France and Algeria Seek Economic Reset Amid Trade Tensions and Chinese Competition
Reported by Nexio News
France’s top business leader has called for stronger economic ties with Algeria despite recent diplomatic strains, warning that global trade is becoming increasingly “savage” due to tariff wars and aggressive Chinese competition.
Patrick Martin, president of Medef, France’s largest employers’ union, spoke to RFI following a four-day visit to Algiers aimed at stabilizing commercial relations. Though tensions between the two nations have lingered since a 2024 diplomatic rift—sparked by disputes over colonial-era legislation—Martin insists France remains Algeria’s second-largest foreign investor.
A Delicate Balancing Act
Martin dismissed suggestions that his visit was deliberately low-key, noting Algerian media coverage of his meetings with the Council for Algerian Economic Renewal (CREA). “These are historic ties,” he said. “We must protect them.”
French exports to Algeria—including cereals and livestock—have dropped sharply since the fallout, with Italy, Germany, and Turkey filling the gap. But Martin remains optimistic. “Algeria has real potential,” he said, citing its 47 million-strong consumer market and thriving Franco-Algerian businesses. Still, he acknowledged hurdles, including state interference in the economy.
Economic Diplomacy in Action
The trip follows a visit by France’s interior minister, signaling a gradual thaw through security and trade channels. Martin, who previously helped mediate Franco-Italian tensions and Cognac export disputes with China, emphasized the role of business leaders in mending international relations.
“Economic diplomacy matters,” he said, though he rejected comparisons to a “second foreign minister.” “The economy stands on its own.”
Africa’s Shifting Trade Landscape
With the upcoming Africa-France summit in Nairobi—expected to draw 2,000 participants—some speculate France is pivoting toward anglophone Africa. Martin denied this, pointing to Medef’s Alliance of Francophone Employers’ Organizations. “We engage everywhere there’s demand,” he said.
However, French firms face fierce competition from Chinese and Turkish rivals, particularly in infrastructure. Martin accused China of predatory pricing, suggesting state-backed companies operate at a loss to secure influence. “They build stadiums, roads, and bridges—but their profits aren’t clear,” he said.
The “Savagery” of Global Trade
Ahead of the G7 summit, Medef will host a parallel B7 meeting with business leaders from the world’s wealthiest economies. Their goal? To push back against escalating tariff wars.
“What we’re seeing is a breakdown of rules in global trade,” Martin warned, noting that 20% of French jobs rely on exports. “Without sensible agreements, those jobs are at risk.”
The message is clear: France wants fair play—not just for itself but for allies like the U.S., where businesses are equally unsettled by volatile trade policies.
As Algeria weighs its economic partnerships, Martin’s visit underscores a broader challenge: navigating a world where commerce and geopolitics are increasingly intertwined.
— Reported by Nexio News
