Doing Business In (Insert Country Name Here) - BNA

The trade balance on all bilateral transactions between the United States and France
can be viewed at:
[http://www.bea.gov/bea/international/bp_web/simple.cfm?anon=71&table_id=10&area_i
d=19]
France’s population of 63 million people has a high disposable income of USD 33,855
per capita.
Market Challenges Return to top
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.
Market Opportunities Return to top
Leading non-agricultural products considered to offer "best prospects" for U.S. business
in France are (in order of market size): Aircraft and Parts, Computer Services, Computer
Software, Industrial Chemicals, Travel and Tourism, Safety and Security Equipment,
Computer and Peripherals, Telecommunications Equipment, Books & Publishing, Water
Resources Equipment and Services, Medical Equipment, Automotive Parts Equipment,
Telecommunications Services, Plastics, Agricultural Machinery and Equipment,
Construction Equipment, Cosmetics, Education Services, Textile, Direct Marketing and
E-Commerce Business to Consumer.
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
2/15/2008 Country Commercial Guide for France 3
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© 2007. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.