Country Report Algeria January 2011

Outlook for 2011-15: International relations

Algeria will continue to be a major regional ally of the West in the campaign against Islamist militancy, and will be the main military force behind efforts to weaken AQIM in its Saharan and Sahel neighbours. Relations with the EU will be stable, as Algeria supplies some 25% of the EU's gas imports and security of supply from Russia remains a concern. Relations with France will continue to be strained by underlying resentment about French actions during the colonial era and attitudes after independence, but will remain important, given that France is Algeria's largest trading partner and hosts a large Algerian diaspora. However, recent French-supported military operations against AQIM will create concern in the Algerian military over what it perceives to be foreign intervention in Algeria's backyard. Algerian-US relations will continue to be focused on dealing with militant Islamism, and on oil exports from Algeria. Russia has also signed military equipment deals with Algeria, notably to supply fighter aircraft.

Regional relations will continue to be difficult so long as there is no resolution to the dispute over Western Sahara. Algeria supports the main group campaigning for the independence of the territory, but Morocco is committed to maintaining sovereignty over Western Sahara. An open confrontation between the two countries is highly unlikely, and Algeria does have diplomatic relations with Morocco, despite a closed border. However, the dispute will make any meaningful Maghreb-wide economic co-operation unlikely.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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