Algeria's Trade Agreements: EU, GAFTA, AfCFTA and Others

Algeria's trade agreements for exporters: the EU Association Agreement, GAFTA, AfCFTA, Tunisia and Jordan, what each offers and how to claim it.

Trade agreements decide how much your buyer pays in import duties, and therefore how competitive your price is. A tile, a tin of olive oil or a carton of dates from Algeria can enter some markets duty-free, while a competitor without an agreement pays 10, 20 or 30%. Algerian exporters often ignore these preferences, or claim them wrongly, because the agreements are many, each has its own rules of origin and proof, and some cover only part of the products.

This lesson reviews the agreements that matter for Algerian exporters, what each one gives your goods, and the steps to turn a preference into an actual saving for your buyer. The general mechanics are explained in free trade agreements and preferential duties; the documents are covered in certificates of origin in Algeria. Facts below come mainly from the agreement pages published by the Direction Générale des Douanes.

The agreements at a glance

Algeria is not a member of the World Trade Organization: it has observer status and has been negotiating accession for a long time. Some countries also grant Algerian goods unilateral preferences under their Generalised System of Preferences (GSP); the CACI issues the corresponding certificate where it is still accepted.

The EU–Algeria Association Agreement

The EU is Algeria's largest trading partner, and the agreement is the most valuable preference for many exporters.

To benefit, the goods must:

1. be originating under Protocol 6 of the agreement: wholly obtained in Algeria, or sufficiently processed according to the product-specific list, with a general tolerance of 10% of the ex-works price for non-originating materials (not for textiles);
2. travel directly between Algeria and the EU, with transit through third countries allowed only under the conditions of the protocol;
3. respect the "no-drawback" rule: non-originating materials used in the product cannot have benefited from a refund or exemption of customs duties;
4. be covered by an EUR.1 or an approved exporter's invoice declaration.

Bilateral cumulation with EU materials applies. Diagonal cumulation with Moroccan and Tunisian materials is provided for in the protocol, but customs states it is not yet applicable because the condition of identical origin rules is not met.

The United Kingdom has not been covered by the agreement since 1 January 2021. Shipments to Britain are traded without preference.

The Greater Arab Free Trade Area (GAFTA)

GAFTA groups Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen. Djibouti, Somalia and the Comoros have not joined, and Mauritania was excluded in 2009.

• Originating products that are not on the excluded list are exempt from customs duties and charges having equivalent effect. Other taxes such as VAT still apply.
• Origin follows the rules adopted by the Arab League's Economic and Social Council, with detailed rules by chapter.
• Goods must be transported directly between Arab states.
• The certificate must be in Arabic, and it is valid six months from issue.

GAFTA is often the easiest preference to use for Algerian food and building materials sold to Libya, Tunisia, the Gulf and the Levant.

The African Continental Free Trade Area (AfCFTA)

The AfCFTA entered into force on 30 May 2019, and tariff dismantling started on 1 January 2021. Algeria approved it by Law 20-10 of 22 October 2020, ratified it by Presidential Decree 21-133 of 5 April 2021, joined the Guided Trade Initiative in December 2023 and launched trade under the agreement on 1 November 2024, under an interministerial circular of 26 September 2024 and customs circular 482 of 22 October 2024.

How is liberalisation phased?

Your buyer's duty depends on the importing country's own schedule, which you find in the AfCFTA e-tariff book. Products whose detailed rules of origin are still under negotiation are traded at the normal rate.

With which countries does it work?

Only with state parties that apply the agreement, according to a list Algerian customs updates on notification by the ministry in charge of foreign trade. In 2026 the list included South Africa, Botswana, Burundi, Cameroon, Egypt, Eswatini, Ethiopia, the Gambia, Ghana, Kenya, Lesotho, Malawi, Mauritius, Morocco, Namibia, Uganda, Rwanda, Seychelles, South Sudan, Tanzania, Tunisia and Zambia. Several large West African markets were not yet on it.

Origin is acquired by goods wholly obtained in a state party or substantially transformed there, using criteria such as value added, maximum non-originating content, change of tariff heading or subheading, or specific processes. Cumulation across state parties is allowed.

The bilateral agreements with Tunisia and Jordan

• Tunisia. The preferential agreement in force since 1 March 2014 grants exemptions or reductions on lists of industrial and agricultural products, for goods traded directly between the two countries. Check that your product is on the Tunisian list for Algerian goods.
• Jordan. The 1997 convention exempts originating products traded directly from customs duties and equivalent charges, except listed products. Customs states the origin criterion: wholly obtained, or local inputs, labour and production costs of at least 40% of the value.

How to turn an agreement into a saving: five steps

1. Classify the product with the correct HS code, at least to six digits.
2. Compare the buyer's duties: the normal (MFN) rate and the preferential rate under each agreement that applies.
3. Check the rule of origin for your HS code and calculate whether you meet it, keeping the evidence.
4. Obtain the proof of origin from the right body, before or with the export declaration.
5. Price and contract accordingly: mention the preference in your offer, as it is part of your competitive edge.

A worked example: tiles for Nairobi and Tripoli

A tile manufacturer quotes the same porcelain tile to two buyers, each for one container worth USD 40,000 CIF.

• Nairobi. Kenya is on the customs list of countries applying the AfCFTA. Suppose the buyer's normal duty on these tiles is 25% and the AfCFTA rate in Kenya's schedule is 0% (an illustrative assumption: check the e-tariff book). With an AfCFTA certificate from Algerian customs, the buyer saves USD 10,000 on the container, provided the tiles meet the AfCFTA rule of origin.
• Tripoli. Libya is a GAFTA member. With an Arab certificate of origin from the CACI, endorsed by customs, and direct transport, the tiles enter free of customs duty unless they are on Libya's excluded list.

In both cases the exporter checks the rule of origin against its bill of materials, because some glazes and raw materials are imported.

Common mistakes

• Assuming that an agreement covers every product: lists, quotas and exclusions apply.
• Using the AfCFTA with a country that is not yet applying it.
• Shipping GAFTA goods through a third-country hub without meeting the direct transport rule.
• Claiming EU origin for a product made with imported materials that benefited from drawback.
• Forgetting the agreements when pricing: a buyer who saves 20% in duty can accept a higher price.