France at a Glance

Population: 63.753 Million
Form of Statehood: Republic
Government: Republic
Literacy: 99%
Total Area: 547, 030 sq km (metropolitan France)
Nominal GDP: $2.56 trillion (2007 est.)

Natural Resources: Coal, iron, ore, bauxite, zinc, uranium, antimony, arsenic, potash, feldspar, fluorspar, gypsum, timber, fish

Primary Industries: Machinery, chemicals, automobiles, metallurgy, aircraft, electronics

Secondary Industries: Food processing, tourism

Main Export Partners: Germany, Spain, Italy, UK, Belgium, US, Netherlands

Founder and Member of the EU
France today is one of the most modern countries in the world and is a leader within the European Union, of which it was a founding member. On July 1, 2008 France took over the EU Presidency leaving French President Nicolas Sarkozy in charge of European policies for the next six months.

In relation to the other 27 members of the EU, France makes up approximately 7.8% of the population. France surpasses the other nations with a GDP per capita in purchasing power standards of 111.2 in comparison to the EU average GDP per capita of 100. Again exceeding the EU average of 77.8%, 82.1% of the population between 20 and 24 has completed at least a secondary education. These strong standings entice la monnaie étrangère. France ranks second worldwide for direct inward investment. Foreign investors appreciate the skills of French workers, the advanced level of research, the mastery of high technology, the stable currency and control of production costs.

Although membership to the European Union has been beneficial to France, there are additional hoops which countries not belonging to the European Union must now fly through. Products tested and certified in the United States to American standards are likely to have to be retested and re-certified to EU requirements as a result of the EU’s different approach to the protection of the health and safety of consumers and the environment. Where products are not regulated by specific EU technical legislation, they are always subject to the EU’s General Product Safety Directive as well as to possible additional national requirements.

European Union standards created under the New Approach are harmonized across the 27 EU Member States and European Economic Area countries to allow for the free flow of goods. A feature of the New Approach is CE marking. While harmonization of EU legislation can facilitate access to the EU Single Market, manufacturers should be aware that Regulations and technical standards might also function as barriers to trade if U.S. standards are different from those of the European Union.

Marketing Strategies to Gain Access to France
In general, the commercial environment in France is favorable for sales of U.S. goods and services. Marketing products and services in France is similar to the approach in the U.S., notwithstanding some significant differences in cultural factors and certain legal and regulatory restrictions. Local partners are readily available in most sectors and product lines, although competition can be fierce.

In support of U.S. commercial interests in France, the U.S. Embassy in Paris uses the combined resources of various U.S. Government agencies to promote exports of U.S. goods and services. It also supplies information on trade and investment opportunities, and serves as an advocate for U.S. firms.

Challenges & Opportunities
Government economic policy aims to promote investment and domestic growth in a stable fiscal and monetary environment. Creating jobs and reducing the high unemployment rate through recovery-supportive policies has been a top priority. The unemployment rate in metropolitan France dropped from 8.9% in the third quarter of 2006 to 8.1% in the second quarter of 2007 when the government took office, to 7.9% in the third quarter of 2007.

Despite significant reform and privatization over the past 15 years, the government continues to control a large share of economic activity: Government spending, at 53.5% of GDP in 2006, is among the highest in the G-7. Regulation of labor and product markets is pervasive. The government continues to own shares in corporations in a range of sectors, including banking, energy production and distribution, automobiles, transportation and telecommunications.

Legislation passed in 1998 shortened the legal workweek from 39 to 35 hours for most employees effective January 1, 2000. Recent assessments of the impact of workweek reduction on growth and jobs have generally concluded that the goal of job creation was not met. The former administration introduced increasing flexibility into the law. Under President Nicolas Sarkozy’s impetus, overtime work is exempted from income taxes and payroll taxes as of October 1, 2007, a move to encourage work and to increase work time. The business community welcomed government efforts to change the 35-hour workweek, but has complained that the measures are difficult to implement.

The French market for food products is mature, sophisticated and well served by suppliers from around the world. Additionally, increasing interest in American culture, younger consumers and changing lifestyles are contributing to France’s import demand for food products from the United States. Generally, high quality food products with an American image can find a niche in the French market, particularly if they can gain distribution through stores and supermarkets that specialize in U.S. or foreign foods. Significant market opportunities for consumer food/edible fishery products exist in a number of areas: fruit juices and soft drinks (including flavored spring waters), dried fruits and nuts, fresh fruits and vegetables (particularly tropical and exotic), frozen foods (both ready-to-eat meals and specialty products), snack foods, tree nuts, “ethnic” products, seafood (especially salmon and surimi), innovative dietetic and health products, organic products, soups, breakfast cereals and pet foods and treats. In addition, niche markets exist in France; candies, chocolate bars, wild rice and kosher foods have shown rising demand. Market opportunities for U.S. exporters also exist for oilseeds, protein meals and other feeds, as well as for wood products and grains.