Algeria - Trade

Trade

Algeria continued in 1992 to depend on hydrocarbons for approximately 95 percent of its export revenues. The government had hoped to reduce such dependence by augmenting exports of nonhydrocarbon goods, but rising exports of petroleum products and gas seem to have foiled Sonatrach's efforts in that direction. Another distinguishing feature of Algeria's foreign trade has been the major disruption in trade patterns resulting from the erosion of its special relationship with France. The changes are not considered to be permanently devastating to trade, however. To cite one example: France's 81 percent share of Algeria's exports and 82 percent of imports before independence dropped to 13 percent and 24 percent, respectively, in 1977. By the late 1980s, however, the Algerian oil nationalization crisis and France's earlier decision to import the bulk of its crude oil needs from Saudi Arabia were swept aside by new economic cooperation protocols between Algeria and France.

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