In July 2001, President Bouteflika became the first Algerian President to visit the White House since 1985. This visit, followed by a second meeting in November 2001 and a meeting in New York in September 2003, is indicative of the growing relationship between the United States and Algeria. Since the September 11, 2001 terrorist attacks in the United States, contacts in key areas of mutual concern, including law enforcement and counter- terrorism cooperation, have intensified. Algeria publicly condemned the terrorist attacks on the United States and has been strongly supportive of the international war against terrorism. The United States and Algeria consult closely on key international and regional issues. The pace and scope of senior-level visits has accelerated. In June 2003, Under Secretary of State Marc Grossman traveled to Algeria, followed by the October 2003 visit of Assistant Secretary of State for Near Eastern Affairs, William Burns.

In 2002, U.S. direct investment in Algeria totaled $2.5 billion (according to statistics gathered by the U.S. Department of Commerce, Bureau of Economic Analysis), most of which in the petroleum sector, which U.S. companies dominate. American companies also are active in the banking and finance, services, pharmaceuticals, medical facilities, telecommunications, aviation, and information technology sectors. An American Chamber of Commerce was established in 2002, and many of its members participated in the 36th Annual Algiers International Trade Fair in June 2003. Algeria is the United States' 10th-largest market in the Middle East/North African region. After rising by more than 150% in 2001, U.S. exports to Algeria fell from over $658 million in 2002 to $263 million in 2003, a decline of approximately 60%. Algeria exports over $3 billion of petroleum products and LNG to the United States, primarily to New England.

In July 2001, the United States and Algeria signed a Trade and Investment Framework Agreement, which establishes common principles on which the economic relationship is founded. On an ongoing basis the two governments meet to discuss trade and investment policies and opportunities to enhance the economic relationship. The Export-Import Bank has an active guarantee program in Algeria; current exposure is about $1.8 billion, primarily for petroleum projects and aircraft acquisition. Within the framework of the U.S.-North African Economic Partnership (USNAEP), the United States provided about $1.0 million in technical assistance to Algeria in 2003. This program supports and encourages Algeria's economic reform program and includes support for World Trade Organization accession negotiations, debt management, and improving the investment climate. In addition, the U.S. Department of Agriculture has provided Algeria with a GSM 102 program valued at $50 million for the purchase of U.S. agricultural products.

The United States has a small ($550,000 per year) International Military Education and Training (IMET) Program for training Algerian military personnel in the United States. Contacts between the Algerian and U.S. militaries have accelerated in the past several years: Algeria has hosted U.S. naval ship visits and has begun a series of joint naval exercises. Staff exchanges between the two sides are frequent and Algeria has hosted senior U.S. military officials.

The United States has implemented modest university linkages programs and recently placed an English Language Fellow, the first since 1993, with the Ministry of Education to assist in the development of ESL courses at the Ben Aknoune Training Center. In 2001, Algeria was the recipient of a grant under a new U.S. program, the Ambassadors' Fund for Cultural Preservation. That fund provided a grant of $15,000 for the protection of Roman mosaics at an antiquities site at Cherchell.

Initial funding through the Middle East Partnership Initiative (MEPI) has been allocated to support the work of Algeria's developing civil society through programming that provides training to journalists and leading nongovernmental organizations. Additional funding through the State Department's Human Rights and Democracy Fund will assist civil society groups focusing on the issue of the disappeared.

The official U.S. presence in Algeria remains limited, due in large part to reductions in staff during the mid-1990s in response to a deteriorating security environment. During the past 2 years, the embassy has moved toward more normal operations and now provides most embassy services to the American and Algerian communities.

The U.S. Embassy is located at 4 Chemin Cheikh Bachir El-Ibrahimi, Algiers; tel. 213 (21) 691255; fax: 213 (21) 693979.