Doing Business In (Insert Country Name Here) - BNA

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Due to a variety of macro and microeconomic factors, including high payroll taxes, a high minimum wage, and rigid labor laws, French businesses tended to use less laborintensive procedures and rely more on labor saving technology than businesses in other countries. This is one reason for France's high unemployment rate. Foreign-Trade Zones/Free Ports Return to top France is subject to all European Union free trade zone regulations and arrangements. These allow member countries to designate portions of their customs territory as free trade zones and free warehouses in return for commitments in favor of employment. France has taken advantage of these regulations in several specific instances. The French Customs Service administers these zones and can provide more details. Customs can be contacted at the finance ministry web address: [http://www.douane.gouv.fr] use search to find information about “zones franches”)]. France has redesignated trade zones in May 2007 [http://www.zonesfranches.org/PDF/textes_lois/decret2007894.pdf]. In addition, the French government has extended the tax exemption program for five years, until December 31, 2011, in the existing urban "enterprise zones" (“Zones Franches Urbaines”). Since January 2004, all such zones benefited from tax exemptions on corporate tax, payroll taxes, professional tax and real estate tax. The December 19, 2006 decree designated new urban zones. Related information is available at the City Government Website: [http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000641190&date Texte=]. More information on enterprise and investment zones is available from various sources: [http://www.zones-franches.org] [http://www.InvestinFrance.org] [http://www.diact.gouv.fr] [http://www.oseo.fr] for assistance to small and medium sized companies. France has 71 competitiveness clusters including projects with international ties and with related missions. The clusters are designed to reinforce innovation and encourage innovative businesses to remain in France. They will benefit from income and social tax exemptions [http://www.competitivite.gouv.fr]. Clusters involved in research and innovation will also benefit from financial support from the state-owned investment bank, Caisse des Dépôts. Foreign Direct Investment Statistics Return to top Foreign investment represents a significant percentage of production in many sectors. Rapid growth in the new technologies sector has given way to renewed growth in traditional sectors: automobiles, metalworking, aerospace, capital goods, consultancy and services. France has remained one of the main destinations of foreign direct investment (FDI). According to recent UNCTAD’s classification, France is the third recipient of foreign direct investment inflows due to a 57 percent rebound in 2007. 2/15/2008 Country Commercial Guide for France 118 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, © 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
Foreign direct investment inflows accounted for 3.6 percent of GDP. The U.S. remained one the largest sources of FDI in France. Using Bank of France balance of payments data based on the historical book value of investment, U.S. firms accounted for 11.8 percent of the stock of foreign investment in 2005 (most recent data available), slightly down from 12.2 percent in previous years. Using the book value instead of the market value of investments tends to underestimate the value of U.S. investment in France. This is because investments by U.S. companies tend to be considerably older than other countries' investments and because U.S. firms often finance expansions and acquisitions on domestic French capital markets or through subsidiaries in third countries. Thus, much U.S. investment in France is not recorded in balance of payments statistics, even though U.S. citizens may ultimately control it. The December 30, 2005 decree 2005-1739 on financial relations with foreign countries defines foreign investment operations that have to be notified to the Bank of France for the establishment of the balance of payments and France’s external position. Firms with questions should contact the Bank of France at the following address: Banque de France Service de la Balance des Paiements 31, rue Croix des petits Champs Tel: 01.42.92.42.92 Correcting for statistical biases, and including the value of U.S. holdings of French stocks, the market value of the stock of U.S. investment in France may be as much as five times the USD 60.9 billion (or USD 65.9 billion for 2006) book value for 2005 reported in U.S. Department of Commerce data [http://bea.gov] search in International). About 1,326 affiliates of U.S. firms are established in France. Around 619,900 jobs result from U.S.-originated investments. Today, foreign-controlled firms play a significant role in France's economy, accounting for 15 percent of capital expenditures, 30 percent of exports, and 17 percent of value added. An updated list of recent U.S. investment projects or may be found on [http://www.investin-france.org/north-america/successful-business-developments-in-France.html]. Lists of foreign investors by industry can be found at the: American Chamber of Commerce in France 156, boulevard Haussmann 75008 Paris Tel: 01 56 43 45 67 Fax: 01 56 43 45 60 [http://www.amchamfrance.org]. Useful information on the first 1000 companies and financial institutions established in France can be found in local periodicals such as Expansion ("Les 1000 de l'Expansion"): [http://www.lexpansion.com/economie/classement/atlas.asp?idc=124715&typerec=3&co de secteur1000=1]. 2/15/2008 Country Commercial Guide for France 119 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, © 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
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Doing Business in France: 2008 Coun
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The trade balance on all bilateral
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Key Link: [http://eurlex.europa.eu/
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Statutory representatives work acco
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that for the past thirty years dire
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Selling to the Government Return to
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French food retailers generally fal
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France employing 39,000 people. The
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Retail online sales estimates (B-to
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Key link: http://ec.europa.eu/healt
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Product Liability Under the 1985 Di
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Designs The EU adopted a Regulation
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* Must not be deceptive as to the n
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For documentary and educational wor
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Financial services [http://ec.europ
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Retail Distribution Magazine “L.S
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Return to table of contents Chapter
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Project Management Software The mar
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Aircraft & Parts (AIR) (CSF, CSV) R
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Travel & Tourism (TRA) Return to to
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Penetration of the security market
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Computers and Peripherals (CPT) Ret
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Best Prospects/Services Return to t
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Best Products/Services Return to to
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Small- and Medium-Sized Plants In o
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Medical Equipment (MED) Return to t
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Syndicat National de l'Industrie de
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This report does not cover consumab
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Plastics (PMR) Return to top Overvi
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Cosmetics (COS) Return to top Overv
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Education Services (EDS) Return to
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TEXTILES (TXT) Return to top Overvi
Page 67 and 68: Union française des Industries de
Page 69 and 70: Resources Return to top French Dire
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Page 73 and 74: EU Broadcast Directive and limit ma
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Page 79 and 80: Designation: State what the product
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Page 91 and 92: CRITT Sports et loisirs Centre Rég
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Page 95 and 96: Concrete CERIB (Centre d'Etudes et
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Page 99 and 100: U.S. Mission to the European Union
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Page 117: Talks between employers and unions
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Page 123 and 124: Web Resources Return to top French
Page 125 and 126: secured and non-secured overdrafts.
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Page 133 and 134: French Banks FEDERATION BANCAIRE FR
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Page 147 and 148: French Federation of Jewelry, Gifts
Page 149 and 150: Photographic and Video Equipment In
Page 151 and 152: CREDIT AGRICOLE [http://www.credit-
Page 153 and 154: Market Research Return to top To vi
Page 155 and 156: March 11-14 SITL Europe - Internati
Page 157 and 158: June 16-20 EUROSATORY U.S. PAVILION
Page 159 and 160: November 15-18 SALON DE LA PISCINE,
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