VZCZCXRO6165
RR RUEHBC RUEHDE RUEHKUK RUEHMOS
DE RUEHAS #0817 1261404
ZNR UUUUU ZZH
R 061404Z MAY 06
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC 1010
INFO RUCNIRA/IRAN COLLECTIVE
RUEHKL/AMEMBASSY KUALA LUMPUR 0040

UNCLAS ALGIERS 000817 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR INR/B 
 
E.O. 12958: N/A 
TAGS: ETRD ECON IR AG
SUBJECT: IRAN OPENS FIRST-ANNUAL TRADE PAVILION IN ALGIERS 
 
 
¶1. The Iranian Chamber of Commerce, Industry, and Mining 
(CCIMI) opened May 2 its first-annual industrial and 
technology show in Algiers. The show, entitled IranExpo 2006, 
comes on the heels of an agreement signed in January 2005 
between CCIMI and the Algerian Chamber of Commerce to expand 
trade relations. GoA statistics indicate Iran's two-way trade 
with Algeria totals approximately USD 20 million per year. 
Iran's Ambassador to Algeria said that since the resumption 
of diplomatic relations between the two countries four years 
ago, Iran has organized five small-scale trade exhibitions 
and organized two other gatherings to promote commercial 
relations. 
 
¶2. Algerian Minister of Higher Education Rachid Harraoubia, 
the president of the commission to expand Algerian-Iranian 
ties, joined Iranian Deputy Minister of Industry Mehdi Mofidi 
at the opening. Also present were the Iranian Ambassador to 
Algeria, Hussein Valeh, and the head of CCIMI, Ali Naqi 
Khamouchi. An Iranian-born Embassy contact told Econoff that 
many of the businesses represented at the fair were based in 
Khorassan Razavi Province, whose Governor General, 
Mohammad-Javad Mohammadizadeh, took part in the Iranian 
delegation. 
 
¶3. Approximately 50 Iranian firms representing 120 operators 
were present at the fair. Econoff toured the pavilion May 2 
and noted that approximately half of the booths promoted 
agribusiness. These companies ranged from small-scale 
manufacturers of food products (such as tomato paste and 
saffron) to agricultural equipment (such as tractors). A 
handful of cement and engineering firms were present, 
presumably with the aim of capturing a share of Algeria's 
booming construction and housing sector. Other industries 
represented at the fair included industrial parts, carpets, 
jewelry, medical supplies, glassware, and oil servicing 
equipment. The Iranian automobile manufacturer Saipa held a 
prominent spot next to the entrance to the pavilion. 
 
¶4. Comment: Although the process to expand Algerian-Iranian 
trade relations has been underway for a few years, the 
opening of IranExpo 2006 marks a bolder effort to access the 
Algerian market. Sentiments at the opening of the show seemed 
to contrast with the official declaration by the Iranian news 
agency, as picked up in the Algerian press, that there was no 
link between Iran's recent deployment of trade delegations 
and the nuclear crisis. The head of the Iranian Chamber of 
Commerce announced at the show opening that "Iran and Algeria 
can constitute the base of the establishment of a common 
Islamic market." Another speaker noted that Algeria could 
serve as Iran's "bridge in the Maghreb region or even in 
Africa." It is an intriguing question whether Iran views 
enhanced Algerian -- or more broadly African -- trade as a 
hedge against possible economic sanctions it may incur as a 
result of its nuclear ambitions. End comment. 
ERDMAN