Algeria’s market of 33 million inhabitants, energy wealth, and growing demands for modern infrastructure have generated interest from governments and companies around the world. On one hand, Algeria’s economy is expected to grow at a healthy rate of 3-5% over the next several years based on higher world prices for oil. High level Algerian government officials and businessmen have outwardly expressed their desire for greater U.S. business collaboration and involvement in water resources, environmental technologies, safety & security equipment, agriculture, petrochemicals, public works projects and medical equipment. Air Algerie remains an almost all-Boeing fleet for now, and U.S. firms dominate the hydrocarbon sector. As Algeria is a non-traditional market for many U.S. exporters, CS Algeria can open doors in several new sectors such as health & nutrition, franchising, and home & housewares. Recent visits by Secretary Rice and Director General Hernandez and the placement of an American Commercial Counselor at the U.S. Embassy have created an added stir in the business community towards American commerce.
On the other hand, new legislation and policies are under consideration by the Algerian Government that could potentially stunt U.S. business interest in Algeria. These measures include a new requirement for Algerian majority equity in all future investments, a 15% tax on profits repatriated by foreign companies, non-eligibility for land ownership for foreign investment in Algeria, and a requirement for foreign investors to invest the equivalent of their annual tax exemption back into the Algerian economy. Algeria remains one of the few countries on earth not to have joined the WTO, and USTR placed Algeria on the Special Watch list in 2008 for ineffective protection of pharmaceutical tests and data. Lengthy Algerian Customs delays also present a serious obstacle to trade.
The Commercial Service in Algeria aims to demystify the Algerian market through better communications, high quality market research and effective matchmaking services and events. We stand ready to help open the door to Algeria for U.S. exporters.