Algeria and the EU agree to accelerate the conclusion of two agreements on energy and commerce

"After evaluating the rate of progress on these very important negotiations, we agreed to make every effort to ensure that these agreements can be signed in the coming weeks," said Medelci at a Press  conference  co-hosted with the European Commissioner for Enlargement and Neighbourhood Policy, Stefan Fule.

Algeria and the EU have had  several years of discussions on the strategic energy agreement, without reaching agreement.  A Reliable supplier of energy in the EU, Algeria covers about 13% of European demand for gas, making it the second largest supplier of old continent after Russia. Interruptions of gas supply from Russia and the East have raised energy security concerns in the EU particularly during severe winter conditions.

For the EU, a strategic agreement in energy with Algeria should allow  it more  sustainability of energy supply and diversify its sources of supply such gas to reduce its dependence on Russian gas.The EU is Algeria's largest trading partner and the majority of Algeria's exports (98 per cent ) are hydrocarbons and Algeria  is EU's fifth largest energy provider (5.1% of total EU energy imports),

 This is the third visit of Commissioner Füle to the country since he took office. The EU is ready to provide for the reform efforts based on the principles of the reviewed European Neighbourhood Policy, including the principle "more for more". This visit is part of the EU's engagement with the Southern Mediterranean countries to encourage democracy and secure economic development with the region. The Commissioner  met with government officials and leading members of civil society. EU observers are already in Algeria preparing for the 10 May legislative elections.

Stefan Fule said that the EU would continue its financial aid to the Maghreb despite the financial crisis in the Eurozone on Monday.

Concerning the agreement on the postponement of tariff elimination under the Association Agreement that Algeria asked in 2010 to protect its young industries, both sides have so far held eight rounds of talks during which they reached an agreement on agricultural quotas to save 36 of them from tariff elimination.But no agreement was reached so far on the list of industrial products that Algeria wants to save the decommissioning.

Medelci noted that  the conomic discussions in this area have evolved, particularly with regard to European investment in Algeria.

"We believe we have seen a better understanding of European economic operators as regards the conditions under which they would continue to intervene in Algeria. We want to make them more likely to do so," he said.

Some European countries have challenged, the Algerian legislation on foreign investments, including the provisions of the supplementary budget law of 2009, which established the participation of national capital in each foreign investment in Algeria, through the Rule of  51/49% which establishes majority Algerian partner ownership in foreign established in Algeria.

Medelci said here that Algeria was "placed in a position to encourage and support economic operators" Europe, evidenced by "the resumption of negotiations that are very promising and have led to the agreements with some major European partners, "noted the minister.

The 6th EU-Algeria Association Council took place on 19-20 June 2011 during which both sides acknowledged progress made in bilateral relations since 2010 and expressed willingness to reinforce cooperation. A 7th session of the EU-Algeria Association Council is foreseen in the second half of 2012.