EU Opens Dispute Settlement Proceedings With Algeria Over Trade Restrictions

The EU opened a dispute settlement proceeding against Algeria under the two sides' Association Agreement to "address several restrictions" on EU exports and investments, the European Commission's Directorate-General for Trade announced. Algeria imposed various trade restrictions on the EU in 2021, covering multiple sectors, including agriculture and motor vehicles.

The restrictions include an "import licensing system with the effects of an import ban, subsidies contingent on the use of local inputs for car manufacturers, and a cap on foreign ownership for companies importing goods in Algeria," the commission said. Failing to settle the dispute "amicably," the EU said it opened the dispute proceedings to safeguard its industries' rights.

If no solution is reached under the dispute settlement consultations, the EU will be allowed under the agreement to "request the establishment of an arbitration panel."