Why did trade between Algeria and France decline after independence?

Following Algeria's independence, trade with France declined significantly, dropping from four-fifths of total trade in 1961 to approximately one-tenth by the early 21st century. This shift was driven by several key factors:1

• Agricultural Restrictions: France severely restricted imports of Algerian agricultural products, particularly wine, which it deemed competitive with its own domestic production.12
• Nationalization and Expropriation: Tensions arose following Algeria’s expropriation of abandoned French property in 1963 and the nationalization of French petroleum interests in 1971.2
• Economic Policy Shifts: Post-independence, Algeria moved away from an economy that complemented France’s toward a centrally planned economy focused on state-led industrialization and hydrocarbon extraction.3
• Political Disputes: Relations were frequently strained by disagreements over natural gas pricing in the 1980s, the treatment of Algerian migrants in France, and the volatile political violence in Algeria during the 1990s.2

Despite these tensions, economic ties remained fundamentally intact, and trade has grown substantially in the 21st century through broader European Union partnerships.12