France's economic influence in Algeria is declining for the third consecutive year, marked by a decreasing trade volume between the two nations. This sustained downturn signifies a significant reorientation of Algeria's commercial alliances. Italy has now surpassed France to become Algeria's second-largest trade partner, a clear indication of shifting economic priorities. Italy's trade volume with Algeria reached nearly 15 billion dollars, reflecting a significant shift in economic ties. Projections indicate France is also set to lose its third position in trade with Algeria to Spain, further diminishing its long-standing commercial presence. This trend signals a notable loosening of France's long-standing economic grip in the North African country, as other European partners expand their commercial relationships and forge closer ties.
France's Declining Trade Figures
Trade between Algeria and France saw a decrease of over 2 billion euros between July 2025 and July 2026. This decline resulted in the trade volume between the two nations dropping from 11 billion euros to less than 9 billion euros. The reduction in trade coincided with an unprecedented diplomatic and political crisis between Algeria and France, which undoubtedly impacted commercial exchanges. The French trade balance recorded a loss of approximately 1 billion euros against Algeria's balance during this period. French exports experienced significant reductions, with agricultural and food products, iron and steel, and spare parts for the automotive industry all declining by over 100%. This sharp drop across multiple sectors shows the breadth of the trade decline. Algeria's exports of hydrocarbons and derivatives were a contributing factor to the trade balance, maintaining some level of export value despite the overall downturn.
Italy's Ascendancy and Strong Ties
Italy ranks as Algeria's second-largest trade partner, with trade exceeding 14.68 billion dollars. This strong figure notes Italy's growing importance in Algeria's economic landscape. The difference between China's and Italy's trade volume with Algeria is approximately 320 million dollars, illustrating how closely Italy is trailing the dominant market leader. Algeria has strategically directed its energy exports towards Italy, positioning Italy as the exclusive distributor of Algerian gas to Europe. Relations between Algeria and Italy are described as excellent under Italian Prime Minister Giorgia Meloni, fostering an environment conducive to increased trade and cooperation. President Abdelmadjid Tebboune received a special reception during his visit to Rome in July 2025, further cementing the strong diplomatic and economic bond between the two nations. In addition to energy, Algeria exported nearly 200 million dollars of iron and steel to Italy. Additionally, Algeria exported fertilizers, cement, chemicals, plastics, and rubber to Italy, diversifying its trade portfolio beyond hydrocarbons and strengthening its industrial export capacity.
Spain's Growing Partnership
Trade volume between Algeria and Spain is growing significantly, with projections indicating Spain is poised to overtake France as Algeria's third-largest trade partner. This impending shift shows the dynamic nature of Algeria's trade relationships. Pedro Sánchez, Prime Minister of Madrid, visited Algeria in the past month, signaling strengthening ties and a commitment to enhanced bilateral relations. Trade volume between Algeria and Madrid reached approximately 8.5 billion euros in 2025, demonstrating the substantial commercial activity already in place. The trade difference between Algeria and France, and Algeria and Spain, is currently less than half a billion euros, suggesting that Spain is on the cusp of surpassing France. Spanish exports to Algeria increased by over 168% in 2025, demonstrating the rapid expansion of their commercial relationship. Algeria is the primary supplier of gas to Spain, a critical energy link between the two countries. Lifting economic sanctions imposed by Algeria on Madrid after the 2022 crisis would further boost Spain's trade with Algeria, according to reports, opening avenues for even greater economic collaboration.
China's Dominant Position
Trade initiatives between Algeria and China rank first among Algeria's partners, reaching approximately 15 billion dollars. China maintains its position as Algeria's leading trade partner, with this substantial volume reflecting its significant commercial presence and deep economic ties in the North African nation.