Chapitre 5: Le commerce extérieur

In this favourable external conjuncture, Algeria should evaluate this trade-off: it can either speed up the path of completing the reforms and thus become a market economy or it can edistribute the unprecedented amount of international reserves to soften the cost of the painful restructuring of the last decade without seizing the distorted fundamentals. This conjuncture of high oil price of oil will not last for years, but the more open, competitive and efficient scenario that has been offered by the Association Agreement is the anchor. Moving away from the “rent system” through diversifying the economy and liberalising trade is a long-term challenge that can be favoured by the current improvement, if Algeria can seize the opportunity. For thisreason the role of the EU will be decisive.