Exclusive-Algerian urea exports to France under threat as diplomatic tensions persist, sources say

Algerian Urea Exports to France Threatened as Diplomatic Rift Grows

Escalating Trade Tensions and Their Impact

By Gus Trompiz and John Irish

Background of the Diplomatic Rift

PARIS, Oct 23 (Reuters) - Algeria has instructed urea producers to stop exporting the fertiliser to France in an intensification of trade curbs that have followed a diplomatic rift between Algeria and its former colonial ruler, according to diplomats and industry sources.

Ties between Paris and Algiers, which have been complicated for decades, deteriorated in 2024 when French President Emmanuel Macron backed a plan for autonomy for the Western Sahara region under Moroccan sovereignty.

The two countries sought to repair relations last year, even at one point declaring that the relationship was back to normal, but the ties have since soured again.

Consequences for French Agriculture

Risks to Urea Supply

Information about a halt to urea exports emerged early last week and could put at risk Algerian supplies that account for around 30% of French urea imports, French fertiliser industry association Afcome and wheat growers group AGPB said.

Three diplomats also said they were aware of an instruction by Algeria to suspend urea shipments to France. They were among six French and European diplomats who also said that Algiers had in late July imposed a near-blanket ban on French imports.

The diplomats requested anonymity to discuss the issue.

Potential Impact on Farmers

Any disruption to Algerian urea supplies could create fresh concerns for French farmers, who rely on nitrogen-based fertilisers to maintain crop yields and who have already faced higher costs.

Political and Economic Ramifications

Pressure on Macron's Government

Beyond the agricultural impact, the dispute could become politically sensitive for President Emmanuel Macron's government, which is under pressure to shield households and producers from rising costs while managing a sharp deterioration in relations with Algeria, a topic that often polarises the French political landscape. 

France experienced some of the worst unrest in years last weekend and a potential confrontation with farmers over fertiliser supplies could only add to that pressure.

Lack of Official Communication

Like with previous trade restrictions, including a halt to Algerian imports of French wheat since 2024, the sources said there had been no formal announcement by the Algerian government regarding either urea exports or imports of French goods.     

Responses from Officials

The Algerian embassy in Paris did not immediately respond to emailed questions from Reuters. Algeria's trade and foreign ministries were also not immediately available for comment on Friday, a non-working day in the country.

France's foreign ministry said it had not received notification of such trade restrictions. 

Trade matters were a competence of the European Union, it said, adding: "We will, of course, remain particularly vigilant on this issue."

(Reporting by Gus Trompiz and John Irish;Editing by Sudip Kar-Gupta and Tomasz Janowski)