trade policy of france
TRANSCRIPT
THE FRENCH REPUBLIC
• France is a member state of the European Union located in its
western region, with several overseas territories and islands located
on other continents.
• 3rd largest in Europe behind Russia and Ukraine.
• 5th largest economy by nominal GDP.
• Most visited country in the world, receiving 82 million foreign
tourists annually.
• One of the founding members of the European Union.
• It is also a founding member of the United Nations, and a member of
the G8, G20, NATO, OECD, WTO and the Latin Union.
• It is one of the five permanent members of the United Nations
Security Council.
• 3rd largest number of nuclear weapons in the world and the largest
number of nuclear power plants in the European Union.
• Trade policy in France is governed by International
Chamber of Commerce.
Objectives :
• To promote trade and investment.
• Open market for goods and services.
• Free flow of capital.
THE FRENCH REPUBLIC
Trade Policies of France
• France focuses on rebuilding its economy in the
wake of World War I.
• Trade policy is largely protectionist. Exports are
primarily of luxury goods, although poor harvests
hamper wine production.
• With a weakening currency, France cannot afford
many imports
1919-1928
1929-1939
1936-1939
1940-1944
Trade Policies of France
• In the wake of the Depression, France maintains the gold
standard.
• As other currencies decline in value relative to the franc,
French exports become more expensive. Exports fall to
less than two-thirds of imports.
• France abandons the gold standard. A devaluation of the
franc helps increase exports.
• The structure of exports shifts from light toward heavy
industry and agricultural products, sold primarily to
Western and Central Europe.
• The United States supplies imports of raw materials.
France also trades heavily with its colonies, importing
raw materials and exporting manufactured goods.
1919-1929
1929-1939
1939-1949
1949-1959
Trade Policies of France
• Trade collapses under the German occupation and
the Vichy regime.
• Germany requisitions most of France's resources.
Agricultural production is disrupted as young men
go to war and fighting spreads throughout the
country.
• Poor harvests aggravate already low production
on mine-infested agricultural land. France must
import bulky coal, grain, high shipping costs, and
imports rise to five times the level of exports.
Loans finance the trade deficit.
1919-1929
1929-1939
1939-1949
1949-1959
Trade Policies of France
• In 1949, France removes quantitative restrictions on
half of its private trade with other European
countries.
• Reduction in coal shortages and other industrial
bottlenecks enable an increase in exports, which
benefit from specific credits and subsidies.
• The Treaty of Rome establishes the European
Economic Community. Member states establish a
common integrated tariff systems.
• The franc's devaluation helps exports increase
greatly.
1919-1929
1929-1939
1939-1949
1949-1959
Trade Policies of France
• Membership in the EEC and rapid decolonization
change the pattern of trade. The EEC's industrialized
nations provide a large market for France's
agricultural products.
• By 1969, France provides 42 percent of the EEC's
agricultural exports. The government, however,
remains the principal buyer of high-tech products
such as military aircraft, nuclear weapons, and
nuclear power.
1959-1969
1969-1979
1979-1989
1989-1999
Trade Policies of France
• Industrial exports, particularly of cars, chemicals,
pharmaceuticals, and aircraft, rise.
• France also sees an agricultural boom and becomes
the world's second agricultural exporter after the
United States.
• The 1975 Lomé Convention formalizes bilateral
agreements in which European Community countries
extend export concessions to their former colonies.
1959-1969
1969-1979
1979-1989
1989-1999
Trade Policies of France
• France's economic crisis does not spare its trade
sector.
• OPEC's price increases and the overthrow of the
Shah of Iran drastically reduce France's oil imports
from the region.
• France builds up its nuclear power capacity, but still
must import expensive oil from other regions.
1959-1969
1969-1979
1979-1989
1989-1999
Trade Policies of France
• Persistent inflation lowers the value of the franc
against other major currencies and drives up the
price of imports.
• The global economic slowdown leads France to
reduce its imports and thus regain a positive trade
balance.
• The establishment of the European Single Market
brings free movement of people, goods, services,
and capital across Europe and opens up an area of
376 million consumers to French companies.
1959-1969
1969-1979
1979-1989
1989-1999
Trade Policies of France
• France represents 6 percent of world trade. In
general, trade policies are determined by European
Union agreements and practices.
• The government investigates ways to promote
exports more aggressively, especially to markets in
East Asia and Latin America.
• France continues to extend varying preferential
tariff treatment to imports from the African,
Caribbean, and Pacific developing countries.
1999-2009
2009 onwards
Trade Policies of France
• Reducing unemployment and creating jobs depend
in particular on French companies’ ability to win
markets abroad and stand out from their
international competitors.
• Conducive to job creation in France.
• Deal with non-tariff barriers that particularly
penalize French companies.
• Involve strict social and environmental
requirements.
• Involve gradual implementation and adequate
temporary protection measures for the sensitive
sectors of our economy.
1999-2009
2009 onwards
France is one of the EU’s major importers and exporters with everything from raw commodities to automobiles.
Important Contributions (Sectorial)
• 3rd largest trader in the European Union after Germany
and the United Kingdom.
• 2nd second largest exporter in the world of both services
and farm products.
• The contribution of the agricultural sector to the country’s
GDP is almost 2.5%. Almost 25% of the total agricultural
products of the European Union being produced.
• Manufacturing industry is also a key exporter, contributing
nearly 27% to GDP.
Exports & Imports
Export Goods
• Aircraft
• Plastics
• Chemicals
• Pharmaceutical
• Iron & Steel
• Beverages
• Agricultural Products
• Textiles and Clothing
• Machinery and
Transportation
Equipment.
Import Goods
• Vehicles
• Crude Oil
• Chemicals
• Machinery and
Equipments
Major Export & Import Partners
Exports:According to the CIA World Fact book, France exported US $490 billion worth of goods and services.
• Germany (14.7%)• Spain (9.6%)• UK (8.3%)• US (7.2%)• Belgium (7.1%)
Imports:
French imports stood at US $529.1 billion. Primary imports included cars and vehicles, machinery and equipment, crude oil, plastics, chemicals and aircraft.
• Germany (18.9%) • Belgium (10.7%)• Italy (8.2%)• Spain (7%)• Netherlands (6.5%)• UK (5.9%)• US (5.1%)
References
• http://www.ambafrance-us.org/spip.php?article3858
• http://www.cnccef.org/69-more-about-french-foreign-trade-
advisors-cce-s.htm
• http://www.nationsencyclopedia.com/economies/Europe/
France-INTERNATIONAL-TRADE.html
• http://www.pbs.org/wgbh/commandingheights/lo/
countries/fr/fr_full.html
• https://www.cia.gov/library/publications/the-world-
factbook/geos/countrytemplate_fr.html
• CIA World Fact book.