Country Report Algeria April 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. 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.

Algeria's main regional dispute stems from the lack of resolution over the disputed territory of Western Sahara. Algeria supports the main group campaigning for the independence of the territory, but Morocco is committed to maintaining sovereignty over Western Sahara. The dispute will make any meaningful Maghreb-wide economic co-operation unlikely. The government will try and build constructive relationships with the new authorities in Tunisia and Egypt. Algeria has criticised the international air strikes against Libya but is unlikely to campaign too forcefully on behalf of the Qadhafi regime.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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