France Opportunities
Introduction
France and the U.S. are long-standing, close allies. Despite occasional differences of views, the U.S. and France work closely together on a broad range of trade, security and geopolitical issues.
Since the French presidential and legislative elections in mid-2007, President Sarkozy has worked on a series of reforms to address mounting pressure for short- and long-term restructuring, including reduced government spending, flexibility in the implementation of the 35-hour work week, more labor-market flexibility, less taxation, and further privatization and liberalization of the business sector.
With a GDP of approximately $2 trillion, France is the world’s sixth-largest economy. It has substantial agricultural resources, a large industrial base, and a highly skilled work force. A dynamic services sector accounts for an increasingly large share of economic activity and is responsible for nearly all job creation in recent years. Real GDP increased 2.2% in 2006. GDP growth in 2007 decreased to 1.9% and - according to initial projections - will drop to 1.5% in 2008.
France is a member of the G-8, the European Union, the World Trade Organization and the OECD, confirming its status as a leading economic player in the world.
France is the second-largest trading nation in Western Europe (after Germany). France ran a record-setting $48 billion global trade deficit for the 12 months ending in November 2007. Total trade for 2006 amounted to slightly over $1 trillion, over 45% of GDP, 75.0% of which was with EU-24 countries.
The US and France: C’est bon pour tous les deux
Trade and investment between the U.S. and France are strong. On average, over 1 billion dollars in commercial transactions take place between France and the U.S. every day, with the U.S. being France’s sixth-ranked supplier and its sixth-largest customer. France ranks as the United States’ eighth trading partner for total goods (imports and exports).
There are approximately 2,300 French subsidiaries in the U.S. that provide more than 485,200 jobs and that generate an estimated $196 billion in turnover. The U.S. is the top destination for French investments worldwide. Concurrently, the U.S. is the largest foreign investor in France, employing over 619,000 French citizens with aggregate investment estimated at $65.9 billion in 2006.
U.S. industrial chemicals, aircraft and engines, electronic components, telecommunications, computer software, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, broadcasting equipment, and programming and franchising are particularly attractive to French importers.
For more information about France, please see the Country Commercial Guide:
