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Analysis

One year on, Algeria-Spain blockade shows little sign of easing

Since Algeria imposed trade sanctions on Spain on June 8, 2022, both economies have lost out on billions of dollars in business.

Activists for the independence of the Western Sahara wave flags and banners reading "Sahara: Only Pace!" during an annual protest organised by the state coordinator of associations of solidarity with the Sahara in Madrid on November 11, 2016 marking the 4th anniversary of the tripartite Madrid agreements demonstrators deem illegal. - The Western Sahara is a territory bordered by Morocco and Algeria and disputed by Spain and Morocco who both claiming sovereignty. (Photo by GERARD JULIEN / AFP) (Photo by GERA
Activists for the independence of the Western Sahara wave flags and banners reading "Sahara: Only Pace!" during an annual protest organized by the state coordinator of associations of solidarity with the Sahara in Madrid on November 11, 2016, marking the 4th anniversary of the tripartite Madrid agreements demonstrators deem illegal. — GERARD JULIEN/AFP via Getty Images

A year ago today, Algeria announced the breaking of a two-decade friendship and cooperation treaty with Spain in response to Madrid’s support for the Moroccan autonomy plan for Western Sahara. The bitter dispute saw Algeria freeze all non-gas-related trade with Spain for its support for Morocco’s plan, inflicting billions of euros of economic harm on Algiers and Madrid. 

Morocco has laid claim to Western Sahara, which was a Spanish colony until 1976. A 1991 cease-fire agreement saw Morocco lay claim to 80% of the contested region, with the rest being held by the Polisario Front, the Algeria-backed Western Sahara pro-independence movement. Algeria has been adverse to its neighbor laying claim to the Western Sahara and has supported its independence from Morocco.

While Rabat has offered some limited autonomy, it has repeatedly stated that the mineral-rich territory must remain under its sovereignty. The Polisario Movement, on the other hand, demands an independence referendum.

Economic loss

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