RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/DZA/14/Add.1
24 August 2001
(01-4088)
Working Party on the
Accession of AlgeriaOriginal:  French
ACCESSION OF ALGERIA
Communication from Algeria
Memorandum on Algeria's Foreign Trade Regime:  Updated Version
Addendum
As indicated in document WT/A CC/DZA/14, the Permanent Mission of the Republic of Algeria
has submitted to the Secretariat an updated version of the Memorandum on Algeria's Foreign TradeRegime.
Members are invited to communicate to the Secret ariat any questions that they may wish to put
concerning the matters dealt with in the updated Memorandum, for transmission to the authorities of
Algeria.WT/ACC/DZA/14/Add.1
Page ii
FOREWORD
This Memorandum provides an update of the report drawn up and submitted by Algeria to the
WTO Secretariat in April 1996.
It contains official data and figures co vering the period 1996-2000, which supplement those
already provided for the years 1990-1995.
The document reflects the situation at the end of 2000, highlighting the changes brought about
in the institutional, economic and social spheres by efforts to pursue and accelerate the pace of reforms
undertaken by Algeria in the early 1990s.
In this connection, the most notable improvements over the period 1996-2000 have been the
stabilization of the macroeconomic framework and th e restoration of the country's financial equilibrium
as a result of the implementation, in 1994, of the st ructural adjustment programme negotiated with the
IMF, in cooperation with the World Bank.
On the other hand, the social tensions and pressures generated by the discontinuation of the
State subsidy system, the decline in the purchasin g power of households and job mismatch are still
present.
Despite far-reaching economic liberalization, the State's withdrawal from the management of
production and distribution of goods and services ha s not been completed, and economic operators have
not yet taken over effectively in terms of creating wealth and employment.
The reform process has been speeded up since 1994-1995 and has led to:
- An effective demonopolization of foreign and domestic trade and the development of
competition;
- the establishment of a legal framework for the privatization of State-owned enterprises
and acceptance by the economic and social partne rs of the ensuing changes in their roles
in the economy;
- efforts to encourage further privatization of the economy and all forms of partnership;- preparatory steps for the implementation of  economic recovery programmes targeted at
sustainable development, which encompasses all aspects of social and economic life,
including the environment and regional planning.
Multilateral cooperation programmes have been fi nalized with a view to gradually upgrading
the Algerian production base and thus enabling it to adjust more effectively to external shocks and
international competition.  The opening up of major spheres of activity (mining; telecommunications;
banking; land, maritime and air transport; industrial partnership; and soon the hydrocarbon sector) to the
domestic and foreign private sectors bear witness to Algeria's determination to become more fully
integrated in the global economy.
The Algerian economy has thus undergone a radical  systemic transformation over a short period
of time.WT/ACC/DZA/14/Add.1
Page iii
ALGERIA IN FIGURES
ALGERIA: The Democratic and Popular Republic of Algeria
Capital: Algiers (3 million inhabitants)
Administrative divisions 48 w ilayas, 160 dairas, 1,541 communes
National holiday 5 July
Political regime Presidential, multi-party democracy
Leader President:  Abdelaziz BOUTEFLIKA
Main political parties FLN, RND, MSP, FFS, NAHDA, RCD, PT
Main institutions High Security Council
National Council
National People's Assembly
Constitutional Council
Islamic Supreme Council
Religion Islam
Languages Arabic (official), French
Main cities Algiers, Oran, Constantine, Annaba
Currency Algerian dinar (DA)
1US$ = 76 DA (2001 average)
Local time GMT + 1
Total area 2,381,741 km2, of which the Sahara occupies 84%,
the steppe 8.5% and the coastal fringe (mountains
and plains) 7.5%
Boundaries Mediterranean Sea to the north (1,200 km of
coastline), Morocco to the west, Tunisia to the
east, Libya to the south-east, Mauritania andWestern Sahara to the south-west, and Mali and
Niger to the south
Climate Mediterranean
Natural resources Natural gas, petroleum, zinc, phosphate, iron ore,
gold, uranium, tungsten, kaolin
Population 30.2 million (in 2000), with a growth rate of 1.4%,
a gross birth rate of 2%, a mortality rate of 0.6%,
and an infant mortality rate of 5.6%
Age structure 0-19 years:  50.2%;  20-64 years:  45.9%;  65
years and over:  3.9%
Demographic structure 63% of the population is under 25 years of age
Gross marriage rate 5.38%
Working population 8,154,000
Life expectancy Men:  67.5 years – Women:  68.2 years
School enrolment ratio 89.85% in 2000
Unemployment rate 29.75% in 2000
GDP DA4,011 billion in 2000
Non-hydrocarbon industrial production growth
rate+ 1.4% in 2000
Per capita GDP US$1,480 in 2000
Inflation rate 0.3 % in 2000
Foreign debt US$25.2 billion (end 2000)
Net domestic assets DA1,298 billion (end 2000)
Exports US$21.65 billion in 2000
Imports US$9.35 billion in 2000WT/ACC/DZA/14/Add.1
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ALGERIA:  MAP
WT/ACC/DZA/14/Add.1
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TABLE OF CONTENTS
Page
I. INTRO DUCTION ................................................................................................................. ...1
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................2
1. Economy ...................................................................................................................... ..............2
(a) General de scrip tion ......................................................................................................... ............2
(b) Current econom ic situ ation.................................................................................................. .......3
2. Economic policies............................................................................................................ ..........4
(a) Main directions and goals of the current econom ic polic ies.......................................................4
(i) Background.................................................................................................................. ...............4
(ii) The structural reform of the Algerian economy..........................................................................5
(iii) The stand-by programme (April 1994-March 1995) ..................................................................6
(iv) Objectives and results of the medium-term economic programme.............................................6
(v) Economic and social development policy ...................................................................................7
(vi) Programme of privatization of State-owned enterprises ............................................................8
(b) Monetary and fi scal policies ................................................................................................ .......8
(c) Foreign-exchange regime and li beralization of fo reign tr ade...................................................10
(d) Investment and domestic  investment policy .............................................................................10
(i) General principles .......................................................................................................... ..........11
(ii) Incentive regimes .......................................................................................................... ............11
(e) Price and comp etition pol icies.............................................................................................. ....12
3. Foreign trade in goods and services ......................................................................................14
(a) Trade in goods .............................................................................................................. ............14
(i) Global trend................................................................................................................ ..............14
(ii) Trade balance .............................................................................................................. .............14
(iii) Exchang e rate ............................................................................................................. ..............15
(iv) Export trends.............................................................................................................. ...............15
(v) Import trends............................................................................................................... ..............15
(vi) Geographical distribution of trade ......................................................................................... ..15
(b) Foreign trad e in se rvices ................................................................................................... ........16
(i) Global trend in forei gn trade in services..................................................................................1 6
(ii) Imports of factor and non-factor services.................................................................................1 6
(iii) Exports of factor and non-factor services................................................................................. 16
(iv) Services  balance ........................................................................................................... ............16
4. Domestic trade in services................................................................................................... ...17
(a) Trends in domestic  trade in services........................................................................................ .17WT/ACC/DZA/14/Add.1
Page vi
(b) Breakdown of domestic trade in services by main areas of activ ity and by sector...................17
5. Information on financial movements related to nationals working abroad ......................17
6. Information on growth in trade in goods and services over recent years and
forecasts for ye ars to come.................................................................................................... .18
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN G OODS AND SERVI CES .............................................................18
1. Powers of the executive, legislative and judicial branches of government ........................18
(a) The Executive ............................................................................................................... ............18
(b) The Legislature ............................................................................................................. ............19
(c) The Judiciary............................................................................................................... ..............20
2. Government entities responsible for the framing and implementation of policies
affecting fore ign trade ........................................................................................................ ....20
3. Division of authority between central government and sub-central governments ...........22
4. Any legislative programmes or plans to change the regulatory regime.............................23
(a) The regime applicable to import and export  operations ...........................................................24
(b) Identification of unfair practi ces and action to combat them....................................................24
(c) Export pr omotion............................................................................................................ ..........24
(d) Supervision of foreign trade................................................................................................ ......25
5. Laws and legal instruments................................................................................................... .25
(a) List of laws and legal instruments regulatin g the activity of the cu stoms authorities ..............25
(b) Laws and legal instru ments relatin g to: ....................................................................................2 8
(i) Non-tariff regula tion of imports............................................................................................ ....28
(ii) Non-tariff expor t regulations .............................................................................................. ......28
(iii) Regulation of transit tr affic............................................................................................. ..........28
(iv) Rules of  orig in............................................................................................................ ...............29
(c) Laws and regulations relati ng to foreign investment................................................................29
(d) Other laws and legal instruments dealing with economic issues that affect trade ....................29
(i) Constitution, registrati on and organization .............................................................................29
(ii) Bilateral and mult ilateral conventions ..................................................................................... 31
(iii) Insu rance ................................................................................................................. .................32
(iv) Price re gulatio n ........................................................................................................... .............34
(v) Land use rules.............................................................................................................. .............34
(vi) Social le gislation......................................................................................................... ..............35
(vii) Quality control........................................................................................................... ...............35
(viii) He alth ................................................................................................................... ................36
(ix) Hydrocarbons and mines ..................................................................................................... .....37
(x) Tourism ..................................................................................................................... ................38WT/ACC/DZA/14/Add.1
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(xi) Securiti es exchange........................................................................................................ ...........38
(xii) Banking regula tions....................................................................................................... ...........38
(xiii) Taxa tion ................................................................................................................. ..................40
(e) Existing laws, regulations or administrative guidelines which significantly affect
trade in servi ces .............................................................................................................. ..........40
(f) Publications or sources of information concerning measures of general application of
relevance to the GATS.......................................................................................................... ....41
6. Description of judicial tribunals and procedures.................................................................41
(a) Administrati on of justice ................................................................................................... .......41
(i) The Supreme Court and the Council of  State............................................................................41
(ii) The courts  and tribunals ................................................................................................... ........42
(b) Crimina l law ................................................................................................................ .............42
(i) Constitutional  principles................................................................................................... ........42
(ii) Criminal indemnif ication pro ceedings .....................................................................................42
(c) Civil law................................................................................................................... .................42
(i) The Code of Civil Procedure ................................................................................................. ...42
(ii) The Ci vil Code ............................................................................................................. .............43
(d) Administr ative law.......................................................................................................... ..........43
(e) Arbit ration................................................................................................................. ................43
(i) The Code of Civil Procedure ................................................................................................. ...44
(ii) At the inter national level................................................................................................. ..........44
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................46
1. Import re gulation............................................................................................................ ........46
(a) Registration requirements for engaging in  importing...............................................................46
(b) Characteristics of  the national tariff...................................................................................... ....46
(i) Customs tariff nomenclature, types of duties, general description of the customs tariff
structure, weighted average level of duties on main customs tariff groupings.........................47
(ii) Application of MFN tariff rates ............................................................................................ ....48
(iii) Tariff pr eferences........................................................................................................ ..............48
(c) Tariff quotas, ta riff exemptions ............................................................................................ ....48
(d) Other duties and charges, including any charges for serv ices rendered ...................................49
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems...........49
(f) Import licensing  procedures................................................................................................. .....49
(h) Customs valuation........................................................................................................... ..........49
(i) Other custom s formal ities................................................................................................... ......50
(j) Preshipment  inspection ...................................................................................................... .......50
(k) Application of intern al taxes on imports ...................................................................................5 0WT/ACC/DZA/14/Add.1
Page viii
(l) Rules of  origin ............................................................................................................. .............50
(m) Anti-dumpi ng regime......................................................................................................... .......51
(n) Countervailin g duty regime .................................................................................................. ....51
(o) Safeguard  regime ............................................................................................................ ..........51
2. Export regulation............................................................................................................ ........51
(a) Registration requirements fo r engaging in exporting ...............................................................51
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of rates..............51
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems ...........51
(d) Export licensing  procedures................................................................................................. .....52
(e) Other measures .............................................................................................................. ...........52
(f) Export financing, subsidy and promotion policies....................................................................52
(g) Export performan ce requir ements............................................................................................. 52
(h) Import duty drawback schemes ................................................................................................ 52
3. Internal policies affectin g foreign trade in goods.................................................................52
(a) Industria l polic y ........................................................................................................... .............52
(i) Energy sect or policy ........................................................................................................ .........53
(ii) Restructuring of  Algerian industry ......................................................................................... ..55
(i) Stimulation of the pr ivatization process ...................................................................................5 5
(ii) Attraction of foreign investment (dir ect investment and eq uity investment).............................56
(b) Technical regulati ons and standards ......................................................................................... 57
(i) Monitoring and promot ion of quality .......................................................................................57
(ii) Standards and certification................................................................................................ .......61
(c) Sanitary and phytos anitary m easures........................................................................................6 3
(i) Sanitary measures........................................................................................................... ..........63
(ii) Phytosanitary and agricultu ral pesticide controls....................................................................64
(iii) Control of phytosanitary pr oducts for agricul tural use............................................................67
(iv) Internatio nal relations .................................................................................................... ..........67
(d) Trade-related in vestment measures........................................................................................... 68
(e) State-tradi ng pract ices..................................................................................................... ..........68
(f) Free z ones .................................................................................................................. ...............69
(g) Free econom ic zones......................................................................................................... ........69
(h) Trade-related envi ronmental po licies .......................................................................................6 9
(i) Mixing re gulatio ns.......................................................................................................... ..........69
(j) Government-mandated count er-trade and barter ......................................................................69
(k) Trade agreements leading to c ountry-specific quota  allocation................................................70
(l) Government procur ement pract ices ..........................................................................................70WT/ACC/DZA/14/Add.1
Page ix
(i) Award procedures............................................................................................................ .........71
(ii) Methods of  control......................................................................................................... ...........71
(iii) Review of public pr ocurement re gulations ...............................................................................71
(m) Regulation of tr ade in tr ansit.............................................................................................. .......71
4. Policies affecting trade in agricultura l products..................................................................72
(a) Im ports..................................................................................................................... .................72
(b) Exports..................................................................................................................... .................72
(e) Internal agricu ltural pol icies .............................................................................................. .......73
(i) Foundations of agr icultural policy .......................................................................................... .73
(ii) Taxation ................................................................................................................... .................75
5. Policies affecting foreign trade in oth er sectors ...................................................................76
(a) Textile s regime............................................................................................................. .............76
(b) Policies affecting foreign tr ade in other ma jor sectors .............................................................76
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................76
1. General...................................................................................................................... ...............76
(a) Intellectual property policy................................................................................................ .......76
(b) Agencies responsible for policy formulation and im plementation ...........................................78
(c) International intellectual property conventions and regional or bilateral agreements to
which Algeria is a party ....................................................................................................... .....78
(d) Application of national and most-favoured-nation (MFN) treatment to foreign
nationals...................................................................................................................... ..............79
(e) Fees and taxes .............................................................................................................. .............79
(i) Tax treatment of fees – ordinary law system.............................................................................80
(ii) Tax treatment of fees  under tax agreements .............................................................................80
(iii) Rules for dedu ction at source ............................................................................................. ......81
2. Substantive standards of protection, in cluding procedures for the acquisition,
maintenance and exercise of in tellectual prop erty rights....................................................81
(a) Copyright and related rights................................................................................................ ......81
(b) Trade marks, includ ing service marks ......................................................................................83
(c) Geographical indications, includ ing appellations  of origin ......................................................84
(d) Industrial designs .......................................................................................................... ............84
(e) Pat ents..................................................................................................................... ..................84
(f) Protection of pl ant vari eties ............................................................................................... .......84
(g) Layout-designs of integrated circuits....................................................................................... .85
(h) Requirements concerning undisclosed information, including trade secrets and test
data........................................................................................................................... .................85
(i) Any other categories of  intellectual property............................................................................85
3. Measures to prevent abuse of in tellectual property rights..................................................85WT/ACC/DZA/14/Add.1
Page x
4. Enforcement .................................................................................................................. ..........86
(a) Civil judicial proced ures and remedies.....................................................................................8 6
(b) Provisional  measures ........................................................................................................ ........87
(c) Any administrative pro cedures and remedies ...........................................................................87
(d) Any special bo rder measures ................................................................................................. ...88
(e) Criminal procedures......................................................................................................... .........88
5. Laws, decrees, regulations and other legal instruments relating to the above..................89
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................90
1. General...................................................................................................................... ...............90
(a) Transport................................................................................................................... ................91
(b) Posts and te lecommuni cations ................................................................................................ ..91
(c) Infor mation ................................................................................................................. ..............95
(d) Adver tising................................................................................................................. ...............95
(e) Tourism..................................................................................................................... ................95
(f) Financial services.......................................................................................................... ............96
(i) Banking ..................................................................................................................... ................96
(ii) Insu rance .................................................................................................................. ................96
(g) Business services ........................................................................................................... ...........96
(h) Wholesale distri bution se rvices ............................................................................................. ...96
(i) Environmenta l serv ices...................................................................................................... .......97
(j) Educationa l serv ices ........................................................................................................ .........97
(k) Health-related an d social services.......................................................................................... ...97
2. Policies affecting trade in services......................................................................................... 97
(a) Ministries, institutions, trade associations or other bodies with responsibilities or a
role in the conduct of  service ac tivitie s.....................................................................................9 8
(b) Courts or judicial, arbitral or admini strative procedures which serve to review
administrative decisions affecting trade in services or to apply remedies in respect of
such decisions ................................................................................................................. ..........98
(c) Provisions, including those of international agreements concerning requirements and
procedures in respect of qualifications, technical standards and licensing and/or
registration requirements for th e provision of  services.............................................................98
(d) The water, electricity and telecommunication distribution services will be the subject
of concessions to all public and private enterprises, in the context of legislationcurrently being framed or  already in  force................................................................................99
(e) Provisions relating to safeguard measures wh ich are applicable to trade in services...............99
(f) Provisions relating to international transfers and payments for current services-related
transactions ................................................................................................................... ............99
(g) Provisions relating to capital transac tions affecting the s upply of se rvices..............................99
(h) Provisions concerning the procurement of services by gove rnment agencies..........................99WT/ACC/DZA/14/Add.1
Page xi
(i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or
programme of promotion affe cting trade in  services................................................................99
3. Market access and national treatment..................................................................................99
(a) Limitations on the number of service pr oviders .......................................................................99
(b) Limitations on the total value of service transactio ns or assets ................................................99
(c) Limitations on the total number of service operations or on the total quantity of
service output................................................................................................................. .........100
(d) Limitations on the total number of persons who may be employed in a particular
service sector................................................................................................................. ..........100
(e) Limitations on the total number of specific legal entities through which a service may
be provided .................................................................................................................... .........100
(f) Limitations on the participat ion of foreig n capital..................................................................100
(g) Measures providing for treatment less favourable than that accorded to national
service or serv ice providers ................................................................................................... .100
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ..............................................................................................100
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade
in services.................................................................................................................... ...........100
(a) Bilateral trad e agreements.................................................................................................. .....100
(b) Trade and tari ff conventions ................................................................................................ ...101
2. Economic integration, customs union and free-trade area agreements...........................101
(a) Agreement with the Arab Maghreb Union (AMU) ................................................................101
(i) The Trade and Tariff Convention, ratified by Algeria on 21 April 1992, which
provides for:.................................................................................................................. ..........101
(ii) The Convention on Trade in Agricultural Products, signed in July 1990, which
provides for:.................................................................................................................. ..........101
(b) Cooperation agreement with the European Economic Community........................................102
(c) Treaty establishing the African Uni on, signed at Abuja (Nigeria) in 1991 ............................102
3. Labour market integration agreements..............................................................................102
4. Multilateral economic cooperation, membership of multilateral economic
organizations, trade-related programmes of other multilateral organizations...............103
ANNEX  Statistics and publications ............................................................................................ ....104
_______________WT/ACC/DZA/14/Add.1
Page 1
I. INTRODUCTION
Since regaining its political independence in 1962, Algeria has, it is true, remained formally
outside the multilateral framework of the GATT and th e new WTO.  However, it has always maintained
the tradition of an economy broadly open to international trade.
This tradition of openness in the field of trade is clearly apparent, first of all, in the very large
contribution which foreign trade has always made to the gross domestic product:  in recent years this
share has regularly fluctuated between 60 and 66 per cent, after reaching almost 80 per cent in the
1970s.
It is also apparent in the quality and strength  of the trade relations which Algeria, as both
importer and exporter, has always maintained with  most of the countries forming part of the
international community.
In applying for accession to the World Trade Or ganization, Algeria is endeavouring, first and
foremost, to perpetuate and confirm this policy of ope nness to world trade.  At the same time, it is also
anxious to make its modest contribution to th e strengthening of the new organization and the
consolidation of the multilateral trading system.
Specifically, the trade policy which Algeria intends to pursue has three key objectives:- Firstly, there is the general objective of trade diversification, which involves casting off
the restrictive role of being almost exclusively an exporter of mineral products.Although exports of valuable energy resour ces, such as oil, gas, and oil and gas
products, will undoubtedly remain a vital segment of Algeria's foreign trade for the next
20 or 30 years, it also seems increasingly important to take advantage of the
acknowledged strength of this underpinning economic activity to build additional
bridges rather than to restrict trade to a si ngle narrow international specialization.  Thus,
it is firmly believed that the first aim should be to seek foreign trade liberalization as a
precondition of the medium- and long-term diversification of exports and hence
production.
- The second objective is to raise the general level of competitiveness of the industrial
sector in order, in particular, to prep are it to face ever-increasing competition from
foreign products, on both the domestic and external markets.  The economic adjustment
programmes undertaken in this connection, in close collaboration with the IMF and the
World Bank, have already done much to clear the path.  In particular, these
programmes have focused on the removal of all non-tariff barriers to trade,
accompanied by a reduction in the overall tariff level. This policy will be continued
with the progressive reductions in tari ff protection being correlated with the
improvements in the performance of the domestic manufacturers.
- The third objective is to establish control over imports of agricultural and food products
intended for home consumption.  These imports, which have developed amid a general
context of domestic farming inefficiency and have been encouraged by an open tradepolicy, reached a total of US$2.5 billion in  2000.  Thus, a fundamental concern of the
country's trade policy remains the increas ingly heavy demand for food imports and
unfavourable fluctuations in food prices on the world market.
In short, Algeria considers that the framewor k for multilateral negotiations afforded by the
WTO would assist and generally facilitate the ac hievement of its foreign trade and development
objectives.WT/ACC/DZA/14/Add.1
Page 2
Algeria is convinced that its accession to the WTO will enable it to participate more effectively
in the general growth of world trade as a means for countries to create and accumulate wealth and as a
key instrument in the struggle against global poverty.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description
Situated in North-West Afri ca, Algeria, with its 2,383,741 km2, is one of the biggest countries
on the African Continent (second larg est).  Bounded on the north by the Mediterranean, it has a coastline
1,200 kms long and thus occupies more than half of  the western part of the Mediterranean's southern
shore.  It shares frontiers with Morocco and th e Saharawi Arab Democratic Republic (SADR) to the
west, Mauritania, Mali and Niger to the south, and Libya and Tunisia to the east.  The desert zones to the
south of the Saharan Atlas mountains occupy five sixths of the national territory and are rich in minerals,
oil and gas.
The capital of Algeria is Algiers.  Situated in the middle of the country, Algiers is both an
administrative and an economic centre.
Algeria is a unitary State.  For administrative purposes, the national territory is subdivided into
48 wilayas (provinces) and 1,541 communes.
These local authorities are financially independent legal entities.  The law grants them extensive
powers to manage their administrative affairs and promote local economic development.
Since the country achieved political independence in 1962, the population of Algeria has grown
extremely rapidly.  Estimated at 10.2 million in 1962, by the year 2000 it had reached over 30 million.
The average annual rate of growth, which was more than 3 per cent between 1962 and 1987, has
since fallen appreciably, having been estimated at 1.4 per cent over the period 1997-2000.
This high rate of population growth is creatin g a very strong social demand for medical care,
education, housing, etc.  In particular, it is produc ing a steady stream of new job-seekers, evaluated at
250,000 per year.  Over the past four years, the workin g population has increased at the same rate as that
of the economy.
Economically, Algeria has great potential in te rms of agricultural production, industrial capacity
and oil and mineral wealth.  These resources are making Algeria an important economic partner in
North Africa and the Mediterranean Basin:
- The country remains predominantly agricultural, despite the natural constraints imposed
on agriculture by the narrowness of the area su itable for farming (3 per cent of the total
area of the country) and by the vagaries of the climate and rainfall.
- In addition to producing oil and minerals, Algeria has a rich subsoil with a potential
which has not yet been fully explored.  The discovery of oil in the 1950s opened theway for the large-scale development of a sector which has made a powerful
contribution to the transformation and expans ion of the Algerian economy.  However, it
is the country's proven gas reserves which are relatively most abundant.  Thanks to an
ambitious research programme, run with th e support of foreign firms, Algeria's proven
reserves have been substantially increased over the past few years.  Overall, the
hydrocarbon sector is by far the most influen tial branch of the Algerian economy.  For aWT/ACC/DZA/14/Add.1
Page 3
long time it has regularly contributed be tween 20 and 30 per cent of GDP and accounts
for more than 95 per cent of exports and from 40 to 45 per cent, on average, of State
revenue.
- The country has considerable and diversified capacity in the field of heavy industry
(iron and steel, petrochemicals, mechanical engineering, metallurgy, etc.) and in the
processing industries.  Despite the known weaknesses of the industrial sector, the
prospects for its restructuring make it a futu re strategic sector of the Algerian economy,
considering the extent of the reserves of productivity available.
Apart from these vital sectors of the economy, Al geria has a considerable potential for tourism,
based on such assets as a rich historical heritage, tourist centres with varied and highly distinctive
climatic and geographical characteristics, and a solid tourism infrastructure.
(b) Current economic situation
The overreliance on the oil and gas sectors for financing foreign trade and the State budget and
the resulting fragility of the Algerian economy as  whole became clearly apparent in 1986 with the
abrupt fall in prices on the international oil market.
Over the next few years, by analysing the en suing difficulties for the Algerian economy and
Algerian society, the economic authorities gradually  came to the conclusion that the organization and
management of the economy needed to be radically  transformed. The transition from an overcentralized
economy in which initiative was stifled by heavy-handed administration to an economy based on thefree play of market forces and competition, open to tr ade and comprehensively integrated into the world
market, thus became a strategic objective, enshrined in the country's Basic Law.
A structural adjustment programme has been under way since 1994.  It began slowly but was
subsequently speeded up and received substantial support from the international financial institutions
(IMF and IBRD) and other multilateral institutions, the European Union and industrialized countries.  Its
objectives include liberalizing the economy, reducing the sensitivity of the macroeconomic balances to
external stresses, improving the performance of th e Algerian productive sector and managing social
constraints on a basis of solidarity and fairness.  I ndeed, there have been strong fluctuations in the
economic growth rate, which reached a figure as high as 5.8 per cent in 1998.
The changes brought about by this programme, in a context of tighter external financial
constraints up to the end of 1999, have been accompanied by a relatively weak performance in terms of
growth, although the rescheduling of the foreign debt  and the subsequent raising of hydrocarbon export
prices have enabled Algerian enterprises to obtai n the financing necessary to import essential raw
materials and supplies.
However, a number of serious problems remain to be solved:
- The high rate of unemployment (30 per cent in 2000), particularly among the youngest
segments of the population;
- the weight of social demand, which is incr easingly stretching the State services and
maintaining a heavy pressure on budget resources:  in spite of the authorities'
determination since 1989 to eliminate budget deficit, the past decade has seen a
succession of surpluses and negative balances – a situation that is largely due to the fact
that taxation on oil operations accounts for a considerable share of governmentrevenues;  after a period (1992-1995) marked by budget deficits, surpluses were
recorded up to 2000, despite the temporary fall in oil prices in 1996 and 1997;WT/ACC/DZA/14/Add.1
Page 4
- the low level of efficiency of the non-hydrocarbon industrial sector and its
overdependence on imported inputs:  this s ector, which makes only partial use of its
installed capacity (50 per cent on average), is  almost exclusively oriented towards the
domestic market;  it depends on imports to the extent of 23 per cent of its turnover,
while exports represent only some 3 per cent of turnover;
- finally, the high cost of food imports, the bill for which in 2000 amounted to almost
US$2.5 billion;  the size of this bill can be attributed as much to the weak performance
of the Algerian agricultural sector and inad equate local intermediate goods capacity as
to the inconsistencies of the import management system;  this is a major concern of the
Algerian authorities who are hoping that, in  the future, it will be possible to redirect
some of these resources into investment and the development of domestic production.
2. Economic policies
(a) Main directions and goals of the current economic policies
(i) Background
Immediately after gaining political independ ence in 1962, Algeria had to assume immense
social responsibilities, in particular in the areas of employment, education and health, on behalf of a
people hard hit by war, in addition to the task of se tting up economic institutions designed to enable it to
mobilize its resources in the interests of long-term economic and social development.
In these circumstances, the State came to be assigned a predominant role, for objective reasons
initially connected with the concern to recover contro l over the resources of the nation in order to devote
them, during the 1970s, to the implementation of la rge-scale public investment programmes and the
creation of an industrial base which could meet th e objectives of economic and social development and
furtherance of national prosperity.
The State, having set itself up as a direct developer, resorted to a rigid, excessively centralized
and totally administered planning system, which wa s applied both to the allocation of resources and to
the organization and operation of the principal leve rs controlling the various aspects of the economy,
including the pricing system, foreign trade, th e foreign exchange regime, credit and incomes.
From 1970 onwards, this development process wa s to unfold in an international context
characterized by economic recession in the big industr ial countries and by a favourable financial market
which encouraged a feeling that resources were plentiful, as a result of the strong upward trend in
nominal export prices.
Thus organized, the efforts to develop the Algerian economy began by enabling the emergence
of a sizeable industrial base and largely succeeded in meeting the basic social needs of the population.
The programme relied on extremely high rates of investment (40 per cent on average during the 1970s),
mainly in the industrial production and hydrocarbon sectors.
This investment was channelled almost exclusiv ely into State enterprises, private industry
receiving only 2 per cent of the total.  In this in itial phase, the growth rates recorded were high,
purchasing power increased and unemployment fell substantially.
However, in relation to the real expressed ec onomic and social needs this performance was still
not good enough.  Moreover, the administered a nd centralized system of economic management, by
giving priority to physical investment objectiv es and excluding the criteria of production and
management efficiency, encouraged cost overruns a nd the wastage of resources and gradually led to the
emergence and aggravation of structural macro economic imbalances, both internal and external.WT/ACC/DZA/14/Add.1
Page 5
Although these structural weaknesses were recogn ized and identified, it was the sharp fall in
prices on the international oil market which brought them into the spotlight and, in particular, showed
them to be unsustainable.  Indeed:
- The inefficient use of capital and the low rates of utilization of installed capacity were
leading to the deterioration of the financial structure of State-owned enterprises, whose
operating deficits were becoming chronic.
- In agriculture, low yields resulted in an increase in food imports.  In the early 1980s,
agricultural production, which used to meet 93 per cent of national needs, was able to
meet no more than 30 per cent, taking into account the considerable increase in the size
of the population.
- Monetary financing of the budget deficit made its appearance and took hold:  the
economy became progressively more liquid with a considerable  growth in credit,
intended to cover the accumulated deficits of public enterprises and budget
expenditures.
- Finally, and above all, in the area of fore ign trade, the ever-increasing recourse to
imports seriously upset the balance of trade in goods and services, despite a significant
increase in hydrocarbon export earnings, re sulting as much from increased production
as from the rise in the average price level on the international oil market.
(ii) The structural reform of the Algerian economy
This was the context for a programme of st ructural reform based on a transition from
authoritarian, central and administrative contro l of the economy to a reliance on market forces.
In the public sector, a process aimed at making enterprises, banks and farms completely
autonomous was initiated in 1987-1988.  This was followed by the gradual freeing of prices, the
liberalization of foreign trade and the foreign exch ange regime, and a reform of labour legislation
designed to bring greater flexibility into empl oyment contracts and wage bargaining, as well as
confirming the right to strike and abolishing the closed shop.
The aims of this reform programme were to stabilize the macroeconomic framework by
controlling inflation and to bring the capital balan ce back into equilibrium.  A law on money and credit
established the institutional framework for this stab ilization:  independence for the Central Bank in the
conduct of monetary policy, the internal stability of the currency, demonetization of the domestic public
debt, and the restructuring of bank portfolios.
However, one of the difficulties encountered by the reform programme, launched in 1988, was
an extremely tense external situation in which th e burden of servicing the foreign debt was sharply
restricting the capacity to supply the productive a pparatus and preventing any serious recovery in
investment and growth.
In 1989, the cost of servicing the Algerian foreig n debt represented 78 per cent of annual export
earnings and the average repayment period was only three y ears.  In order to deal with this problem, the
authorities applied to the creditors for voluntar y refinancing, rather than seeking a multilateral
rescheduling of the debt.
To sum up, although significant progress was made in the areas of price reform and control of
inflationary pressures of monetary origin, in 1992-1993 the process began to slow down.  External
constraints and domestic social pressures led to th e reappearance of trade and currency restrictions,WT/ACC/DZA/14/Add.1
Page 6
accompanied by recourse to the budgetary financing of social needs and a resumption of monetary
financing of the budget deficits.
The development of major financial imbalances during these two years and the increase in
external financial constraints induced the Algerian authorities to resume and speed up their efforts to
achieve macroeconomic stabilization, starting in 1994, within the framework of an economicprogramme supported by a Stand-By Arrangem ent with the International Monetary Fund.
(iii) The stand-by programme (April 1994-March 1995)
This programme has made it possible to open up the Algerian economy more fully to the world
economy and to organize an improved response to the needs of the population.
Thus, major reforms were introduced, in particular , the abolition of quantitative restrictions on
merchandise imports, the dismantling of the procedur es for the administrative allocation of foreign
exchange in respect of merchandise imports, the ex tension of the free pricing regime to most products
and the reduction of subsidies on food and energy products.
At the macroeconomic level, the programme is making it possible to halt the recession and
control inflation thanks to far-reaching budget adju stment and a sharp tightening of monetary policy.
This macroeconomic stabilization is backed by a rigorous wage policy, significantly higher
interest rates and a realignment of relative prices through a substantial devaluation of the dinar.
The adjustment of the exchange rate has been followed by a progressive transition from a rigid
foreign exchange system to a flexible system determined by a currency market.
All these important economic reforms have been ca rried out in the face of a very difficult social
situation.  They have been made possible by a constr uctive dialogue with the social partners, a radical
reorganization of the welfare system and, in particul ar, the broad support of the international financial
community, especially in the form of a re scheduling of the country's foreign debt.
Despite this substantial progress, in mid-1995 the Algerian economy was still beset by
numerous fundamental problems, in cluding, in particular, overde pendence on the hydrocarbon sector
accounting for almost all Algeria's export earnings and the still excessive burden imposed by a high
debt-service/exports ratio.  These two major constrai nts constituted an obstacle to strong economic
growth, alone capable of reducing an increasingly in tolerable level of youth unemployment and meeting
the country's other needs, particularly for housing.
The Algerian authorities, consider ing that the return of strong growth remained basically linked
to the completion of the task of economic stabiliz ation, accordingly took the decision to pursue the
structural adjustment process fo r a further period of three years.
(iv) Objectives and results of the medium-term economic programme
The aim of this programme, supported by the International Monetary Fund on the basis of an
extended facility agreement, was to continue a nd extend the Government's efforts to stabilize the
macroeconomic framework, introduce structural reforms and give a new impetus to economic growth,
with a strong emphasis on employment and housing.
The programme thus proposed to achieve, in particular, the following objectives:
- An increase of at least 5 per cent in produc tion, excluding the oil and gas sector, over
the period 1995-1998, with a strong emphasis on job creation;  priority was given, inWT/ACC/DZA/14/Add.1
Page 7
particular, to agriculture, the construction of housing and small and medium-sized
industrial enterprises, as well as to the ad aptation of the welfare system with a view to
cushioning the impact of the adjustment s on the most vulnerable social groups;
- the continuation of the price stabilizati on and exchange rate measures already
undertaken, with a view to achieving the co nvergence of the inflation rate on that of
Algeria's principal trading partners;  the ai m was to reduce the element of uncertainty in
the negotiations with the social partners and to improve the competitiveness of the
national economy as it opened up to the world market;
- a progressive reduction in the deficit on the current account to 6.9 per cent of GDP in
1994-1995 and to 2.2 per cent in 1997-1998, while maintaining a level of imports
consistent with the requirements of economic growth;
- a progressive increase in the contribution of domestic savings to the financing of
investment and an improvement in investment efficiency.
The performance of the Algerian economy was higher between 1996 and 2000 than it was
during the period 1986-1994.  Given the volatility of hydrocarbon export prices, the growth rate (with an
average of 3.5 per cent per year between 1996 and 2000) may be viewed as satisfactory.  Bolstered by
the expansion of the oil and gas sector and at times by agriculture, such growth  did not, however, lead to
any progress in reducing the volume of underemployment or in improving people's living standards.
On the other hand, the disinflation process, initiated in 1994, continued.  The average rate of
price increase dropped sharply to 0.33 per cent in 2000 (against 2.6 per cent in 1999 and 5.8 per cent in
1998).  Price stabilization efforts were backed by  rigorous measures to restore the macroeconomic
equilibrium and in particular to bring the country's external accounts back into balance;  these results
have been boosted by a more favourable situation in the international oil market since late 1999.  In2000, the foreign debt service ratio plummeted to an  historical low of 19.8 per cent.  The exchange
reserves stock was regenerated and exceeded US$10 billion in 2000, excluding gold, i.e., the equivalent
of more than a year of imports.
(v)  Economic and social development policy
Today, the Algerian economy is faced with important choices which it must make in order to
begin the 21st century under conditions conducive to its harmonious integration in the world economy.
This will require the restoration of the conditions necessary for strong and sustainable growth
and the elimination of the accumulated imbalances stemming from the system of production and the
handling of the social demand.  Thus, strong and con tinuous economic growth is essential to lighten the
burden of unemployment and gradually raise the general standard of living of the population.  Theauthorities have accordingly launched a three-year  (2001-2004) economic recovery support programme,
which aims to increase the population's standard of living and to combat poverty (through the
strengthening of drinking water supply infrastruct ure, desalination projects, the rehabilitation and
extension of educational facilities, the construction of urban and rural housing, the connection of some
50 localities to the natural gas distribution network, th e development of road and rail infrastructure, and
so forth).
With respect to these constraints, some sectors wi ll have to be given absolute priority because of
their importance as engines of economic growth:  housing, because of its knock-on effects and strong
influence on short-term job creation and to alleviate the acute crisis prevailing in that sector;  and
agriculture, in order to meet people's food requi rements, reduce dependence on food imports and check
the flight from the countryside.  The current three-year programme thus plans to extend farmland toWT/ACC/DZA/14/Add.1
Page 8
700,000 hectares, to develop fruit and forest plan tations, livestock and fisheries production and to
preserve steppe rangelands.
As far as the external balances are concerned, the aim is to guarantee the long-term viability of
the balance of payments, thanks to the special cont ribution of the oil and gas sector but also to the
anticipated development of exports in other sectors and, finally, to the organization of a sustainable debt
service schedule.
Furthermore, the management of the internal ba lances will require, on the part of the Treasury,
the continuous maintenance of a surplus that will, firs tly, help to stabilize the economy but will above all
help to finance growth by releasing the re sources needed to revitalize investment.
(vi) Programme of privatization of State-owned enterprises
In general, Algerian State-owned enterprise s are managed on the same basis as private
enterprises.  They operate in accordance with the ru les of private law and are subject to the ordinary
rules of the Commercial Code.
Since 1988, the State has been almost totally relieved of responsibility for the management of
these enterprises.  A number of them (23) which are experiencing serious structural imbalances are the
subject of a specific reorganization and restructur ing programme, supported in 1994 by the World Bank.
Thus, 959 local and national State-owned enterprises ha ve been wound up and their assets sold to their
employees, which has led to the creation of 1,774 new en tities.  Other public enterprises have been sold
off directly to the private sector.
Order No. 95-22 (as amended and supplemented by  Order No. 97-12) was enacted in order to
define the procedures for the privatization of Stat e-owned enterprises;  these procedures are largely
based on World Bank techniques for the transfer of pr operty and management of State enterprises to the
private sector, which have been proposed to me mber countries for the past 20 years.  Order
No. 95-22 also contains an exhaustive list of co mpetitive activities, including State-owned enterprises
that may be offered for privatization.
Implementation of this programme for the priva tization of public enterprises is a long-term
process.  The capital of some State-owned firms ha s already been opened up to the private sector and
their shares are now being traded on the Algiers st ock exchange.  In order to encourage investment
(including of foreign capital), the Algerian authorit ies have decided to create a partnership fund, based
on job maintenance, existing activities and the deve lopment of under-utilized resources, including the
introduction of effective technologies.  Three priv atization projects are being implemented, with the
support of foreign firms, in the iron and st eel, drinks, and cork processing sectors.
The concession system has now been extended fro m the mining sector to other public sectors.
As a result, private competition has been introduced in  the air, maritime and land transport sectors and is
in the process of being introduced in telecommuni cations, airport infrastructure management, and so
forth.  The financial sector, for example, has now  acquired new insurance companies and commercial
banks, with the help of national and foreign private investments;  the International Finance Corporation
has actively contributed to these sweeping changes.
(b) Monetary and fiscal policies
Since April 1994, monetary policy has been based on a sharp rise in the interest rates applied to
bank refinancing within a context of liberalizati on of interbank money market rates and inflationary
pressures.WT/ACC/DZA/14/Add.1
Page 9
This readjustment of the interest-rate structure has made it possible to assimilate the price effect
inherent in the substantial exchange-rate adju stment, including the 40 per cent devaluation in
April 1994.
The strict conduct of monetary policy, combin ed with the prudent implementation of the
stabilization programme, has made it possible to ch eck inflation, which was as high as 29 per cent in
1994.
Correlatively with the effect of the exchange rate adjustment, business loans increased by only
10 per cent during the period 1996-2000.
The introduction of the legal reserve, in the fourth quarter of 1994, made it possible to begin the
transition to indirect instruments of monetary policy, while stimulating the management of bank
liquidity, in conjunction with flexibility in the de termination of exchange rates by means of fixing
sessions.
The change in monetary policy instruments, with the emergence of the role of indirect
instruments, was consolidated in May 1995 by th e introduction of a tender system for allocating
refinancing credit.
Tendering for refinancing credit has introduced a certain amount of competition as regards
recourse to the lender of last resort, particularly as  the relative importance of this mode of refinancing
has increased thanks to the resources allocated by the Bank of Algeria through its intervention on the
money market.
Thus, with the expansion of the interbank market, the money market now plays a more
important part in the allocation of refinancing resources.
Moreover, the switch in monetary policy instru ments was carried a stage further in 1995 with
the auctioning of treasury bills.
The flexibility of the interest rates established on the money market, as an anchor point for the
conduct of a strict monetary policy (together with the establishment of prudential rules in 1995), has
helped to ease the tensions in the area of bank liquidity inherent in the balance-of-payments shock.
Despite the slow increase in bus iness loans, the money supply grew by almost 50 per cent over
the period 1996-2000 as a result of the flow of net credit  to the Government.  This was largely due to the
collapse of the international oil market, i.e., to an extraneous factor.
The control of inflation continued to be an objective of monetary policy.  Further efforts have
been made to achieve monetary stabilization with a vi ew to the total liberalization of the banks' lending
interest rates.
Thus, the ceiling imposed on bank margins was abolished in December 1995, in order to
stimulate interest rate formation on a competitive ba sis and to promote significant and stable savings.
The anticipated expansion of the role of refi nancing credit auctions will contribute to the
development of a credit market that will provide the foundation for a sound bank portfolio.
As an indirect instrument of monetary policy,  the open market will ensure more active liquidity
management, with the consolidation of the government securities market.
The more restrictive monetary and financial policy, along with the opening up of the domestic
market to external competition, has succeeded in brin ging inflation close to zero.  During the periodWT/ACC/DZA/14/Add.1
Page 10
1994-2000, the remarkable drop in the inflation rate, along with the introduction of positive real interest
rates, was accompanied by a sharp reduction in the discount rate.  This partly explains why near-money
more than doubled between 1996 and 1999.
(c) Foreign-exchange regime and liberalization of foreign trade
The liberalization of foreign trade and the foreign-exchange regime was begun in April 1994
within the framework of the stabilization progra mme.  The 40-per-cent devaluation of the national
currency, which took place at that time, provided  the foundation for a flexible exchange-rate policy
supported by the rigorous pursuit of appropriate monetary and financial policies.
The introduction, in September 1994, of daily fixi ng sessions confirmed the transition from a
fixed exchange-rate system to the increased flexibi lity of an exchange rate determined by auction.
The liberalization of imports was steadily pursued in 1994 and completed by the beginning of
1995, despite the appearance of stresses on the foreign-exchange market due to unfavourable external
factors.
There is now full convertibility for current tr ansactions, with the exception of limitations on
foreign travel expenses, medical expenses and school fees.
An interbank foreign-exchange market was established at the beginning of January 1996.Moreover, foreign exchange controls are increasi ngly applied on a decentralized basis, at the
level of the banks and other approved intermediaries .  Thus, the proceeds from exports of products other
than oil, gas and ores are being repatriated directly  on the interbank exchange market and 50 per cent are
being sold on that market.  The foreign currency res ources resulting from these sales represent, in the
initial phase, the bulk of the resources left at th e disposal of the banks and financial institutions.
The interbank exchange market involves cash and term transactions, between approved
intermediaries, whereas the Central Bank intervenes onl y in cash transactions.  The exchange rate of the
dinar is determined on the interbank exchange market , with approved intermediaries taking an active
part.  It reached 76.66 dinars to the US dollar at the beginning of May 2001.
The anticipated expansion of the foreign currency resources of the approved intermediaries and
the increasing number of participants will contri bute to the efficient allocation of foreign currency
resources on the interbank exchange market.  The development of this market will be supported by the
establishment of rules for the prudential monitoring  of exchange positions, with a view to increased
liberalization of capital movements and total convertibility of the dinar.
(d) Investment and domestic investment policy
The basis of the policy for encouraging investment is the Basic Law on the promotion of
investment (Legislative Decree of 5 October 1993).
This general piece of legislation abolishes the numerous previous regimes, but leaves the
acquired benefits intact.
It lays down the general principles and establis hes the legal framework and the rules applicable
to investment.
It also pursues specific regional and economic integration objectives under various regimes.WT/ACC/DZA/14/Add.1
Page 11
Thus, the determination of the exemption periods and the precise range of benefits granted
depend on considerations relating to employment, the development of technology and local resources,
regional balance and land-use planning.
(i) General principles
The Legislative Decree gives a very liberal definition of investment covering any activity
involving the production of goods or services.
It also provides that any natural or juridical person, governed by public or private law, resident
or non-resident, shall be free to invest.  Moreover, the Decree:
- Guarantees the transfer of invested capital, as well as all income, dividends and interest
produced;
- regulates the granting of incentives on the ba sis of a simple declaration of investment
and application for benefits;
- treats the foreign investor in exactly the same way as the domestic investor;- establishes the basic rules for compensation in the event of expropriation;- allows for appeal to international arbitration, in the event of disputes.
In addition to these internal provisions, the law also strengthens the confidence of foreign
investors by recognizing the guarantees offered by multilateral and bilateral investment protection
conventions and bilateral double taxation agreements .  Thus, Algeria has signed conventions on mutual
promotion of investments with numerous countries  (France, the Belgo-Luxembourg Economic Union,
Italy, Spain, the United States, etc.) and double ta xation agreements with Canada, France, Morocco,
South Africa, and so forth.
Algeria has also ratified several multilateral or regional investment promotion and protection
agreements.  In 1995, it ratified the Convention establishing the Multilateral Investment Guarantee
Agency and the Convention on the Settlement of Inve stment Disputes between States and Nationals of
Other States.
Implementation of this investment promoti on policy has been entrusted to a Government
agency known as the Investment Promotion, Suppor t and Monitoring Agency (APSI), which has been
given special prerogatives with respect to the gr anting of tax concessions.  As well as being a
component of the legislative apparatus and an inst itutional cornerstone, APSI also provides investors
with technical assistance and information, in particular through its "single window".
(ii) Incentive regimes
The Order and subsequent texts provide for the application of six investor incentive regimes:
- The general regime, for investment in regions or economic zones enjoying relative
economic expansion;
- the special zone regime, which applies to investment in regions and communes with a
low level of economic integration;
- the so-called "Seconde Couronne" regime, fo r the central regions separating the north
of the country from the south;WT/ACC/DZA/14/Add.1
Page 12
- the deep south regime, which applies to inve stment in the four wilayas (departments) in
the south of the country;
- the free zone regime, for investment in free zones not subject to the domestic tax and
customs regimes;
- the agreement regime, for investments of strategic importance, which is granted by the
State to the investor on the basis of a specific agreement.
Under all these regimes, the system of incentives  covers both the period of realization and the
period of exploitation of the investment, in accord ance with the definitions and variations directly
established by the Law.
(e) Price and competition policies
Since the end of the 1980s, the Algerian authorit ies have been following a price policy whose
central objective has been to restore to the market  the primary role in the determination of prices.
This objective has been pursued with great tenacity, despite an extremely unfavourable
economic and social context.
It should be noted that the price system previ ously applied created numerous distortions, to the
detriment of the entire economy.  Indeed:
- In the long run, all the economic operators were severely penalized by the more or less
general practice of direct price-fixing by the central administration.  The results turned
out to be very different from the formal objectives.  Freezing prices actually hurt the
enterprises, which accumulated deficits, the Treasury, which was obliged to grant large
subsidies, and the consumers, who suffere d from the chronic disorganization of the
market.
- Despite occasional sharp increases, on both domestic and foreign markets, the freezing
of the prices of most goods and services, to gether with the system  of implicit subsidies,
created a strong bottled-up pressure for read justments, thus leading to the progressive
development of the informal economy.
- A widening gap developed between the real cost and the price of the goods and services
openly subsidized by the State and this, in a ddition to an increasingly serious impact on
the budget, produced such undesirable effect s as waste and over-consumption, swollen
imports and fraudulent re-exportation.
The main thrust of the reform of the price sy stem introduced in 1989 was gradually to substitute
the principle of freedom of prices and transactions fo r prices that were administratively fixed.  Decisions
concerning prices were to be gradually transferred from the government to enterprises.
Two price regimes were therefore established:
- The regulated price regime, which initially applied to most marketed goods and
services.  This regime was intended formally to organize the various modes of price
regulation before prices were gradually freed, while preserving the profitability of theactivities involved.WT/ACC/DZA/14/Add.1
Page 13
- The free price regime, which initially applied to a very small range of goods and
services.  It has since been gradually extended to the whole economy.  In fact, whereas
in 1989 only 10 per cent of goods and services were eligible, today only an extremely
small number of products (milk, semolina, flour, medicines) still remain uncovered,
because of their considerable social importance.
The practice of subsidization has been sharply curtailed and the system has been gradually
dismantled.
The gradual dismantling of budgetary price support subsidies has also been extended to the
implicit subsidies granted to certain specific produc ts not eligible for direct budgetary support, whose
domestic prices were fixed at levels below the international economic cost.  This was the case with
petroleum products, gas, electricity and water.
The important results achieved in the area of liberalization of the prices of goods and services
go hand in hand with a complete transformation of  the system of organization of the economy.  In
particular, the Constitution of 28 November 1996 has fu lly liberalized trade and industry, normalized the
management of public enterprises and made them subj ect to the universal rules of the Commercial Code,
and abolished all statutory or de facto  monopolies.
These developments having gradually created a new situation in which enterprises enjoy
complete economic freedom, the Government addressed itself to the task of drawing up competition
legislation essentially intended to protect the freedom of the economic operators by laying down rules togovern the relations between them and setting up m achinery to monitor comp liance with those rules.
This is the basic object of the Competition Law promulgated in January 1995, which served as a basis
for establishing regulations (adopted in October 2000) on the identification of dominant positions and
market concentration.
This Law introduces a system for controlling and protecting competition on the basis of the
following principles:
- Free pricing is the general rule and the determination of prices by the State is an
exception applicable only in unusual situations or special circumstances.
- Anti-competitive practices and abuses are clearly defined and expressly prohibited.
This applies, in particular, to all practices aimed at restricting market access or
distorting the free play of competition, at frust rating the determination of prices by the
free operation of the market, at restric ting or controlling production, investment,
markets or technical progress or, finally, at pl acing an enterprise or group of enterprises
in a dominant position.
- All abuses and restrictive practices are identified as offences and prohibited.  These
practices involve, in particular, creating captive markets, restri cting the information
available to the consumer, refusing to sell, and tied or discriminatory sales.
The bodies responsible for supervising competiti on and ensuring compliance with the rules are,
in addition to a Competition Council expressly established by the Law for that purpose, the competition
and price services of the Department of Trade and, finally, the competent courts.
The Competition Council consists of judges, competition experts and economists.  It has a triple
function:
- To advise the legislative and executive bran ches on all matters relating to competition
and its development;WT/ACC/DZA/14/Add.1
Page 14
- to supervise competition and investigate and puni sh any infringements of the rules;  the
decisions of the Competition Council can be appealed to the Court of Algiers;
- to study and do research on competition and trade practices.
The process begun within the framework of this Law and the subsequent regulations is resulting
in the explicit application of free competition, in comp liance with the rules of fair trading and business
transparency.
Current efforts are directed towards developing competition in all activities where it has been
lacking, protecting it where it already exists and ex tending it where it has been restricted, including in
the few activities specified in the Constitution as remaining within the public sector (i.e., mining;
fisheries; postal and telecommunications serv ices; and air, maritime and rail transport).
It is intended that the competition mechanisms  introduced into the Algerian economy will be
gradually reinforced, in step with the emergence of a spirit of initiative and enterprise broadly
encouraged by the removal of all restrictions a nd prior controls on investment, imports, production and
distribution.  Today, enterprises (i ncluding State-run firms) must pl ay by the rules of the market.
Restraining action will be taken against businesses whose anti-competitive practices are obstructing the
free operation of the market.
Consumer price support was totally abolished in January 1997, which has driven up the prices
of commodities such as flour, milk and petroleum products.  A system of semi-annual reviews of
electricity and gas tariffs led to their proper pricing by the relevant utility in 2000.
3. Foreign trade in goods and services
(a) Trade in goods
(i) Global trend
In the last 10 years, the development of Algeria' s foreign trade has been marked by the collapse
of oil and gas prices and the depreciation of the United States dollar, the currency of account and
payment for most of the country's exports.
Trend of Foreign Trade in Goods
(in millions of US dollars)
Year1996 1997 1998 1999 2000
Imports9,090  8,130 8,630 8,960 9,350
Exports13,220 13,820 10,140   12,320  21,650
Balance+4,130 + 5,690 +1,510 +3,360 +12,300
(ii) Trade balance
The trade balance has recorded a consistent surplus since 1996 (following a period of deficits);
in 2000, it exceeded US$12.5 billion.
This trend reflects the efforts made to bring the external balances under control, given the deficit
in trade in services and the capital account.  It st ems from a substantial increase in exports of energyWT/ACC/DZA/14/Add.1
Page 15
products, thanks to heavy investment in that field since 1993 as a result of the broader opening of the
energy sector development programme to foreign par ticipation.  More than 156 per cent of imports were
covered by exports over the period 1996-2000, as compared with only 98.3 per cent in 1995.
Taking into consideration the foreign trade grow th forecasts, this upward trend should continue.
(iii) Exchange rate
The dollar exchange rate rose from DA47.65 in 1995 to DA76.66 in early May 2001, meaning
that the Algerian dinar depreciated by some 38 per cent over that period.
(iv) Export trends
Export income increased in the early 1990s and then fell in 1993-1994.  A rise in the oil price
per barrel consolidated the level of foreign exch ange earnings in 1997;  after another down-swing in
1998-1999, these reached an all-time high of US$21.65 billion in 2000.
Oil and gas remained the most important item in 2000, with a value equivalent to 96.8 per cent
of export returns as compared with 95 per cent in 1996.
Hydrocarbon export earnings rose from US $9.73 billion in 1995 to US$21.06 billion in 2000.
Moderate though it was, the increase in non-hydrocarbon export income, from US$293 to
590  million per year between 1994 a nd 2000, is also worthy of note.
The structure of Algerian exports, characterize d by the predominance of oil and gas, indicates
the extent of the efforts required to promote non-hydrocarbon exports and break away from dependence
on a single source of income, the price of which de pends entirely on the international market. Hence,
one of the key objectives of the economic policy is to diversify external sources of revenue.
(v) Import trends
The measures to liberalize foreign trade have been a boon for imports, triggering growth made
possible by the greater availability of the means of payment for foreign purchases resulting from the
agreement on a structural adjustment programme, the foreign debt rescheduling agreements and the
more recent rise in oil and gas export prices.
Imports of goods have tended to stabiliz e since 1994 and stood at an annual average of
US$8.9 billion over the period 1996-2000.  In 2000, they reached US$9.35 billion, largely owing to
private sector activity.  The items that recorded an increase were:
- Raw materials and semi-finished products:  this indicates increased procurement by
production firms that meet the new credit standing ("bankability") requirements;
- capital goods:  imports of agricultural equi pment remain low, however, compared with
those of industrial equipment;
- consumer goods:  these are becoming more readily available, thus putting an end to
their scarcity due to a lack of international liquidity.
(vi) Geographical distribution of trade
By geographical region, Europe remains Algeria's principal trading partner with close to 70 per
cent of foreign trade.  Most of these transa ctions are conducted with the European Union.
North America comes second, as a major r ecipient of Algerian hydrocarbon exports.WT/ACC/DZA/14/Add.1
Page 16
Asia occupies third place, with 6 per cent of tr ade, and is slightly ahead of South America in
terms of volume.
The level of Algerian trade with Africa remains lo w;  the focus is almost exclusively on the area
covered by the Arab Maghreb Union (AMU).
At the bilateral level, France is still Algeria' s foremost supplier with 25 per cent of Algerian
imports, followed by the United States, Italy and Spain.
Italy has become Algeria's foremost purchaser  of hydrocarbons, followed by the United States
and France.
(b) Foreign trade in services
(i) Global trend in foreign trade in services
Foreign trade in services is characterized by an irregular up-and-down trend against the
background of a sharp devaluation of the national currency.
The trade level for non-factor services is in a state of relative stagnation;  in 1995 it stood at
US$2.15 billion and rose to US$2.96 billion and 3.27 billion, respectively, in 1998 and 2000.
There has also been a decline in the contributi on of foreign trade in services to gross domestic
product from 6.1 per cent in 1996 to 4.9 per cent in 2000.
(ii) Imports of factor and non-factor services
Like the global trade in services, imports have been unstable, fluctuating between
US$4.7 billion (in 1996) and 5.45 billion (in 2000).
In 2000, external payments on factor services amounted to US$3.09 billion;  foreign debt
interest payments accounted for more than half of that figure (i.e., 1.23 billion).  Profits exported by
enterprises in the oil and gas sector exceeded US$1 billion in 2000.
(iii) Exports of factor and non-factor services
Although well below imports, exports of services have also tended to fluctuate over the range
from US$960 million (in 1996) to 1.29 billion (in 2000).
(iv) Services balance
Since imports have regularly exceeded exports, the services balance has naturally recorded a
persistent deficit, which rose from US$3.75 billion to 4.16 billion over the period 1996-2000.
A positive balance of transfers was recorded (US$790 million) in 2000.  After undergoing an
increase, remittances from migrants have now stab ilized with the establishment of a more realistic
exchange rate.WT/ACC/DZA/14/Add.1
Page 17
Statistics on Foreign Trade in Services
Trend of Foreign Trade in Factor and Non-Factor Services
(in millions of US dollars)
Year 1996 1997 1998 1999 2000
Imports 4,710 4,630 4,580 5,070 5,450
Exports 960 1,330 1,110 940 1,290
Balance 3,750 3,300 3,410 4,130 4,160
4. Domestic trade in services
The added value in the services sector amounted to DA769.66 billion in 1999, i.e., 29 per cent
of total added value of the economy.
(a) Trends in domestic trade in services
The average annual growth rate recorded since 1990 is 28 per cent, reflecting a consistent
pattern of expansion.
Domestic trade in services has accounted for more than 20 per cent of the gross domestic
product since 1990.  The share of State-owned enterp rises in the added value in services dropped
significantly from 30 to 13 per cent between 1990 and 1999, thus contributing to the privatization of the
economy.
(b) Breakdown of domestic trade in services by main areas of activity and by sector
There has been no significant change in the relati ve weight of each branch of the services sector
since 1990.
Year 1990 1999
Trade 56.0 51.0
Tourism 6.7 5.9
Business Services 4.6 7.0
Transport and Telecommunications 24.3 30.0
Household Services 8.0 6.6
Apart from telecommunications, which is still domin ated by the public sector, the other services
activities are being taken over by private operators, whose predominance has increased consistently
since 1990.  Growing privatization of the economy is leading to a marked expansion of the services
sector.
5. Information on financial movements related to nationals working abroad
The share of transfers by Algerian workers who have settled abroad, mainly in Europe, has
fallen gradually since the end of the 1970s, owing to limited convertibility of the dinar and an
overvalued exchange rate.WT/ACC/DZA/14/Add.1
Page 18
The situation became very different once the exchange rate had been adjusted and the
convertibility of the dinar had been firmly re-establis hed.  Nevertheless, the increase in remittances from
migrants is qualified by the significant changes in emigration patterns.
6. Information on growth in trade in goods and services over recent years and forecasts for
years to come
In value-added terms, the growth of domestic tr ade in services has been much greater than that
of domestic trade in goods.  This is broadly reflected in a comparison of the average growth rates over
the period 1990-1995, which show an average increase of  28 per cent for services, as against 22 per cent
for goods.
This trend in domestic trade is identical to the one observed at international level, where
economic growth is increasingly driven by the servi ces sector, particularly since the goods trade has
been hard hit by difficulties in reviving output, ow ing to the rigours of a totally open market and the
persistence of rigidities in the domestic context.
Much higher levels of growth are forecast for th e years ahead, considering the objectives of the
three-year economic recovery programme, which, while taking care to maintain macroeconomicequilibrium and in particular a sustainable leve l of external debt servicing, should lead to:
- A substantial increase in foreign trade in goods;- a revitalization of investment, backed up by  the ongoing programme of privatization of
State-owned enterprises.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND SERVICES
1. Powers of the executive, legislative and judicial branches of government
The reforms undertaken in Algeria in recent years relate to the economic, social and political
life of the country.
A series of measures have been adopted with a view to streamlining the system of national
production, by changing its methods of management and organization, and by adapting the system to
international economic and technical changes.
The Constitution of 28 November 1996 once again established the democratic principle of
separation of the executive, legislative and judicial branches of government.
(a) The Executive
As far as the Executive is concerned, the President of the Republic, as Head of State elected by
universal suffrage for five years, personifies "the un ity of the nation.  He personifies the State at home
and abroad (Article 70).  He exercises the functions of the highest office within the limits laid down by
the Constitution (Article 72)".
Apart from the powers expressly conferred on him by other constitutional provisions, the
President of the Republic enjoys th e following powers and prerogatives:
- He decides and conducts the foreign policy of the Nation;- he appoints and terminates the appoint ment of the Head of Government;WT/ACC/DZA/14/Add.1
Page 19
- he appoints and recalls ambassadors and envoys extraordinary of the Republic to
foreign countries;
- he receives letters of accreditation or recall in respect of foreign diplomatic
representatives;
- he concludes and ratifies international treaties (Article 74).The Head of Government presents the members of the Government he has selected to the
President of the Republic for appointment by the latter.
The Head of Government draws up his programme  of action, which he presents to the Council
of Ministers (Article 79).
The Head of Government submits his progra mme of action to the National Assembly for
approval and communicates the programme to the National Council (Article 80).
Apart from the powers expressly conferred on hi m by other constitutional provisions, the Head
of Government exercises the following functions:
- He allocates duties to the members of the Go vernment, pursuant to the provisions of the
Constitution;
- he presides over the Government Council;- he monitors the implementation of laws and regulations;
- he signs executive decrees;
- he monitors the proper operation of government departments (Article 86).
(b) The Legislature
Legislative power is exercised by a Parliame nt composed of two Chambers – the National
People's Assembly and the National Council.  The Parliament frames and adopts laws on a sovereign
basis.  It supervises Government action (Article 99).  The right to initiate legisl ation is vested conjointly
in the Head of Government and the members of the National People's Assembly (Article 119).  All draft
laws must be examined in turn by the Nationa l People's Assembly and the National Council prior to
their approval.
The Assembly legislates in the fields assigned to it by the Constitution.
Other matters coming within the scope of legislation are:- The fundamental rights and obligations of the individual, and in particular the rules
governing civil liberties;
- the conditions of establishment for private individuals;- land tenure;- general rules pertaining to the status of aliens;WT/ACC/DZA/14/Add.1
Page 20
- rules relating to the administration of justice and the establishment of courts;
- the general rules of criminal law and criminal  procedure, and in particular the definition
of crimes and offences, the institution of the corresponding penalties of all kinds,
amnesty and extradition;
- the rules of civil procedure and enforcement procedure;
- the rules governing civil and commercial obligations and land ownership;- the establishment, basis of assessment and rate of taxes, contributions, charges and fees
of all kinds;
- the rules governing transfer of owners hip from the public to the private sector;
- the customs regime;- the rules governing banks, credit, insuranc e, and the minting or printing of currency;
- the general rules in the labour and social security spheres;- the general rules relating to the protection of fauna and flora;
- the general forestry regime;
- the general regime governing the mining and hydrocarbon sector (Article 122).
(c) The Judiciary
The principle of the independence of the judicial branch is enshrined in various articles of the
Constitution.  The Judiciary is independent and acts under the authority of the law;  it protects society
and liberties;  it guarantees the protection of the fundamental rights of the individual (Article 139).
Appeals may be lodged with the judicial authorities against administrative actions (Article 143).
Judges are protected against all forms of pr essure, intervention or manipulation likely to
jeopardize the fulfilment of their functions.
A Judicial Service Commission takes decisions, under the conditions laid down by law, on the
appointment, transfer and career path of  judicial officers.  It also monitors respect for the status of the
Judiciary and disciplinary procedures for members of the Judiciary.
2. Government entities responsible for the framing and implementation of policies
affecting foreign trade
Article 19 of the Constitution states that "the organization of foreign trade falls within the
purview of the State.  The conditions for the exerci se and control of foreign trade are determined by
law".  The Constitution further stipulates that " freedom of trade and industry shall be guaranteed"
(Article 37).
One of the purposes of the economic reforms of the last six years has been the gradual
liberalization of foreign trade.
Algerian law previously recognized the princi ple of a State monopoly on foreign trade, whereby
the State assigned management of such trade to public  enterprises.  The adverse effects of that system,WT/ACC/DZA/14/Add.1
Page 21
including excess costs and wastage, were made all too apparent by the 1986 oil crisis and the resulting
squeeze on scarce resources.
Executive Decree No. 91-37 of 13 February 1991, on the conditions of intervention in respect of
foreign trade, was adopted to put an end to the State monopoly, thereby initiating a full liberalization of
foreign trade management.
The liberalization process was completed with th e implementation of the structural adjustment
programme in 1994 and the consolidation of the stock of foreign assets.
Foreign trade policy is decided by the Government;  it is one of the fundamental elements of the
latter's programme of action.  It is proposed by the Minister responsible for foreign trade who has the
task of monitoring and implementing the policy once it is adopted.
Executive Decree No. 94-207 of 16 July 1994, establis hing the functions of the Trade Minister,
defines his duties in respect of the organization of  trade, market regulation, competition and prices,
quality, consumption and foreign trade relations.
The scope of the Ministry's powers in the field of foreign trade is defined in terms of the
following functions (Article 8):
- To initiate and help frame organizational a nd regulatory instruments relating to foreign
trade;
- to organize and promote bilateral and multilateral trading activities, through appropriate
structures and in cooperation with the ministerial departments and institutions
concerned;
- to contribute to the preparation and negotia tion of trade agreements, in cooperation with
the institutions concerned, and to ensure their implementation and follow-up;
- to promote exports and foreign sale s of Algerian goods and services;
- to design and establish a system of inform ation on external trade relations and trade
flows;
- to ensure the dynamic management of the trade balance as a whole and by country;- to organize, in cooperation with the de partments concerned, the services with
responsibility for trade matters attached to Algeria's diplomatic missions abroad;
- to undertake – in the light of the potential for foreign trade and the resources available –
the establishment of foreign trade missions, and ensure the follow-up, monitoring and
supervision of their activities.
Furthermore, in the field of international economic  relations, the Minister of Trade (Article 15):
- Participates and supports the competent au thorities concerned in all international
negotiations relating to activities under his responsibility;
- sees to the implementation of international agreements and conventions and, as far as
his ministerial department is concerned, takes measures facilitating the implementation
of commitments entered into by Algeria;WT/ACC/DZA/14/Add.1
Page 22
- contributes to the activities of the speci alized regional and international trade
organizations of which Algeria is a member.
In the implementation of government policy, the Minister responsible for foreign trade relies on
intermediate structures, some of which are placed  under his direct authority (Chambers of Commerce,
Foreign Trade Promotion Office), as well as on institu tions answerable to other ministerial departments
(National Customs, Export Credit In surance Fund, institutions responsible for standardization, sanitary
and phytosanitary controls, and intellectual property).
In the economic field, a number of fundamental la ws have been enacted in recent years, all of
them directed to a greater decentralization of the ec onomy and a redefinition of the role of the State, as
reflected in its gradual disengagement from the management of economic affairs and greater Algerian
involvement in the international division of labour.
Moreover, Law No. 90-10 on Currency and Credit of 14 April 1990 (as amended and
supplemented by Order No. 1 January of 27 Febr uary 2001) conferred broad powers on the Bank of
Algeria, which was made an institution independent of political authority, particularly as regards the
financing of foreign trade and, hence, the organi zation and regulation of access to foreign exchange
resources.  The main innovations introduced by the Law may be summarized as follows:
- Total independence of the Central Bank in relation to the Treasury;- withdrawal of the Treasury from involvement in company loans;- rehabilitation of the asset-value approach to bank financing;- laying of the foundations needed to establish money and financial markets;
- establishment of prudential regulations and organization of banking activity;
- liberalization of capital flows.Since then, a number of other institutions have been set up as a result of the enactment of new
laws.  They include the Investment Promotion, Support and Monitoring Agency (APSI) and the
Competition Council.
Lastly, there is the National Economic and Social Council, which is a forum for the
organization of consultations on the major economic and social policy options between representatives
of the various economic sectors.
3. Division of authority between central  government and sub-central governments
As regards the organization of powers in Algeria,  the Executive, represented by the President of
the Republic and the Head of the Government, who are the central authority, is extended at regional
level by:
- The wali, who is the Government representativ e at wilaya level.  The wilaya is the main
administrative subdivision of the executive au thority, decentralized to regional level.
There are 48 wilayas in Algeria.
- The daira chief, who is the Government representative at daira level.  The daira is an
administrative subdivision of the wilaya, which is made up of several dairas.WT/ACC/DZA/14/Add.1
Page 23
These decentralized layers of central government  authority are counter-balanced at local level
by the authority of the elected assemblies, namely:
The Wilaya Popular Assembly (APW)
This is a decentralized deliberative organ.  Since the reform undertaken in 1989, the APW has
come to symbolize the expression of the people's will at the wilaya level.
The APW bears general responsibility, within its  territory, for economic, social and cultural
development and planning schemes and for promoting specific projects.
The APW is placed under the permanent authorit y of a Chairman elected by an absolute
majority of its members, who are themselves elected at wilaya level.
The Communal People's Assembly (APC)
This is the basic structure for the administrati on of the State.  The decision-making powers and
the economic and social remit of its elected memb ers make the APC a fundamental institution in the
functioning of Algerian society.
4. Any legislative programmes or plans to change the regulatory regime
The programme of legislative reform planned within the context of Algeria's accession to the
WTO provides for the framing of a series of domestic laws and/or regulations aimed at ensuringconsistency with the WTO agreements.
These texts include the following:- Implementation of the customs tariff reform
- tariffication of all non-tariff measures- reduction in the number of customs duty rates
- bringing of order into tariff policy
- Implementation of anti-dumping measures, pursuant to Article 8 ter of Law No. 79-07
of 21 July 1979, as amended and supplemen ted by Law No. 98-10 of 22 August 1998
on the Customs Code
- Mechanism for the implementation of count ervailing measures, pursuant to Article 8 ter
of Law No. 79-07 of 21 July 1979, as ame nded and supplemented by Law No. 98-10 of
22 August 1998 on the Customs Code
- Establishment and implementation of safe guard measures, pursuant to Article 20 of
Law No. 79-07 of 21 July 1979, as amende d and supplemented by Law No. 98-10 of
22 August 1998 on the Customs Code
- Amendment of Order No. 66-5 7 of 19 March 1966 on trademarks
- Amendment of Legislative Decree No. 93-37 on the protection of inventions
- Amendment of Order No. 97-10 on copyright and related rightsWT/ACC/DZA/14/Add.1
Page 24
- Measures pertaining to border enfor cement of intellectual property rights
- Rules governing import licences- Standardization mechanism
- Measures relating to layout-designs (topographies) of integrated circuits
- Measures relating to the control of anti-competitive practices in contractual licensing- Measures relating to the protection of undisclosed information- Measures relating to the protection of plant varieties- Measures relating to the protection of micro-organisms- Adjustment of the ARI on tobacco and cigarettes
- Adjustment of customs fees
This programme has already begun with the impl ementation of the tariff reform (Supplementary
Finance Law, adopted in July 2001) and will extend until December 2003.
(a) The regime applicable to import and export operations
This legislative programme, which is based on the customary principles and rules of
international trade, definitively establishes the principl e of liberalization of foreign trade.  Provision is,
however, made for three exceptions to the principle, namely:
- Operations concerning products prohibited because they prejudice safety, public order,
health, morality, the environment, the national heritage and the protection of certain
animal and plant species;
- operations relating to products subject to temporary safeguard measures on account of
threats to the domestic industry, the balance of payments or the stability of the domestic
market;
- on a basis of reciprocity, operations relating to products originating in countries which
apply restrictive or discriminatory meas ures in respect of Algerian products.
(b) Identification of unfair practices and action to combat them
The basic aim of these texts is to provide a cl earer definition of the provisions and measures
required for taking effective action against dumping and subsidization, in accordance with the
customary rules of international trade and pursuant to Article VI of the GATT 1994.
(c) Export promotion
The objective is to provide a legal basis for State intervention in promoting and developing
exports, more particularly through the establishment of intermediary support structures (foreign trade
office, export guarantee insurance fund, regulation a nd standardization of fairs and exhibitions, etc.).WT/ACC/DZA/14/Add.1
Page 25
(d) Supervision of foreign trade
Given that Government intervention is based essentially on a posteriori  control, the draft texts
provide for the reinforcement of current arrangemen ts, including in particular the Law on the general
rules of consumer protection, by means of two types of control:
- Technical supervision aimed at ensuring th at imported or exported products fully meet
the prevailing Algerian standards or, in their absence, international standards;
- administrative supervision aimed at ensuring  that foreign trade transactions are carried
out in accordance with the applicable rules and regulations.
5. Laws and legal instruments
(a) List of laws and legal instruments regulating the activity of the customs authorities
All the following laws and legal instruments have been laid down and implemented, mainly
under the supervision of the Ministry of Finance:
- Law No. 98-05 of 25 June 1998 amending  and supplementing Order No. 76-80 of
23 October on the Maritime Code.
- Law No. 98-06 of 27 June 1998 (as amende d and supplemented by Law No. 00-05 of
6 December 2000) establishing the general rules governing civil aviation.
- Law No. 98-10 of 22 August 1990 amendi ng and supplementing Law No. 79-07 of
21 July 1979 on the Customs Code.
- Law No. 91-25 of 18 December 1991 on the 1992 Finance Law, particularly Article 38
thereof relating to customs tariffs.
- Decree No. 89-156 of 15 August 1989, laying down the conditions for the approval of
customs agents.
- Decree No. 90-177 of 16 June 1990 on ratifi cation of the Agreement on the Global
System of Trade Preferences among Deve loping Countries, done at Belgrade on
13 April 1988.
- Decree No. 91-76 of 16 March 1991 on the orga nization and functioning of the external
services of the customs administration.
- Decree No. 91-241 of 20 July 1991 on ratification of the International Convention on
the Harmonized Commodity Description a nd Coding System, done at Brussels on
14 June 1983.
- Decree No. 91-452 of 16 November 1991 on ve terinary inspections at border posts.
- Decree No. 91-66 of 29 February 1991 on accepta nce of the Protocol of Amendment to
the International Convention on Mutual Assi stance for the Prevention, Investigation
and Repression of Customs Offences , done at Brussels on 22 June 1988.
- Decree No. 92-126 of 28 March 1992, establishi ng the procedures for implementation
of Article 120 of the Customs Code rela ting to prohibitions and restrictions on
merchandise exports or imports.WT/ACC/DZA/14/Add.1
Page 26
International customs-related conventions and agreements come under the responsibility of the
Ministry of Foreign Affairs;  the follo wing have been concluded by Algeria:
- Temporary Importation of Private Road Vehicles:
New York - 4 June 1954 - Decree No. 63-348 of 11 September 1963
- Temporary Importation of Co mmercial Road Vehicles:
Geneva - 18 May 1956 - Decree No. 63-346 of 11 September 1963
- Temporary Importation for Private Use of Aircraft and Pleasure Boats:
Geneva - 18 May 1956 - Decree No. 63-351 of 11 September 1963
- Customs Facilities for Touring:
New York - 4 June 1954 - Decree No. 63-349 of 11 September 1963
- Single Convention on Narcotic Drugs:
New York - 30 March 1961 - Decree No. 63-7 of 11 September 1963
- Convention on International Civil Aviation:
Chicago - 7 December 1944.  Amended by the Protocols of Montreal (27 May 1947,
14 June 1954 and 21 June 1961) and Rome (15 September 1962) - Decree No. 63-384
of 11 September 1963
- International Convention for the Unifica tion of Certain Rules of Law relating to
Assistance and Salvage at Sea:
Brussels - 29 September 1910.  Amended by th e Brussels Protocol of 27 August 1967.
Decree No. 64-70 of 2 March 1964
- International Convention for the Unification of Certain Rules of Law relating to Bills of
Lading:
Brussels - 25 August 1924 - D ecree No. 64-71 of 2 March 1964
- International Convention for the Unificati on of Certain Rules relating to Maritime
Liens and Mortgages:
Brussels - 10 April 1926 - Decree No. 64-72 of 2 March 1964
- International Convention for the Unification of  Certain Rules relating to International
Carriage by Air:
Warsaw - 12 October 1929.  Amended by th e Hague Protocol of 28 September 1955
and by the Guadalajara Convention of  18 September 1961.  Decree No. 64-74 of
2 March 1964 and Order No. 65-267 of 25 October 1965.
- Vienna Convention on Diplomatic Relations:
Vienna - 18 April 1961 - Decree No. 64-84 of 4 March 1964
- Vienna Convention on Consular Relations:
Vienna - 24 April 1963 - Decree No. 64-85 of 4 March 1964
- International Convention for the Unification of  Certain Rules relating to the Arrest of
Aircraft:
Decree No. 64-152WT/ACC/DZA/14/Add.1
Page 27
- International Convention relating to the Limitation of the Liability of Owners of
Sea-Going Ships:
Brussels - 10 July 1957
- International Convention for the Unification of Certain Rules Relating to the Arrest of
Sea-Going Ships:Brussels - 10 May 1958 - Decree No. 64-171
- Convention on Facilitation of International Maritime Traffic:
London - 9 April 1965 - Decree No. 83-531 of 19 September 1983
- Customs Convention on the International Transport of Goods under cover of TIR
Carnets:Geneva - 14 November 1975 - Decree No. 88-143 of 26 July 1988
- Convention on International Trade in Endang ered Species of Wild Fauna and Flora:
Washington - 3 March 1973 - Decree No. 82-498 of 25 December 1982
- International Convention for the Publication of Customs Tariffs:
Brussels - 5 July 1890
- International Convention concerning the Carriage of Goods by Rail (CIM):
Bonn - 7 February 1970 - Order No. 72-35
- International Convention concerning the Ca rriage of Passengers and Luggage by Rail
(CIV):
Bonn - 7 February 1970 - Order No. 72-36
- Order No. 69-46 of 3 June 1969 on ratifi cation of the Customs Convention on the
Temporary Importation of Scientific Equi pment, done at Brussels on 11 June 1968
- Order No. 69-69 of 2 September 1969 on accession to the Customs Convention on the
Temporary Importation of Professional Equi pment, done at Brussels on 8 June 1961
- Law No. 87-233 of 20 October 1987 on accession to the Customs Convention
concerning Facilities for the Importation of Goods for Display or Use at Exhibitions,
Fairs, Meetings or Similar Events , signed at Brussels on 8 June 1961
Conventions of the Customs Coopera tion Council (Accepted by Algeria):
Convention Entry into force Accession by Algeria
CCC (15 December 1950) 4 November 1952 19 December 1966 n.p.
Nomenclature 11 September 1959 Denounced 1992Harmonized System 1 January 1988 20 July 1991Valuation 18 July 1953 18 November 1976
Kyoto 25 September 1974 12 October 1976
Nairobi 21 May 1980 19 April 1988Packings 15 March 1962 23 February 1988Professional equipment 1 July 1962 5 September 1972
Exhibitions and fairs 13 July 1962 20 October 1987WT/ACC/DZA/14/Add.1
Page 28
Convention Entry into force Accession by Algeria
ATA 30 July 1963 2 July 1973
Welfare material for seafarers 11 December 1965 5 August 1969Scientific equipment 5 September 1969 8 August 1969
Pedagogic material 10 September 1971 16 June 1971
Containers (CCC managed) 6 December 1975 14 December 1978
- CCC Conventions containing annexes
Kyoto Convention:  nine Annexes accepted: A1, A2, E1, E3, E4, E5, E8, F3, F5.  Annex A1:  Customs
formalities prior to the lodgement of the Goods decl aration.  Annex A2:  Temporary storage of goods.
Annex E1:  Customs transit.  Annex E3:  Custom s warehouses.  Annex E4:  Drawback.  Annex E5:
Temporary admission subject to re-exportation in the sa me state.  Annex E8:  Temporary exportation for
outward processing.  Annex F3:  Customs facilities applicable to travellers.  Annex F5:  Urgent
consignments.
Nairobi Convention:  four Annexes accepted:  I, II, III and IX.  Annex I:  Assistance by a customs
administration on its own initiative.  Annex II:  A ssistance, on request, in the assessment of import or
export duties and taxes.  Annex III:  Assistance, on request, relating to controls.  Annex IX:  Pooling of
information.
(b) Laws and legal instruments relating to:
(i) Non-tariff regulation of imports
No non-tariff import regulations are currently in place.  However, the draft framework on
foreign trade provides for the possibility of justified recourse, inter alia , to import licensing and the
temporary limitation of imports (quotas).
Responsible agency:  Ministry of Trade.
(ii) Non-tariff export regulations
An export suspension rule is app licable to the following products:
- Palm tree seedlings;- breeding sheep;- works of art, objects of historical or ar chaeological value and national cultural assets.
Responsible agency:  Ministry of Trade.
(iii) Regulation of transit traffic
- Customs Code:  Article 125 et seq .;
- Annex E1 to the Kyoto Convention of the Customs Cooperation Council.
Responsible agency:  Customs Administration.WT/ACC/DZA/14/Add.1
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(iv) Rules of origin
- Customs Code;
- Trade and Tariff Convention of  the Arab Maghreb Union (AMU);
- Algeria-EEC Agreement (EEC Rules).Responsible agency:  Customs Administration.
(c) Laws and regulations relating to foreign investment
Algerian legislation makes no distinction between  foreign investors and national investors, and
access to the benefits made available in the contex t of investment promotion is non-discriminatory.
The main texts and regulations governing investment in Algeria are the following:
- Legislative Decree No. 93-12 of 5 October 1993 on investment promotion.
- Executive Decree No. 94-319 of 17 Oct ober 1994 on the powers, organization and
functioning of the Investment Promoti on, Support and Monitoring Agency (APSI).
- Executive Decree No. 94-320 of 17 October 1994 on free zones.- Executive Decree No. 94-321 of 17 Octobe r 1994 on investment promotion, and laying
down the conditions for the designation and delimitation of specific zones.
- Executive Decree No. 94-322 of 17 Octobe r 1994 on the assignment of State lands
situated in specific zones, within the context of investment promotion.
- Executive Decree No. 94-323 of 17 Octobe r 1994 laying down the minimum level of
own funds for investments.
- Bank of Algeria Regulation No. 94-17 of 22 October 1994 defining the exchange
regulations specific to free zones.
- Bank of Algeria Regulation No. 00-03 of 2 April 2000 on foreign investment.
- Bank of Algeria Regulation No. 00-04 of 2 April 2000 on movements of equity
investment capital of non-residents.
Responsible agency:  Investment Promotion, Support and Monitoring Agency (APSI).
(d) Other laws and legal instruments dealing with economic issues that affect trade
(i) Constitution, registration and organization
- The 1996 Constitution.
- Order No. 66-145 of 8 June 1966 on the Code  of Civil Procedure, as amended and
supplemented by Legislative Decree No. 93 -09 of 25 April 1993 and Law No. 01-05 of
22 May 2001.
- Order No. 75-35 of 29 April 1975 on the national accounts plan.WT/ACC/DZA/14/Add.1
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- Order No. 75-58 of 26 September 1975 on th e Civil Code, as supplemented by Law
No. 89-01 of 7 February 1989.
- Order No. 75-59 of 26 September 1975 on the Commercial Code, as amended and
supplemented by Legislative Decree No. 93-08 of 25 April 1993.
- Law No. 88-02 of 12 January 1988 on pl anning, as amended and supplemented.
- Law No. 90-22 of 18 August 1990 on the co mmercial register, as amended by Law
No. 91-14 of 14 September 1991 and by  Order No. 96-07 of 10 January 1996.
- Law No. 91-08 of 27 April 1991 on the profes sion of chartered accountant, auditor and
bookkeeper.
- Executive Decree No. 91-37 on the conditions of intervention in the field of foreign
trade.
- Law No. 92-68 of 18 February 1992 on the status and organiza tion of the National
Commercial Register Centre (CNRC).
- Law No. 90-21 of 15 August 1990 on accounting practices, as amended and
supplemented.
- Executive Decree No. 91-434 of 9 November 1991 on the regulation of public
procurement, as amended and supplemented by Executive Decree No. 96-54 of
22 January 1996.
- Legislative Decree No. 94-01 of 15 January 1994 on the statistical system.
- Order No. 95-20 of 17 July 1995 on the Court of Audit.- Order No. 95-22 of 12 July 1995 on privatization (as amended and supplemented by
Order No. 97-12 of 19 March 1997.
- Order No. 95-25 of 25 September 1995 on th e management of State-owned commercial
capital.
- Executive Decree No. 95-160 of 3 June 1995, on the organization and functioning of
the National Statistics Council, as amende d and supplemented by Executive Decree No.
95-447 of 25 December 1995.
- Executive Decree No. 95-438 of 23 D ecember 1995, on implementation of the
provisions of the Commercial Code relatin g to joint-stock companies and consortia.
- Executive Decree No. 00-318 of 16 January 2000 on the procedures for communication
to the CNRC, by the courts and the admi nistrative authorities concerned, of any
decisions or information liable to entail ch anges or prohibitions regarding trader status.
- Executive Decree No 00-67 of 21 March 2000 amending and supplementing Executive
Decree No. 95-404 of 2 December 1995 relating to the composition and functioning of
the National Council for State Participation.
- Executive Decree No 00-334 of 26 Oc tober 2000 amending and supplementingWT/ACC/DZA/14/Add.1
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Executive Decree No. 97-39 of 18 January 1997 on the classification of activities
subject to business registration.
(ii) Bilateral and multilateral conventions
- Executive Decree No. 82-492 on ratificati on of the 1973 Washington Convention for
the protection of fauna and flora.
- Decree No. 88-233 of 5 November 1988 on accession, subject to reservation, to the
Convention on the Recognition and Enforcemen t of Foreign Arbitral Awards, adopted
by the United Nations Conference in New York on 10 June 1958.
- Decree No. 90-186 of 23 June 1990 on accession to the International Finance
Corporation.
- Decree No. 90-319 of 17 October 1990 on ratif ication of the investment promotion
agreement signed at Washington on 22 J une 1990 between the Government of the
People's Democratic Republic of Algeria a nd the Government of the United States of
America.
- Presidential Decree No. 95-345 of 30 Oc tober 1995 on ratification of the Convention
establishing the Multilateral Investment Guarantee Agency (MIGA).
- Presidential Decree No. 95-436 of 30 Oc tober 1995 on ratification of the Convention
on the Settlement of Investment Disputes betw een States and Nationals of Other States.
- Presidential Decree No. 94-306 of 2 Oc tober 1994 on ratification of the 1993 Protocol
extending the International Agreement on Olive Oil and Ta ble Olives, 1986, with
amendments.
- Decree No. 91-345 of 5 October 1991 on ratification of the agreement between the
Government of the People's Democr atic Republic of Algeria and the
Belgo-Luxembourg Economic Union, concerning  reciprocal promotion and protection
of investments, signed at Algiers on 24 April 1991.
- Decree No. 91-346 of 5 October 1991 on ratification of the agreement between the
Government of the People's Democratic Repub lic of Algeria and the Government of the
Italian Republic for the promotion and mutu al protection of investments, signed in
Algeria on 18 May 1991.
- Order No. 96-05 of 10 January 1996 on appr oval of the United Nations Convention on
the Law of the Sea.
- Presidential Decree No. 97-229 of 23 June  1997, ratifying the agreement between the
People's Democratic Republic of Algeria and the State of Qatar on promotion and
mutual protection of investments, signed at Algiers on 24 October 1996.
.
- Presidential Decree No. 97-341 of 13 September 1997 on accession, subject to
reservation, to the Berne Convention for the Protection of Literary and Artistic Works
of 9 September 1886.
- Presidential Decree No. 97-342 of 13 Sept ember 1997 on ratification of the agreement
between Algeria and Indonesia with a view to avoiding double taxation and preventing
income and wealth tax evasion, signed at Jakarta on 28 April 1995.WT/ACC/DZA/14/Add.1
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- Presidential Decree No. 97-373 of 3 September 1991 on accession, subject to
reservation, to the Convention for the Suppression of Unlawful Acts against the Safety
of Maritime Navigation, done at Rome on 13 March 1988.
- Presidential Decree No. 98-123 of 18 April 1998 on ratification of the 1992 Protocol
to Amend the 1969 International Convention on Civil
Liability for Oil Pollution Damage.
- Presidential Decree No. 99-92 of 15 April 1999 on accession, subject to reservation, to
the Patent Cooperation Treaty, signed at  Washington on 19 June 1970 and amended on
28 September 1979 and 3 February 1984, and its implementing regulations.
- Presidential Decree No. 00-58 of 13 March 2000, ratifying the Memora ndum of
Understanding on Port State Control in the Mediterranean Region, signed in Malta on
11 July 1997.
- Presidential Decree No. 00-59 of 13 March 2000, ratifying the Protocol relating to an
Amendment to the Convention on Internationa l Civil Aviation, signed at Montreal on
10 May 1994.
- Presidential Decree No. 00-95 of 4 May 2000 on ratification of the agreement between
Algeria and South Africa w ith a view to avoiding double taxation and preventing
income and wealth tax evasion, signed at Algiers on 28 April 1998.
- Presidential Decree No. 00-364 of 16 Nove mber 2000 on ratification of the agreement
between Algeria and Canada with a view to avoiding double taxation and preventing
income and wealth tax evasion, si gned at Algiers on 28 February 1999.
- Presidential Decree No. 00-387 of 28 Nove mber 2000 on ratification of the Convention
concerning the Prohibition and Immediate Action for the Elimination of the Worst
Forms of Child Labour, No. 182, supplemented by Recommendation No. 190,
adopted at Geneva by the International Labour Conference on 17 June 1999.
- Presidential Decree No. 00-447 of 23 Dece mber 2000 on ratification of the Protocol of
Amendment to the International Convention on the Simplification and Harmonization
of Customs Procedures, done at Brussels on 26 June 1999.
- Presidential Decree No. 00-448 of 23 Dece mber 2000 on ratification of the Protocol,
done at London on 11 November 1988, relating to the International Convention onLoad Lines, done at London on 5 April 1966.
- Presidential Decree No. 01-82 of 29 March 2001 on ratification of the economic
cooperation and partnership agreement betw een Algeria and South Africa, signed at
Algiers on 24 September 2000.
(iii) Insurance
- Order No. 95-07 of 25 January 1995 on insurance.
- Executive Decree No. 95-338 of 30 October 1995 on the establishment and codification
of insurance transactions.WT/ACC/DZA/14/Add.1
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- Executive Decree No. 95-339 of 30 October 1995 on the powers, composition,
organization and functioning of  the National Insurance Board.
- Executive Decree No. 95-340 of 30 October 1995, laying down the conditions for the
granting and withdrawal of licences, and on the professional competence, remuneration
and supervision of insurance intermediaries.
- Executive Decree No. 95-341 of 30 October 1995 on the rules applicable to insurance
agents.
- Executive Decree No. 95-342 of 30 October 1995 on regulated liabilities.- Executive Decree No. 95-343 of 30 October 1995 on the solvency margin of insurance
companies.
- Executive Decree No. 95-344 of 30 Octobe r 1995 on the minimum authorized capital
of insurance companies.
- Executive Decree No. 95-409 of 9 December  1995 on compulsory cession in the field
of reinsurance.
- Executive Decree No. 95-410 of 9 Decemb er 1995 on the different combinations of
personal insurance.
- Executive Decree No. 95-411 of 9 Dece mber 1995 on compulsory civil liability
insurance for individuals or corporate bodies operating facilities open to the public.
- Executive Decree No. 95-412 of 9 Decemb er 1995 determining the merchandise and
capital goods imported by sea and air, which are exempted from compulsory insurancewith an insurance company licensed in Algeria.
- Executive Decree No. 95-413 of 9 Dece mber 1995 on compulsory civil liability
insurance for companies and institu tions in the civil economic sectors.
- Executive Decree No. 95-414 of 9 Decemb er 1995 on compulsory professional civil
liability insurance for operators in the construction industry.
- Executive Decree No. 95-415 of 9 Decemb er 1995 on compulsory fire insurance.
- Executive Decree No. 95-416 of 9 December 1995 laying down the conditions and
rules for agricultural risk insurance.
- Order No. 96-06 of 10 January 1996 on export credit insurance.- Executive Decree No. 96-46 of 17 January 1996 laying down the conditions for the
licensing, service and dismissal of damage assessment experts with insurancecompanies.
- Executive Decree No. 96-47 of 17 January 1996 on the rating of risks in the insurance
field.
- Executive Decree No. 96-48 of 17 January  1996 laying down insurance terms and
conditions in respect of products liability.WT/ACC/DZA/14/Add.1
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- Executive Decree No. 99-75 of 11 April 1999 amending and supplementing Executive
Decree No. 96-325 laying down the procedur es governing the management of risks
covered by export credit insurance.
(iv) Price regulation
- Order No. 95-06 of 25 January 1995 on competition.
- Executive Decree No. 95-364 of 11 November  1995, defining inventory procedures for
impounded goods, pursuant to Article 69 of the Order on competition.
- Executive Decree No. 95-305 of 7 October 1995 defining the format of the invoice.
- Executive Decree No. 95-365 of 25 October 1995 on the procedures for the imposition
of transaction fines.
- Executive Decree No. 00-314 of 14 Oct ober 2000 laying down the criteria for
determining dominant market position and acts constituting abuse of market power.
- Executive Decree No. 00-315 of 14 October 2000 defining the criteria for assessing
planned concentration or mergers.
- Executive Decree No. 00-337 of 26 October 2000 establishing the concession fee for
public air transport services.
(v) Land use rules
- Law No. 90-08 of 7 April 1990 on the commune.
- Law No. 90-09 of 7 April 1990 on the wilaya.- Law No. 90-25 of 18 November 1990 on land planning, as amended and supplemented
by Order No. 95-26 of 25 September 1995.
- Law No. 90-29 of 1 December 1990 on town and country planning.
- Law No. 90-30 of 1 December 1990 comprising a State property law.
- Law No. 91-11 of 27 April 1991 establishing rules on expropriation in the public
interest.
- Decree No. 85-211 of 13 August 1985 laying down rules for the issue of building
permits and permits for the division of land into building plots.
- Decree No. 86-226 of 2 Sept ember 1986 on mining licences.
- Decree No. 89-125 of 17 October 1989 laying dow n the standard agreement for private
use of public land on a contractual basis.
- Decree No. 93-123 of 19 May 1993, amendi ng and supplementing Decree No. 76-63
on the institution of the land registry.
- Decree No. 92-134 of 7 April 1992, amending  and supplementing Decree No. 76-62 on
the establishment of the general property register.WT/ACC/DZA/14/Add.1
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(vi) Social legislation
- Law No. 81-10 of 11 July 1981 on the employment conditions of foreign workers.
- Law No. 88-07 of 26 January 1988 on occ upational health, safety and medicine.
- Law No. 90-02 of 6 February 1990 on the prevention and settlement of industrial
disputes and the exercise of the right to  strike, as amended by Law No. 91-27 of
21 December 1991.
- Law No. 90-03 of 6 February 1990 on labour inspection.- Law No. 90-11 of 21 April 1990 on industrial relations, as amended by Law No. 91-29
of 21 December 1991 and Order No. 97-02 of 11 January 1997.
- Law No. 90-14 of 2 June 1990 on the pro cedure for the exercise of the right to
organize.
- Order No. 97-03 of 11 January layi ng down statutory working hours.
- Law No. 99-04 of 22 March 1999 amendi ng Legislative Decree No. 94-12 of
26 May 1994 establishing social security contribution rates.
- Law No. 99-10 of 11 November 1999 amendi ng and supplementing Law No. 83-15 of
2 July 1983 on social security disputes.
- Law No. 00-01 of 18 January 2000 amendi ng and supplementing Law No. 81-02 of
27 June 1981 on apprenticeship.
- Presidential Decree No. 01-71 of 25 Ma rch 2001 establishing the National Advisory
Commission on the Promo tion of Human Rights.
- Decree No. 90-209 of 14 July 1990 on the orga nization and functioning of the general
labour inspectorate.
(vii) Quality control
- Law No. 89-02 of 7 February 1989 on the general rules of consumer protection.
- Law No. 89-23 of 19 December 1989 on standardization.
- Law No. 90-18 of 31 July 1990 on the o fficial national system of metrology.
- Decree No. 90-39 of 30 January 1990 on quality control and the suppression of fraud.- Decree No. 90-266 of 15 September 1990 on product and service warranties.
- Decree No. 90-366 of 10 November 1990 on th e labelling and presentation of non-food
domestic products.
- Decree No. 90-367 of 10 November 1990 on the labelling and presentation of
foodstuffs.WT/ACC/DZA/14/Add.1
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- Executive Decree No. 90-566 of 10 November 1990 on labelling.
- Decree No. 91-04 of 19 January 1991 on materials intended for contact with foodstuffs
and products for cleaning such materials.
- Decree No. 91-53 of 23 February 1991 on conditions of hygiene in the food marketing
chain.
- Executive Decree No. 95-363 of 11 No vember 1995 laying down rules for the
veterinary inspection of live animals and an imal products or products of animal origin
intended for human consumption.
- Decree No. 91-192 of 1 June 1991 on quality control laboratories.- Decree No. 92-25 of 13 January 1992 on the conditions and procedures for the use of
additives in foodstuffs.
- Decree No. 92-41 of 4 February 1992 defining  the conditions and procedures for the
production, packaging and marketing of cosmetics and personal hygiene products on
the domestic market.
- Decree No. 92-42 of 4 February 1992 on prior licensing for the manufacture of toxic or
particularly hazardous products, as amende d and supplemented by Decree No. 95-39 of
29 January 1995.
- Decree No. 92-65 of 12 February 1992 on the m onitoring of the conformity of locally-
manufactured or imported products.
- Executive Decree No. 94-210 of 16 July 1994 on the establishment and powers of the
Trade Ministry's Central Inspectorate fo r Economic Investigation and Suppression of
Fraud.
- Executive Decree No. 95-405 of 2 Decemb er 1995 on the control of phytosanitary
products for agricultural use.
- Executive Decree No. 97-431 of 16 Nove mber 1995 repealing Decree No. 94-90 of
10 April 1994 on the monitoring of the quality and conformity of products for export.
- Executive Decree No. 98-105 of 31 March 1998 amending and supplementing
Executive Decree No. 91-91 of 6 Apr il 1991 on the organization, powers and
functioning of the external services in charge of competition and prices.
- Executive Decree No. 00-306 of 12 Oc tober 2000 amending and supplementing
Executive Decree No. 96-356 of 19 October 1996 on the procedures for monitoring the
conformity and quality of imported products.
(viii) Health
- Law No. 85-05 of 16 February 1985 on th e protection and promotion of health.
- Law No. 87-17 of 1 August 1987 on phytosanitary protection.
- Decree No. 90-198 of 30 June 1990 establishi ng regulations on explosive substances.WT/ACC/DZA/14/Add.1
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- Decree No. 90-245 of 18 August 1990 estab lishing regulations on pressurized gas
appliances.
- Decree No. 90-246 of 18 August 1990 estab lishing regulations on steam pressure
appliances.
- Decree No. 92-354 of 23 September 1992 on accession to the Vienna Convention for
the Protection of the Ozone Layer, done on 22 March 1985.
- Decree No. 92-355 of 23 September 1992 on accession to the Montreal Protocol on
Substances that Deplete the Ozone Layer,  signed at Montreal on 16 September 1987.
- Decree No. 93-160 of 10 July 1993 regulating the discharge of industrial liquid
effluents.
- Decree No. 93-161 of 10 July 1993 regulating the disposal of oils and lubricants in the
natural environment.
- Decree No. 93-162 of 10 July 1993 laying down the conditions and procedures for the
recovery and processing of spent oils.
- Decree No. 93-163 of 10 July 1993 on the intr oduction of an inventory of surface water
pollution levels.
- Decree No. 93-164 of 10 July 1993 laying down quality standards for bathing water.- Decree No. 93-165 of 10 July 1993 regulating atmospheric emissions of smoke, gas,
dust, odours and solid particles from fixed installations.
- Decree No. 93-286 of 23 November 1993 regulating phytosanitary border controls.- Executive Decree No. 95-429 of 16 December 1995 laying down the conditions and
procedures for authorizing the produc tion, possession, assignment, utilization,
transportation, importation and expor tation of non-crop plant species.
(ix) Hydrocarbons and mines
- Law No. 84-06 of 7 January 1984 on mining activities, as amended by Law No. 91-24
of 6 December 1991.
- Law No. 86-14 of 19 August 1986 on hydro carbon prospecting, exploration, production
and transportation by pipeline, as ame nded by Law No. 91-21 of 4 December 1991.
- Decree No. 87-157 of 23 July 1987 on the cl assification of hydrocarbon exploration
and production zones.
- Decree No. 88-34 of 16 February 1988 on the conditions for the granting, waiver and
withdrawal of mining righ ts for hydrocarbon prospectin g, exploration and production.
- Decree No. 88-193 of 4 October 1988 on th e exploration for and exploitation of
category I and II mineral substances.
- Decree No. 93-73 of 6 March 1993 establishing the list of mineral substances.WT/ACC/DZA/14/Add.1
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- Decree No. 93-74 of 6 March 1993 on general regulations for mineral production.
(x) Tourism
- Law No. 90-05 of 19 February 1990 on tourist and travel agencies.
- Law No. 99-06 of 4 April 1999 establishing the rules governing the operation of tourist
and travel agencies.
- Decree No. 85-12 of 26 January 1985 defini ng and organizing hotel and tourist
activities.
- Decree No. 88-214 of 31 October 1988 on the establishment and organization of the
National Tourist Office.
- Decree No. 88-232 of 5 November 1988 on the registration of tourist expansion areas.
(xi) Securities exchange
- Decree No. 88-177 of 27 September 1988 determining the types of shares and share
certificates that can be issued by public enterprises.
- Executive Decree No. 91-170 of 28 May 1991 determining the varieties and forms of
securities and the conditions for their issue by companies with share capital.
- Executive Decree No. 91-189 of 28 May 1991 on the organization of securities
transactions.
- Legislative Decree No. 91-171 of 28 May 1991 on the stock exchange commission.
- Legislative Decree No. 93-10 of 23 May 1993 on the securities exchange, as amended
and supplemented by Order No. 96-10 of 10 January 1996.
- Order No. 96-02 of 10 January 1996 on the orga nization of the profession of auctioneer.
- Order No. 95-25 of 25 September 1995 on th e management of State-owned commercial
capital.
- Order No. 96-08 of 10 January 1996 on collective securities investment agencies
(OPCVM) (SICAV) and (FCP).
- Order No. 96-09 of 10 January 1996 on leasing.
(xii) Banking regulations
- Law No. 90-10 of 14 April 1990 on money and credit.
- Regulation No. 90-01 of 4 July 1990 on minimum capital holdings for banks and
financial institutions operating in Algeria.
- Regulation No. 90-02 of 8 September 1990 laying down the conditions for the opening
and operation of foreign exchan ge accounts by corporate bodies.WT/ACC/DZA/14/Add.1
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- Regulation No. 90-03 of 8 September 1990 laying down the conditions for capital
transfers to Algeria to finance economic activities and repatriation of such capital and
the income derived therefrom.
- Regulation No. 91-02 of 20 February 1991 laying down the conditions for the opening
and operation of foreign exchange accounts for the benefit of resident or non-residentforeign individuals and corporate bodies.
- Regulation No. 91-03 of 20 February 1991 on the conditions for the conduct of import
transactions in Algeria and their financing.
- Regulation No. 91-04 of 16 May 1991 on the collection of hydrocarbon export
earnings, as amended by Regul ation No. 95-03 of 6 March 1995.
- Regulation No. 91-07 of 14 August 1991 on exchange regulations and conditions.
- Regulation No. 91-08 of 14 August 1991 on the organization of the money market.
- Regulation No. 91-09 of 14 August 1991 layi ng down management safeguard rules for
banks and financial institutions, as supplemented and amended by Regulation
No. 95-04 of 20 April 1995.
- Regulation No. 91-10 of 14 August 1991 on the conditions for opening representative
offices of foreign banks and financial institutions.
- Regulation No. 91-12 of 14 August  1991 on the domiciliation of imports.
- Regulation No. 91-13 of 14 August 1991 on the domiciliation and financial regulation
of non-hydrocarbon exports.
- Regulation No. 92-01 of 22 March 1992 on th e organization and operation of the risk
insurance centre.
- Regulation No. 92-02 of 22 March 1992 on the organization and operation of the
unpaid debt centre.
- Regulation No. 92-03 of 22 March 1992 on ac tion to prevent and combat the issue of
uncovered cheques.
- Regulation No. 92-04 of 22 March 1992 on exchange controls, as amended by
Regulation No. 95-07 of 23 December 1995.
- Regulation No. 92-05 of 22 March 1992 on the conditions to be met by the founders,
directors and representatives of banks and financial institutions.
- Regulation No. 92-08 of 17 November 1992 on a scheme for bank accounts and
accounting rules applicable to banks and financial institutions.
- Regulation No. 92-09 of 17 November 1992 on the preparation and publication of
individual annual accounts by banks and financial institutions.
- Regulation No. 92-10 of 17 November 1992 amending and supplementing Regulation
No. 91-06 of 16 May 1991 laying down the conditions for the award of foreignWT/ACC/DZA/14/Add.1
Page 40
exchange allowances in the event of hospitalization and/or death of nationals in foreign
countries.
- Regulation No. 93-02 of 3 January 1993 on th e issue of surety and counter-surety bonds
by licensed banking intermediaries.
- Regulation No. 95-04 of 20 April 1995, amending and supplementing Regulation
No. 91-09 of 14 April 1991 laying down management safeguard rules for banks and
financial institutions.
- Regulation No. 95-08 of 23 December 1995 on the foreign exchange market.
- Regulation No. 00-01 of 13 February 2000 on rediscounting and credit arrangements for
banks and financial institutions.
- Regulation No. 00-02 of 2 April 2000, amending and supplementing Regulation
No. 93-01 of 3 January 1993 laying down the conditions for the foundation of banks
and financial institutions and the establishment of branches of banks and financialinstitutions.
(xiii) Taxation
- Order No. 76-103 of 9 December 1976, as amended and supplemented, on the Stamp
Code.
- Order No. 76-104 of 9 December 1976, as amended and supplemented, on the Indirect
Taxation Code.
- Order No. 76-105 of 9 December 1976, as amended and supplemented, on the
Registration Code.
- Law No. 79-07 of 21 July 1979, as amended and supplemented, on the Customs Code.- Law No. 90-36 of 31 December 1990 on the 1991 Finance Law, particularly Article 38
instituting the Code of Direct Taxes and E quivalent Charges, and Article 65 instituting
the Value-Added Tax (VAT) Code.
- Law No. 84-17 of 7 July 1984, as ame nded and supplemented, on the Finance Law.
(e) Existing laws, regulations or administrative guidelines which significantly affect trade in
services
- Financial services - Banking and insurance;
- Transport;- Tourism;- Postal and telecommunications services;- Legislation and regulations relating to the exercise of professional services (lawyers,
solicitors, doctors, veterinary surgeons, auditors, etc.).WT/ACC/DZA/14/Add.1
Page 41
(f) Publications or sources of information concerning measures of general application of
relevance to the GATS
There are no publications on the subject to date.
The sources of information are the following service sectors of the various ministerial
departments:
- Ministry of Finance:  banking and insurance services;- Ministry of Posts and Telecommunica tions:  telecommunications services;
- Ministry of Tourism and Crafts:  tourist se rvices, travel agencies, hotel and catering
trades, etc.;
- Ministry of Health;  medical and health services;- Ministry of Agriculture:  veterinary and phytosanitary services;
- Ministry of Communication and Culture:  information and cultural services;
- Ministry of Infrastructure and Regional Planning:  public works and construction
offices and project departments;
- Ministry of Education:  educational services;
- Ministry of Higher Education:  univers ity education and scientific research;
- Ministry of Trade:  quality control.
Enquiry points, if any, as fore seen in Article III of the GATS
There is as yet no focal point for information of  the kind provided for in Article III of the
General Agreement on Trade in Services (GATS).  Th e task of provisional coordination is performed by
the Ministry of Trade, which ensures notification of  all measures relevant to the operation of the GATS
and responds, within the customary time-limits, to any request for information submitted by a Member.
6. Description of judicial tribunals and procedures
(a) Administration of justice
Order No. 65-278 of 16 November 1965 on the administration of justice provides for the
establishment of a number of courts throughout the territory, together with subsidiary tribunals whosenumber, seat and jurisdiction are laid down by regulations.
(i)  The Supreme Court and the Council of State
The task of the Supreme Court is to regulate the activities of the courts and tribunals.  The
Council of State exercises the same authority in re spect of the administrative courts.  The Supreme
Court and the Council of State ensure the consiste ncy of case law throughout the country and monitor
observance of the law.  Conflicts of jurisdiction between the two bodies are settled by the Disputes
Tribunal (Article 152 of the Constitution).WT/ACC/DZA/14/Add.1
Page 42
(ii) The courts and tribunals
The courts each comprise a bench of judges.  The tribunals give single-judge rulings in all types
of case, subject to the particular ru les governing the work of assessors.
The tribunals are divided into sections, and each section has a presiding judge.
The commercial section is composed of a judge (president).
In the social section, the participation of assesso rs with a right to vote, representing employers
and workers, was made compulsory by the 1991 reform.
Other parties closely involved in the administration of justice include lawyers, bailiffs,
auctioneers, trustees, auditors, solicitors, judicial experts and the criminal investigation department.
Law No. 01-06 of 22 May 2001, amending and supplementing Order No. 71-75 of
5 August 1971 on judicial assistance, was enacted in order to make the judicial system more accessible
and enable all citizens to defend their rights more effectively.
(b) Criminal law
(i) Constitutional principles
A number of fundamental princi ples are enshrined in the Constitution.  They include equality
before the law, mandatory prosecution of offences defined by law and the rule that punishment should
be applied to the offender only, the presumpti on of innocence and the non-retroactivity of the law.
Criminal law applies to all offences committed on the territory of the Republic (Article 3).  It
also applies to offences committed abroad when they  are the province of the Algerian criminal courts
under the provisions of the C ode of Criminal Procedure.
(ii) Criminal indemnification proceedings
A public prosecution may be initiated by the injured party, who is also entitled to bring
indemnification proceedings in a civil court.  The Code of Civil Procedure provides that an indemnity
action to obtain compensation for damage caused by an y type of offence (criminal, ordinary or minor)
may be brought by anyone who has personally suffered damage directly caused by the offenceconcerned.
(c) Civil law
(i) The Code of Civil Procedure
The tribunals are ordinary courts which deal with all civil, real estate and trade suits or suits
brought by a company or association, for which they have territorial jurisdiction.  They give rulings
either at first and last instance or on appeal, depending on the value of the subject-matter.
The courts hear appeals from judgments given in all types of cases by the first-instance
tribunals.
In cases concerned with movable property and personal immovable property, as well as cases in
which no particular jurisdiction is assigned, the competent court is the court at the place where the
defendant is domiciled, or if he has no known domic ile, the place where he resides, or if he has no
known residence, the place where he was last domiciled.WT/ACC/DZA/14/Add.1
Page 43
Any alien, even one not resident in Algeria, ma y be summoned to appear before the Algerian
courts for the performance of obligations he has entere d into in Algeria.  He may also be brought before
the Algerian courts in connection with obligations  towards Algerian nationals assumed in a foreign
country.
Finally, any Algerian may be brought before the Algerian courts in connection with obligations
assumed in a foreign country, including obligations to an alien.
Administrative proceedings are governed by special rules laid down in the Code of Civil
Procedure, which was recently amended and supplem ented by Law No. 01-05 of 22 May 2001 in order
to provide for emergency measures in administrative matters.
(ii) The Civil Code
It should be noted that the application of certain relevant provisions is made subject to the terms
of international conventions:
- In the event of a conflict of laws, the Algerian courts have the power to define the
category occupied by the legal relationship wh ich is the subject of the dispute, with a
view to determining the applicable law;
- the laws concerning the status and capacity of individuals are also applicable to
Algerians resident abroad;
- foreign legal entities, companies, associations, foundations and the like, which engage
in activity in Algeria, are subject to Algerian law;
- contractual obligations are governed by th e law of the place where the contract was
concluded, unless the parties agr ee that another law should apply.
The following points should also be mentioned:- The Minister of Finance represents the State when it is directly involved in private law
relationships;
- contracts are binding on the parties to them;- compensation is always awarded for dama ge caused by personal action, the action of
others or inanimate objects.
(d) Administrative law
Law No. 90-23 of 18 August 1990 amended and supplemented the Code of Civil Procedure,
with the aim of bringing the judicial system closer to litigants and simplifying the procedures relating to
appeals against public authority acts and administrative proceedings.
(e) Arbitration
The far-reaching changes in international economic relations, brought about by the increase in
the volume of international trade and the wide range of interests shared by members of the international
community, had long driven those active in this sphe re to try to establish a single legal foundation for
the peaceful settlement of possible disputes , thereby overcoming the conflict of laws.WT/ACC/DZA/14/Add.1
Page 44
Indeed, the method of settlement of such disputes  between operators of different countries raises
questions regarding the balance of contractual relationships.
To answer them, use is increasingly made of arbitration, an institution based precisely on the
principle of freedom of contract.
Arbitration is not unknown in Algeria.  On the domestic level, there has been legislation
authorizing and regulating this method of dispute settlement since 1966, while a number of agreements
have been concluded in this field at the international level.
(i) The Code of Civil Procedure
Articles 442 to 458 of the Code of Civil Proced ure provide for voluntary arbitration and the
parties also have the right to appeal to the ordinary courts.
The standard arbitration procedure is recognized in numerous foreign legal systems which have
opted for this method of dispute settlement.
The parties thus have the possibility of envisagi ng a special agreement or an arbitration clause
for the settlement of their dispute.
The conditions of validity of the arbitration agr eement exclude matters outside the field of trade
and peremptory jurisdiction, namely cases which may be referred to the Public Prosecution Department.
The arbitration tribunal comprises two arbitrators,  selected by each of the parties, and a third
arbitrator selected by the two arbitr ators in the event of a split decision.
The arbitration proceedings proper are conducted on an adversarial basis.
Lastly, the remedies against arbitral awards are either borrowed from the judicial system
(e.g., appeal and retraction) or are peculiar to the arbitration process (e.g., application to set aside an
enforcement order).
This method of settling disputes is, however, av ailable only to private individuals.  The State
and public law corporations are not in princi ple entitled to submit a case to arbitration.
(ii) At the international level
Other than in a limited number of cases, national operators did not in the past have recourse to
international institutions;  the reason for this, in the case of private individuals, was the existence of a
State monopoly in foreign trade, and in the case of public operators, because they did not have
unrestricted control over the goods entrusted to them , which were the property of the State and therefore
non-seizable, inalienable and imprescriptible.
The situation today is different and foreign trade is largely accessible to individuals, while
public enterprises have become independent.
It was against this background that Algeria ratif ied the New York Convention guaranteeing the
effectiveness of arbitration clauses and ensuring the recognition and enforcement of awards on better
terms than those applied to foreign judicial decisions in many countries.
Managers of private and public enterprises are thus beginning to familiarize themselves with
domestic and international arbitration procedures, es pecially since the amendment to Article 442 of the
Code of Civil Procedure and Algeria's accession to the 1958 New York Convention, as well as its
signing of the Arab Convention on Co mmercial Arbitration, for which the ratification process is in hand.WT/ACC/DZA/14/Add.1
Page 45
The Code of Civil Procedure has been expande d by Legislative Decree No. 93-09 in order to
provide for international arbitration and to revoke th e rule prohibiting the State, in international trade
relations, from seeking compromise settlements in arbitration proceedings and in the enforcement of
arbitral awards.
Moreover, the Code has been duly supplemented by international arbitration agreements, both
bilateral and multilateral.
Finally, it should be pointed out that, with the liberalization of the economy, the courts have
been given the task of ruling inter alia  on:
- The exercise of the right to strike and the right to organize;- contentious proceedings between public enterprises;- the liquidation of public or private enterprises;
- proceedings relating to investment.
The Judiciary has also been associated with major national and local institutions, including:
- Management of the commercial regist er at both national and local level;
- the banking commission attached to the Bank of Algeria;- the stock exchange commission;
- the privatization commission;
- the competition council;- the real estate committee.At the same time, a far-reaching reform is unde r way to improve the response to the impact of
economic reform.  The Council of State was estab lished pursuant to Basic Law No. 98-01 of 30 May
1998 on the powers, organization and functioning of the Council of State.  Law No. 98-03 of 3 June
1998 stipulates the powers, organization and functioning of the Disputes Tribunal.
The courts are currently undergoing an orga nizational overhaul which should result in:
- The specialization of courts (commercial, land and community tribunals);- the establishment of administrative tr ibunals under Law No. 98-02 of 30 May 1998 on
administrative tribunals;
- the classification of courts according to the place where they are located and taking into
account the social and economic cond itions of the judicial district;
- a review of judicial district boundaries  pursuant to Order No. 97-11 of 19 March 1997
on judicial district boundaries.WT/ACC/DZA/14/Add.1
Page 46
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for engaging in importing
Foreign trade has been fully liberalized since 1994, and the over-valuation of the dinar has been
corrected in order to align relative prices with in ternational prices.  This required a dynamic exchange
rate policy and domestic price deregulation.  The syst em of fixed rates has given way to one of floating
rates that is more flexible and capable of reacting mo re speedily to the consequences of any deterioration
in the terms of trade.
There is now free access to foreign exchange for all current account transactions.  In 1997,
Algeria undertook to meet the implementation ob ligations under Article VIII of the Articles of
Agreement of the International Monetary Fund.
The following basic rules must still be observed, however, in carrying out import transactions in
Algeria:
- The obligation for economic undertakings in the public and private sectors to keep a
commercial register (Law No. 90-22 of 8 August 1990, as amended and supplemented,
on the commercial register);
- the requirement of compliance with the provisions on government procurement, as
applicable to "government departments, au tonomous national institutions, the wilayas,
communes and public institutions of an administrative nature" (Executive Decree
No. 91-434 of 9 November 1991 on the regula tion of public procurement, as amended
and supplemented);
- the obligation of prior domiciliation with an approved banking intermediary
(Regulation No. 92-04 of 22 March 1992, as amended and supplemented by Regulation
No. 95-05 of 23 December 1995, on exchange cont rols, particularly Part V defining the
rules of payment for imports and exports of goods);  some of these rules contribute to
the strengthening of the formal economy (a nd hence to the shrinking of the informal
economy).
(b) Characteristics of the national tariff
The first national customs tariff, published in October 1963, contained a set of duty preferences
granted to the countries of the European Economic Co mmunity in return for reciprocal benefits, with a
view to maintaining traditional trade flows.
This preferential regime, which was discontinued in 1972, comprised a single general system of
preferences, for customs duties only, and a special ta riff applicable to specific trade flows, including
trade with the Maghreb countries in particular.
A reform was initiated in 1992, with the introduction of a customs tariff based on the six-digit
Harmonized Commodity Description and Coding System (HS).  This tariff now includes only five rates
of duty, which have been substantially reduced compar ed to the previous tariff, i.e., exemption (0 per
cent), 5, 15, 25 and 45 per cent.WT/ACC/DZA/14/Add.1
Page 47
Weighted Average Level of Duties on Main Customs Tariff Groupings in 2000
Description Number
of tariff
headingsUnweighted
average rateStandard
deviationWeighted
average
rateImports
(in
millions of
DA)Percentage
of imports
Total imports (2000) 5873 16.2 17 9.8 690426 100
Agriculture (2000) 522 30 17.4 25 195385 28.3
Other goods (2000) 5351 23 16 18 495041 71.7
(i) Customs tariff nomenclature, types of duties,  general description of the customs tariff
structure, weighted average level of duties on main customs tariff groupings
The customs tariff nomenclature is based on the Harmonized Commodity Description and
Coding System, in force since 1 January 1992.
In addition to the six-digit subheadings of the Harmonized System, a seventh digit is used for
the purposes of the Arab Maghreb Union and an eighth for national requirements.
The customs duties listed in the tariff are duties based on value ( ad valorem  duties).  The tariff
is composed of eight product groups representing 5,873 tariff subheadings.
The 2001 Supplementary Finance Law currently in  the process of adoption by the National
Council provides for a further lowering of the maximum duty rate to 40 per cent.
In 2000, the distribution of subheadings by product group, in accordance with the Harmonized
System classification, was as follows:
Group 0 % 5 % 15 % 25 % 45 % Number of
subheadingsWeighted
average rate
(%)
Food, beverages,
tobacco4 97 70 65 444 680 11.2
Energy and
lubricants0 35 3 1 17 56 14.9
Unprocessed
products0 289 42 23 63 417 5.8
Semi-finished
products3 660 708 285 290 1.764 10.4
Agricultural capital
goods01 1 9 44 0 5 7 0 6 . 5
Industrial capital
goods30 402 346 200 185 1.163 7.0
Consumer goods 28 123 153 150 1.087 1.541 13.4
Total 65 1.617 1336 764 2.091 5873 9.8
Source:  Stat2000, National Informatics and Statistics Centre, and Tariff 2000.
The weighted average customs duty rate (applied rate) for all imports in 2000 amounts to
9.8 per cent.  Energy products and (industrial) consum er goods are taxed at the highest rates (14.9 and
13.4 per cent, respectively).  The magnitude of the di fferentials between weighted actual average rates
and theoretical duty rates shows the scale of the ex emptions granted so far to most economic operators,
which leaves the Government all the more scope to reduce the level of the applied tariff, as from 2001,
without this having any impact on budget revenues and on the internal functioning of the markets.WT/ACC/DZA/14/Add.1
Page 48
Group Weighted
applied
protection rateUnweighted
applied
protection rateAverage rate
per
subheadingStandard
deviation per
subheadingMAX MIN
Food, beverages, tobacco 11.2 13.4 34 16 45 5
Energy and lubricants 14.9 19.4 15 18 45 0
Unprocessed products 5.8 6.5 12 13 45 5
Semi-finished products 10.4 14.5 17 15 45 0
Agricultural capital goods 6.5 16.3 21 10 45 5
Industrial capital goods 7 18.7 18 14 45 0
Consumer goods 13.4 19.6 36 15 45 0
Total tariff 2000 9.8 16.2 24 17 45 0
MAX:  maximum duty rate per subheading
MIN:  minimum duty rate per subheading
Following the amendments made under the va rious Finance Laws since 1994, customs duty
rates have evolved as follows:
1994 1996 2000
Exemption 137 104 65 0%
3% 656 670 - -
7% 1,192 1,290 1,617 5%
15% 1,219 1,293 1,336 15%
25% 754 790 764 25%
40% 933 790 - -
50% 0 1,520 2,091 45%
60% 1,221 0 - -
Although the number of zero-tariff subheadings admittedly dropped from 137 to 65 between
1994 and 2000, the number of subheadings subject to a rate under 15 per cent remained virtually
unchanged (i.e., about 3,000 products).  This is also the case of subheadings subject to a high rate of
over 45 per cent, which continue to account for about one third of the national tariff.
(ii) Application of MFN tariff rates
Since 1972, Algeria has discontinued the discriminatory application of the double customs
tariff and grants de facto the benefit of the MFN clause to the GATT contracting parties.
(iii) Tariff preferences
The national customs tariff comprises only one column of customs duties.  Tariff preferences
are provided for in the context of the trade and tariff conventions between Algeria and the countries of
the Arab Maghreb Union.  The conventions in question provide for exemption from customs duties
and charges of equivalent effect on original or traded products.
(c) Tariff quotas, tariff exemptions
As a result of the liberalization process under way since 1994, non-tariff measures (quotas or
licences) are no longer applied.
Moreover, the total number of subheadings in the national tariff, to which import duty
exemptions are applicable, fell from 137 to 65 between 1994 and 2000.WT/ACC/DZA/14/Add.1
Page 49
Tariff exemptions are also granted under international agreements, as in the case of the
exemptions applied in trade between Algeria and the countries of the Arab Maghreb Union.
(d) Other duties and charges, including any charges for services rendered
The following duties and charges are applied to imports into Algeria:
- Warranty fees on gold and precious metals;
- slaughter tax applicable to imports of live animals;- fee for customs formalities, fixed at 2 per cent.This fee is collected with every import declaration.  As far as exports are concerned, only the
customs fee of 4 per cent (4 per thousand) is collected with the declaration.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
The only restrictions on merchandise imports into Algeria are prohibitions applicable to
certain products such as narcotic drugs, weapons, etc.
On the other hand, a specific surcharge has been levied since 1991:  while allowing
unrestricted imports of all products other than those prohibited for security or public health reasons, it
makes such products even more costly for consumers, with a rate ranging from 10 to 150 per cent.
Although its current application is limited to ensuring greater protection of domestically producedequivalents, this surcharge is soon to disappear as a result of its integration in the single applied
customs tariff.  Indeed, the 2001 Supplementary Finance Law voted by the National People's
Assembly in early July 2001 is in the process of being adopted by the National Council.
(f) Import licensing procedures
Annex 3 on import licensing is available at the WTO Secretariat (WT/ACC/DZA/4).
The programme on possible legislative and/or regulatory reforms provides for the
establishment of a framework consistent with the relevant WTO Agreement.
(h) Customs valuation
Algeria is a contracting party to the Brusse ls Convention on the Valuation of Goods for
Customs Purposes of 5 December 1950.
Section 6 of the Customs Code on goods value is consistent with the Agreement on
Implementation of Article VII of the GATT 1994.
The customs tariff reform conducted under the 2001 Supplementary Finance Law, adopted by
the National People's Assembly and currently under examination by the National Council (Second
Chamber), is due to abolish the use of administered value, introduced as a safeguard measure.
In practice, a system of valuation of imports made under 464 tariff subheadings (in 2000) has
been implemented since 1996, replacing a measure to safeguard activities and jobs seriously
threatened by the extremely rapid growth in the vo lume of imports directly competing with national
production.  This protection mechanism is due to disappear with the re-establishment of stable
conditions for both public and private economic operators, who are often threatened by unfair
practices, and with the development of other safeguard mechanisms.  This is laid down in the 2001WT/ACC/DZA/14/Add.1
Page 50
Supplementary Finance Law, which provides for a general lowering of consumer prices for imported
goods.
(i) Other customs formalities
The border measures applied to imports into Algeria concern product quality and sanitary and
veterinary controls.
In addition, the importation of certain products is made subject to the issue of a prior
authorization or technical certificate by certain Ministries, particularly in the case of medicinal
products (Ministry of Health and Population), hunting weapons (Ministry of National Defence and
National Security Directorate), bookshop articles (Ministry of Information and Culture), and certain
plants and animals (Ministry of Agriculture).
(j) Preshipment inspection
At present, Algerian imports are not subject to preshipment inspection.  There are no
regulations governing this activity in Algeria.
(k) Application of internal taxes on imports
The following internal taxes on imports have been introduced under the Finance Laws:
- Value-added tax, since 1 January 1991;- specific surcharge, since 1994;- road use fee;- internal consumption duties on hy drocarbons, alcohol and tobacco.
These taxes are, of course, applied to both the import trade and local processing of the same
products.
(l) Rules of origin
The rules of origin are laid down in Article 14 et seq . of the Customs Code, which stipulates
that the country of origin of goods is the country where they were mined, harvested or manufactured.
It should be pointed that the rules of origin applicable to trade with the countries of the Arab
Maghreb Union (AMU) and the European Economic  Community (EEC) are covered by a special
regime, on account of the market access privileges granted in respect of trade in certain products.
As regards the AMU, agricultural products and products of the soil and subsoil extracted or
produced in one of the member countries are considered to originate wholly in that country.
Moreover, processed industrial products incorpor ating imported components must have acquired an
added value equivalent to no less than 40 per cent (Libya and Morocco), 50 per cent (Tunisia) and
40 per cent (AMU Convention not yet in force) of  the ex-works value of the finished product.
As far as exports to the EEC countries are concerned, agricultural and fishery products and
products of the soil and subsoil produced in Algeria are considered to be of wholly Algerian origin.
Processed industrial products incorporating imported components must have acquired an added value
of at least 50 per cent of the ex-works value of the finished product.WT/ACC/DZA/14/Add.1
Page 51
(m) Anti-dumping regime
Articles 8, 8 bis and 8ter define the anti-dumping regime and provide for import duties on
dumped products or products benefiting from export subsidies in their countries of origin
To date, no regulatory provisions have been adopted in application of these Articles.
(n) Countervailing duty regime
Article 8 ter of the Customs Code also provides for countervailing duties to prevent imports
from causing, or threatening to cause, injury to an existing or planned national industry.
Countervailing duties were introduced in 1992 for a limited period of one year, from
March 1992 to March 1993 (Executive Decree No. 92-123 of 23 March 1992 and Interministerial
Order of 7 July 1992 supplementing the list of products subject to countervailing duties).  Thesecountervailing duty arrangements are now no longer applied.
(o) Safeguard regime
The measures prescribed under the safeguard regime have not been implemented so far.
2. Export regulation
(a) Registration requirements for engaging in exporting
Operators involved in export transactions in Algeria are required to:
- Keep a commercial register;- arrange for the domiciliation of pro forma invoices drawn up on behalf of foreign
clients;
- repatriate the proceeds of export transactions within a time-limit laid down by the
Bank of Algeria.
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of rates
Algeria has no customs tariff nomenclature specifically for exports.
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems
Pursuant to the provisions of the Interministerial Order establishing the list of goods barred
from export, the following goods are subject to export restrictions in Algeria:
- Palm tree seedlings;- breeding sheep;- objects of national interest from the historical, artistic or archaeological standpoint,
including vintage vehicles.WT/ACC/DZA/14/Add.1
Page 52
(d) Export licensing procedures
Although Algeria has no export licensing regime, exporters' certificates for dates, raw hides or
skins and ferrous waste were introduced in 1998 to ensure greater transparency in these spheres of
activity.  This effective measure is being applied on a temporary basis.
(e) Other measures
Minimum prices are established for the export of dates, raw hides or skins and ferrous waste.
Minimum export prices for such products are set in accordance with rules laid down by the Ministry
of Trade.  The rules are essentially concerned with preventing capital flight.
(f) Export financing, subsidy and promotion policies
Under a special export promotion fund, resources are mobilized to cover part of the
expenditure entailed by surveys of external market s, information for exporters, improving the quality
of goods and services intended for export, participation in foreign fairs and exhibitions, and specific
requirements with regard to export financing and the facilitation of international transport and
handling operations in Algerian ports.  These measures are intended for both public and private
operators.
In addition, a special institution, CAGEX (Alg erian Export Insurance and Guarantee Fund),
takes responsibility for some of the trade or po litical guarantees furnished to firms involved in
organizing export credit transactions.
(g) Export performance requirements
No export performance requirements are imposed in Algeria.
(h) Import duty drawback schemes
A single import duty drawback scheme is operated in Algeria and concerns temporary
admission for the re-export of goods after processing.  No import duties are paid under this scheme.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy
The structure of Algerian industry is twofold, with:
- On the one hand, hydrocarbon processing and production activities, which are
capital intensive and are run according to the international standards of a strongly
fluctuating market;
- on the other, relatively uncompetitive activities (the legacy of government
development planning programmes geared to the domestic market) with few links
between them but all dependent on import inputs.  Little added value is produced bythese activities, but they strongly underpin the domestic employment market.  In
order to improve their performance and above all to reduce their direct impact on the
State's current budgets, most local State-owned firms are being wound up, sold off to
their employees, or offered for privatization.  Practically all enterprises of national
importance are due to be fully or partially privatized.WT/ACC/DZA/14/Add.1
Page 53
In the longer term, this should lead to the alignment of the management performance
standards of Algerian enterprises with internationa l standards, which will greatly help to reduce the
need for the protection of Algerian firms from foreign competition.
In the meantime, the 1995 Law on privatization has authorized the disposal of up to 100 per
cent of equity of most State-owned firms.  The Law was amended in 1997 to provide for greaterflexibility by lowering employment protection requirements.
Although few privatization operations have been conducted so far, there has been a slight
revival of industrial production in the public as well as the private sector since 1998.  The most
significant recovery has been in the chemicals sector, the agri-food, electrical and electronics
industries and in building materials.  The steel, mechanical engineering, leather and footwear, timber,
paper and textile sectors are still on the decline.
(i) Energy sector policy
In 2000, the energy sector accounted for over 40 per cent of GDP, while representing more
than 97 per cent of export earnings.
The hydrocarbon sector is the driving force of the domestic economy and of Algeria’s
integration in the global economy.
In 2000, it accounted for over 60 per cent of government revenue and more than one quarter
of the country's GFCF.  It is the main sector of interest for foreign direct investment.
The 1986 Law on hydrocarbons, amended in 1991, opens exploration to foreign participation
under the terms of joint-venture contracts, service contracts and production-sharing agreements.  A
revision of the Law to open up the market more extensively to competition is currently under
consideration.
The hydrocarbon sector has been forced to adapt to international economic trends by
diversifying its output and exports.  Recent years have seen products other than crude oil assume
much greater importance in the hierarchy of energy exports.  They include condensates, natural gas
and refined products.  About 20 per cent of hydrocarbon production is consumed domestically.
- Energy policy
Algeria's concerns in this field are those of a developing economy seeking to meet fast
growing domestic energy needs, to ensure the long-t erm satisfaction of those needs, and at the same
time to guarantee the necessary financing by obtaining a substantial proportion of its external payment
resources through export earnings.
The fundamental principle of the Algerian energy policy over the long term is the
achievement of a balance between the satisfaction of domestic needs and exports.  This strategy,
which prompted the revision of the 1986 Law on  hydrocarbons, is geared towards abolishing
monopolies through a three-pronged approach: development of hydrocarbon resources and productionand transport infrastructure;  rationalization and internal use of energy;  and reorganization and
diversification of exports to achieve maximum returns.
- The development plan
SONATRACH and its partners decided to invest over US$20 billion into raising production
from 900,000 barrels a day to more than 1.3 to 1.5 million barrels a day by 2003-2004.  As a result ofWT/ACC/DZA/14/Add.1
Page 54
this investment policy, the number of discovery wells increased from a mere 20 over the period
1986-1989 to 34 between 1990 and 1994;  it now stands at 46.
Highly volatile international oil prices are threatening Algeria's fragile macroeconomic
equilibrium.  A programme to intensify exploration and expand the transport infrastructure is being
put into place in order to ensure more effective control over the volume of income.
- Intensification of exploration
Up to 1986, only 10 per cent of total deposits had been surveyed.  The new law adopted in
1986 and amended in 1991 has made it possible to step up exploration and has given a real boost to
production in cooperation with foreign partners. In addition to this law, which opens up production,
transport and processing activities (formerly under SONATRACH monopoly) to foreign companies,new legislation is being framed to liberalize the oil and gas sector yet further and thus ensure even
fairer competition between the national company (SONATRACH) and foreign firms.
In order to keep pace with these developments, a medium-term plan (2002-2004) is being set
up with a view to establishing a body in charge of handling the hydrocarbon service sector.  Thisshould lead to an intensification of exploration efforts, with the following anticipated results:
- Increase in footage drilled to a total of 600,000 m over the implementation period;- increase in oil production from 41 million tonnes in 2000 to more than 70 million
tonnes in 2004;
- increase in gas production from 135 billion m
3 in 2000 to over 155 billion m3 in 2004;
- output plateaus of around 15-17 million tonn es of condensate and 9 million tonnes of
liquefied petroleum gas (LPG) per year over the implementation period.
Prospecting efforts are focused on the south-east of the Sahara, which has a richer geological
base and reputed potential, together with transport facilities, but they are also being extended to
unexplored areas, particularly in the south-west and the north.
- Improvement of the yield from deposits being worked
The purpose of the "Association for Working Depos its" (AGE) is to maintain or enhance the
rate of recovery, which currently stands at an average of 23 per cent.
- Development of known but unexploited gas deposits
The purpose of this programme is to achieve the objective of increasing the volume of
deposits available for export.
- Increase in natural gas export capacity
The goals are to:- Complete the ongoing modernization of li quefied natural gas (LNG) complexes, to
obtain a capacity of between 20 and 30 billion m
3 per year;
- increase the capacity of the "Transmed" gas pipeline from 16 to 25 billion m3 per year
(gas pipeline to Italy, in service);WT/ACC/DZA/14/Add.1
Page 55
- implement Phase One of the Maghreb-Europe Gas Pipeline (GME) and achieve an
export capacity of 7 billion m3 per year during that phase (gas pipeline to the Spanish
and Portuguese markets, under construction).
(ii) Restructuring of Algerian industry
The restructuring and privatization of Algerian industry are now an essential prerequisite for
economic recovery.  This judgement is largely borne out by the lacklustre performance of the
established industrial production system, which continues to post insufficient and unstable growth
rates.
Moreover, reforms in the industrial sector have become inevitable because of the inability of
the hydrocarbon sector to continue by itself to guarantee the financing of economic development, and
because of the world-wide changes in the industry as a whole, which have ultimately sidelined a localindustrial model sheltered for too long from international competition.
The new restructuring policy is based on the following objectives:- Reducing the weak points of national industries, such as their concentration on a
relatively narrow domestic market, their heavy reliance on imports, the
underutilization of capacity, technological backwardness and obsolete manufacturing
techniques;
- improving the foreign exchange balance of the industrial sector by greater internal
plant integration and by a more pronounced slant towards export activities;
- increasing private-sector participation in industrial activities, both through the
stimulation of new investment by national or foreign private entrepreneurs and
through more extensive privatization of government assets.
Active implementation of industrial public sector reforms
Today, the Government's industrial reform policy pursues two lines of action.
(i) Stimulation of the privatization process
After local State-owned enterprises were so ld off or wound up between 1996 and 1998,  the
privatization and restructuring of industrial firms appeared to reach a deadlock.  To pursue the efforts
initiated in this sphere, the Government undertook to revise most of the legal provisions that slowed
down reform procedures.  These included the Order of 26 August 1995 on the privatization of public
enterprises and the Order of 25 September 1995 on the management of State-owned commercial
capital.
In order to improve the coordination of privatization operations, the number of holding
companies with State participation has been reduced from 11 to five.  The privatization programme
aims, inter alia :
- To encourage invitations to tender, single tendering, and sales to employees;
- to study all forms of privatization and participation by reputable foreign firms;- to involve foreign consultancy firms in the evaluation and follow-up aspects of the
privatization process.WT/ACC/DZA/14/Add.1
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(ii) Attraction of foreign investment (direct investment and equity investment)
- Direct investment
Investments in the oil sector, amounting to some US$500 million a year, account for the
greatest share of foreign investment in Algeria.  In order to diversify the target sectors, the
Government is considering a revision of the Law on investment in order to provide, inter alia , for the
following facilities:
- Establishment of a "single window" to replace the current Investment Promotion,
Support and Monitoring Agency (APSI);
- more systematic granting of advantages deriving from investment;
- equality of treatment between national promoters and foreign promoters and greater
transparency in file processing procedures.
- Equity investment
In March 2000, the Currency and Credit Board adopted regulations governing equity
investment in Algeria by non-resident Algerian or  foreign nationals, in order to facilitate the
development of and the expansion of trading on the Algiers stock exchange.  These regulations
provide for the repatriation of proceeds from sales and returns on dividends or interest under the same
terms as the purchase of securities (shares, bonds or other forms of investment quoted on the Algiersstock exchange).
The State's industrial policy is also geared to  strengthening and promoting a network of small
and medium-sized enterprises and industries, backed up by private manufacturers.
The aims are to provide systematic encouragement for investment in small and medium-sized
businesses, to support their emergence through the restructuring and privatization of existing
industrial potential and to slant their activities, as a matter of priority, towards the development of
subcontracting, the optimum use of local resources and the promotion of exports.
The system of incentives will be based on the following lines of approach:
- Continued streamlining of the institutional environment through the abolition of
industrial monopolies, freedom of access to foreign trade, the development of
competition and efforts to facilitate the exercise of industrial and trade activities;
- adaptation of the banking and financial system to the needs of small and medium
sized businesses through the readjustment of credit policy, encouragement of private
banks and modernization of investment support instruments;
- the general reduction of the tax burden on small and medium-sized businesses, as
well as of the indirect cost of their social overheads and payroll burden;
- introduction of an integrated policy of assistance with the establishment of small and
medium-sized businesses, backed up by training schemes for managers and the
development of project banks.WT/ACC/DZA/14/Add.1
Page 57
(b) Technical regulations and standards
(i) Monitoring and promotion of quality
The implementation of economic reforms and the liberalization of foreign trade have resulted
in greater awareness, on the part of all the econom ic operators, of the importance of the concept of
"quality", as reflected in particular in the new marketing and competition rules.
Since 1989, the Government has accordingly pursued a national policy for the monitoring and
promotion of quality and consumer protection, based essentially on:
- Strengthening of the legislation governing quality and the suppression of fraud;- development of control capabilities and of the physical and technical basis for quality
assessment;
- establishment of an information system and implementation of programmes of
assistance for the benefit of economic operators, on the one hand, and the operational
services responsible for control, on the other.
- Strengthening of the legislation governing quality
Law No. 89-02 of 7 February 1989 on the general rules of consumer protection is the basic
legal instrument for the protection of the moral and material interests of consumers.
The purpose of this important piece of legislation is to lay down general rules for the
protection of consumers throughout the process of marketing of the product and/or service, having
regard to its quality and irrespective of the legal status of the operator.
The process of making a product or service available for consumption comprises all
operations from the stage of initial creation until final supply for consumption (Article 1 of Law
No. 89-02 of 7 February 1989).
The main principles enunciated in the Law concern:
- Protection of the material and moral interests of consumers, either individually or in
an associative framework;
- compliance with the statutory and regulatory specifications and standards defining the
quality of goods for consumption;
- organization of a system of quality control for goods and services placed on the
market.
On the basis of the principles set out in the Law, a set of horizontal regulations has been
adopted and has served to strengthen the force of the institutional and legal machinery put in place.
These implementing regulations cover the following issues in particular:
- Procedures for the investigation and finding of offences relating to quality control and
the suppression of fraud (Decree No. 90-39 of 30 January 1990);
- product and service warranties (Executive Decree No. 90-266 of 15 September 1990);WT/ACC/DZA/14/Add.1
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- labelling and presentation of non-food domestic products (Decree No. 90-366 of
10 November 1990);
- labelling and presentation of foodstuffs (Decree No. 90-367 of 10 November 1990);- materials intended for contact with foodstuffs and products for cleaning such materials
(Decree No. 91-04 of 19 January 1991);
- conditions of hygiene in the food marketing chain (Decree No. 91-53 of
23 February 1991);
- conditions and procedures for the use of additives in foodstuffs (Decree No. 92-25 of
13 January 1992);
- control of the quality and conformity of imported or exported products (Decree
No. 93-47 of 6 February 1993) and of locally manufactured products;
- control of the conformity and quality of imported products (Decree No. 96-354 of
19 October 1996, Official Journal No. 062 of 20 October 1996, as amended and
supplemented by Decree No. 2000-306 of 12 October 2000);
- conditions and procedures for the production, packaging, importation and marketing
of cosmetics and personal hygiene products on the domestic market (DecreeNo. 97-37 of 14 January 1997, Official Journal No. 004 of 15 January 1997);
- prior licensing for the manufacture and importation of toxic or particularly hazardous
products (Decree No. 97-254 of 8 July 1997, Official Journal No. 046 of 9 July 1997);
- technical specifications applicable to textile products (Decree No. 97-429 of
11 November 1997, Official Journal No. 75/1997);
- prevention of risks associated with the use of toys (Decree No. 97-494 of
21 December 1997, Official Journal No. 85/1997).
All these regulations, taken together, are designed to ensure enhanced protection both for the
consumer and for the national economy as a whole.
They thus provide a more appropriate legal framework for duly authorized officials to
exercise their statutory powers and for consumers to protect and safeguard their moral and material
interests.
Moreover, the adoption of specific regulations laying down the qualitative requirements for
goods and services helps to foster progress, while fitting into a process of competitiveness and
broader competition.
Lastly, the adaptation of nationally produced goods to international standards is a prerequisite
for trade promotion and provides a boost to non-hydrocarbon exports.
- Development of control capabilities and of the physical and technical basis for quality
assessment
In recent years, significant progress has been made in strengthening quality control
capabilities, in terms of both sanctions and prevention.WT/ACC/DZA/14/Add.1
Page 59
The "control" function has been upgraded through organizational adjustments serving to
rationalize quality control.
Reorganization of the quality control infrastructure has led to the establishment of the
following bodies and agencies:
- At central government level
Product quality and safety department
This body is responsible for shaping the broad lines of national quality control policy, in
particular by studying ways and means to promote quality and develop general or specific regulations
on the quality of consumer goods and services.
Central inspectorate for economic investigation and the suppression of fraud
This body exercises supervisory powers in the economic field.  It draws up monitoring
programmes and ensures optimum performance, in particular through quality and fraud controloperations conducted by Trade Ministry units.
- At the decentralized level
Regional inspectorates for economic investigation and the suppression of fraud
Within their territorial jurisdiction, these seven regional inspectorates bear overall
responsibility for the competition and price direct orates and for border inspections;  they also have
monitoring and follow-up power regarding the operational units in charge of economic controls.
Competition and price directorates of the wilayas
These operational units, which are established in the capital of each of the 48 wilayas
(administrative areas), exercise economic supervision, particularly as regards quality control, the
suppression of fraud and the promotion and development of competition.
- Border inspection units
These 14 inspection units are established in the main points (ports, airports, land border posts)
of transit of imported goods and are in charge of controlling the quality and safety of imports.  The
regulatory specifications are the same as those applicable to domestic products.
Following the liberalization of foreign trade, border inspection became necessary in order to
deal with the massive and anarchic imports of general consumer goods representing a potential threat
to consumer health and safety.
Pursuant to Law No. 89-02 on consumer prot ection, procedures have been laid down for
detaining imported goods and bringing them into conformity (Decree No. 96-354 of 19 October 1996,
as amended and supplemented by Decree No. 2000-306 of 12 October 2000).
The main principles are as follows:
- systematic control of the quality and conformity of certain products, designated by
statutory order;
- delivery of a conformity certificate prior to customs clearance;WT/ACC/DZA/14/Add.1
Page 60
- possibility of bringing the products into conformity either under customs control or in a
specialized facility.
The functions of border inspection units were laid down by Decree No. 98-105 of
3 March 1998, amending and supplementing Decree No. 91-91 of 6 April 1991 on the organization,powers and functioning of the external services in charge of competition and prices.
It should be pointed out that t oday control is restricted to foodstuffs and to cosmetics and
personal hygiene products.
- Intermediate agencies
There are three important agencies with administrative powers, namely:- The Algerian Quality and Pack aging Control Centre (CACQE);
- the Algerian Standardization Institute (INAOR);- the National Metrology Office (ONML).The operational units involved in quality co ntrol have been given additional human and
material resources, which has led to a strengthening of control mechanisms in recent years, inparticular border controls.
The implementation of these quality control measures has necessitated the development and
strengthening of existing resources in the field of analytical assessment.
In this connection, it should be recalled that Decree No. 91-192 of 11 June 1991 laid down the
conditions for opening and licensing quality assessment laboratories, while at the same time
classifying them.
On the basis of these regulations, an assessment of existing national capabilities has been
conducted and provision has been made for the establishment of a network of laboratories for quality
testing and assessment (RELEA), pursuant to Decree No. 97-459 of 1 December 1997, supplementing
Executive Decree No. 96-355 of 19 October 1996.
Alongside the creation of this national assessment laboratory network (which is still at the
planning stage), a programme for the development of laboratories dealing with quality control and the
suppression of fraud has been drawn up and implemented.  This has led to the establishment of14 laboratories now in operation.
- Strengthening of the information infrastructure and implementation of assistance
programmes
Given the particular emphasis on dialogue and communication in the national quality control
policy, the priority schemes launched by the Government have focused on:
- Strengthening the community-based consumer protection movement
This movement is expected to grow stronger in the years ahead, with support from the
Government.WT/ACC/DZA/14/Add.1
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- Developing communication and assistance
The communication policy developed since 1995 has led to the following activities:
- organization of media information and awareness-raising campaigns, using both
television and the written press (commercials, newspaper ads and articles), along withthe creation of a bulletin on quality issues;
- organization of outreach workshops and seminars to explain the legislation and rules
in force;
- efforts to find new fora for communication and consultation in the quality field
(Chambers of Commerce, consumer  associations, and so forth).
In regard to assistance, international cooperation programmes have been initiated at both
bilateral and multilateral level (UNDP-UNIDO-FAO), facilitating the development of training and
retraining schemes and programmes in support of enterprises.
Lastly, it should be noted that, at the internatio nal level, Algeria takes an active part in the
work of specialized bodies such as the Codex Alimentarius Commission.
(ii) Standards and certification
As a result of the restructuring of the Algerian Standardization and Intellectual Property
Institute (INAPI), standardization and certification matters are now handled by the Algerian
Standardization Institute  (IANOR), es tablished pursuant to Decree No. 98-69 of 21 February 1998
(Official Journal No. 011 of 1 March 1998).
The IANOR, a public industrial and commercial undertaking placed under the supervision of
the Ministry of Industry and Restructuring, is responsible for implementing national standardization
policy.
Within the context of a public service function and under its statutes and the legislation in
force, the IANOR has the following tasks:
- Elaboration, publication and dissemination of Algerian standards;- centralizing and coordinating all standardization activities undertaken by existing
bodies or those to be set up for the purpose;
- adoption of marks of conformity with Algerian standards and quality marks, and the
issue of authorizations for the use of such marks and control of their use, within the
framework of the legislation in force;
- promotion of studies, research and tests in Algeria or abroad, and development of
testing facilities needed to establish and guarantee the implementation of standards;
- establishment, conservation and provision of any documentation or information
relating to standardization;
- application of international conventions and agreements on standards to which
Algeria is a party;WT/ACC/DZA/14/Add.1
Page 62
- the institute is also responsible for representing Algeria in the work of the
international and regional standards organizations.
The Algerian standardization system is largely based on international practice.  The system is
governed by the following laws and regulations:
- Law No. 89-23 of 19 December 1989 on standardization;
- Decree No. 98-69 of 21 February 1998 on the establishment and statute of the
Algerian Standardization Institute;
- Decree No. 90-132 of 15 May 1990 on the or ganization and functioning of the
standardization system;
- Decree No. 2000-110 of 10 May 2000 ame nding and supplementing Executive
Decree No. 90-132 of 15 May 1990 on the organization and functioning of the
standardization systems;
- Decree No. 2000-111 of 10 May 2000 on the Algerian Council for the Accreditation
of Conformity Assessment Bodies;
- Order of 3 November 1990 on the elaboration of standards;
- Order of 3 November 1990 on the organization and functioning of technical
committees;
- Order of 23 April  2000 amending and supplementing the order of 2 November 1992
establishing technical committees responsible for standardization activities;
- Order of 24 July 1996 instituting the national standardization day;- circular of 20 May 2000 by the Head of Government concerning the consistency of
standards and technical regulations;
- Order of 2 November 1992 establishing technical committees responsible for
standardization activities;
- Order of 24 July 1996 laying down the cond itions and procedures for the award and
withdrawal of marks of confor mity with Algerian standards.
For the purposes of the provisions contained in particular in Decree No. 2000-110 on the
organization and functioning of the standardization system, the IANOR relies on a national
standardization council and strategic steering committees responsible for defining sectoral
programmes, and it also has 57 national technical committees through which all interested parties may
participate in standardization activities.
The Algerian standardization system provides for two categories of standards:- Approved standards, which are mandatory;
- registered standards, which are optional.
It should be noted that, to date, more than 5,200 Algerian standards have been produced,
based for the most part on the international system, nearly 200 of which are mandatory.WT/ACC/DZA/14/Add.1
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With regard to conformity assessment, and to meet the quality requirements which now
constitute a prerequisite for all commercial transactions, the IANOR launched a major project in 1992
for the purpose of promoting improved quality in Algeria.
This project, involving the establishment of  the Algerian Council for the Accreditation of
Conformity Assessment Bodies (Decree No. 2000-111 of 10 May 2000) is aimed at establishing, in
accordance with international norms (ISO-IEC guidelines), an Algerian product conformity
certification system.
The project will eventually cover all the following fields:- Accreditation;- certification of quality systems;- product certification;
- certification of persons;
- certification of services.For its various customers, which are mainly enterprises, the IANOR has developed services
ranging from dissemination to the Council of inform ation on standards to certification and training.
The aim in fact is to ensure the practical integration of a standardization culture within firms.
Thus, the IANOR has contributed to the upgrading of four enterprises through fulfilment of
the ISO 9002 certification requirement and receives requests for support from a number of public andprivately owned companies.
With regard to participation in the work of international organizations specializing in this
field, the IANOR represents Algeria in the International Standardization Organization (ISO) and the
Arab Industrial Development and Mining Organization (AIDMO).
(c) Sanitary and phytosanitary measures
(i) Sanitary measures
- Imports of live animals and animal products
This activity is governed by law No. 88-08 of 26 January 1988 on veterinary medicine and the
protection of animal health, and by Executive Decree No. 91-452 of 16 November 1990 on veterinary
inspections at border posts.
The importation of animals and animal products capable of spreading contagious animal
diseases to humans or animals is prohibited.
Importers of such products are therefore required to obtain a waiver of the above-mentioned
prohibition from the national veterinary authority, i.e.,  the official veterinary services of the Ministry
of Agriculture (Veterinary Services Directorate), on the basis of the sanitary situation in the country
of origin.
The waiver takes the form of a document certifying that no disease subject to compulsory
declaration has been reported in the place, area or country of origin of the products concerned.WT/ACC/DZA/14/Add.1
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It is issued on the basis of the sanitary situation in the country of origin.
The sanitary information in question is obtained from:
- Countries with which Algeria has relations in the field of animal health (signed
agreement between the two countries);  and
- the International Office of Epizootics (OIE), an international organization to which
Algeria is affiliated.
Imports of animals are authorized only from countries where the sanitary situation is at least
equivalent to that obtaining in Algeria.
The sanitary (bacteriological, toxicological and isotopic) requirements for the import of
animal products and/or products of animal origin must conform to recognized international standards,
such as those of the Codex Alimentarius.
- Imports of pharmaceutical products for veterinary use
The marketing of pharmaceutical and organic products for veterinary use is governed by the
laws and regulations in force.  No veterinary drug may be placed on the market unless it has been first
authorized by the Ministry of Agriculture.
The marketing authorization (AMM) is granted by decision of the Minister of Agriculture and
on the proposal of the Interministerial Commission set up for that purpose.
- Exports of animals and animal products
Animal exports are governed by international sanitary standards based on schedules of animal
diseases subject to compulsory declaration and laboratory findings, particularly in the serological
field.  For exports of animal products or products of animal origin, essentially fishery products, a
scheme for the licensing of establishments which process such products is being carried out incooperation with the European Union, as is a scheme for the introduction of preshipment
bacteriological and toxicological testing of such products.
Exports of animals or animal products are also subject to a sanitary export exemption issued
by the veterinary services of the Ministry of Agriculture, with the aim of guaranteeing the sanitary
condition of such products.
- Exports of pharmaceutical products for veterinary use
Exports of veterinary products are subject to a waiver issued by the veterinary services of the
Ministry of Agriculture's central administration.
(ii) Phytosanitary and agricultural pesticide controls
Phytosanitary and agricultural pesticide controls are governed by Law No. 87-17 of
1 August 1987 on phytosanitary protection and regulated by Executive Decree No. 2000-149 of
28 June 2000 laying down organizational rules for the central administration of the Ministry of
Agriculture, which entrusts the role of national phytosanitary authority to the Plant Protection andTechnical Control Directorate (DPVCT).WT/ACC/DZA/14/Add.1
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The role of this governmental authority relates to phytosanitary controls within the national
territory and at the borders, and phytosanitary products for agricultural.
- Internal phytosanitary controls
These controls are based on surveillance operations and action to combat prohibited crop
pests within the national territory.  The machinery put in place covers animal and vegetable
organisms, the manifestation or propagation of wh ich must be prevented at all costs through the
introduction of a rigorous system of detection.
Executive Decree No. 95-387 of 23 November 1995 establishes a list of plant pests and the
surveillance and control measures applicable to them.
The species or genres on the list were included on account of the economic harm they have
actually caused to crops in the past (as in the case of San José scale, the khapra beetle, date palm
blight, dodder and broomrape), or because of the potential danger they represent given their capacity
to spread via seeds and seedlings (as in the case of beetles and borers, scale insects, capnodis).
- Phytosanitary border controls
Border controls of plants, plant products and plant material are a preventive measure designed
to protect Algerian agriculture from the introduction and colonization of dangerous crop plants.  The
relevant regulatory framework is provided by the following texts:
- Executive Decree No. 93-286 of 23 November 1993 regulating phytosanitary border
controls;
- Ministerial Order No. 32 of 13 January 1992 on phytosanitary conditions for the
import of plants and parts of living plants of fruit and ornamental species;
- Ministerial Order No. 117 of 21 May 1995 establishing phytotechnical and
phytosanitary standards for the import of seeds and seedlings of market garden,
arboreal, viticultural and major crop variety species;
- Ministerial Order No. 010 of 11 January 1998 on import conditions for potato tubers
(text repealing Ministerial Order No. 306 of 18 November 1995 referred to below);
- a draft Ministerial Order specifying import conditions for seeds and seedlings is being
enacted and will replace Orders No. 32 of 13 January 1992 and No. 010 of
11 January 1998;
- Ministerial Order No. 306 SPM of 18 November 1995 requiring prior technical
authorization for imports of potato tubers and laying down specific phytosanitary
requirements.  It contains regulations focusing on three key lines of approach,
namely:
- Schedule of prohibitions and restrictions:
- Annex I to Decree No. 93-286 of 23 November 1993 contains a Schedule A
of harmful organisms barred from importation into Algeria, irrespective of
their biological forms, and a Schedule B of prohibited harmful organismsfound on a particular plant medium.WT/ACC/DZA/14/Add.1
Page 66
- Annex II to the same decree sets out the list of plants and plant products
subject to mandatory phytosanitary border controls.  For all imports, the
border customs services require controls to be carried out by the
phytosanitary services prior to customs clearance.
Order No. 32 of 13 January 1992 (text in process of amendment) establishes the list of fruit
and horticultural species barred from importation because they might introduce epidemic diseases.
Ministerial Order No. 010 of 11 January 1998 on conditions for importing potato tubers
makes the importation of potato tubers subject to prior technical authorization and lays down specific
phytosanitary requirements.
- Points of entry
In accordance with the International Plant Protection Convention, each member country of the
FAO must adopt regulations indicating the official points through which plant products may be
imported or exported.  In the case of Algeria, the points in question were designated by Decree
No. 93-283 of 23 November 1993 and comprise:
- Ten sea entry points (ports);- six land entry points;
- eight air entry points (airports).
- Exercise of control
All plant products included in the schedule a ttached to Annex II of Decree No. 93-283 of
23 November 1993 are subject to compulsory phytosanitary inspection.
This schedule is a working guide for the customs services, so that no product on the schedule
may leave the customs enclosure without a free circulation licence issued by authorized inspecting
officers, which attests that the consignment of plants or plant products has been inspected and is inconformity with the phytosanitary regulations in force.
Consignments of plants, plant products and plant material for export must meet the
phytosanitary requirements of the importing countries.  They are subject to compulsory inspection
and, if the regulations of the importing country so require, they must be accompanied by a
phytosanitary certificate issued by duly authorized officials.
Phytosanitary inspections for import or export purposes are carried out by officially appointed
inspectors.  Only officials whose names appear on the list established by ministerial order (text in
process of adoption) are empowered to carry out phytosanitary inspections and to sign the official
documents finalizing the controls.  These officials are recognized by the courts and specimens of their
signatures are deposited with the phytosanitary authority and the customs services.
In performing their duties and formalizing their de cisions, inspectors are required to rely on:
- The content of the technical documents accompanying the merchandise and issued by
the official services of the exporting country;
- their own findings, made visually or by microscope.WT/ACC/DZA/14/Add.1
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The phytosanitary border inspection posts may also, for the purpose of detailed analyses,
enlist the scientific support of the national laboratory for expert detection and diagnosis, as well as the
regional diagnostic laboratories run by the INPV (National Plant Protection Institute), the CNCC
(National Control and Certification Centre) and bodies answerable to the Ministry of Higher
Education and Scientific Research.
(iii) Control of phytosanitary products for agricultural use
This activity is governed by Law No. 87-17 of 1 August 1987 and the following
implementing regulations:
- Executive Decree No. 99-156 of 20 July 1999 amending and supplementing
Executive Decree No. 95-405 of 2 December 1995 on the control of phytosanitary
products for agricultural use;
- Ministerial Order No. 744 of 6 October 1996 appointing the members of the National
Commission on certification of phytosanitary products for agricultural use;
- Ministerial Order No. 79 of 13 March 2000 on packaging and labelling conditions for
phytosanitary products in agricultural use;
They are concerned inter alia  with the conditions of manufacture, importation, distribution,
marketing and utilization of phytosanitary products for agricultural use;  the latter must be cleared by
a prior certificate of approval issued by the phytosanitary authority after investigation by and on therecommendation of the National Phytosanitary Products Commission.
- Importation and distribution
The importation and distribution of phytosanitary products for agricultural use is subject to an
authorization issued by the phytosanitary authority.  This procedure enabled the operators concerned
to be identified and, at the same time, facilitates qualitative control at the points of entry and
distribution.
- Manufacture
The manufacture of phytosanitary products for agricultural use is authorized after
investigation and approval by the Commission, which checks that the manufacturing process is in
conformity with the legislation in force.
- Use of phytosanitary products
In order to guard against the harmful effects of inappropriate use of phytosanitary products,
the relevant measure is designed to regulate this activity by authorizing specialized and qualified
enterprises or agencies to handle phytosanitary products.
(iv) International relations
The Directorate of Plant Protection and Techni cal Control (DPVCT/Ministry of Agriculture)
acts as the national phytosanitary authority and represents Algeria in relations with regional and
international plant protection organizations.
In this capacity, the DPVCT maintains relatio ns with several organizations, including:WT/ACC/DZA/14/Add.1
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- The Food and Agriculture Organization of the United Nations (FAO)
Basic text:  Decree No. 85-112 of 7 May 1985 on ac cession by Algeria to the International
Plant Protection Convention (IPCC), signed at Rome on 16 December 1951, revised by Resolution
14/79 of the FAO Conference held from 10 to 29 November 1979.
- The Arab Maghreb Union (AMU)
Basic text:  Presidential Decree No. 90-423 of 22 December 1990, on ratification of the
convention between the countries of the Arab Maghreb Union (AMU) relating to phytosanitary
matters, signed at Algiers on 23 July 1990.
- The European and Mediterranean Plant Protection Organization (EPPO/Paris)
Presidential Decree No. 98-125 of 18 April 1998 on the accession by Algeria to the
Convention of the European and Mediterranean Plant Protection Organization.
- The Inter-African Phytosanitary Council of the Scientific, Technical and Research
Commission (CRI/STCR/OAU, Yaoundé)
- The Near East Plant Protection Organization (NEPPO)
(d) Trade-related investment measures
Algerian legislation on investment comprises no measures capable of having a restrictive or
distorting effect on trade.  It is in conformity with the provisions of Article III (National Treatment)
and Article XI (General Elimination of Quantitative Restrictions) of the 1994 General Agreement.
(e) State-trading practices
Since 1998, pursuant to the so-called General Principles Act on Public Enterprises
(Law No. 88-01 of 12 January 1988), the rules prev iously applied to State-owned companies have
been completely recast.  Such companies, which were formerly considered to come under the direct
authority of the Ministries, were given a status which placed them on the same footing (subject to
certain provisions concerning the assignment of their assets) as private law companies governed bythe Commercial Code.
Since 1995, several laws have been adopted with a view to privatising public enterprises and
increasing transparency in the management of the St ate's commercial capital.  These laws confirm the
full applicability of commercial code rules to  public companies.  Trading by public companies,
notwithstanding the specific status of their ultimat e owner, is governed in all respects by the same
provisions as are applicable to private companies.
In practice, a government agency, the Algerian Inter-Trade Cereals Board (OAIC) continues
to be involved in the importation of grains, following  a charge in its status, in accordance with the
rules governing companies.
This government agency has none of the attributes of a trading monopoly.  Any other
enterprise, whether public or private, continues to be entitled to import the same products.
Nevertheless, the elimination of monopolies is a slow process, particularly in sectors
requiring substantial investment.  De facto monopolies continue to exist, but they are being broken up.For the most part, such monopolies are exercised by firms importing strategic foodstuffs and raw
materials and semi-manufactures required for the production process.  The same applies toWT/ACC/DZA/14/Add.1
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construction materials such as cement, wood and steel, market areas which are increasingly being
penetrated by private firms.
(f) Free zones
A free zone is currently at the planing stage in Algeria (Bellara site, Jijel).  Pursuant to
Legislative Decree No. 93-12 on the promotion of investment, which provides for the establishmentof industrial free zones for exports, an Executive Decree (No. 94-32) has been enacted to draw up the
procedures for the management and establishment of free zones.
(g) Free economic zones
Algeria has no economic zones of this kind, but does not rule out the possibility  of
establishing such zones, if necessary, in accordance with the national policy of investment promotion.
(h) Trade-related environmental policies
The concept of environmental protection is explicitly recognized by Law No. 83-02 of
5 February 1983.  Responsibility for implementation lies with the Ministry of the Environment and
Regional Planning.
The main environmental aspects of trade concern the manufacture, transportation and
marketing of dangerous products (particularly chemicals, explosives, etc.), which are also covered by
the national legislation in force, through special statutes on the protection of health, consumers,
animal health, etc.
Furthermore, Algeria has ratified the WTO Decision on Trade and Environment, adopted in
Marrakesh in April 1994, which recognizes the need "to identify the relationship between trade
measures and environmental measures, in order to promote sustainable development [and] to make
appropriate recommendations on whether any modifications of the provisions of the multilateral
trading system are required, compatible with the open, equitable and non-discriminatory nature of thesystem".
Algeria is also a signatory of the Basle Convention on the control of transboundary
movements of hazardous wastes and of the London Guidelines for the exchange of information on
chemicals in international trade.
(i) Mixing regulations
As a complement to the legislation mentioned under point (h) above, mixing regulations are
governed by Executive Decree No. 92-42 of 4 February 1992 on prior authorizations for the
manufacture of toxic or particularly hazardous products.
(j) Government-mandated counter-trade and barter
(i) Barter
An Interministerial Order of 14 December 1994 lays down the rules for barter transactions on
the borders with Niger and Mali.
This type of trade is of an exceptional nature and is designed exclusively to facilitate the
supply of goods to the populations resident in the wilayat of southern Algeria (Adrar, Illizi and
Tamanrasset).  The goods imported in this way may not be marketed outside the territorial limits of
the above-mentioned wilayat.WT/ACC/DZA/14/Add.1
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There is an established list of goods authorized for frontier barter trade.  It covers necessaries
included in the consumption habits of the local populations.  This traditional type of trade has been
maintained in order to ensure the stability and continuity of the centuries-old links between the
populations of the region, thereby guaranteeing that they are regularly supplied with essential
products.
The very modest level of such border trade (US$1 to 1.5 million) represents a negligible
proportion of Algeria's foreign trade.
(ii) Product exchange or technical exchange transactionsSuch transactions may relate to goods or services not subject to any particular prohibition,
suspension or restriction as regards both imports and exports.
Commercial transactions of this kind involve very small amounts (US$0.5 million) and are
carried out by firms with a view to acquiring imported products in exchange for exports.
Under this procedure, only the following produ cts are authorized for import:  equipment, raw
materials, semi-finished products, spare parts and tools.
The following products may not be exported under this procedure:  "Deglet Nour" dates,
petrochemical and steel products, fertilizers, iron ore and wine.
All product exchange and technical exchange transactions are subject to bank domiciliation,
in the same way as routine imports and exports.
(k) Trade agreements leading to country-specific quota allocation
Algeria has concluded no agreements of this kind with its partners.
(l) Government procurement practices
Procurement legislation has developed in the light of the country's socio-economic situation,
reflecting a shift from centralized to more liberal management.
Procurement covers the full range of contracts for public works, supplies and services
concluded by the State and by public institutions and establishments of an administrative nature,
excluding contracts governed by specific legislation, such as insurance contracts and contracts for the
supply of electricity and gas.
Public contracts are subject to a specific syst em of award and supervision, aimed at ensuring
rational, efficient and transparent use of the public funds earmarked to finance them.
The main features of this system, which has undergone several stages since 1962, are
currently embodied in Decree No. 91-434 of 9 November 1991 on the regulation of government
procurement.
The Decree lays down the procedures to be followed for the award of public contracts as well
as the rules for monitoring them.  It also specifies the clauses to be inserted in contracts, and in some
cases their content.WT/ACC/DZA/14/Add.1
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(i) Award procedures
Public contracts are concluded on the basis of the following range of methods:
- single tendering, subdivided into:
- simple direct agreement,
- mutual agreement after consultation;
- invitations to tender, subdivided into:
- open invitations to tender,
- selective invitations to tender;
- selective consultation following pre-selection;
- adjudication;  and
- competition.
The choice of the method of awarding governme nt contracts depends on efficiency criteria
and is the responsibility of the contracting service.  However, this choice has to be justified in the
context of regulatory controls.
(ii) Methods of control
Government procurement is subject to diff erent types of control covering the entire
contractual process.  Controls are carried out by the internal organs of the contracting service, the
supervisory administration, the procurement commissions attached to each contracting service and the
National Procurement Commission.
The procurement commissions carry out an a priori control before performance of any
contract can begin.
Depending on their nature and the amount involved, contracts come within the purview of
either the National Procurement Commission or the procurement commissions of the contracting
service.
Procurement involving an amount of not more than DA 4 million is not subject to prior
control and may take the form of direct orders by the administration.
(iii) Review of public procurement regulations
The public procurement regulations are currently being reviewed with the aim of simplifying
management procedures and, above all, developing competition rules applicable to governmentorders.  Emphasis will be place on the principles of transparency, information and equal treatment of
bidders as well as the application of instruments of prevention and control of agreements between
bidders.
(m) Regulation of trade in transit
The customs transit regime is set out in the Customs Code (Article 125 et seq. ).  In 1988,
Algeria accepted annex E1 on customs transit of the Kyoto Convention, adopted under the auspices of
the Customs Cooperation Council (CCC).WT/ACC/DZA/14/Add.1
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The application of the customs tariff and the foreign trade regulations is suspended for the
duration of the transit operation.  Persons applying for this type of treatment must sign a transit bond,
undertaking to deliver the declared goods to a specific customs office, under seal, within the specified
time-limit.
4. Policies affecting trade in agricultural products
The policy applied in the agricultural sector is intended to increase agricultural output and
ensure fulfilment of the overall aim of food security.
Implementation is geared to requirements of competition and economic efficiency.The policy is pursued along several lines of approach, namely:  liberalization of foreign trade,
pricing policy, review of the system of incentives, budgetary measures, organization of farming andadministrative adjustment.
The adjustments already made have been designed to encourage farmers to take on more
responsibilities, on the basis of participatory practices, whereby the State withdraws from its previous
involvement in the management of economic and commercial activities.
For example, all the parties concerned may engage in foreign trade regardless of status,
subject to compliance with the general regulations applicable to exports and imports.
All import restrictions have been lifted.The supply of agricultural inputs, which was for many years the preserve of public enterprises
under monopolies granted by the State, has also been freed of all restrictions, and this has fostered the
emergence of a wide range of private companies specializing in this field, as a result of the break-up
of the major State-owned enterprises in th is sector in 1997 (ONAPSA, ENAFLA, OREVIC).
(a) Imports
The estimated overall bill for imports of agri-food products and the factors and means of
agricultural production in 1995 amounted to nearly US$3 billion.
The size of this food bill and any slippage likely in the years ahead, given the rate of
population growth and the risk of upward fluctuatio ns in the international prices of the various
products, is prompting consideration of the possibility of controlling imports by introducing a tariff
quota system for a limited period.
The list of imported agricultural products and foodstuffs, with a heavy predominance of
cereals and dairy products, comprises 720 products  under the Harmonized System (HS) classification,
with an estimated value of US$2.1 billion in 1999.
(b) Exports
The agricultural trade balance shows a substantial deficit.  The percentage ratio of exports to
imports in 1999 was only 3.9 per cent;  hence the need to give new impetus to this sector.
No scheme of export subsidies is applied at the present time.WT/ACC/DZA/14/Add.1
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(e) Internal agricultural policies
(i) Foundations of agricultural policy
Agriculture is an economic activity of fundamental importance to the Algerian population at a
time when non-agricultural growth is not yet capable  of providing a large number of well-paid jobs.
Apart from its economic function, agriculture will  continue to play a valuable social and
environmental role, since it employs 21 per cent of the economically active population and is the main
field of activity for 50 per cent of the population living in rural areas.  At the same time, it enhances
the value of open spaces and land and water resources and contributes to preserving the environment.
As far as reforms are concerned, agriculture was the first sector to have undertaken economic
reform, particularly in respect of trade in agricultural products, foreign trade, private management of
agricultural land, elimination of consumer price subsidies for food products and the gradual transitionfrom price supports for production to support for investment in farms other than those producing
wheat and dairy products, which receive collection premiums.
In this entirely private environment, the State acts to facilitate the development process,
regulate markets and encourage increased production, while preserving natural resources on asustainable basis.
This is the new vision which inspired the recent launch, by the Algerian State, of a National
Agricultural Development Plan (PNDA).
The plan meets a number of social, economic and technical requirements, such as the
improvement of farm incomes, action to combat rural poverty and protection of natural resources.
The National Agricultural Development Plan (PNDA) is aimed at improving the level of food
security by giving the population access to food products in accordance with traditionally acceptedstandards, ensuring better coverage of consumer needs by national production, developing the
productive capacity of farm inputs and reproductive material, and making rational use of natural
resources for purposes of sustainable development and promotion of production methods with proven
comparative advantages.
In order to achieve these goals, five major development programmes are being implemented
(November 2000), namely:
- The programme to develop widely consum ed agricultural products and products with
proven comparative advantages;
- the programme of adjustment of cultivation schemes to the conditions of different
environments (conversion);
- the national reafforestation plan which has been overhauled to promote worthwhile
and efficient afforestation schemes;
- the programme for the development of pasture land and protection of grassy plains;
- the programme of concessions to enhance the value of land and the land development
programme in the south.WT/ACC/DZA/14/Add.1
Page 74
These programmes are subject to agro-climatic constraints, since most of the country
continues to suffer from drought and the soil is subjected to inappropriate systems and techniques of
production and threatened by irreversible erosion and deterioration.
They are also subject to an agricultural development financing constraint dictated by the
withdrawal of bank financing for farmers and the social problems connected with the large-scale rural
exodus of populations on account of the precariousness of their situation.
In this context, the National Agricultural Development Plan is designed to impart cohesion to
the different development programmes on the basis of a medium-term outlook.
The purpose of the PNDA is to:
- Develop production methods suited to natural spaces and rural areas with a view to
promoting intensive agro-industrial development and integration in individual sectors
(cereals, dairy products, potatoes, tree cultivation, red and white meat);
- adapt the systems of agricultural development in arid and semi-arid regions and those
subject to drought (currently reserved for cereals or left fallow with the consequent
threat of erosion) by switching to tree cultivation, viticulture, stock breeding and
other appropriate activities, and concentrating cereal production on areas with
recognized advantages;
- expand agricultural potential by granting concessions for the development of
agricultural land, so as at the same time to enhance and preserve natural resources,
increase investment and employment in the agricultural sector and expand the oases
in the south of the country.
The development schemes that are to be launched must satisfy three criteria:  economic
viability, environmental sustainability and social acceptability.
The afforestation rate in the north of the country is to be raised from 11 to 14 per cent through
the introduction of the national reafforestation programme.
Implementation of the PNDA is supported by a financing scheme centred on:- Pricing policy:  only wheat and dairy producers receive a collection premium to
guarantee a satisfactory level of income;
- totally free prices for other agricultural products;- budgetary measures, development assistance and tax measures;- support for agricultural investment:  under the PNDA, State support in the form of
partial grants and interest rate subsidies on loans is geared to:
- supporting investment in agricultural holdings for modernization purposes;
- expansion of agricultural land under irrigation;
- renewal and extension of orchards;
- development of new agricultural land;WT/ACC/DZA/14/Add.1
Page 75
- establishment of small agricultural processing units;
- use of new agricultural products and technologies.
State financial aid in the form of definitive grants covers the work of the agricultural
administration and the financing of agricultural and rural infrastructures, including:
- Protection of landed assets, in particular by reafforestation;- mobilization of water resources for irrigation purposes;- vocational training;- research and extension services;
- hydro-agricultural projects;
- fishing port infrastructure;- strategic storage infrastructure;- protection and development of genetic resources (vegetable and animal);- electrification;
- opening up backward regions.
State grants are provided through the national agricultural regulation and development fund,
the concessional rehabilitation fund and the phytosanitary and animal health protection fund.
The supervisory machinery established also relies on the redeployment of the central and
local agricultural administration in order to ensure monitoring and objective evaluation of programme
implementation, and on the reorganization of the work of the technical institutes with a view to
providing technical support suited to farmers' requirements.
The following concerns are central to the PNDA's implementation procedures:
- Rehabilitation of the idea of the farmer as an active participant in economic
development;
- the agricultural holding as an economic entity requiring modernization;
- emphasis on the need for an agricultural development blueprint for the wilaya to
guide development and investment.
(ii) Taxation
The agricultural sector, which was tax exempt for a long period of time, today makes a
contribution, out of solidarity, to budgetary replenishment, although the level of taxation is still
moderate and collection rates remain low.WT/ACC/DZA/14/Add.1
Page 76
5. Policies affecting foreign trade in other sectors
(a) Textiles regime
No special regime is applied to the textiles sector in Algeria.
(b) Policies affecting foreign trade in other major sectors
There are no policies affecting foreign trade in other major sectors of the economy that have
not been described under the various section headings of this memorandum.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Intellectual property is taken to mean ownership of creative works directly linked to industry
and trade, as well as copyright in literary and artistic works.
The term "property" signifies that the rights derived from intellectual property may not be
used without the consent of the holders or authors.
Industrial property is concerned with the protection in particular of inventions, marks,
industrial designs and appellations of origin, and the repression of unfair competition.
An invention is a novel idea which makes it possible, in practice, to resolve a specific
problem in the field of technology.
A patent is a document issued by a government office, which describes the invention and
creates a legal situation in which the patented invention may normally only be exploited with the
authorization of the patentee.
A trademark is a sign which serves to distinguish the products of an industrial or commercial
enterprise or a group of such enterprises, while service marks serve the same purpose in respect of
services.
An industrial design is the ornamental aspect of a useful article.
An appellation of origin is the geographical name of a particular place, which serves to
designate the products originating in the place from which they derive their essential characteristics.
Copyright is conferred on the author of a creative work (literary and artistic works)
irrespective of the genre, the method and form of expression, the merits or the destination.
The repression of unfair competition is directed against acts by industrial or commercial
competitors that are contrary to honest practices.
Immediately after independence, Algeria became aware of the need to implement a policy for
the encouragement and protection of intellectual property.
Accordingly, the provisions of the Constitu tion relating to fundamental rights explicitly
guarantee freedom of "intellectual, artistic and scientific creation" as well as freedom of "private
ownership".WT/ACC/DZA/14/Add.1
Page 77
The elevation of these protected rights to the level of fundamental rights recognized and
established by the State Constitution reflects a concern to honour the creative effort embodied in the
products of the mind and a desire to make the authors and right holders feel more secure, so that they
will continue to bend their energies to the production of intellectual, artistic and scientific works.
Moreover, with a view to ensuring the acquisition and mastery of foreign technologies, while
at the same time enabling its nationals to secure the protection of their rights in foreign countries,
Algeria has ratified the main international conventions in force in the field of intellectual property.
Protection of intellectual property is not, however, an end in itself;  it serves to encourage
creative activity, industrialization, investment and fair trading.
Since the submission of the memorandum on foreign trade regime, Algeria's policy in respect
of copyright and neighbouring rights has been directed towards bringing its legislation into line with
the relevant provisions of the TRIPS Agreement.
This is reflected in:- Confirmation in the 1996 Constitution of the protection of intellectual creation and
copyright;
- adoption of Order No. 97-10 of 6 March 1997, which superseded Order No. 73-14 of
3 April 1973 on copyright;
- Algeria's accession to the Berne Convention for the Protection of Literary and Artistic
Works (1971 Paris Act) which entered into force on 19 April 1997;
- reorganization of the statutes of the National Office of Copyright and Neighbouring
Rights by Decree No. 366-98 of 21 November 1998.
These developments reflect a desire to promote creative activity at the domestic level by
means of effective protection for authors and other creative agents, to bring the national system ofprotection into line with universal standards in this field and to facilitate the effective provision of
protection through collective management  of copyright and neighbouring rights.
Order No. 97-10 of 6 March 1997 on copyright and neighbouring rights is characterized by
the strengthening of copyright protection, the introduction of important innovations aimed in
particular at modernizing the legislative framework and broadening the scope of protection to include
other categories of beneficiaries.
In this connection, mention should made of:- the explicit recognition of the need to protect software, computer programs and
databases;
- recognition of the right to rent software and audiovisual works;- recognition of a right of communication by means of any computer-based system;
- extension of the core period of copyright protection from 25 to 50 years;
- introduction of a right to remuneration for private copies;WT/ACC/DZA/14/Add.1
Page 78
- recognition of the right to legal protection of neighbouring rights;
- aggravation of the criminal penalties applicable to infringements of protected rights.
(b) Agencies responsible for policy formulation and implementation
Two agencies administer intellectual property, each in accordance with the activities assigned
to it by law.  The agencies concerned are the Algerian Standardization and Industrial Property
Institute (INAPI), which deals with industrial property, and the Nationa l Copyright Office (ONDA)
which deals with copyright and neighbouring rights.
With regard to industrial property, mention should be made of a restructuring exercise carried
out in 1998 in order to group together all relevant activities within a single agency, namely the INAPI.
The INAPI exercises the following functions:
- Receipt, examination, registration and issue of patents for inventions;- receipt, examination and registration of marks, industrial designs and appellations of
origins;
- receipt and registration of documents affecting industrial property rights;- publication of rights of protection that have been granted and of any document
affecting such rights;
- provision to the public of any information relating to industrial property.The ONDA is concerned with ensuring the protection and defence of the moral and material
interests of authors or their successors in title a nd of the owners of neighbouring rights, and protecting
the works of the traditional cultural heritage and national works that fall within the public domain.  In
this connection, the main functions assigned to it are the following:
- Collective management of the rights of authors and of the owners of national
neighbouring rights and the owners of foreign rights pursuant to Algeria's
international commitments and the reciprocity agreements concluded with similar
bodies;
- protection of works of the traditional cultural heritage and of works in the national
public domain;
- legal and social assistance for authors and owners of neighbouring rights;
- promotion of cultural creativity.Moreover, these two agencies represent Algeria internationally, each in the field with which it
is concerned.
(c) International intellectual property conventions and regional or bilateral agreements to which
Algeria is a party
At the international level, Algeria has acceded  to the following conventions and agreements:
- Berne Convention for the Protection of Literary and Artistic Works;WT/ACC/DZA/14/Add.1
Page 79
- Paris Convention for the Protection of Indus trial Property, with ratification of the
most recent act thereto, namely the Stockholm Act (1967);
- Convention Establishing the World Intellectual Property Organization;
- Madrid Agreement concerning the International Registration of Marks;
- Patent Cooperation Treaty (PCT);- Nice Agreement concerning the International Classification of Goods and Services
for the Purposes of the Registration of Marks;
- Madrid Agreement for the Repression of False or Deceptive Indications of Source on
Goods;
- Lisbon Agreement for the Protection of Appellations of Origin;
- Nairobi Treaty on the Protection of the Olympic Symbol.
(d) Application of national and most-favoured-nation (MFN) treatment to foreign nationals
In the area of industrial property, in order to secure the recognition of intellectual property
rights and the attendant safeguards, any national or foreign individual or corporation, in fulfilling theformalities required by Algerian legislation, may obtain an official authorization issued by the
competent government department.  This authorization can be relied upon in dealings with the
competent courts, where necessary.  However, non-re sident nationals are required to appoint an agent
resident in Algeria.
In the matter of copyright and neighbouring rights, the application of national treatment for
the benefit of authors is based on Algeria's accession to the relevant international conventions.
Algeria is a party to the Universal Copyright Convention of 1952, revised at Paris in 1971,and
to the Berne Convention for the Protection of Literary and Artistic Works, revised at Paris 1971.Under these Conventions, foreign nationals enjoy the same protection as nationals and no formality is
required for that purpose.
With regard to the holders of related rights, Algeria has not yet ratified the Convention for the
Protection of Performers, Producers of Phonog rams and Broadcasting Organizations (Rome
Convention of 1961) nor any other international conv ention governing such rights.  Consequently, the
holders of foreign neighbouring rights do not enjoy national treatment with regard to the protection oftheir rights in Algeria.
As far as most-favoured-nation treatment is concerned, Algeria has not entered into any
international undertakings requiring the application of such treatment in respect of copyright and
related rights, nor does it give privileged treatment to the nationals of particular foreign countries.
(e) Fees and taxes
Under Algerian tax law, the definition of profits derived from a non-commercial occupational
activity includes income from the licensing of patents or the licensing or assignment of trade marks,
processes,  formulas or industrial designs.WT/ACC/DZA/14/Add.1
Page 80
The tax treatment of such income (known as fees) varies according to the type of recipient
(natural or legal persons) and their place of residence (resident or non-resident in Algeria).
However, the imposition of fees may also be provided for in a double taxation agreement
concluded and ratified with another contracting State.
Authors resident in Algeria are exempt from the aggregate income tax (IRG).  The rate of
deduction at source applicable to authors resident abroad is 20 per cent unless otherwise provided
under bilateral agreements.
(i) Tax treatment of fees – ordinary law system
- Tax treatment of fees paid to natural persons
Natural persons resident in Algeria
The income derived from the above-mentioned fees paid to natural persons resident in Algeria
is subject to the aggregate income tax (IRG) at a rate of 10 per cent (deducted at source by the person
paying the fee up to an amount of DA 500,000).
Above that amount, progressive rates are applied, as laid down in the schedule contained in
Article 104 of the Code of Direct Taxes and Equivalent Charges.
Natural persons resident abroad for tax purposes
The income paid to natural persons resident abroad is subject to a 20 per cent deduction at
source.
Fees paid to legal persons
Legal persons with registered offices in Algeria
The sums collected by enterprises with registered offices in Algeria in return for the granting
of licences for the use of patents owned by them, and the assignment or licensing of trade marks,processes or manufacturing formulas, are counted as part of the profits of the company concerned.
Such sums are consequently subject, under the rules of ordinary law, to the company profits
tax (IBS) at a rate of 38 per cent.
Foreign companies with no permanent base in Algeria
When the above-mentioned sums are paid to foreign companies with no permanent base in
Algeria, they are subject to an 18 per cent deduction at source corresponding to the company profits
tax (IBS).
(ii) Tax treatment of fees under tax agreements
Algeria has concluded double taxation agreements with a number of countries.  Fees are
defined in those agreements as remuneration of any kind paid for the use or licensing of copyright on
a literary, artistic or scientific work, including cinematographic and television films, patents, marks,
plans, formulas or secret processes.
In respect of royalties and fees, Algeria applies the principle of tax sharing.WT/ACC/DZA/14/Add.1
Page 81
Under this principle, the fees levied – for which the rate of taxation ranges from 5 to 15 per
cent – are liable to tax:
- In the State of residence of the beneficiary on the basis of the rates applied under the
tax legislation of that State;
- in the country from which they originate (i.e. Algeria) at a rate determined by the
contracting parties in an express provision of the tax agreement;
(iii) Rules for deduction at source
Debtors (natural or legal persons) who pay sums (fees) liable to tax are required under
Algerian tax legislation, and prior to payment, to make a deduction at source corresponding to the
aggregate income tax (IRG) or the company prof its tax (IBS), depending on the status of the
beneficiary (natural or legal person).
If the remuneration is paid in foreign currency, it is converted into Algerian dinars at the
exchange rate applicable on the date of payment of the fees.
It should also be pointed out that, under Algerian  law, applications lodged with the competent
agency (INAPI) for the registration of industrial property rights are subject to the payment of
parafiscal charges, the rates of which are specified in the provisions of the Finance Act.  The rates are
available from the agency concerned.
The above are the main features of the tax regime applied to income derived from intellectual
property rights.
2. Substantive standards of protection, incl uding procedures for the acquisition,
maintenance and exercise of intellectual property rights
Copyright and related rights, including the rights of performers, producers of phonograms and
broadcasting organizations.
(a) Copyright and related rights
- Copyright
Order No. 97-10 accords protection to any literary or artistic creation of an original nature.
Such protection is granted irrespective of genre, form, mode of expression, merit or
destination.
It is granted from the date of creation of the work, whether the latter is fixed or not fixed, and
is not subject to any prior formality.
Ideas, concepts, principles, systems, processes, procedures and  modes of operation are
excluded from the scope of the protection granted.
All categories of works referred to in Article 1 of the Berne Convention are protected.
The protection granted to literary works extends to software and computer programs, and
databases are also protected when they are the subject of selective coordination or disposition of an
original nature.WT/ACC/DZA/14/Add.1
Page 82
Apart from authors' proprietary rights recognized by the Berne Convention, the Order
expressly provides for a rental right in respect of software and audiovisual works, as well as a right of
communication by means of any computer-based system.
Exclusive copyright is mitigated in specific cases by limited degrees of authorization for the
free utilization of protected works and by exceptions enabling works to be used without authorizationsubject to equitable remuneration.
The limitations on exclusive copyright concern use of the work in a family setting or by
educational establishments and certain specific types of use in connection with the creation of other
works (such as pastiches, parodies, caricatures, quotations) or by the educational, cultural and
communication sectors for the purpose of their activities.
Under certain conditions, these exceptions give rise to a right to remuneration in the form of
statutory or compulsory licences.
Statutory licences cover the reproduction of musical works fixed lawfully on a sound medium
and the broadcasting and cable distribution of broadcast works.
The system of compulsory licences is based on the provisions for the benefit of developing
countries contained in the annex to the Berne Convention (Paris Act) and the Universal Copyright
Convention revised in Paris in July 1971.
The term of protection of an author's proprietary rights on behalf of his/her successors in title
is 50 years from the beginning of the calendar year following his/her death.
For certain categories of works (pseudonymous or anonymous works, photographic works
and works of applied art), the 50-year term of protection runs from the date of publication.
In the case of audiovisual works, the 50-year term of protection is calculated from the date
when the work is made accessible to the public;  if the work has not been made accessible to the
public, the term of protection expires 50 years after the date of production.
- Related rights
Order No. 97-10 introduced statutory protection of neighbouring rights for the first time in
Algeria.
The beneficiaries of neighbouring rights are performers, producers of phonograms and
videograms and broadcasting organizations.
The owners of neighbouring rights enjoy a right of authorization and a right to remuneration.The right of authorization granted to all categories of beneficiaries implies that their consent
is necessary before the protected work can be used.
The definition of this right varies according to the specific characteristics of each category of
right holder.
In the case of performers, there is a right to authorize the reproduction and communication to
the public of their live performance.
The authorization granted for fixation of the performance is considered to constitute an
agreement for its reproduction in the form of phonograms or videograms.WT/ACC/DZA/14/Add.1
Page 83
The producers of phonograms are entitled to authorize the reproduction and supply of copies
reproduced with full respect for the rights of the authors of the works contained in the phonogram.
Producers of videograms are entitled to authorize the reproduction of their videograms and
communicate them to the public by any means, with due respect for the rights of the authors of the
works contained therein.
They may not separately assign their rights to the videogram or the rights they acquire from
the authors and performers of works fixed in the videogram.
Broadcasting organizations are entitled to authorize the rebroadcasting of their broadcasts and
the reproduction of their programmes broadcast on media intended for distribution to the public, withdue respect for the rights of the authors of the works contained in their programmes.
The right of prior authorization granted to the holders of neighbouring rights is subject to the
same exceptions and limitations as are applicable to copyright under Articles 30 to 42 and 43 to 56.
Order No. 97-10 of 6 March 1997 also confers a right to remuneration on certain holders of
neighbouring rights, namely:
- Performers in respect of the broadcasting and communication to the public of a fixed
performance, by any means;
- phonogram producers in respect of the broad casting and communication to the public,
by any means, of their phonograms;
- videogram producers in respect of the broadcasting of videograms distributed by
means of published copies.
The term of protection of the rights of performers, phonogram producers, videogram
producers and broadcasting organizations is 50 years from the beginning of the calendar year
following communication to the public of the performances, phonograms, videograms and broadcastprogrammes.
(b) Trade marks, including service marks
The Algerian legislation on trade marks is also applicable to service marks.
In order to qualify for protection, the mark must be filed for registration with the Algerian
National Industrial Property Institute (INAPI).  Such registration confers ownership of the mark onthe first applicant.
To remain valid, the registered mark must be used within a year following registration.The owner of a mark may demand the cancellation of the registration of another mark likely
to create confusion with his own;  such an action must be instituted within five years following the
filing of the mark.
A registered mark may be obtained for several products or services, in accordance with the
international classification.
The term of protection of the mark is ten years renewable.WT/ACC/DZA/14/Add.1
Page 84
Marks that have been validly filed are the subject of registration and publication in the
Official Industrial Property Bulletin (BOPI).
A national register covering all registered marks enables any interested party to check the
availability of marks.
A new draft law designed to bring the legal ru les on marks into conformity with the TRIPS
Agreement has been prepared and will be enacted in the near future.
(c) Geographical indications, including appellations of origin
To qualify for protection, an appellation of origin must be registered on the basis of a
regulatory text concerning its creation.
Registration confers ownership of the appellation of origin for a renewable ten-year term, and
the fact of registration is published in the Official Industrial Property Bulletin.
(d) Industrial designs
Protection is afforded to new and original designs.
Subject to fulfilment of the prescribed form alities, industrial designs may be granted
protection for a period of ten years, which is not renewable.
Registrations attributing ownership of indu strial designs are published in the Official
Industrial Property Bulletin.
(e) Patents
Inventions which are new, which are the result of an inventive activity and which are capable
of industrial application may be protected by a patent for invention.
An invention may relate to a product or a process.The following are not protected:
- Plant varieties or animal breeds, and the processes for producing them;
- Strains of micro-organisms;- foodstuffs, pharmaceuticals, cosmetics and chemicals, excluding the processes by
which they are produced.
The term of protection for a patent is 20 years non renewable, subject to the fulfilment of
annual formalities for maintenance in force.
Patents issued for inventions are the subjec t of publication in a regulatory enactment.
(f) Protection of plant varieties
Under Algerian legislation, plant varieties and the processes for producing them are excluded
from patentability.WT/ACC/DZA/14/Add.1
Page 85
However, in the context of the application of the provisions of the TRIPS Agreement, a draft
law on the specific protection of new varieties of plants and accession to the International Union for
the Protection of New Varieties of Plants (UPOV) is under preparation.
(g) Layout-designs of integrated circuits
Algerian patent legislation contains no specific provisions for the protection of layout-designs
of integrated circuits.
However, in the context of action to brin g the law into conformity with the TRIPS
Agreement, a draft text on the protection of layout-designs of integrated circuits is being prepared.
Similarly, the possibility of accession to the Washington Treaty concerning the protection of
integrated circuits is under consideration.
(h) Requirements concerning undisclosed information, including trade secrets and test data
The criminal law of Algeria makes it a punishable offence for a worker to communicate or
attempt to communicate to foreigners or Algerians resident in a foreign country information
concerning the secrets of the enterprise in which he works, unless he is authorized to do so.
(i) Any other categories of intellectual property
The law on copyright specifically provides for the protection of the right to remuneration for
private copies of works produced in the home, the protection of works belonging to the traditional
cultural heritage, the rights of performers, the rights of producers of phonograms or videograms, andthe rights of sound and television broadcasting organizations.
In addition, the law in question defines as a broadcasting act, subject to authorization by the
author, the transmission of signals carrying programmes of protected works and stored in the memory
of a satellite, as long as such transmission is intended for public reception.
3. Measures to prevent abuse of intellectual property rights
The new legislation on copyright provides for the protection of neighbouring rights, including
the rights of performers, the rights of phonogram or videogram producers, and the rights of sound and
television broadcasting organizations.
The author's proprietary rights are protected during his lifetime and for 25 years after his
death, for the benefit of his successors in title.
Upon the expiration of this term, the wo rk falls within the public domain.
Algerian copyright legislation makes the ONDA responsible for the protection of the moral
and material interests of the producers of intellectual works and their successors in title, and the moral
protection of works in their repertoire, used both in Algeria and abroad, as well as the collection and
distribution of the fees payable for such use.
Intellectual property rights are guaranteed under judicial and administrative procedures.The Algerian legislation on inventions, marks, designs and appellations of origin provides for
measures to prevent abuse of the rights concerned.WT/ACC/DZA/14/Add.1
Page 86
The INAPI provides advice and assistance in th e context of an information service for the
benefit of the parties concerned by the exploitation of industrial property rights.
4. Enforcement
Intellectual property rights are guaranteed under judicial and administrative procedures.
(a) Civil judicial procedures and remedies
Algerian law (Code of Civil Procedure, Civil Code, Commercial Code, enactments relating to
industrial property and copyright and those relating to competition) satisfies all the requirements of
the Agreement on Trade-Related Aspects of Intellectual Property Rights in this respect.
In particular, the following principles are implemented:
- Any national or foreigner may refer to the Algerian courts any act by which he is
adversely affected;  any referral of a matter to a court must result in the
pronouncement of a judgement, even if it is one for removal from the register;
- all proceedings take the form of adversarial hearings (thus ensuring compliance with
the obligation to inform the defendant of the action brought against him by the
plaintiff);
- adherence to the rules of discovery if guaranteed;
- in accordance with the principle of due process, every party to a dispute is guaranteed
the possibility of being represented at law by a lawyer of his choice;
- the parties bear the burden of proof.  In addition the judge has the authority to order
any investigation, procedural step or expert report ex officio, with a view tofacilitating the settlement of the dispute placed before him.  The plaintiff  has the
possibility of proving his case, just as the defendant may provide proof of the
contrary;
- all courts decisions are written and reasoned.  They are notified or transmitted at the
mere request of the parties;
- all ordinary or special remedies are available to all the parties.  This is the case for
ordinary appeals, applications to set aside judgements, third party applications to set
aside judgements, retractions and appeals on points of law;
- illegality proceedings may be brought by anyone wishing to contest administrative
decisions by the State or its organs;
- in accordance with the provisions of the 1996 Constitution, contentious proceedings
are dealt with by the administrative courts and the Council of State, while ordinary
law proceedings fall within the jurisdiction of courts of first instance, courts of appealand the Supreme Court;
- the following penalties may be imposed:  damages to compensate for the injury
sustained, seizure, destruction of goods and confiscation of goods.
Moreover, under the Civil Code a right is considered to be unreasonably exercised in the
following cases:WT/ACC/DZA/14/Add.1
Page 87
- If the sole purpose is to injure other parties;
- if the exercise of the right tends to the satisfaction of an interest of negligible
importance in relation to the resulting injury to other parties;
- if it tends to the satisfaction of an unlawful interest.
The legislation on inventions provides for the invalidity of clauses imposing obligations and
of limitations not derived from the rights conferred on the licensee by the patent for invention.  In
addition, any interested party may obtain a compulsory licence from the competent court on the
grounds of failure to work or insufficient working of the patent.
However, the new legislation on competition contains specific provisions authorizing the
exercise of competition and prohibiting anti-competitive practices.
As a result, Algeria is in full compliance with  the provisions of the General Agreement and
does not need to establish any separate or new judicial system for the enforcement of intellectualproperty rights.
Algerian legislation guarantees the availability of judicial remedies against any action which
might cause injury to any party.
The above-mentioned procedures serve to ensure that disputes are settled with due respect for
the rules of law and equity, and on the basis of fairness and equality before the law.
(b) Provisional measures
In urgent cases, the Code of Civil Procedure and the specific laws relating to intellectual
property provide for referral to the urgent applications court whose ruling takes the form of an order
and may even be given on the sole basis of an ex parte application, with the possibility of immediate
enforcement, even before the decision is registered.
(c) Any administrative procedures and remedies
In the event of counterfeiting or piracy, the owner of the mark or the victim of piracy may
apply to the customs service to suspend the unloading of the disputed goods:
- Pending the settlement of the criminal complaint;- pending an emergency interim ruling to deal with the suspension of customs
clearance, which takes the form of an administrative decision requiring referral to theadministrative division of the Supreme Court.
All other administrative decisions relating to the acquisition, maintenance and revocation of
rights may be the subject of a judicial review on the grounds of illegality, as an automatic remedy
even where not provided for by law, and one also applicable to any special border measures.
Consequently, Algerian legislation in this field meets the requirements of the General
Agreement in respect of intellectual property.WT/ACC/DZA/14/Add.1
Page 88
(d) Any special border measures
The owner of a registered mark may submit an application to the customs administration,
explaining that he is the owner of the registered mark and inviting the administration to suspend
customs clearance of the goods suspected of being counterfeits of trade mark goods.
An owner of copyright may submit an applica tion to the customs administration, explaining
that he is the owner of the copyright and inviting the administration to suspend customs clearance of
goods suspected of being pirated.
The above-mentioned provisions may be extended to the holders of exclusive licences and of
related rights.
Any application submitted on these grounds should specify the length of time for which the
customs administration is to provide the requisite assistance.
The period of time in question may, on request, be further extended.When the period of validity of the trade mark  or copyright expires for any reason, the owner
or holder is required to inform the above-mentioned administration.
The customs administration may also intervene ex officio on the basis of domestic statutes
and the international conventions on intellectual property rights.
In the latter case, the customs administration may, on its own initiative, suspend customs
clearance of the goods concerning which there is a presumption of infringement or potential
infringement of an intellectual property right.
If need be, it may request the holder of the right to provide free of charge any information and
assistance, including the assistance of technical experts and other means required to determine
whether the suspect goods are counterfeit or pirated or whether they infringe an intellectual property
right in any other way.
The customs authority shall promptly inform the holder of the right of the place and date of
the suspension of customs clearance.
In this connection, the customs administration acts within a framework of international
cooperation, on the basis of the exchange of information and databases.
(e) Criminal procedures
Out of concern to protect intellectual property, the Algerian legislature has established a
section of five articles in the Criminal Code for the punishment of infringements.  These criminal
provisions are supplemented by the specific laws guaranteeing the same rights as in the civil and
administrative fields.
The Criminal Code provisions establishing penalties for infringements of literary and artistic
ownership were repealed by Order No. 97-10 of 6 March 1997 on copyright and neighbouring rights.
Criminal penalties for infringements of copyright and neighbouring rights are set out in Order
No. 97-10 which provides for deterrent penalties for acts of counterfeiting.WT/ACC/DZA/14/Add.1
Page 89
Any persons found guilty of counterfeiting a work or a performance, and their accomplices,
are liable to a term of imprisonment of six months to three years and a fine of DA 500,000 to 1
million.  In the event of further offences, the penalty is doubled and the court may also order:
- Temporary closure of the establishment used by the counterfeiter or his accomplices
for up to six months, or definitive closure;
- confiscation of sums equivalent to the amount of the proceeds of the unlawful
exploitation of the work or performance, of any equipment specially installed to carry
out such unlawful activity and of any counterfeit copies or items;
- newspaper publication of convictions and posting thereof on the door of the convicted
person's residence and of any establishment belonging to him.
5. Laws, decrees, regulations and other legal instruments relating to the above
The following is the list of laws, decrees, regulations and other legal instruments relating to
the various points mentioned above:
- The 1996 Constitution (Articles 36 and 49);
- Order No. 48 of 25 February 1966 on the accession of the People's Democratic
Republic of Algeria to the Paris Convention for the Protection of Industrial Property
of 20 March 1883, and Order No. 75-02 of 9 January 1975 on accession to the 1967Stockholm Act to the said Convention;
- Order No. 66-57 of 19 March 1966 on trade or service marks;- Order No. 66-86 of 28 April 1966 on designs;- Order No. 73-14 of 3 April 1973 on copyright;- Order No. 73-26 of 5 June 1973 on Algeria's accession to the Universal Copyright
Convention of 1952, revised at Paris on 24 July 1971;
- Order No. 76-65 of 16 July 1976 on appellations of origin;- Law No. 89-23 of 19 December 1989 on standardization;- Law No. 90-07 of 3 April 1990, as amended and supplemented, on information;
- Decree No. 90-132 of 15 May 1990 on the or ganization and functioning of the
standardization system;
- Decree No. 91-537 of 25 December 1991 on the national system of measurement;
- Order No. 66-156 of 8 June 1966, as amended and supplemented, on the Criminal
Code;
- Order No. 72-10 of 22 March 1972 on Algeria's accession to certain agreements;
- Order No. 75-58 of 26 September 1975, as amended and supplemented, on the Civil
Code;WT/ACC/DZA/14/Add.1
Page 90
- Order No. 75-59 of 26 September 1975, as amended and supplemented, on the
Commercial Code;
- Law No. 79-07 of 21 July 1979, as amended and supplemented, on the Customs
Code;
- Law No.85-05 of 16 February 1985, as amended and supplemented, on the protection
and promotion of health;
- Law No. 89-02 of 7 February 1989 on the general rules of consumer protection;- Law No. 90-07 of 3 April 1990, as amended and supplemented, on information;
- Law No. 90-22 of 18 August 1990, as amended and supplemented, on the
Commercial Register;
- Order No. 95-06 of 25 January 1995 on competition;
- Legislative Decree No. 93-17 of 7 December 1993 on the protection of inventions;
- Legislative Decree No. 93-12 of 5 October 1993 on the promotion of investment;- Executive Decree No. 92-65 of 12 February 1992 on conformity controls on locally
manufactured or imported products;
- Executive Decree No. 93-286 of 23 November 1993 regulating phytosanitary border
controls;
- International conventions ratified by Algeria (1973 Washington Convention on the
Protection of Fauna and Flora, Ratification Decree No. 82-492);
- Decree No. 84-85 of 21 April 1984 on Algeria's accession to the Nairobi Treaty on
the Protection of the Olympic Symbol;
- 1996 Constitution (Article 38);- Order No. 97-10 of 6 March 1997 on copyright and neighbouring rights;- Presidential Decree No. 97-341 of 13 September 1997 on the accession, subject to
reservation, of the People's Democratic Republic of Algeria to the Berne Conventionfor the Protection of Literary and Artistic Works (1971 Paris Act);
- Executive Decree No. 366-98 of 21 November 1998 on the statutes of the National
Office of Copyright and Neighbouring Rights (ONDA);
- Executive Decree No. 41-2000 of 22 February 2000 on the procedures for declaration
and collection of fees for private copies:
VI. TRADE-RELATED SERVICES REGIME
1. General
Algerian policy on trade in services has undergone substantial revision in the following areas:WT/ACC/DZA/14/Add.1
Page 91
(a) Transport
Laws have been enacted to regulate the conditions under which maritime and air transport are
to be opened up to competition.
Rail transport, for its part, is to be the subject of a public service concession.
The reform of maritime and air transport is designed to:
- Satisfy the conditions for balanced development of transport, by meeting users' needs
in respect of passenger and goods transport, under optimum conditions of safety,
economy and efficiency;
- ensure the operation and development of transport services;- define the rules governing the use of national air space in the context of the
international conventions ratified.
The following laws have been enacted for this purpose:- Law No. 98-05 of 25 June 1998 amending and supplementing Order No. 76-80 of
23 October 1976 on the Maritime Code and Decree No. 2000-81 of 9 April 2000
establishing the conditions and procedures for the operation of maritime services;
- Law No. 98-06 of 27 June 1998 establishing general rules applicable to civil aviation
and Executive Decree No. 2000-337 of 26 October 2000 on the concession fee for the
operation of public air transport services.
The texts of these laws are annexed hereto (WT/ACC/DYA/14/Add.4).
(b) Posts and telecommunications
The legal framework governing posts and telecommunications has been revised for the
following purposes:
- Separation of postal and telecommunication entities;
- reorganization of the State's role give it more administrative and regulatory
responsibilities;
- guaranteeing universal service throughout the national territory, irrespective of the
operator responsible for services open to competition;
- encouraging both public and private investment in the infrastructure of posts and
telecommunications;
- removing administrative obstacles which prevent development of the sector from
keeping pace with demand;
- guaranteeing high quality services at reasonable prices by introducing new fair and
transparent rules of competition;
- defining the general conditions for the establishment of operators in the field of posts
and telecommunications, under the concession system.WT/ACC/DZA/14/Add.1
Page 92
In order to achieve these aims, the new law provides for institutional measures on the
organization of markets, which relate to the rules governing the exercise of governmental authority
and sanctions for failure to comply with the regulations, together with transitional measures.
The following institutional measures are proposed:- Separation of postal and telecommunication activities;- separation of regulatory and operational functions;- transfer of assets to these different entities;
- guarantees in respect of workers' acquired rights.
With regard to the organization of markets in the postal and telecommunication fields,
provision is made for the following:
- Regimes governing the different forms of concession for both posts and
telecommunications;
- conditions of access to the different regimes in question;
- rights and obligations of the various concession holders.
With regard to the rules governing the exercise of governmental authority and penalties for
failure to comply with the regulations, the relevant measures specify:
- The categories of offences;
- the regime of applicable sanctions;- the procedures for control and regulation of activities subject to the competition
regime under the concession system.
Lastly, the transitional measures are concerned with the methods of transferring activities
from the system of State administration to a concession-based system of management in a competitive
framework.  The measures in question relate to:
- The State's prerogatives in the field of posts and telecommunications;- confirmation of the opening up of postal and telecommunication activities by means
of concession;
- definitions of terms commonly used by the sector, in order to facilitate understanding
of the law;
- the essential functions of the regulatory authority;- the legal rules governing telecommunications and other types of concession system,
namely:  licensing, authorization, simple declaration and approval;WT/ACC/DZA/14/Add.1
Page 93
- the legal rules governing the postal service, which provide for three types of
concession in respect of postal activities (exclusive rights, authorization and simple
declaration);
- criminal offences and penalties for failure to comply with the regulations on posts and
telecommunications;
- procedures for the transfer of assets and the assignment of personnel.The new law reaffirms the main prerogatives of the State in respect of the control and
regulation of the postal and telecommunication sect or, while authorizing the opening to competition
of operational activities.  It entrusts the State with the following functions:
In the field of telecommunications:
- Control of telecommunication networks;- guaranteed universal service comprising the minimum services that should be
accessible to all citizens irrespective of the operator providing them;
- continuity and regularity of services offered to the public;- respect for the rules of fair competition between operators and with regard to users;- exercise of the functions of defence and security of the State and functions relating to
the public interest (education, research);
- control and management of the frequency spectrum;- setting of tariffs for services not subject to competition;In the postal field:
- The monopoly in respect of the issue of postage stamps and any other franking marks
on postal items;
- exclusive use of the postal territory for any consignment of a weight not exceeding
the maximum limit laid down by regulatory enactment;
- exploitation of the different markets by operators in accordance with the conditions
and rules of concession;
- respect for the secrecy of correspondence;- initiation and termination of international postal relations;- specification of franking tariffs and of postal services not subject to competition;- application by operators of the conventions, rules and agreements of the International
Telecommunication Union.
In addition, the Law grants exclusive use of the radio-frequency spectrum to the State, which
fully exercises its exclusive right to regulate and control the whole of its radio domain and sets the
fees for use of the frequency spectrum within the framework of the concession.  It also establishes theWT/ACC/DZA/14/Add.1
Page 94
rules governing the use of the public domain and the rights and obligations relating to deployment of
telecommunication networks and use of the radio domain.
In order to facilitate the effective exercise by the State of its regulatory and control function in
the postal and telecommunication markets, the Law provides for the establishment of a regulatory
authority which is required to oversee the proper functioning of the market and of competition, and toensure that the public interest and the interests of users are preserved.  The authority has the following
main functions:
- Ensuring that effective and fair competition prevails on the postal and
telecommunication markets, and adoption of the measures needed to promote or
restore competition on those markets;
- the right of access to information from operators, as required for fulfilment of the
control and regulatory functions assigned to it;
- arbitration of disputes between operators;
- coordination of the national numbering plan, establishment of conditions for
satisfying the requests for numbers formulated by operators;
- use of radio frequencies by the different operators;
- the authority to sanction violations of the regulations.
The Law gives concrete expression to the principle of opening up the postal and
telecommunication sector to competition and defines the concession regimes applicable to them.
Concessions are granted for specific periods of time stipulated in the instrument by which
they are assigned, and they are withdrawn in the same manner.
Four types of concession are proposed for the telecommunication sector:
- Licensing regime:  licences are granted by executive decree for a term determined in
advance in the schedule of conditions.  They are awarded to any natural or legal
person who submits a successful bid in response to an invitation to tender.  Licences
are granted subject to a financial consideration;
- authorization regime:  authorizations are issued by the regulatory authority to any
natural or legal person who undertakes to respect the pre-established conditions.  Thegranting of authorization is subject to the payment of a fee;
- simple declaration regime:  operators wishing to exploit a service subject to this
regime must submit a declaration to the regulatory authority.  A fee is payable for the
issue of a certificate of registration by the regulatory authority;
- certification regime:  in order to avoid any disruption of the public
telecommunication network in respect of connections of devices earmarked for sale
on the domestic market, any terminal equipment or radio installation is subject to
prior certification issued by the regulatory authority or by a laboratory approved bythe latter.WT/ACC/DZA/14/Add.1
Page 95
The regulatory authority is also given the possibility to authorize recognition of the
certification of telecommunication equipment obtained in other countries, as well as self-certification
for equipment manufactured by constructors of global repute.
The telecommunication services subject to these regimes are defined by regulation.
Three types of concession are proposed for the postal sector:
- Exclusive rights regime:  this involves an exclusive concession to the public operator
to provide letter services in respect of postal consignments not exceeding a weight
determined by regulatory enactment, the issue of postage stamps, postal orders and
postal cheques;
- authorization regime:  an authorization is issued to any natural or legal person who
undertakes to abide by the conditions set out in the specifications for the operation of
services open to competition and defined by regulatory enactment;
- simple declaration regime:  any operator wishing to run a service under this regime is
required to submit a simple declaration to the regulatory authority.
(c) Information
There is a free press and numerous publications are available, both public and private,
national and foreign.
Printing activities are also unrestricted in law.  However, they remain under the de facto
control of several competing public enterprises.
Investments for the purchase of rotary presses by private sector interests were being finalized
at the end of 2000.
Radio and television information services are still a public monopoly, although the exercise of
this activity is unrestricted, on the basis of specifications laying down the technical conditions for the
use of frequencies to broadcast radio and television programmes.
(d) Advertising
The former monopoly of the public advertising agency (ANEP) has been abolished.  Private
agencies have thus entered the market;  in prac tice competition remains limited, mainly because most
of the demand for advertising comes from the State, organs of the State and public enterprises.
(e) Tourism
This sector has always been open to private initiative.  However, public enterprises still have
substantial infrastructure.
As a State-run sector, comprising mainly major hotels, it was singled out for priority
privatization beginning at the end of 1995.  Eventually, it is planned to privatize all tourist activities.
State withdrawal from this sector to make way for domestic and foreign private investment
will contribute to strengthening competition and improving and diversifying services.WT/ACC/DZA/14/Add.1
Page 96
However, some tourist trades and activities are regulated, as in the case of tourist and travel
agencies, which require authorization by the Minist ry of Tourism, based on standing and professional
competence.  Permits also have to be issued for holiday villages and camping grounds.
Thus, more than ten major tourist infrastructure projects were submitted for approval by
foreign promoters to the public authorities at the end of 2000.  The first phase of these projects relatesto the building of luxury complexes on the Algerian coast.
(f) Financial services
(i) Banking
There have been no restrictions on the establishment of financial institutions since 1990,
pursuant to the Currency and Credit Act, and on the basis of the approval of the Currency and Credit
Board, an administrative organ of the Algerian Central Bank.
The establishment of branch offices of foreign financial institutions is subject to the procedure
applicable to Algerian financial institutions.  There are currently 17 private banks and 7 major
State-owned banks in Algeria.
(ii) Insurance
This sector was liberalized quite recently, with the promulgation of Order No. 95-07 of
25 January 1995 on insurance.
Under the new provisions, insurance and reinsurance companies may be freely established
and this freedom extends to brokers and general insurance agents.
Insurance and reinsurance companies must be approved by the Minister of Finance.Since the monopoly was abolished only recently, the sector continues to be the exclusive
preserve of four long-established public insurance companies:  the CAAR, the SAA, the CAAT and
the CCR (Central Reinsurance Company), and of two private friendly societies:  the farmers' mutual
benefit society and the mutual insurance company for workers in education and culture.
(g) Business services
For the most part, such services were fully open to private initiative and competition, even
before the liberalization of production and service activities in 1988.
With the liberalization of the rental market, the only restrictions on access to service
activities, in some cases, derive from trade re gulations designed to guarantee standards of
qualification or professional competence.
(h) Wholesale distribution services
This area of activity has been fully liberalized in law since 1988;  however, a few public
enterprises continue to dominate certain niche markets, on account of their substantial distribution
networks.  Their ascendancy is evaporating with the privatization processes that are under way.  The
entire distribution sector is marked out for gradual privatization.WT/ACC/DZA/14/Add.1
Page 97
(i) Environmental services
Sewage, sanitation and refuse disposal services are for the most part the subject of public
service concessions granted by the local authorities responsible for them.
The local authorities are gradually reducing thei r involvement in these services, in the light
inter alia  of the level of control exercised by private entrepreneurs over the terms and conditions of
concessions, as well as their capabilities and powers of initiative in this field.
However, the impact of these services on public health frequently requires every possible
precaution in granting concessions.
(j) Educational services
The Algerian Constitution guarantees free access to educational services and provides for
compulsory schooling at the basic levels.
For the time being, State services are responsible for providing education at all levels.At present, a single window of opportunity exis ts vis-à-vis the State education system, namely
the establishment of private vocational training institutes, which is regulated by a 1991 decree.
(k) Health-related and social services
Law No. 85-05 of 16 February 1985 authorizes the opening of private hospitals under certain
conditions.  Few have as yet been established in response to this opportunity, in view of thesubstantial resources required.  This sector continues, therefore, to be controlled mainly by
Government funding.
The other human health services have seen a major infusion of private investment in
surgeries, medical laboratories, X-ray laboratories, dispensaries and the like, and this has opened the
way for genuine competition in this field.
Animal health services are also fully accessible to private investment and initiative.Other social services
The various social security services are entirely State controlled.  Other social services remain
completely dependent on private initiative, together with State incentives to the development of the
voluntary sector.
2. Policies affecting trade in services
Generally speaking,  as far as the main services are concerned, the regulations authorize
service activities under the following conditions:
- On the basis of a simple declaration, following entry in the commercial register;- or after certain conditions have been met in respect of professional qualifications,
availability of adequate equipment or safety standards governing the activity, under
the control of a State-run public institution;WT/ACC/DZA/14/Add.1
Page 98
- or again, after approval or authorization by  a State-run public institution at central
government or regional level, or by a trade organization legally empowered to
conduct activities relating to the trade.
Such activities are authorized on the basis of statutory requirements or selection criteria,
following a competition.
Public service concessions are granted on the basis of contract specifications, following
competitive bidding or public tendering.
(a) Ministries, institutions, trade associations or other bodies with responsibilities or a role in the
conduct of service activities
Generally speaking, services may be supplied to enterprises without restriction, simply on the
basis of an entry in the commercial register, except in the case of a trade regulated for reasons of
public order or security.
Services involving recourse to a State-owned industry, public property or public lands are
provided through public service or public interest concessions, which have to be arranged with theState or the decentralized local authorities in accordance with the established legal rules.
Some public enterprises which manage assets in the public domain on behalf of the State are
authorized to establish specifications for the concession of services.
Other services concerned with public health, education or the environment, as well as services
for which charges may be set by the State, are subject to authorization or concession.
Legally authorized trade associations are also entitled to engage in certain regulated trades.
(b) Courts or judicial, arbitral or administrative procedures which serve to review administrative
decisions affecting trade in services or to apply remedies in respect of such decisions
Administrative decisions concerning trade in services are subject to two types of appeal:
- An administrative appeal to the authority which took the administrative decision or to
any commission set up for that purpose;
- an application to the administrative courts which have a statutorily defined hierarchy.With regard to listing in the commercial register, which is not strictly speaking an
administrative decision (since the officials responsible for the commercial register are persons
involved in the administration of justice), appeals may be made to the ordinary courts.
(c) Provisions, including those of international agreements concerning requirements and
procedures in respect of qualifications, technical standards and licensing and/or registration
requirements for the provision of services
The norms and regulations governing all transactions, including licensing and/or registration,
are as a rule compatible with the international agreements and conventions to which Algeria has
acceded.WT/ACC/DZA/14/Add.1
Page 99
(d) The water, electricity and telecommunication distribution services will be the subject of
concessions to all public and private enterprises, in the context of legislation currently being
framed or already in force
(e) Provisions relating to safeguard measures which are applicable to trade in services.
There are no safeguard measures applicable to trade in services in particular.
(f) Provisions relating to international transfers and payments for current services-related
transactions
The provisions relating to inte rnational transfers and payments for current transactions in
regard to the supply of services are the same as  those governing current transactions in respect of
goods.
As far as enterprises are concerned, the applicable provisions are the regulations laid down by
the Bank of Algeria.
As regards transactions involving services supplied by private individuals, in the absence of a
fully convertible national currency, transfers and payments are effected solely for the requirements of
health or education abroad, subject to control thresholds.
(g) Provisions relating to capital transactions affecting the supply of services
Capital transactions affecting services are governed by the ordinary law relating to capital
transactions in respect of goods (Currency and Credit Act and Investment Act).
(h) Provisions concerning the procurement of services by government agencies
There are no particular provisions concerning the procurement of services by government
agencies.
However, the decree organizing government procurement gives general preference to resident
suppliers of goods or services.
(i) Provisions concerning any form of aid, grant, domestic subsidy, tax incentive or programme
of promotion affecting trade in services
A number of tax incentives to promote investment are enshrined in the provisions of the
Investment Act and the Finance Acts.
Similarly, other tax exemptions or rebates are granted under the Finance Acts, in the context
of the promotion of exports of goods or services.
3. Market access and national treatment
(a) Limitations on the number of service providers
There are no limitations on the number of service providers.
(b) Limitations on the total value of service transactions or assets
There are no limitations on the total value of service transactions or assets.WT/ACC/DZA/14/Add.1
Page 100
(c) Limitations on the total number of service operations or on the total quantity of service output
There are no limitations on the total number of service operations or on the total quantity of
service output.
(d) Limitations on the total number of persons who may be employed in a particular service
sector
Under the existing labour legislation, the number and professional qualifications of natural
persons are subject to prior authorization, on a standard basis for all service activities.  In the field of
government procurement services, the professional requirements are more restrictive, the aim being to
encourage the employment of qualified nationals.
However, these restrictive conditions do not apply to foreign investment.
(e) Limitations on the total number of specific legal entities through which a service may be
provided
There are no restrictions or requirements concerning the specific types of legal entity through
which a service may be provided in Algeria.
(f) Limitations on the participation of foreign capital
There are no limitations on the participation of foreign capital (pursuant to the 1993
Investment Act).
(g) Measures providing for treatment less favourable than that accorded to national service or
service providers
There is no discrimination between national and foreign service providers, except under the
government procurement regulations, which as a rule favour resident enterprises in all cases other
than open international invitations to tender, wh ere projects are to be covered by international
funding.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
Algeria has consistently accorded particular importance to stepping up and diversifying its
trade relations, and it practises a policy of openness to international cooperation, relying on severalbilateral and multilateral agreements to facilitate the development of such cooperation.
1. Bilateral or plurilateral agreements relating to foreign trade in goods and trade in
services
(a) Bilateral trade agreements
Such agreements have been concluded with a hundred or so countries in Africa, Latin
America and Asia.  Their aim is to encourage merchandise trade flows with some developingcountries, through the periodical exchange of indicative schedules of products available for export,
circulated among foreign trade operators.  These agreements give rise to the de facto application of
the most-favoured-nation clause, but they do not include a system of preferences.WT/ACC/DZA/14/Add.1
Page 101
(b) Trade and tariff conventions
The conventions currently in force were signed with Libya, Morocco, Mali, Syria, Senegal,
Jordan, Mauritania, Niger, Iraq, Egypt and Tunisia.  They are designed to strengthen economic
relations, particularly with the neighbouring countries.  These conventions, which were drawn up well
before the liberalization of Algerian trade, in a highly regulated trade environment overburdened with
numerous non-tariff barriers, have not thus far been the subject of concrete implementation.
2. Economic integration, customs union and free-trade area agreements
(a) Agreement with the Arab Maghreb Union (AMU)
On 1 April 1989, Algeria ratified the Treaty setting up the Arab Maghreb Union, the other
members being Libya, Mauritania, Morocco and Tunisia.
Maghreb integration is scheduled to take place in four successive stages, viz. free-trade area,
customs union, common market, and lastly, economic union.
At the trade level, two conventions have been concluded:
(i) The Trade and Tariff Convention, ratified by Algeria on 21 April 1992, which provides for:
- Total exemption from customs duties and charges of equivalent effect for all products
meeting Maghreb rules of origin.  Such products remain subject to taxes on local
production in the importing country, including VAT or its equivalent;
- a schedule of products exempted from non-tariff barriers;- the application of a countervailing charge of 17.5 per cent on products incorporating
inputs of foreign origin, to which a special customs regime has been applied.  This
provision is aimed at ensuring fair competition between like products of the region;
- the implementation of safeguard measures, in accordance with the provisions of the
WTO Agreements, as well as mechanisms to compensate for losses incurred as a
result of exemptions from customs charges.
The Convention has not yet been implemented, as the process of ratification by member
States has not been completed.
(ii) The Convention on Trade in Agricultural Products, signed in July 1990, which provides for:
- A total exemption from duties and charges of equivalent effect for all agricultural
products of Maghreb origin;
- a schedule of products exempted from non-tariff barriers;- the application of safeguard measures;- the application of a countervailing charge of 17.5 per cent under the same conditions
as those laid down in the Trade and Tariff Convention.
These two conventions are of an interim nature, pending the establishment of a Maghreb
free-trade area.  In this connection, a draft agreement is currently being considered by the member
countries of the AMU.WT/ACC/DZA/14/Add.1
Page 102
The convention has not yet come into force, despite ratification by all the member countries
of the AMU, because not all the protocols of implementation have been finalized.
(b) Cooperation agreement with the European Economic Community
On 26 April 1976, Algeria concluded a cooperation agreement with the European Economic
Community.  The purpose of the agreement is to introduce wide-ranging cooperation between Algeria
and the European Economic Community in the technical, financial, trade and social fields.
In trade matters, the European Economic Community has granted Algeria the following
benefits:
- Free market access, with no quantitative restrictions and with exemption from
customs duties and charges of equivalent effect, for industrial products;
- access for certain products, subject to annual ceilings above which customs duties
may be restored;
- 20 to 100 per cent reduction of custom s duties on certain agricultural products.
Subject to particular provisions relating to border trade, Algeria grants to the Community
treatment no less favourable than most-favoured-n ation treatment, except in connection with the
establishment of customs unions and free-trade areas, or steps taken with a view to Maghrebeconomic integration or on behalf of developing countries.
Moreover, Algeria is in the final stages of negotiating a new association agreement with the
European Union aimed at the establishment of a free-trade area.
(c) Treaty establishing the African Union, signed at Abuja (Nigeria) in 1991
This Treaty is part of a scheme of long-term regional integration and provides for the
following stages:
- Strengthening of the subregional economic communities (five years);- stabilization of the tax regimes applied to trade within each regional group,
strengthening of sectoral integration;
- coordination and harmonization of the activities of subregional economic groupings;- establishment of free-trade areas within each regional group;- stabilization and harmonization of tariff and non-tariff regimes between the
subregional groupings;
- African Common Market;- African Economic Community.
3. Labour market integration agreements
Algeria has concluded no agreement of this type with its partners.WT/ACC/DZA/14/Add.1
Page 103
4. Multilateral economic cooperation, membership of multilateral economic organizations,
trade-related programmes of other multilateral organizations
Algeria takes part in the work of all the institutions in the United Nations system, as well as
the Bretton Woods institutions.
Moreover, Algeria has acceded to the following multilateral agreements:- The New York Convention of 10 June 1958 on the Recognition and Enforcement of
Foreign Arbitral Awards (since 18 July 1988);
- the Belgrade Agreement of 13 April 1988 on the Global System of Trade Preferences
(GSTP) among Developing Countries;
- the Convention on the Settlement of Investment Disputes (ICSID) (since
17 April 1995);
- the Multilateral Investment Guarantee Agency (MIGA) (since 17 April 1995).WT/ACC/DZA/14/Add.1
Page 104
ANNEX
Statistics and Publications
1. Foreign trade statistics and responsible agencies
The preparation, management and publication of foreign trade statistics are the responsibility
of the following national institutions:
The National Informatics and Statistics Centre (CNIS) of the General Customs Directorate,
the main source of information on foreign trade statistics.  The CNIS has a documentation and
archives centre, which is open to the public free of charge.  It also has the necessary technical capacityto respond to specific requests for data from businesses or administrative bodies, a service it also
provides free of charge.
The customs administration has its head office in Algiers
Direction Génerale des Douanes
Rue du Docteur Saadane – Alger – Algérie
Tel:  (021) 71.16.16
T élex:  56.300
Fax:  (021) 74.69.74;
The National Statistics Office (ONS), the implementing agency for national policy on the
production and dissemination of statistics.  It handles all statistics on socio-economic activity and the
social situation of the country (population, healt h, employment, agricultural and industrial output,
foreign and domestic trade).
The ONS has its registered office in Algiers, at the following address:Office National des Statistiques
8 et 10 Rue des Moussebiline (ex.  des Fontaines)BP No. 202 Ferhat Boussad – Alger – Algérie
Tel:  (021) 64.77.90 to 92
Télex:  67.190
Fax:  (021) 63.81.10
The Bank of Algeria, which prepares and manages statistics on the banking and monetary
situation.  It also produces and disseminates statistics on the balance of payments.
The Bank's address is the following:Banque d'Algerie
Villa Jolie, 38 Avenue Franklin RoosveltTel:  (021) 59.06.59
Télex:  66.499. and 66.437
Fax:  (021) 73.96.79 and 60.07.11
2. Publications related to foreign trade statistics
- Annual bulletin of foreign trade statistics, published by the CNIS (National Customs);
- annual bulletin on foreign trade results, published by the National Statistics Office;WT/ACC/DZA/14/Add.1
Page 105
- annual report by the Bank of Algeria on the balance of payments.
3. Statistical data (annex)
(a) Main macroeconomic indicators (Bank of Algeria and ONS)
(b) Foreign trade statistics (CNIS, Customs)(c) Domestic output statistics (ONS)(d) Agricultural statistics (Ministry of Agriculture)WT/ACC/DZA/14/Add.1
Page 106(a) Main macroeconomic indicators (Bank of Algeria and ONS)
Country:  Algeria
Surface area:  2,383 million km²Currency:  Dinar (DA)
UNIT 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000
I - GDP DA billion 295.00 536.70 1161.80 1471.00 1966.60 2564.70 2762.40 2781.60 3168.00 4011.80
DAbillion 58.67 59.91 49.76 41.91 41.23 46.89 47.89 48.17 47.55 53.29
Final consumption DA billion 161.60 394.00 839.60 1098.70 1407.00 1759.00 1872.40 2028.10 2176.50 2238.70
Investment (change, including stocks, except from
1997 to 2000 )DA billion 103.90 151.00 339.20 472.30 632.40 644.60 657.50 770.30 866.00 886.20
Gross domestic savings DA billion 94.70 142.70 335.10 298.30 559.50 805.70 890.00 753.50 991.50 1773.10
Change in volume of GDP % 5.50 -1.30 -1.70 3.80 3.80 1.10 5.10 3.30 2.40
Investment/GDP % 35.22 28.13 29.20 32.11 32.20 25.10 23.80 27.69 27.34 22.09
Gross savings/GDP % 32.10 26.59 28.84 20.28 28.50 31.40 32.22 27.09 31.30 44.20
II - PUBLIC FINANCE
Budgetary receipts DA billion 108.59 160.20 320.10 434.20 600.80 824.80 926.70 774.50 950.50 1578.10
Budgetary expenditure DA billion 99.02 142. 50 390.50 461.90 589.10 724.70 845.10 876.00 961.70 1178.10
Balance on budget DA billion 9.57 17.70 - 70.40 -27.70 11.70 100.10 81.60 -101.50 -11.20 400.00
Treasury balance excluding stabilization fund DA billio n -28.30 20.20 -76.30 -33.70 8.60 99.30 84.00 -108.30 -16.50 398.80
Stabilization fund DA billion 0.00 0.00 24.30 31.70 -22.90 -24.40 -17.90 0.10 0.00 0.00
Overall Treasury balance DA billion -28.30 20.20 - 100.60 -65.40 -28.20 74.90 66.10 -108.20 -16.50 398.80
Budgetary receipts/GDP % 36.81 29.85 27. 60 29.30 30.55 32.16 33.30 27.60 29.60 27.70
Budgetary expenditure/GDP % 33.57 26.55 33.60 31.20 29.96 28.26 30.40 31.20 30.00 29.00WT/ACC/DZA/14/Add.1
Page 107UNIT 1985 1990 1993 1994 1995 1996 1997 1998 1999 2000
Budget balance/GDP % 3.24 3.30 -6.10 -1.90 0.59 3.90 2.90 -3.60 -0.30 -1.30
Overall Treasury balance/GDP % -9.59 3.76 -8.70 -4.40 -1.43 2.92 2.39 -3.89 -0.52 9.94WT/ACC/DZA/14/Add.1
Page 108 Unit 1985 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
III - BALANCE OF PAYMENTS
Exports of goods and services DA
billion13.59 13.40 12.87 12.13 11.01 9.58 10.94 13.97 14.89 10.88 13.04 22.56
Imports of goods and services DA
billion12.78 -11.48 -9.54 -10.06 -9.60 -11.08 -12. 11 -11.24 -10.28 -10.85 -11.52 -11.71
Balance of goods and services DA
billion0.81 1.92 3.33 2.07 1.41 -1.50 - 1.17 2.73 4.61 0.03 1.52 10.85
Capital income (net) DA
billion-1.35 -2.09 -2.22 -2.16 -1.75 -1.72 -2.19 -2.35 -2.22 -1.99 -2.29 -2.71
Current transfers (net) DA
billion1.36 1.53 1.29 1.39 1.14 1.40 1.12 0.88 1.06 1.06 0.79 0.79
Current account balance DA
billion0.82 1.35 2.40 1.30 0.80 -1.82 - 2.24 1.26 3.45 -0.9 0.02 8.93
Capital balance DA
billion0.55 -1.57 -1.89 -1.07 -0.81 2.54 -4.09 -3.34 -2.29 -0.63 -2.4 -1.36
Overall balance DA
billion1.37 -0.22 0.51 0.23 -0.01 -4.36 -6.32 -2.09 1.16 -1.53 -2.38 7.57
Financing of the overall balance DA
billion0.22 -0.51 -0.23 0.01 4.36 6.32 2.09 -1.16 1.53 2.38 -5,17
Of which:
Rescheduling DA
billion0.00 0.00 0.00 0.00 0.00 4. 49 4.94 3.53 2.22 0.52 0 0
Change in gross reserves  (-) DA
billion0.00 0.00 0.00 0.00 0.00 -1.14 0.53 -2.24 -3.96 1.2 2.4 -7.51
Imports of goods and services/GDP % 21.78 -19.16 -22.04 - 21.01 -19.29 -26.44 -29.37 -23. 97 -21.47 -22.52 -24.23 -21.97
Current account balance/GDP % 1.40 2.25 5.54 2 .71 1.61 -4.34 -0.05 0.03 0.07 -1.87 0.04 16.76
Current rate of imports % 106.34 -116.72 -134.91 -120.58 -114.69 -86.46
Overall balance/GDP 2.34 -0.37 1.18 0.48 -0.02 -10.40 -15.33 -4.46 2.42 -3.18 -5.00 14.20
Average exchange rate 47.7 54.7 57.68 57.74 66.62 75.28
Reserves in months of imports (goods and non-facture
services)months 2.67 0.76 1.87 1.74 1.84 2. 90 2.08 4.48 9.39 7.56 4.58 12.19
IV - EXTERNAL DEBT
Total debt DA
billion17.31 26.00 27.27 22.00 24.71 29.34 31.573 33.651 31.222 30.473 24.315 25.261
Medium and long-term debt DA 16.51 26.46 26.44 25. 42 24.01 28.71 31.317 33.23 31.06 30.261 24.14 25.088WT/ACC/DZA/14/Add.1
Page 109Unit 1985 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
billion
Short-term debt DA
billion0.80 1.79 1.24 0.79 0.70 0.63 0.256 0.421 0.162 0.212 0.175 0.173
Debt servicing DA
billion4.79 8.89 9.51 9.28 9.43 8.96 4.244 4.281 4.465 5.18 5.116 4.5
Debt servicing/exports, goods and services % 35. 25 66.34 73.89 76.50 85.65 93.53 38. 79 30.64 29.99 47.61 39.23 19.95
Debt servicing/GDP % 8.16 14.84 21.97 19. 38 18.95 21.38 10.29 9.13 9.32 10.75 10.76 8.44
Debt/exports of goods and services % 127.38 194. 03 215.00 181.37 224.45 306.26 288.60 240.88 209.68 280.08 186.46 111.97
Debt/GDP % 29.50 43.40 63.92 45.94 49.67 70.01 76.58 71.77 65.19 63.26 51.13 47.40WT/ACC/DZA/14/Add.1
Page 110 Unit 1985 1990 1992 1993 1994 1995 1996 1997 1998 1999 2000
VI - MONETARY SITUATION
External assets (net) DA
billion14.89 6.5 22.6 23.9 60.40 26. 3 133.9 350.31 280.71 169.4 776
Internal assets (net) DA
billion336.5 496.4 601.3 663.30 773.2 781.1 731.2 1007.2 1299 880.5
Internal claims DA
billion251.24 414 639.3 753.6 774.40 967.2 1057.4 1164.93 1273.45 1594.9 1267.7
Claims on the State DA
billion76.63 167 174.1 522.2 468.60 401.6 280.5 423.65 542.3 661.31 503.9
Claims on the economy DA
billion174.61 247 465.2 231.4 305.80 565.6 776.8 741.28 731.15 933.6 763.9
Other headings (net) DA
billion10.86 -77.5 -142.9 -152.3 -111.10 - 59.3 -167.5 -365.5 -213.6 -243.2 -343.4
Of which:  Medium and long-term external
commitmentsDA
billion23.07 -93.1 -145.7 -113.7 -145.00 - 129.9 -96.5 -55.3 -39 -39.5 -27.9
Money supply (M2) DA
billion300.5 343 515.9 625.2 723.70 799.5 915.1 1081.52 1287.87 1468.3 1656.4
Money DA
billion202.23 270.1 369.7 443.2 476.00 519. 1 589.1 671.57 813.68 889.78 1034
Of which:  Money in circulation 76.64 134.9 184.9 211.3 223.00 249.7 290.9 337.6 390.78 440.26 485.4
Quasi-money DA
billion21.63 72.9 146.2 182 247.70 280.4 325.9 409.95 474.19 578.6 621.5
Liquidity ratio (average M2/GDP) % 101.87 61.2 48.1 52.2 49.20 #REF! #REF! #REF! #REF! #REF! #REF!
Money in circulation/GDP % 25.98 23.9 17.6 18.1 15.16 #REF! #REF! #REF! #REF! #REF! #REF!
Money in circulation/M2 % 25.5 39.4 35. 8 33.8 30.81 31.23 31.79 31.22 30.34 29.98 29.30
Claims on the economy % 58.11 41.5 44.51 19.92 20.79 #REF! #REF! #REF! #REF! #REF! #REF!
VII - OTHER INDICATORS
Population Millions 21.75 24.7 25.94 26.58 27.20 28.28 28.87 29.45 29.507 29.95 30.369
Density/inhabitants per km29.13 10.37 10.89 11.16 11.42
Economically active population Thousands 4.49 5.85 6.28 6.45 6.82 7561 7811 8072 8326 8583 8703
Employed population Thousands 3.88 4.66 4.9 5.03 5.16 5436 5625 5815 5993 6073 6158
Unemployment rate % 13.71 19.76 21. 97 22.02 24.36 28.1 28 28 28 29.2 29.2
Population growth 2.59 2.44 2.46 2.33 1.639 1.52 1.46 1.4WT/ACC/DZA/14/Add.1
Page 111Unit 1985 1990 1992 1993 1994 1995 1996 1997 1998 1999 2000
Trend in consumer prices 29.8 18.7 5.7 5 2.6 0.33
(City of Algiers) base 100-1982 % 10.5 16.7 32.2 20.54 28.98
Average exchange rate DA/$ 5.03 8.96 21.82 23.35 35.10 47.7 54. 7 57.68 58.74 66.62 75.28
    Change % 17.93 18.13 7 50.32
End of period DA/$ exchange rate 4.77 12.19 22.78 24.12 42.89
    Change % 51.78 6.49 5.88 77.83
Average price of oil $/barrel 27.5 24.32 19.93 17.52 16.31 17.6 21. 7 19.49 12.94 17.91 28.5
    Change % 31.46 -2.5 -12.09 -6.91
Per capita GDP $ 2697.17 2425.33 1846.25 1872.1 1541.05 #REF! #REF! 1649.16 1606.39 1599.3 1778.8
Annual change % -2951 7.99 1.4 -17.69 - #REF! #REF! -2.59 -0.44 11.22WT/ACC/DZA/14/Add.1
Page 112(b) Statistics on foreign trade in goods (CNIS, Customs)
Trade Balance from 1989 to 2000
US$ millions
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
1.  TRADE BALANCE FROM 1989 TO 2000
Exports f.o.b. 9,491 12,785 12,350 11,442 10,163 8,898 10,227 13220 13820 10140 12320 21650
Imports c.i.f. 9,208 9,652 7,680 8, 642 9,298 9,431 10,399 9098 8687 9403 9164 9201
Trade balance -283 3,133 4,670 2,800 1,865 -533 -173 4122 5133 737 3156 12449
2.  COMPOSITION OF EXPORTS f.o.b.
Hydrocarbons 9,096 12,348 11,975 10,979 9, 763 8,606 9,769 12653,4 13181,3 9774 11904,9 21061,3
 - Of which: crude oil 1,894 2,730 2,207 2,090 1,963 1,978 2,164 2, 870 2,662 1,943 2,724 4,815
 - Distillate 2,535 3,549 3,220 2,946 2,558 2,189 2,375 3,011 2,801 1,953 2,432 4,000
 - Refined products 1,985 2,622 2,280 2, 250 1,864 1,691 1,869 2,238 2,275 1,487 1,996 3,282
 - Natural gas 884 1,015 1,343 1,253 1,100 476 587 1,788 1,995 1,700 1,768 3,555
 - Liquefied natural gas 1,412 1,761 2,147 1,834 1,741 1,381 1,422 1, 851 2,460 1,925 1,832 3,291
 - Liquefied petroleum gas 386 671 778 606 536 891 1,352 895 988 767 1,152 2,119
Semi-finished products 173 210 169 233 207 196 263 340 486 255 272 477
Finished products 164 145 108 116 69 38 65 104 55 32 77 40
Foodstuffs 34 50 55 81 98 35 95,9 93 47 33 22 30
O t h e r  r a w  m a t e r i a l s 2 43 24 33 32 62 4 3 3 , 63 05 14 64 44 2
Total exports f.o.b. 9,491 12,785 12,350 11,442 10, 163 8,898 10,227 13,220 13,820 10,140 12,320 21,650
3.  COMPOSITION OF IMPORTS c.i.f.
Food 2,904 2,133 1,938 2,150 2,158 2,809 2,699 2601 2381 2325 2438 2356
Consumer goods 998 1,142 720 1,186 1,010 1,225 1,535 1037 1024 1211 1329 1841
Intermediate goods 2,980 2,618 2,525 2,739 2,652 2,849 3,549 2396 2055 2193 2168 2291
Capital goods 2,336 3,759 2,479 2,567 2,478 2,548 2,616 3064 2672 2903 3025 2857
Total imports c.i.f. 9,208 9,652 7, 680 8,642 8,298 9,431 10,399 9098 8132 8632 8960 9345WT/ACC/DZA/14/Add.1
Page 113Trends in Foreign Trade by Economic Area
1995 1996 1997 1998 1999 2000
Imports ( percentage of total imports )
European Union 59.33 62.53 56.75 57.40 56.22 57.97
OECD (outside EU) 25.88 21.98 25.11 24.67 22.63 22.39
Other European countries 2.52 2.45 4.87 4.25 5.29 5.47
South America 3.42 3.92 5.95 1.97 3.71 2.77
Asia (other than Arab countries) 5.35 5.48 1.78 6.84 8.41 8.05
Arab countries (non-AMU) 1.24 1.44 3.87 2.82 1.75 1.68
Maghreb countries 1.84 1.36 0.28 0.26 0.39 0.46
Other African countries 0.42 0.82 1.39 1.80 1.59 1.21
Total 100.00 100.00 100.00 100.00 100.00 100.00
Exports
European Union 64.82 60.25 62.37 65.04 64.35 65.27
OECD (outside EU) 24.62 25.24 26.65 24.85 24.72 24.81
Other European countries 3.17 5.53 1.08 1.07 0.62 0.98
South America 2.92 5.49 6.46 7.11 7.21 7.59
Asia (other than Arab countries) 1.90 1.39 1.63 0.33 1.16 1.67
Arab countries (non-AMU) 0.18 0.12 0.15 0.22 0.64 0.71
Maghreb countries 2.21 1.88 1.55 1.33 1.01 1.33
Other African countries 0.18 0.10 0.10 0.05 0.29 0.20
Total 100 100 100 100 100 100
Source: Algerian CustomsWT/ACC/DZA/14/Add.1
Page 114Trends in Foreign Trade by Economic Area
In US$ billions
1995 1996 1997 1998 1999 2000
Imports
1995 1996 1997 1998 1999 2000
European Union 6385 5689 4930 5397 5152 5334
OECD (outside EU) 2785 2000 2181 2320 2074 2060
Other European countries 271 223 423 400 485 503
South America 368 357 517 185 340 255
Asia (other than Arab countries) 576 499 155 643 771 741
Arab countries (non AMU) 133 131 336 265 160 155
Maghreb countries 198 124 24 24 36 42
Other African countries 45 75 121 169 146 111
Total 10761 9098 8687 9403 9164 9201
Exports
European Union 6638 8059 8663 6643 8058 12777
OECD (outside EU) 2521 3376 3702 2538 3095 4857
Other European countries 325 740 150 109 78 191
South America 299 734 897 726 903 1485
Asia (other than Arab countries) 195 186 227 34 145 326
Arab countries (non-AMU) 18 16 21 22 80 139
Maghreb countries 226 251 215 136 127 260
Other African countries 18 13 14 5 36 40
Total 10240 13375 13889 10213 12522 19575WT/ACC/DZA/14/Add.1
Page 115
(c) Domestic output statistics (ONS)
YEAR 1995 1996 1997 1998 1999 2000
I. TRENDS IN THE INDEX OF INDUSTRIAL PRODUCTION (Base 1989=100)Total industry 87.6 81.1 78.2 83.8 84.6 85,6152
Industry (excluding hydrocarbons) 82.9 73.7 68.9 75.6 75.8 75,2694
Manufacturing industries 78.9 68.3 63.1 69 68.4 67,3056
II. TRENDS IN THE MAIN BRANCHES OF INDUSTRIAL PRODUCTIONIron (thousand tonnes) 2,237 2,244 1,614 1,783 1,337
Zinc (tonnes) 6,974 5,912 6,797 8,594 9,808
Lead (tonnes) 1,388 1,016 1,342 1,160 1,215Mercury (34.5 kg. pots) 8,464 11,069 14,214 6,495 6,966Phosphates (thousand tonnes) 757 1,051 1,063 1,155 1,097Salt (thousand tonnes) 147 152 139 173 164
Baryta (tonnes) 29,334 31,343 38,999 35,651 50,510
Bentonite (thousand tonnes) 20 20 22 20 18
STEEL MAKING AND METALLURGY (thousand tonnes)Pig iron 962 851 526 757 807
Crude steel 780 590 361 581 768
Concrete reinforcing bars 177 132 92 48 49Steel tubes, welded 101 141 115 67 91Seamless tubes 29.5 16 17.3 11 12.7Metallic frameworks (tonnes) 27,425 23,337 15,368 18,344 18,614Boiler works (tonnes) 8,334 7,120 7,142 7,038 4,857,7
Ironwork (tonnes) 706 679 3,230 3,390 2,131
MECHANICAL PRODUCTS
(Units)
Lorries, coaches, buses 3,634 2,609 1,557 2,069 2,445
Tractors 2,712 1,279 321 1,703 1,911
Combine harvester threshers 46 328 79 59 247Cranes and shovels 432 241 140 84 79Vans and wagons 216 75 3 0 0Cycles 15,100 5,700 16,000 13,900 9,107
Mopeds 9,100 3,000 3,700 6,900 2,056
Pumps for liquids 19,683 7,701 7,042 8,175 10,147
ELECTRICAL AND ELECTRONIC PRODUCTS (tonnes)Electric wires and cables (t.) 14,613 6,680 9,552 11,094 12,557
Telephone cables (t.) 3,420 1,170 2,784 2,499 2,936
Air-conditioners (thousand units) 13.3 14.5 2.2 21.4 10.1Refrigerators (thousand units) 131.4 137.4 175.2 214.9 181Television sets (thousand units) 194.1 249.8 171.7 251.2 173.3
CONSTRUCTION MATERIALS (thousand tonnes)
Cement 6,783 7,470 7,146 7,835 7,587
Bricks 1,488 1,567 1,507 1,612 1,611Plaster 170 181 199 207 212Tiles 20 24.1 19.8 25.3 29.7
Flat glass (thousand m
2) 145.9 145.9 205.8 212 151,3WT/ACC/DZA/14/Add.1
Page 116
YEAR 1995 1996 1997 1998 1999 2000
H o l l o w e d  g l a s s 2 41 71 81 69 3
Ceramic sanitary ware (thousandunits )1,092.4 1,230 1,075 1,160.9 1,119.3
Safety glass (t.) 95 130 60 28.2 24.3
Windscreens (thousand units) 2,223.3 21,923 15,211 11,153 14,069
CHEMICALS (thousand tonnes )Ammonia 216.7 175.6 458.1 425.7 487
Phosphatic fertilizers 80 46 118 183 201
Detergents 100 85 86 107 113
Paints and varnishes 94.3 89.3 89.7 90.9 96.9Methanol 97.9 71.8 75.8 69.2 93.8Ethylene 95.4 79.4 95.6 68 91.8Acetylene (thousand m
3) 1,068 911 844 840 795
AGRI-FOODSTUFFS (thousand tonnes)
Flour and meal 2,454 2,384 2,441 3,106 3,198
Refined edible oils 285 291 289 307 280Refined sugar in pellets 169 170 68 64 53
Pasta and couscous 55 53 52 60 61
Fruit juice and nectar 19.5 13.9 17.7 23.9 24.3Manufactured tobacco 24.22 24.15 23.93 26.39 26.65Mineral water 424 498 599 652 628
FABRICS, MADE-UP TEXTILE PRODUCTS AND LEATHER
Finished fabrics, cotton and wool
(10
6 linear meters)65,92 45,859 42,488 38,227 30,905
Blankets and travelling rugs
(thousand units)2,090.9 1887 1239.5 1,428 1,745
Shirts (thousand units) 1,039.6 497.8 329.9 519 598.2
Work clothing (thousand units) 959.2 671.9 666.8 710.6 487.1
Cattle upper leather (thousand) 16,526 11,121 10,324.4 11,239.2 10,319Sheep upper leather (thousand) 11,050 11,216 7,530.6 7,223.9 5,850.7Footwear (thousand pairs) 3,986 2,320 2,541.8 2,148.9 1,167.2
General joinery and carpentry of
wood (thousand m
2)1,016.4 782.6 669.5 595.2 584.9
Agglomerated cork (thousand m3) 22.3 22.9 23.6 29.4 15
Paper, paperboard and packings(thousand tonnes)31.2 20.3 21 20.6 25.3
Printing and writing paper
(thousand tonnes)32.8 23.8 27.7 23.6 14.3
Tissue paper (tonnes) 1,840 2,342 2,606 3,027 2,602WT/ACC/DZA/14/Add.1
Page 117(d) Agricultural statistics (Ministry of Agriculture)
Trends in Agricultural Production from 1990 to 1999
Unit: Q1
Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Average
Crop production
Product
1.  Winter cereals 16,247,170 38,074,880 33,279,320 14,517,720 9,632 ,350 21,380,000 49,000,000 8,693,400 30,252,460 20,200,060 24,127,736
      - Durum wheat 5,549,460 12,917,890 13,455,310 7,960,650 5, 624,280 11,886,700 20,345,700 4,554,6 40 15,000,000 9,000,000 10,629,463
      - Common wheat 1,951,340 5,775,990 4,912,210 2,204,380 1,515,360 3,112,500 9,480,340 2,060,500 7,800,000 5,700,000 4,451,262
      - Barley 8,333,560 18,099,580 13,982,900 4,080,230 2, 340,670 5,849,800 18,002,220 1,908,920 7,000,000 5,100,000 8,469,788
      - Oats 412,810 1,281,420 928,900 272,460 152,040 531,000 1,171,740 168,150 450,000 400,000 576,852
      - Triticale  -  -  -  -  -  -  - 1,190 2,460 60 1,237
2.  Summer Cereals 6,950 8,150 9,820 3,250 1,850 4,570 5,050 3,770 3,590 5,910 5,291
      - Maize (corn) 2,310 5,000 6, 620 2,250 1,850 4,190 4,460 2,570 3,100 5,370 3,772
      - Sorghum 4,640 3,150 3,200 1,000 0 380 590 1,200 490 540 1,519
3.  Total fodder (a+b) 5,187,950 13,377,410 10,718,320 6,449,510 5,466,530 7,328,210 12,600,000 3,239,720 8,651,470 8,820,470 8,183,959
      (a) Man made fodder 4,257,760 11,016,650 8,315,070 4,749 ,280 3,915,340 5,257,030 9,349,000 2,240,240 6,240,030 6,292,230 6,163,263
          - Vetch-oats 2,439,470 6,787,980 3,974,920 2,576 ,920 1,633,500 2,065,620 3,265,700 781,460 2,259,910 1,408,610 2,719,409
          - Lucerne (alfalfa) 72,920 78,720 12, 890 63,230 63,380 154,090 11,000 26,630 77,660 126,140 68,666
          - Other 1,745,370 4,149,950 4,327,260 2,109,1 30 2,218,460 3,037,320 6,072,300 1,432,150 3,902,460 4,757,480 3,375,188
      (b) Natural fodder 930,190 2,360,760 2,403,250 1,700,2 30 1,551,190 2,071,180 3,251,000 999,480 2,411,440 2,528,240 2,020,696
          - Natural grassland 318,140 914,320 450, 870 470,100 567,080 700,130 941,370 354,970 635,860 679,470 603,231
          - Mown fallow land 612,050 1,446,440 1,952,380 1,230,130 984,110 1,371,050 2,309,630 644,510 1,775,580 1,848,770 1,417,465
4.  Dried pulses 350,890 630,190 633,860 481,470 382,970 414,380 680,000 276,360 450,500 394,650 469,527
      - Broadbeans and field beans 162,250 325,700 311,510 203,010 191,450 214,540 369,590 90,670 213,520 217,060 229,930
      - Dried peas 22,460 47,190 43,470 14,83 0 28,190 34,110 46,620 12,950 35,480 30,040 31,534
      - Lentils 7,730 9,500 8,930 7,810 4,580 4,540 8,390 4,340 6,010 3,670 6,550
      - Chick-peas 147,720 241,870 261,320 248,87 0 153,940 157,250 244,780 161,580 181,430 130,700 192,946
      - Dried beans 8,760 4,870 6, 960 5,860 3,440 3,080 5,610 6,460 10,790 9,390 6,522
      - Vetch 1,970 1,060 1,670 1,090 1,370 860 5,010 360 3,270 3,790 2,045
5.  Industrial crops 1,150,140 2,289,380 3,272,170 5,368,100 4, 590,930 5,640,610 4,480,830 3,734,120 4,514,260 6,075,970 4,111,651
     - Tomatoes grown as industrial crops 1,061,280 2,190,700 3,151,930 5,248,860 4,485,160 5,542,570 4,371,320 3,591,210 4,355,240 5,935 ,730 3,993,400
      - Tobacco 35,780 33,580 61,810 68,77 0 37,200 27,900 40,450 81,530 66,500 55,970 50,949
      - Groundnuts 18,770 20,140 36,100 32,55 0 33,280 30,930 30,780 23,830 41,350 47,490 31,522
      - Other 34,310 44,960 22,330 17,920 35,290 39,210 38,280 37,550 51,170 36,780 35,780
6.  Market garden produce 22,607,550 29,371,790 30,665,210 29,638,05 0 25,706,200 32,000,000 31,467,000 30,093,740 32,859,130 33,158,300 29 ,756,697
      - Potatoes 8,085,410 10,773,480 11,575,250 10,652,210 7, 159,360 12,000,000 11,500,000 9,475,1 80 11,000,000 9,962,680 10,218,357
      - Onions 1,729,740 3,175,440 2,506,490 2,511,450 2, 479,090 3,140,290 3,128,810 3,517,290 3,926,430 3,824,540 2,993,957WT/ACC/DZA/14/Add.1
Page 118Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Average
      - Garlic 217,550 257,620 258,330 343,000 298,660 302,740 287,430 265,260 296,580 295,620 282,279
      - Tomatoes 2,958,920 3,153,570 2,813,490 3,038,610 2, 462,390 3,043,800 2,818,680 3,294,060 3,167,530 3,612,310 3,036,336
      - Carrots 1,009,340 1,170,610 1,591,830 1,284,610 1, 584,920 1,324,770 1,285,440 1,254,280 1,411,450 1,349,500 1,326,675
      - Melons and watermelons 2,641,240 3,715,150 4,472,280 4,900,580 4,011,680 4,033,960 4,553,580 4,013,000 5,020,160 5,383,080 4,274,4 71
      - Green beans 169,180 183,270 216,610 247,280 205,060 204,510 209,900 236,480 222,830 263,060 215,818
      - Chillies 577,100 604,04 0 722,290 824,740 659,630 597,930 566, 960 799,230 674,750 668,730 669,540
      - Peppers 1,010,400 974,140 875,220 866,46 0 803,040 897,620 884,450 1,107,790 894,920 886,800 920,084
      - Cucumbers 287,760 349,780 366,350 324,36 0 404,690 444,720 423,900 353,520 419,830 463,290 383,820
      - Courgettes 682,730 701,040 880,750 774,05 0 1,004,450 872,610 873,000 820,820 869,120 920,640 839,921
      - Aubergines (eggplants) 216,140 178,900 194, 620 190,930 379,830 327,700 280,870 330,980 310,340 340,890 275,120
      - Cauliflowers 250,080 246,470 381,100 386, 100 391,550 407,440 388,000 432,970 387,400 403,920 367,503
      - Cabbages 132,670 151,450 255,890 206,14 0 236,630 223,290 236,580 210,240 193,780 219,710 206,638
      - Turnips 646,500 750,080 763,360 716,53 0 763,150 879,490 820,890 734,880 803,300 799,070 767,725
      - Fresh beans 782,980 1,146,930 1,199,860 734,050 818,660 1,105,150 1,113,560 1,038,660 1,024,480 1,193,380 1,015,771
      - Peas 237,220 426,750 472,960 421,360 386,590 416,120 449,950 293,620 465,690 453,990 402,425
      - Artichokes 62,500 47,030 75,880 48,72 0 56,870 71,690 194,000 310,520 452,250 301,320 162,078
      - Other vegetables 910,090 1,366,040 1,042,650 1,166,8 70 1,599,950 1,706,170 1,451,000 1,604,960 1,318,290 1,815,770 1,398,179
7.  Olives  (1+2) 1,779,070 877,360 2,655,200 2,060,730 1, 703,600 1,309,640 3,133,340 3,194,740 1,240,600 3,633,810 2,158,809
      1- Table olives 131,070 141,960 220,290 206, 770 196,970 140,890 345,130 422,870 305,110 425,910 253,697
      2- Olives for oil making 1,648,000 735,400 2,434,910 1, 853,960 1,506,630 1,168,750 2,788,210 2,771,870 935,490 3,207,900 1,905,112
      - Oil  (HL)1259,960 106,040 473,850 291,870 247,310 162,93 0 516,090 505,890 151,500 570,360 328,580
8.  Seed fruit and stone fruit 1,721,940 2,505,970 2,581,430 3, 146,560 2,505,400 2,859,340 3,730,000 2,901,890 3,278,570 4,094,950 2,932,6 05
      - Apricots 349,790 592,630 407,850 691,87 0 426,890 412,330 800,000 398,500 581,100 741,400 540,236
      - Plums 167,350 268,210 271,870 281,250 238,840 253,940 299,610 242,670 206,660 253,210 248,361
      - Peaches 153,360 331,030 356,310 411,910 362,170 386,540 452,910 386,970 451,530 609,110 390,184
      - Loquats 135,750 106,950 122,480 111,23 0 145,220 131,290 147,970 125,460 117,040 144,520 128,791
      - Pears 244,610 396,660 470,670 518,200 432,310 583,560 558,100 472,360 601,320 816,860 509,465
      - Apples 389,410 478,270 619,840 634,090 492,970 641,400 738,690 655,250 753,850 873,180 627,695
      - Cherries 26,840 30,950 40,660 50,56 0 30,120 52,960 32,110 33,450 25,960 38,750 36,236
      - Pomegranates 98,860 87,010 85,060 160, 820 156,160 169,540 214,480 228,130 185,200 211,660 159,692
      - Carobs 38,640 56,580 27,680 39,780 29,660 29,090 32,230 24,000 37,660 41,350 35,667
      - Almonds 117,330 157,680 179,010 246,85 0 191,060 198,690 335,610 193,960 216,410 256,020 209,262
      - Quinces  -  -  -  -  -  - 23,880 25,190 20,720 19,020 22,203
      - Other  -  -  -  -  -  - 94,410 115,950 81,120 89,870 95,338
9.  Fresh figs  (1+2) 583,900 414,140 864,240 852, 150 457,320 600,080 570,000 467,470 422,090 506,090 573,748
           1 - Consumed fresh 503,020 339,470 600,020 565,730 297,770 353,470 456,00 0 354,150 347,330 416,530 423,349
           2 - For drying 80,880 74,670 264,22 0 286,420 159,550 246,610 114,000 113,320 74,760 89,560 150,399
                                                     
1 Oil extracted from olives.WT/ACC/DZA/14/Add.1
Page 119Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Average
                 - Dried figs246,580 32,760 82,860 87,880 59,620 95,77 0 57,920 63,130 33,070 38,750 59,834
10.  Citrus fruit 2,809,530 3,235,700 3,618,890 3,608,330 3, 759,900 3,227,480 3,337,440 3,504,040 4,179,860 4,535,550 3,581,672
      - Oranges 1,838,300 2,219,650 2,519,370 2,498,420 2, 528,780 2,267,160 2,367,240 2,432,840 2,803,930 3,073,490 2,454,918
      - Mandarins 223,230 153,780 160,820 166,64 0 205,490 178,390 171,380 175,370 193,450 202,250 183,080
      - Clementines 599,600 756,180 759,930 725, 740 789,760 600,430 631,880 726,590 915,500 952,620 745,823
      - Lemons 119,210 92,030 155,950 192,540 211,770 156,660 145,380 154,410 253,140 290,820 177,191
      - Pomelos 29,190 14,060 22,820 24,99 0 24,100 24,840 21,560 14,830 13,840 16,370 20,660
 11.  Dates 2,059,070 2,090,920 2,605,150 2,616,120 3,171,8 40 2,851,550 3,606,370 3,029,930 3,873,130 4,275,830 3,017,991
      - "Deglet-nour" 1,074,590 1,028,240 1,264,290 1,249,8 40 1,542,610 1,424,130 1,670,480 1,513,220 1,771,820 1,971,030 1,451,025
      - "Ghars" and the like 499,610 471,530 677,930 550,680 801,860 628,440 849,430 391,780 872,330 849,740 659,333
      - "Degla-beida" 484,870 591,150 662,930 815,600 827,370 798,980 1,086,460 1,124,930 1,228,980 1,455,060 907,633
 12.  Total wine growing (1+2) 1,236,810 1,991,080 2,290,040 2, 126,520 1,412,940 1,963,730 1,954,000 1,921,900 1,466,700 1,779,050 1,814,2 77
    1- Table grapes (quintals) 812,810 1,462,080 1,689,040 1,459 ,520 1,194,940 1,583,730 1,321,420 1,457,500 1,182,930 1,342,960 1,350,693
    2- Wine grapes  (quintals) 424,000 529,000 601,000 667,000 218,000 380,000 632,580 464,400 283,770 436,090 463,584
    3- Dried grapes 3,020 21,430 12,15 0 26,080 2,420 3,280 8,410 2,570 2,330 2,480 8,417
  - Wine production  (hl)3288,650 361,710 409,570 443,940 134,410 268,50 0 312,270 243,890 162,900 263,190 288,903
 13.  Livestock numbers (head)
 (I) Bovine 1,392,700 1,300,180 1,341,550 1,313,820 1,269,130 1,266,620 1,227,940 1,255,410 1,317,240 1,650,000 1,333,459
            -  Cows 797,410 733,950 778,580 752,850 713,990 698,650 676,720 635,660 675,730 - 718,171
            -  Calves - 2 years 425,960 396,140 407,130 405,940 414,790 410,440 396,440 - - - 408,120
            -  Other bovine animals 169,330 170,090 155,840 155,030 140,350 157,530 154,780 - - - 157,564
(II) Ovine 17,697,270 16,891,180 17,722,780 18,664,640 17,841,840 17, 301,560 17,565,400 17,387,000 17, 948,940 18,200,000 17,722,061
            - Ewes 11,529,900 10,976,190 11,184,830 11,87 1,280 11,548,790 11,062,790 11,108, 580 9,863,100 9,954,980 - 11,011,160
            - Males 1,001,750 1,124,990 1,154,150 1,123,830 1,077,870 976,880 1,020,450 - - 1,068,560
            - Young -2 years 5,165,620 4,790,000 5,383,800 5,669,530 5,215,180 5,261,890 5,436,370 - - 5,274,627
(III) Caprine 2,471,950 2,484,540 2,775,130 2,683,310 2,543,790 2,779,790 2,894,770 3,121,500 3,256,580 3,400,000 2,841,136
            - Goats 1,475,700 1,468,240 1,662,180 1,626,790 1,575,820 1,647,400 1,703,540 1,730,230 1,706,530 - 1,621,826
            - Males 211,850 232,410 261,190 243,370 222,830 274,530 280,240 243,000 198,940 - 240,929
            - Young -2 years 784,400 783,890 851,760 813,150 745,140 857,86 0 910,990 1,148,270 1,351,110 - 916,286
(IV) Equine 479,980 481,660 446,240 420,410 374,22 0 366,680 345,500 320,540 278,300 220,000 373,353
            - Horses 81,020 82,260 76,940 72,800 66,510 62,160 60,000 52,370 45,990 - 66,672
            - Mules 100,180 101,010 91,780 88,140 81,440 80,080 75,500 68,740 49,690 - 81,840
            - Asses 298,780 298,390 277,520 259,470 226,270 224,440 210,000 199,430 182,620 - 241,880
(V) Camelidae 122,450 126,270 114,300 114,380 114,12 0 126,350 136,000 150,870 154,310 220,000 137,905
 14.  Red meat 2,445,000 2,600,000 2,900,000 2,952,000 2,952 ,000 2,996,000 3,090,000 2,980,000 3,000,000 3,100,000 2,901,500
 15.  White meat 2,110,000 2,228,000 1,890,000 1,990,000 2, 190,000 1,900,000 934,000 1,050,000 1,600,000 2,000,000 1,789,200
                                                     
2 Dried figs obtained from batches set aside for drying.
3 Net wine production obtained from wine grapes.WT/ACC/DZA/14/Add.1
Page 120Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Average
 16.  Farm produce
     - Milk (10+3L) 1,100,000 1,156,000 1,229,000 1,016,000 1,057,000 1,050,000 1,100,000 1,050,000 1,200,000 1,560,000 1,151,800
                      - Honey 5,000 20,000 11,320 18,000 28,000 18,000 25,000 11,000 15,000 18,000 16,932
  -Wool 194,420 200,570 201,600 219,300 220,000 210,000 220,000 200,000 216,000 230,000 211,189
       - Eggs (10+3) 2,780,000 2,539,000 2,068,000 2,100,0 00 2,300,000 2,640,000 1,705,000 1,900,000 2,200,000 2,400,000 2,263,200
 17.  Fish 910,610 796,900 952,740 1,018,960 1,354,0 20 1,058,720 1,163,510 938,950 923,340 898,170 1,001,592
 White fish 99,220 103,750 86,500 131,650 127,31 0 116,990 151,170 106,780 130,460 114,670 116,850
- Blue fish 780,300 653,380 835,990 830,980 1,181 ,890 901,370 948,670 783,720 731,380 727,680 837,536
- Crustaceans 26,350 32,680 22,740 39,440 26,82 0 21,050 34,770 28,430 36,460 32,530 30,127
- Dogfish and other sharks and
swordfish4,740 7,090 7,510 16,890 18,000 19,310 28,900 20,020 25,040 23,290 17,079
 18.  Forestry products
      - Total wood (m3) (1+2) 123,990 172,048 138,711 239,220 165,980 193,893 189,868 201,181 221,702 148,664 179,526
         1.  Timber + industrial wood (m3) 80,267 85,559 97,647 195,429 133,475 152,379  -  -  - 103,280 121,148
         2.  Pulp wood and fuel wood (m3) 43,723 86,489 41,064 43,791 32,505 41,514  -  -  - 45,384 47,781
-  Pulp wood and fuel wood  
(Stacked cubic metres)462,461 123,556 58,663 62,558 46,436 59,306  -  -  -  - 68,830
      - Alfa (esparto) (quintals) 39,100 39,960 10, 780 180,240 96,000 113,700 73,140 132,960 87,889 95,560 86,933
      - Cork (quintals) 91,261 92,918 128,478 111,446 38,824 32,329 109,481 66,665 162,253 123,378 95,703
      - Charcoal (quintals) 3,876 843 3,045 376 70 410  -  -  -  - 1,437
      - Seedlings (units)
          1 - Forest seedlings  -  -  -  -  - 38,26 0,000 67,881,982 62,000,000 58, 573,000 24,824,000 50,307,796
          2 - Fruit tree seedlings  -  -  -  -  - 882,000 713,901 757,000 727,000 301,000 676,180
          3 - Fodder seedlings  -  -  -  -  - 7,925,000 10,912,967 13,000,000 - 7,828,000 9,916,492
          4 - Standard seedlings  -  -  -  -  - 4,913,000 5,812,301 2,600,000 - 1,703,000 3,757,075
                                                     
4 The quantity of pulp wood and fuel wood in stacked cubic meters is equivalent to the quantity in m3.WT/ACC/DZA/14/Add.1
Page 121Agricultural Production
I.  CROP PRODUCTION
1990 1995 1999
Area Production Area Production Area Production
(hectares) (quintals) (hectares) (quintals) (hectares) (quintals)
I.1  Cereals 2,365,020 16,247,170 2,578,630 21,380,000 1,888,360 20,200,060
Durum wheat 867,940 5,549,460 1,175,860 11,886,700 889,090 9,000,000
Common wheat 319,880 1,951,340 504,860 3,112,500 483,310 5,700,000
Barley 1,095,120 833,560 824,170 5,849,800 468,960 5,100,000
Oats 82,080 412,810 73,740 531,000 46,990 400,000
I.2  Fodder
Man-made fodder 439,970 4,257,760 324,700 5,257,030 368,130 6,292,230
Natural fodder 97,340 930,190 160,020 2,071,180 169,850 2,528,240
I.3  Industrial crops
Industrial crops 19,910 1,150,140 39,080 5,640,610 47,700 6,075,970
of which:  Tomatoes 13,980 1,061,280 31,000 5,542,570 35,960 5,935,730
I.4  Market garden produce
Market garden produce 298,790 22,607,550 293,360 32,000,000 275,450 33,158,300
of which:  potatoes 102,430 8,085,410 87,740 12,000,000 64,890 9,962,680
I.5  Tree cultivation
Seed fruit and stone fruit 87,530 1,721,940 88,000 2,859,340 94,090 4,094,950
Citrus fruit 37,740 2,809,530 40,280 3,227,480 40,780 4,535,550
Wine growing 86,470 1,236,810 56,290 1,963,730 50,540 1,779,050
Olives 13,561,300 1,779,070 15,295,620 1,309,640 15,397,670 3,633,810
Fig trees 4,530,690 583,900 4,335,500 600,080 3,840,080 506,090
Dates 6,225,070 2,059,070 7,026,260 2,851,550 8,833,880 4,275,830WT/ACC/DZA/14/Add.1
Page 122II - ANIMAL PRODUCTION
1990 1995 1999
II.1  Livestock numbers
Cattle 1,392,700 1,266,620 1,650,000
Sheep 17,697,270 17,301,560 18,200,000
Goats 2,471,950 2,779,790 3,400,000
Camelidae 122,450 126,350 220,000
Horses 81,020 62,160 46,000
Others (mules, asses) 398,960 304,520 220,000
II.2  Farm produce
(Ql unless otherwise specified)
Red meat 2,445,000 2,996,000 3,100,000
White meat 2,110,000 1,900,000 2,000,000
Milk (hectolitres) 11,000,000 10,500,000 15,600,000
Eggs (million units) 2,780 2,640 2,400
Honey 5,000 18,000 18,000
Wool 194,420 210,000 230,000
II.3  Fishery products
( Ql  unless otherwise unspecified)
White fish 99,220 116,990 114,670
Blue fish 780,300 901,370 727,680
Crustaceans 26,350 21,050 32,530
Dogfish and other sharks and swordfish 4,740 19,310 23,290
III.  Forestry products
Wood (m3) 123,990 193,893 201,520
Cork (quintals) 91,261 32,329 123,378
Alfa (esparto) (quintals) 39,100 113,700 109,150WT/ACC/DZA/14/Add.1
Page 123TRENDS IN THE AREA UNDER CULTIVATION FROM 1990 TO 1999
Area (hectares)
YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
PRODUCT
1.  Winter cereals 2,365,020 3,417,310 3,529,540 1,958,7 30 1,286,330 2,578,630 3,663,000 1,115,320 3,575,190 1,888,360
      - Durum wheat 867,940 1,201,120 1,332,720 972,660 683,640 1,175,860 1,585,500 590,920 1,707,240 889,090
      - Common wheat 319,880 528,320 515,290 282,760 208,960 504,860 693,000 234,320 869,910 483,310
      - Barley 1,095,120 1,555,670 1,558,050 652,630 361,080 824,170 1,282,500 264,840 939,210 468,960
      - Oats 82,080 132,200 123,480 50,68 0 32,650 73,740 102,000 25,210 58,640 46,990
      -  T r i t i c a l e  - - - - - - - 3 0 1 9 0 1 0
2.  Summer cereals 420 390 370 200 410 290 300 150 200 260
      - Maize (corn) 140 260 290 180 410 260 260 120 180 240
      - Sorghum 280 130 80 20 0 30 40 30 20 20
3.  Total fodder (a+b) 537,310 585,420 562,610 482,410 505,430 484,720 480,400 485,910 487,660 537,980
      (a) Man-made fodder 439,970 439,440 417, 340 363,140 389,980 324,700 311,240 309,270 324,660 368,130
          - Vetch oats 223,190 250,310 177, 920 153,200 137,840 108,740 116,000 79,560 91,740 60,950
          - Lucerne (alfalfa) 4,350 2,960 360 5,320 8,860 16,210 360 3,850 2,350 4,190
          - Other 212,430 186,170 239,060 204,620 243,280 199,750 194,880 225,860 230,570 302,990
      (b) Natural fodder 97,340 145,980 145,27 0 119,270 115,450 160,020 169,160 176,640 163,000 169,850
          - Natural grassland 26,060 35,37 0 32,050 32,710 36,940 39,710 40,440 42,390 42,060 35,210
          - Mown fallow land 71,280 110,610 113,220 86,560 78,510 120,310 128,720 134,250 120,940 134,640
4.  Dried pulses 92,150 104,530 102,420 100,88 0 111,230 105,980 90,280 79,950 77,510 72,410
      - Broadbeans and field beans 46,160 48,100 48,470 47,050 49,820 51,950 45,560 37,780 36,630 34,890
      - Dried peas 7,440 8,910 9,420 9,160 11,940 13,710 8,220 8,180 7,790 6,460
      - Lentils 3,530 1,950 1,540 1,810 1,970 1,510 1,370 1,440 1,150 980
      - Chick-peas 33,560 44,530 41,840 41,590 46,000 37,860 33,240 30,810 29,550 27,720
      - Dried beans 1,010 850 900 980 990 590 1,200 1,400 1,850 1,740
      - Vetch 450 190 250 290 510 360 690 340 540 620
5.  Industrial crops 19,910 24,650 29,420 43, 930 36,080 39,080 35,880 38,490 42,760 47,700
      - Tomatoes grown as industrial
crops13,980 18,110 21,400 32,930 28,140 31,000 27,300 28,040 30,160 35,960
      - Tobacco 2,900 2,710 4, 570 6,310 3,660 2,650 3,800 6,170 7,330 5,670
      - Groundnuts 1,510 1,860 2,220 3,030 2,840 2,650 2,880 2,290 3,380 4,260
      - Other 1,520 1,970 1, 230 1,660 1,440 2,780 1,900 1,990 1,890 1,810
6.  Market garden produce 298,790 330,620 319,72 0 296,130 279,150 293,380 290,750 267,060 267,440 275,450
      - Potatoes 102,430 118,720 107,260 95, 780 75,300 87,740 85,420 67,180 68,640 64,890
      - Onions 22,530 24,610 26,000 22, 080 22,280 25,730 25,420 27,010 27,070 27,750
      - Garlic 7,740 7,250 7, 670 8,240 8,420 8,440 8,350 7,810 8,060 8,220
      - Tomatoes 18,020 18,840 17,030 15,490 13,380 15,690 15,720 15,290 16,010 19,250WT/ACC/DZA/14/Add.1
Page 124YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
      - Carrots 13,960 14,490 14,680 12, 490 12,150 11,150 10,980 9,970 10,280 11,090
      - Melons and water melons 31,980 35,700 38,890 35,260 34,910 34,920 36,280 29,950 33,080 35,180
      - Green beans 4,220 4,940 5,910 5,510 4,780 4,760 4,840 4,880 5,440 7,110
      - Chillies 10,000 11,520 10,050 9,040 8,110 7,640 7,240 6,930 7,170 7,070
      - Peppers 9,340 9,390 8, 760 8,070 8,110 8,750 8,660 8,680 8,260 8,260
      - Cucumbers 2,350 2,540 2,780 2,430 3,040 3,110 3,230 2,650 2,770 2,490
      - Courgettes 7,400 7,000 7,580 6,820 8,730 7,500 8,100 7,210 8,070 8,410
      - Aubergines (eggplants) 2, 090 1,860 2,030 1,990 2,940 2, 640 2,310 2,480 2,780 2,860
      - Cauliflowers 3,130 2,900 3,520 3,570 3,980 4,270 4,010 3,690 3,470 3,640
      - Cabbages 1,640 1,720 2, 440 2,160 2,980 2,450 2,520 2,300 2,150 2,280
      - Turnips 9,690 9,380 9, 040 8,210 8,600 9,060 8,960 7,780 7,440 7,180
      - Fresh beans 19,770 24,120 21,190 21,630 22,040 20,780 20,430 20,850 19,360 19,980
      - Peas 15,790 16,830 19,210 20,88 0 19,220 17,240 16,710 14,620 16,780 16,340
      - Artichokes 1,170 1,110 880 630 670 860 2,590 3,790 5,390 3,700
      - Other vegetables 15,540 17,700 14,800 15,850 19,510 20,650 18,980 23,990 15,220 19,750
7.  Olives 170,170 164,520 164,290 161,380 161,260 160,780 165,040 162,840 165,260 165,600
8.  Seed fruit and stone fruit 87,530 85,460 86, 600 89,960 89,590 88,000 90,000 92,110 92,630 94,090
      - Apricots 14,010 12,010 12,290 12, 560 13,170 13,040 13,460 13,770 13,680 13,950
      - Plums 7,350 6,980 6, 630 6,740 6,730 6,520 6,770 6,250 5,780 5,800
      - Peaches 7,660 7,530 7,680 7,990 8,370 8,500 9,070 8,800 9,590 10,000
      - Loquats 1,910 1,910 1, 800 1,810 1,930 1,890 1,950 1,850 1,980 1,940
      - Pears 8,840 8,740 8,900 9,780 9,500 9,930 9,540 9,300 10,420 10,470
      - Apples 10,740 10,960 11,140 12, 020 11,800 11,930 12,190 12,260 12,870 13,020
      - Cherries 2,660 2,560 2, 590 2,700 2,680 2,510 2,520 2,320 2,230 2,270
      - Pomegranates 2,270 1,890 1,970 2,690 2,680 2,890 3,270 3,810 3,890 3,890
      - Carobs 1,960 1,850 1, 770 1,720 1,670 1,250 1,280 1,270 1,270 1,240
      - Almonds 25,010 24,240 24,970 25, 880 26,130 24,860 25,190 27,440 26,490 26,820
      - Quinces  -  -  -  -  -  - 520 500 500 520
      - Other 5,120 6,790 6, 860 6,070 4,930 4,680 4,240 4,540 3,930 4,170
9.  Figs 44,700 44,370 41,200 42,030 41, 900 40,110 36,760 35,980 34,910 35,730
10.  Citrus fruit 37,740 37,140 39,170 41, 460 41,180 40,280 38,810 40,240 41,110 40,780
      - Oranges 24,290 23,600 25,840 27, 590 26,810 25,420 25,020 25,710 27,130 26,740
      - Mandarins 2,530 2,150 1,980 1,970 2,220 2,400 2,060 2,200 1,910 1,890
      - Clementines 9,610 10,040 9, 530 9,900 10,130 10,320 9,630 10,200 9,590 9,450
      - Lemons 1,020 1,170 1, 490 1,740 1,770 1,880 1,890 1,960 2,330 2,560
      - Pomelos 290 180 330 260 250 260 210 170 150 140
11.  Dates 78,640 81,890 83,440 84,410 85,230 87,020 96,560 96,520 97,990 100,120
12.  Total wine growing (1+2) 86,470 78,940 73, 100 69,690 68,970 56,290 55,400 51,870 51,600 50,540
    1.  Table grapes (1) 31,250 30,360 32, 270 31,950 32,220 29,100 29,700 29,730 30,080 29,790WT/ACC/DZA/14/Add.1
Page 125YEAR 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
    2.  Wine grapes (2) 55,220 48,580 40, 830 37,740 36,750 27,190 25,700 22,140 21,520 20,750
    3.  Dried grapes 1,260 940 820 780 430 290 270 160 130 110
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