ALGERIA – Algeria has barred French companies from participating in a recent wheat import tender, specifying that firms submitting bids must not offer wheat of French origin, according to trading sources.
This decision appears to be a direct result of escalating diplomatic tensions between Algiers and Paris, reminiscent of a similar situation three years ago when France was excluded from Algeria’s wheat tenders for several months.
Algeria is among the world’s largest wheat buyers and has traditionally relied on France as its primary wheat supplier.
However, the latest tender, conducted by Algeria’s state grain agency, OAIC, specifically excluded French firms and prohibited other companies from offering French-origin wheat. Traders estimate that over 500,000 metric tons of wheat were purchased during this tender.
While OAIC did not issue a formal statement explaining the exclusion, sources close to the matter indicated that it was linked to the souring diplomatic ties between the two nations.
The latest development comes amid strained relations following France’s decision in July to support a plan placing Western Sahara under Moroccan sovereignty, a move that angered Algeria.
This is despite the fact that the North African country has long backed the Polisario Front, which seeks independence for Western Sahara.
France’s position has further widened the diplomatic rift, which is now spilling over into the economic arena, with wheat trade being a significant component of bilateral relations.
French wheat was already seen as an unlikely contender in this tender, given its poor harvest this season and higher prices compared to Russian wheat, which has become Algeria’s leading supplier.
The exclusion of French companies, however, signals a broader political move that could have lasting implications for trade between the two countries.
Additionally, this comes when France, a traditional wheat export powerhouse, faces increasing competition from lower-cost producers like Russia and Ukraine, which have gained ground in key markets like North Africa.
Algeria, in particular, has diversified its wheat suppliers in recent years, shifting more purchases toward Russian wheat, which offers competitive pricing and has been flooding the global market following a bumper harvest.
This situation raises questions about how long the diplomatic rift, and by extension, the ban on French wheat, might persist.
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