Since 2005, Algeria has been a party to a trade agreement with the European Union, which has been extended to a free trade agreement. However, the heads of state and government expressed frustration with what they described as “unbalanced conditions”. They said the agreement would open the Algerian market to EU imports, but hurt local sectors of agriculture and processing. The EU and Algeria meet regularly on committees to discuss issues and best practices in implementing the agreement. Algeria`s president has asked the country`s trade minister to reassess an agreement with the EU in anticipation of a free trade agreement due to come into force on 1 September. “The free trade agreement signed in 2017, which will come into force in September 2020, will be a disaster for the national economy,” said Ali Bey Nasri, president of the Algerian Exporters Association. He said Algeria`s imports from the European Union have been $283 billion since 2005, but exports amounted to $12 billion, mainly in petroleum products. Algiers has repeatedly called for renegotiating the terms of the agreement. Analysts said Algeria signed the agreement while the country was isolated while waging a war against the jihadists, which claimed the lives of 200,000 people.
You said that bureaucracy, corruption and the central control of the economy have since prevented Algeria from diversifying its economy and taking full advantage of the European agreement. Algeria has been engaged in an association agreement and a free trade agreement with the European Union since 2005.  Algeria is weighing its losses under a trade agreement with the European Union, while its government is considering deepening relations with Africa in order to break the country`s economic stalemate. The European Union is Algeria`s main economic partner and Algerian leaders plan to develop an association agreement signed in 2005, which would make Algeria a free trade area for the European bloc. According to Ali Bey Nasri, president of the National Exporters Association, Algeria imported 240 billion euros worth of goods from the EU between 2005 and 2017, while exports, mainly of petroleum products, reached only 10 billion euros. On 1 September 2005, Algeria and the EU created a free trade area as part of an association agreement that defines economic, social, cultural and judicial cooperation. President Abdelmadjid Tebboune asked Kamel Rezig “to make an assessment… the issue of the association agreement with the EU, which should be given special attention in order to defend our interests for balanced relations,” says an official statement issued late on Sunday 9 August and Algeria will receive 108 million euros – 132 million euros under the European Neighbourhood Instrument.  Funds are currently being used to promote economic efficiency, economic governance and economic diversification, as well as to strengthen democracy and reduce pollution.
 Bilateral trade between the two partners is mainly based on Algerian oil and gas products. Algeria is the EU`s third largest natural gas supplier after Russia and Norway. Renault has a factory in Oran that employs 350 people and has a production capacity of 75,000 cars. In neighbouring Morocco, the two Renault plants have a total capacity of 500,000 vehicles per year.