Cooperation between Algeria and the European Union is experiencing a resurgence of interest with the “Pact for the Mediterranean,” despite persistent tensions over trade. European Commissioner Dubravka Šuica visited Algiers on May 4 and 5, 2026, to revitalize the strategic partnership.

Context of the Pact for the Mediterranean

This new framework aims to structure balanced cooperation on trade, investment, energy, migration, and security. The EU and Algeria recognize untapped potential for concrete and mutual benefits. Šuica met with Foreign Minister Ahmed Attaf, Energy Minister Mohamed Arkab, and the CEO of Sonelgaz.

Priority Areas of Cooperation

Discussions focused on creating a clear business environment to stimulate European investment in Algeria. Energy is key: Algeria is praised as a reliable gas supplier, with opportunities in renewables through the T-MED initiative. Migration and security are also being strengthened, including the fight against trafficking and terrorism.

New projects are being prepared for 2026-2027, particularly in investment, as announced by EU Ambassador Diego Mellado.

Persistent Challenges and Imbalances

The EU remains Algeria’s primary trading partner (50-60% of trade), but is dominated by hydrocarbons. Algiers denounces an imbalance in the 2005 Association Agreement and calls for its revision, criticizing European restrictions. Brussels is pushing for greater openness and a predictable climate.

Despite these tensions, both sides aim for a pragmatic partnership.

Economic Prospects for Algeria

These advances could diversify the Algerian economy through European FDI and improved access to the EU market for its non-oil products. The EU promotes integration into global value chains, fostering jobs and growth.