing major difficulties after losing many exclusive privileges they once enjoyed. French businessmen active in Algeria blame their government for failing to establish balanced relations in the Maghreb region, especially after President Emmanuel Macron adopted Morocco’s position on Western Sahara over a year ago.

Michel Bizac, president of the Algerian-French Chamber of Commerce and Industry, along with French businessmen, received French parliamentarians at the chamber’s headquarters in Algeria to express investors’ concerns and difficulties. This was considered a call to their authorities, but no changes have occurred since. Recently, France escalated tensions by raising an issue previously resolved concerning the cancellation of an agreement allowing diplomats to travel between the two countries without visas, which Algeria viewed as a provocation.