The European Union has launched arbitration proceedings against Algeria over trade and investment restrictions that the EU claims violate the EU-Algeria Association Agreement. At the heart of the dispute are products like marble, which have faced a full import ban since 2021.
By initiating arbitration, the EU aims to restore the rights of EU exporters and investors operating in Algeria who are adversely affected by these barriers. Following unsuccessful consultations in June 2024, the case has now moved to the next phase of formal dispute settlement.
Marble Sector Under Heavy Restrictions
Among the restrictive measures imposed by Algerian authorities is a licensing system that effectively functions as a ban on various imports. Notably, Algeria has enforced a total ban on the import of marble and ceramic products. These restrictions are part of a broader import substitution policy aimed at boosting local production.
In line with this approach, Algerian President Abdelmadjid Tebboune issued a directive on March 9, 2025, during a Council of Ministers meeting, mandating a restructuring of the national marble sector. He emphasized the need to organize this historic and strategic industry, calling for collaboration with international experts to enhance efficiency and global competitiveness.
President Tebboune also announced a full ban on the import of finished marble slabs, urging instead for increased domestic processing and higher investment thresholds in the sector. These steps aim to strengthen Algeria’s marble industry as a source of foreign currency and employment for young Algerians.
EU Response and Next Steps
The EU has appointed its arbitrator and Algeria is expected to appoint its own within two months. The third arbitrator will be selected by the Association Council. The three-member panel will then issue a binding ruling on the matter.
Additionally, the EU is monitoring Algeria’s actions targeting French exporters and companies, raising concerns about discriminatory treatment. These issues continue to be brought to Algeria’s attention in bilateral discussions.
Export Decline and Future Outlook
The EU is Algeria’s largest trading partner, but EU exports to Algeria have declined by 31% between 2014 and 2024—a drop partly attributed to Algeria’s increasing trade restrictions.
For the marble sector, these developments present serious challenges. European marble producers and exporters face limited access to a market that once offered significant opportunities. At the same time, Algeria’s efforts to build a domestic marble industry could create new—albeit selective—collaboration opportunities, particularly in technology transfer and investment.
