VI.           TRADE REGULATIONS AND STANDARDS

After several years of tight import controls, Algeria is now in the
process of liberalizing its trade regime.  Previously, an "Ad Hoc
Committee" had to approve all imports over $100,000 in value, and three
separate lists detailed which products could and could not be imported.
As part of the GOA's economic adjustment program, the "Ad Hoc Committee"
has been abolished and authority for enforcement of trade regulations
has been transferred to the five commercial banks.


In addition, the categories of imports subject to restrictions have been
reduced and simplified as follows:

- The import of firearms, explosives, narcotics, and pork products, is
  prohibited for security or religious reasons.

- Irregularities in the internal distribution and retailing of wheat,
  barley, semolina, flour, powdered milk, some pharmaceutical products,
  coffee and sugar, led the Government to impose special regulations on
  the import of these goods to ensure that these products are fairly and
  efficiently distributed (the Embassy can provide more details).

 - Lastly, imports of 69 products have been temporarily suspended.  The
GOA has indicated that the suspensions cover products that are
manufactured in Algeria.  The purpose of the suspensions is to give
domestic manufacturers one year to adjust to the new exchange rate and
price regimes before they are subject to international competition.  The
list includes such products as textiles, shoes, bathroom fixtures, and
tractors (full list available from the Embassy).

Export Controls:  The GOA hopes to encourage the development of
non-hydrocarbon exports.  Consistent with this goal, almost all export
restrictions have been removed.  Restrictions remain only on palm
seedlings, sheep, and artifacts of historical and archaeological
significance.

Free Trade Zones:  The GOA has stated its intention to establish one or
more free trade zones in Algeria but has yet to announce where these
will be located.  It is likely that one will be established on the
international fairgrounds of Algiers, perhaps in the next year.  Foreign
investments in any free trade zone will be exempt from all taxes and
customs duties (see also section VII).

Membership in Free Trade Arrangements:  Algeria, Tunisia, Morocco,
Mauritania and Libya agreed to form in 1989 the Arab Maghreb Union
(known by its French acronym UMA).  At the most recent UMA summit in
April 1994, the leaders of the five nations agreed to form a Maghreb
free trade zone but did not establish a particular timetable for doing
so.  Algeria hopes to establish a free trade zone with the European
Community similar to those that Morocco and Tunisia already enjoy but
this is not likely to occur before 1996 at the earliest.  Algeria is not
yet a member of the General Agreement on Tariffs and Trade (GATT) but is
hoping to become a member by 1995.