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U.S. Department of State
France Country Commercial Guide for FY 95-96
Office of the Coordinator for Business Affairs
Country Commercial Guide for FY 95-96
France
TABLE OF CONTENTS
CHAPTER I. EXECUTIVE SUMMARY
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
CHAPTER III. POLITICAL ENVIRONMENT
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
CHAPTER V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
CHAPTER VII. INVESTMENT CLIMATE
CHAPTER VIII. TRADE AND PROJECT FINANCING
CHAPTER IX. BUSINESS TRAVEL
APPENDICES:
APPENDIX A: COUNTRY DATA
APPENDIX B: DOMESTIC ECONOMY
APPENDIX C: TRADE
APPENDIX D: INVESTMENT STATISTICS
APPENDIX E: U.S. AND COUNTRY CONTACTS
APPENDIX F: MARKET RESEARCH
APPENDIX G: TRADE EVENT SCHEDULE
This Country Commercial Guide (CCG) presents a comprehensive look
at France's commercial environment through economic, political and
market analyses.
The CCGs were established by recommendation of the Trade
Promotion Coordinating Committee (TPCC), a multi-agency task
force, to consolidate various reporting documents prepared for
the U.S. business community. Country Commercial Guides are
prepared annually at U.S. Embassies through the combined efforts
of several U.S. government agencies.
CHAPTER I. EXECUTIVE SUMMARY
The market in France has long been and will continue to be of major
importance to U.S. suppliers across a wide range of industrial and
consumer goods, food & agricultural products, and services. France is
the eighth-largest trading partner of the United States worldwide and
the third-largest in Europe (after the United Kingdom and Germany).
Overall, the United States and France share many trade similarities,
particularly their global status as leading high technology innovators
and exporters, as well as the world's top two exporters of defense
products, agricultural goods, and services. Statistics on U.S.
merchandise trade show that U.S. exports to France grew by 9 percent a
year between 1987 and 1993, while U.S. imports went up by an average of
6 percent annually. U.S. merchandise exports increased slightly in 1994
to $13.6 billion, but with $16.8 billion in U.S. imports of French goods
the U.S. trade deficit with France climbed to over $3 billion. Based on
first quarter figures, U.S. exports are expected to reach $14.8 billion
in 1995, and imports from France will remain at the 1994 level. The
attractive pricing of U.S. goods resulting from the weak dollar should
account (or be blamed) for part of the turnaround.
Although unemployment still stands at a politically unacceptable level
(above 11 percent) and consumer spending has not yet returned to pre-
recession levels, the French economy is firmly on the path to economic
recovery, brightening the outlook for the close commercial relationship
between France and the United States.
The new government of recently-elected French President Jacques Chirac
has committed to making inroads in reducing the 3.3 million unemployed
workers in France through increased spending on job creation measures,
including retraining and employer subsidies, to be funded in part by
raising the VAT to 20.4 percent. Seeking to carry out Chirac's campaign
promises, Prime Minister Juppe's first major policy address to the
National Assembly had one overriding theme -- reducing unemployment.
This forms the backdrop for a seemingly impossible fiscal balancing act
between financing the new government's job creation programs and its
pledge to reduce the general government deficit to the level prescribed
under the EU Maastricht Treaty (3 percent of GDP) by the year 1997.
Driven by a surge in manufacturing activity due to strong exports, the
French economy rebounded from a negative rate of growth in 1993 to post
a 2.8 percent jump in GDP during 1994. Economic growth is expected to
continue at around 3 percent in 1995 and 1996, buoyed by rising levels
of private domestic business investment. Inflation is running at an
annual rate of less than 2 percent in France -- the lowest in the 15-
country European Union. The medium term growth prospects of the French
economy, combined with a current account surplus, low inflation and some
recent employment gains to stoke consumer spending, present a relatively
upbeat economic and commercial setting.
In general, the dynamic French commercial environment is favorable for
sales of U. S. goods and services. Owing to the complementary of the
types of goods and services that the two countries export to each other,
marketing products and services in France is much like marketing them in
the U.S., but with significant differences in cultural factors and the
legal framework. Concerning French marketing and distribution channels,
the most noteworthy trends include the explosive growth of super-markets
and hyper-markets (at the expense of small- and medium-sized family
enterprises), mail order marketing, and franchising, where U.S.-owned
franchises achieved EU-high sales of $9.2 billion in 1994 and are
enjoying average growth rates of 12 percent per year.
There remain, however, isolated cases involving the regulation and
reform of such sectors as air transport, broadcasting & radio, and
telecommunications in which French government action (or inaction) is
heavily influenced by strong domestic interest groups and serves to
limit the market access of U.S. firms. Nevertheless, taken in the
aggregate, these and other French or EU commercial obstacles do not
begin to compare in scale with the many market opportunities in France.
Among the top non-agricultural sectors considered to offer "best
prospects" for U.S. business in France are (in order of market size):
computer software, industrial chemicals, electronic components,
computers & peripherals, security & safety equipment, electrical power
systems, aircraft & parts, films/videos & other recordings, avionics,
medical equipment, defense industry equipment, automobiles & parts,
pollution control equipment and telecommunications. On the services
side, the huge French markets for travel & tourism, employment services,
and insurance hold the most potential for American suppliers.
French imports of U.S. food & agricultural products (including
manufactured tobacco, spirits, and wood & products) during 1994 were
valued at $881 million, a 9.2 percent decrease compared to 1993. French
agricultural imports are trending toward consumer-ready foodstuffs and
away from bulk commodities for animal feeds. In 1994, fresh, frozen
and/or dried fruits were the leading U.S. agricultural export to the
French market in terms of value, accounting for 14 percent of total U.S.
agricultural exports to France. Wood & products and fish & seafood
followed as numbers two and three by value, making up 13 and 11 percent,
respectively, of 1994 U.S. agricultural exports to France.
The French market for food products is mature, sophisticated and well-
served by suppliers from around the world. For U.S. agricultural
products, therefore, it is unlikely that major business breakthroughs
will occur, but, rather, that business opportunities will be created in
such niche markets as regional U. S. foodstuffs (Tex-Mex, Cajun and
California cuisine). U. S. agricultural products are perceived as being
of high quality, although at times landed prices appear high.
The French government is actively striving to attract foreign
investment, recognizing its importance as a source of new jobs. The
recent announcement by the new government of its intention to eliminate
of restrictions on investments by non-EU investors is a positive
indication of the improving investment climate. The continuation of a
major privatization program is creating a variety of new investment
opportunities in business sectors that were previously state-controlled.
France offers a variety of financial incentives to American and other
foreign investors, and its investment promotion agency, DATAR, provides
extensive assistance to potential investors both in France and through
its agencies around the world. Financial subsidies and tax incentives
are offered at the local, regional and national government level to
attract investment to the country's economically depressed areas. Such
incentives are available equally to French and foreign investors.
Furthermore, foreign companies registered in France receive the same
treatment with respect to participation in technology development
programs sponsored by the French government and have equal access to R &
D funding. In 1993, sales by U.S. affiliates in France totaled $100
billion, while French affiliate sales in the United States hit $102
billion.
In support of U.S. commercial interests in France, the U.S. Embassy in
Paris is pursuing a "Strategic Commercial Plan" using the combined
resources of the various Trade Promotion Coordinating Committee member
agencies within the Embassy. Key objectives of this post commercial
strategy are to promote increased exports of U.S. goods and services
(including tourism), to monitor and supply information on areas of
opportunity (e.g. the French government's privatization program), and to
advocate effectively on behalf of U.S. firms.
Country Commercial Guides are available on the National Trade Data Bank
on CD-ROM or through the Internet. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate country commercial guides via
the Internet, please use the following World Wide Web address: WWW.STAT-
USA.GOV. CCGs can also be ordered in hard copy or on diskette from the
National Technical Information Service (NTIS) at 1-800-553-NTIS.
CHAPTER II. ECONOMIC TRENDS AND OUTLOOK
A. Major Trends and Outlook
The French economy continues its cyclical upturn, after a sharp
turnaround in 1994, when real GDP grew by 2.8 percent from a 1.5 percent
decline in 1993. All indications are that this recovery will be
sustained. Real GDP growth during the first quarter of this year was
0.7 percent. Our current forecast calls for real GDP to grow by 3
percent this year and 2.9 percent in 1996. Economic growth over the
next eighteen months will continue to be led by investment and export
demand, and starting from the second half of this year, households will
play a more active role. These rates of growth should mean some
improvement in both the jobs outlook and the budget deficit, the twin
headaches of the French government.
Economic growth at the end of 1994 was led by the manufacturing sector
which was in turn due to strong exports and a faster upturn in business
investment. Recent indicators confirm that investment demand remains
strong. For example, the most recent survey of investment intentions
shows that industrialists plan to increase business investment by 13
percent this year, which translates into an 11 percent increase in
volume, assuming an inflation rate of 2 percent. The increase in
business investment is primarily due to improved demand (principally
industrial demand) and profits. Over the near-term, our forecast calls
for business investment to expand by a 7-8 percent annual rate, somewhat
lower than figures indicated in the surveys but still a substantial
jump. Overall investment should grow by around 5 percent this year
taking into account slower public sector growth and household
investment.
Unlike business investment, household consumption has not performed as
well as expected, falling by 0.2 percent during the fourth quarter of
1994, after an increase of 0.8 percent in the third quarter and 1.2
percent in the second quarter. Household consumption had been sustained
during the first three quarters of last year by a decline in the savings
rate, from 13.9 percent in the third quarter of 1993 to 12.9 percent in
the third quarter of 1994. Thereafter, however, the savings rate
climbed up again, which most analysts attribute to uncertainties
associated with the just-concluded presidential elections. Indeed,
current indicators, such as household consumption of manufactured
products, show that consumption continued to be relatively flat through
the first quarter and perhaps into the early months of the second
quarter of 1995. However, with the decreasing uncertainty associated
with the conclusion of the presidential election, household consumption
should show more strength in the second half of this year and next year.
Our forecast calls for overall consumption to grow by 2.1 percent this
year and 2.7 percent in 1996.
Perhaps the most significant uncertainty associated with the current
economic outlook is the macroeconomic policy stance of the new French
government. President Chirac won the election promising changes, in
particular to reduce unemployment, now numbering 3.3 million workers or
11.6 percent of the labor force. This "jobs first" approach was echoed
by his newly-named prime minister, Alain Juppe, and by his Minister of
Economics and Finance, Alain Madelin. Emphasis on jobs has created
uncertainties as to whether control of inflation and the budget deficit
will now take a back seat, which in turn raises questions on the future
of the strong franc policy and the French government's commitment to
meeting the Maastricht fiscal criteria by 1999. The new government's
supplemental budget, announced June 22, contains a variety of new
measures aimed at job creation. These new measures will cost an
estimated FRF 14.6 billion for the remainder of 1995. In order to pay
for this program and a sizable overshoot of the budget deficit inherited
from the previous government, the GOF has announced tax hikes (VAT,
corporate tax, and wealth tax) and expenditure cuts.
The projected real GDP growth rates -- 3 percent this year and 2.9
percent in 1996 -- are probably enough to create around 200,000 jobs
each year, or around a 1.5 percent increase a year. However, the
corresponding decrease in unemployment will be less, mostly due to
increasing labor force participation. Our projection calls for the
unemployment rate to average around 12 percent this year and 11.5
percent in 1996.
B. Principal Growth Sectors
Between 1990 and 1994 the fastest growing sectors, as measured by
nominal value-added were Energy (27 percent increase), Food Processing
(25 percent increase), Consumer Goods (20 percent increase),
Miscellaneous Services -- excluding retail trade, transportation,
telecommunications, and financial services (19 percent increase),
Transportation and Telecommunications Services (16 percent increase).
C. Government Role in the Economy
France has a centuries-old tradition of highly centralized
administrative and governmental control of its essentially market
economy. In 1994 French general government total outlays were 54.9
percent of nominal GDP, compared to 33.5 percent in the United States
and 42.9 percent in the United Kingdom. For more than a decade, both
Socialist and Center-Right governments have accepted that reducing
government involvement is the best way to spur economic growth and
reduce the high unemployment rate. The privatization process initiated
in late 1993 by the prime minister Balladur will continue under current
Prime Minister Juppe. In late June, the new government successfully
privatized Using Sacilor, Europe's largest steel producer. This sale
marked the seventh company to be privatized in a program involving 21 of
France's flagship companies, such as Rhone-Poulenc, Elf-Aquitaine and
Banque Nationale de Paris. Further privatization's, including Pechiney
and Renault, are in the works.
D. Balance of Payments Situation
On the external side, French exports remain strong. In February, French
exports were up 2.6 percent from January. French exports (customs
clearance basis) have maintained an annualized growth rate of well over
10 percent since the middle of last year. This strength is mainly
explained by strong world demand, with firm growth both in Europe and
North America. French imports have also been strong due to vigorous
domestic demand, especially gains in the industrial sector. Over the
next eighteen months, we expect further gains in exports and imports,
with both increasing by close to 7 percent in volume terms this year,
and slightly less in 1996. These increased rates translate into
sizable current account surpluses, around USD10 billion in 1995 and USD9
billion in 1996.
Among third country markets and suppliers, the United States is the
leading supplier of food and agricultural products to France, as well as
the largest export market for French agricultural products. According
to French Customs, the value of French agricultural exports (including
spirits, manufactured tobacco, and wood and products) to the U.S. in
1994 was $ 1,229 million, while the value of French agricultural imports
(including spirits, manufactured tobacco and wood and products) from the
U.S. during the same period was $ 881 million, leading to a positive
agricultural trade surplus for France with the U.S. of $ 348 million.
E. Trade Barriers
U.S. companies sometimes complain of France's complex technical
standards and of unduly long testing procedures. Testing requirements
(which must usually be done in France) and standards sometimes appear to
exceed reasonable requirement levels needed to assure proper performance
and safety. Most of the complaints have involved electronics,
telecommunications equipment and agriculture phytosanitary standards.
The 1989 EU Broadcast Directive requiring a "majority proportion" of
programming to be of European origin was incorporated into French
legislation on January 21, 1992. France, however, specifies a
percentage of European programming (60 percent) and French programming
(40 percent). These broadcast quotas were approved by the EU Commission
and became effective on July 1, 1992. They are less stringent than
France's previous quota provisions which required that 60 percent of all
broadcasts be of EU origin and that 50 percent be originally produced in
French. The 60 percent European/40 percent French quotas are applicable
throughout the day, as well as during prime time slots. The prime time
rules go beyond the requirements of the EU Broadcast Directive and limit
the access of U.S. programs to the French market. Nevertheless, the
market share of U.S. films and television shows remains high. Despite a
recent push for tighter television quotas, the situation has not changed
much since 1992. In June 1995, France shelved its demand for more
restrictive quotas for the time being. Instead, the latest campaign is
for new financial and other subsidies for film and television program
makers.
The French government has recently revised its legal services system.
Non-EClawyers may no longer practice as legal consultants and are
required to qualify as "avocats," on the basis of full-fledged
membership in the French bar. Under the implementing legislation which
went into effect on January 29, 1993, this means that non-EU lawyers
will have to pass either a "short-form" exam or the full French bar
exam. The French government has accepted that the General Agreement on
Trade in Services (GATS) precludes reciprocity requirements which should
allow non-EU lawyers to qualify for the short-form exam. There are
other aspects of the process, however, which could disadvantage foreign
candidates unfairly. For example, the arbitrary choice of subject
areas makes studying for the test extremely difficult, and examiners
have considerable discretion on deciding whether a candidate passes or
fails. Due to EU regulations, France is required to recognize law
degrees for EU nationals but not third country nationals. Nevertheless,
non-French EU lawyers, who are also required to qualify as "avocats,"
may do so via exams less stringent than those for non-EU lawyers.
Meaningful access will now hinge on how implementing regulations are
administered, including the interpretation of what is meant by granting
access on a "reciprocal basis" and the nature of the exam to be imposed
on non-EU lawyers.
F. Investment Barriers
Screening
See section VII, Investment Climate.
Privatization
The 1993 privatization law prevents the French government from selling
more than 20 percent of a firm's capital to non-EU investors at the time
the government sells its shares. Thereafter, however, the provision
does not prohibit private EU-investors from selling their shares to non-
EU investors. Shares already held by non-EU investors are not affected
by the 20 percent limit. In addition, through "golden shares" in key
companies, the government retains the right to block the sale of any
assets "essential to the national interest," to prevent certain
investors from purchasing additional shares in a company, and to exert
significant control over company management, even after privatization is
completed. Finally, any investor seeking to own more than five percent
of outstanding shares of a privatized company in the health, security or
defense sectors must receive approval from the Economics Ministry.
In October 1993, the Balladur government announced 21 companies would be
privatized. The Juppe government is committed to continuing this
privatization campaign. Of the 21 major enterprises included in the
program, 7 companies have been privatized - Usinor Sacilor, Elf
Aquitaine, Banque Nationale de Paris, Rhone-Poulenc, Seita, and
Compagnie General Maritime. Two additional companies, Bull and Renault,
have seen their French government share reduced. Part one of a three
part privatization of Bull is complete. In early 1995, the French
government reduced its share in Renault to 51%.
Sectoral Investment Restrictions
The recent announcement by Finance Minister Alain Madelin that France
will ease the ownership rules for foreigners means that the list of
areas where foreigners have to seek government approval will be the same
as for foreign investors from other EU countries. Under EU rules,
foreigners can be prevented from taking full control of companies deemed
essential to national defense, public safety, health or security.
Firms controlled by non-EU nationals could heretofore be denied national
treatment in the following sectors: agriculture, financial services,
accounting, legal services, air transport, maritime transport, road
transport, publishing, telecommunications, defense and tourism.
G. Labor Force
The French labor force is one of the country's strongest points in
attracting foreign investment, combining high quality with competitive
unit wage costs. In a recent survey of U.S. investors in France,
management was unanimous in agreeing that the quality of local personnel
was adequate and 90 percent found labor costs to be competitive.
The Labor Code sets out minimum standards for working conditions
including the work week, overtime, vacation and personal leave. Other
labor standards are contained in collective agreements, which are
usually negotiated on a national or regional basis by the various unions
and employers' associations. The French minimum hourly wage is FRF
36.22 (approx. $7.3). The legal work week is 39 hours and average time
worked hovers around this figure. When the work week exceeds 39 hours,
non-executive employees are entitled to overtime payment and/or
compensatory time off. Employees are entitled to 2.5 workdays of
vacation per full month worked.
The average private sector compensation per employee increased by 1.2
percent in 1994, which meant that the real labor cost fell, as the
inflation rate was 1.7 percent in 1994.
French absenteeism is relatively modest by European standards while the
hours lost to strikes is at an all-time post World War II low. Despite
highly visible nuisance strikes in the public sector, relatively
peaceful labor relations have been the order of the day, particularly in
the private sector.
H. Major Third Country Competitors
As the world's fourth largest economy, centrally located within the
European Union, there is strong competition for market share in all
French industry sectors. Major French organizations, e.g. Aerospatiale,
Alcatel, Michelin, and Thompson, have manufacturing and marketing
expertise which matches major U.S. multinationals. The government of
France is also a major competitor and has an industrial policy which
considers the development of certain domestic industries as critical to
national security. At the beginning of 1993, 70 state-owned enterprises
accounted for approximately 30 percent of French GDP. This situation is
gradually changing in light of the current government's efforts to
privatize many of these state-owned industries; however, the government
still plays a far more interventionist role in industrial affairs than
is the case in many other industrialized nations.
American exporters to France face more competition from European
countries than Asian; however, the Japanese have been successful in
developing a foothold in the French market, with substantial investments
in the Alsace region. German manufacturers are the most serious
competitors in Europe, relying on the many Franco-German joint ventures
that have been established. Each industry has its own principal
competitors and should be carefully analyzed before beginning an effort
to capture a share of the French market.
I. Infrastructure Situation
The French transportation infrastructure is among the most sophisticated
in the world, benefiting from technological advances such as the Train à
Grande Vitesse (TGV) and from extraordinary investment by the
government. The three main entry points for air freight are the Paris
airports of Orly and Charles de Gaul, and Lyon's Satolas airport.
France has 12 major maritime ports, many of which are equipped for
container ships. The state-owned French rail system is one of the most
comprehensive and technologically advanced in the world. For example
the Roissy Charles de Gaul Airport began an intermodal link in 1995 with
the north TGV line for passenger traffic.
The French highway system is excellent and has become an increasingly
important part of Europe's overall transportation network. France
currently invests more funds in its highway and road network than any
other European country. In 1995, the government inaugurated the longest
spanned bridge in the world, Le Pont de Normandie, linking Le Havre with
Honfleur over the Seine.
J. Major Infrastructure Projects Underway in France
1. Transportation Projects
-- Roissy/Charles de Gaul Airport Expansion
2. Defense Trade
a. Nuclear Aircraft
b. MEADS (Medium Extended Air Defense System)
c. Horizon Frigate Propulsion System
3. Construction Projects
a. "La Tour Sans Fin" - La Defense
b. Cite Internationale de Lyon
c. Georges Pompadour European Hospital
d. St. Denis Stadium
e. Europort-Vatry
4. Environmental and Urban Development Project
-- Eco-Normandie Regional Technological Park
CHAPTER III. POLITICAL ENVIRONMENT
A. Bilateral Relationship
France and the U.S. are close allies. Despite occasional differences of
view, the U.S. and France work together on a broad range of trade,
security and geopolitical issues.
B. Political System
France is a democratic republic whose political system is based on a
written constitution approved by referendum in 1958. According to the
French Constitution, the President of the Republic is elected by direct
suffrage every seven years. The President names the Prime Minister,
presides over the cabinet, commands the armed forces and concludes
treaties. He is also empowered to dissolve the National Assembly and,
in certain emergency situations, may assume full power. France's
political system is a hybrid of presidential and parliamentary systems,
resulting occasionally in the President and Prime Minister being of
opposing parties. Since March 1993, for example, the Socialist
President has had a Prime Minister from the conservative party.
The Constitution provides for a bicameral parliament consisting of a
National Assembly and a Senate. National Assembly deputies are directly
elected by universal suffrage for five-year terms. Senators are
indirectly elected for nine-year terms; one-third of the Senate is
renewed every three years.
The French political spectrum includes five distinct political groups.
From right to left, these are: the extreme right National Front (FN);
the neo-Gaullist Rally for the Republic (RPR); the moderate Union for
French Democracy (UDF); the Socialist Party (PS); and the Communists
(PCF). Numerous smaller parties have variable national political
impact.
C. Political Events Affecting Business Climate
Gaullist RPR President Jacques Chirac took office as French President in
May 1995. He replaces socialist Francois Mitterrand, who held France's
top office for 14 years. Chirac is under great pressure to reduce
France's more than eleven percent unemployment rate, and his government
hopes to create more than one million new jobs between 1995 and 1998.
Chirac will also continue the pace of privatization. He may, however,
come under pressure from his electorate to adopt more protectionist
trade pressures.
CHAPTER IV. MARKETING U.S. PRODUCTS AND SERVICES
The United States and France produce many of the same goods and services
and export them to each other. Therefore, marketing products and
services in France is much like marketing in the U.S., with several
significant differences. Following is a general overview of marketing
in France. Specific counseling sessions with United States Department
of Agriculture/Foreign Agriculture Service & Commercial Service trade
specialists are recommended for those wishing more details as they plan
their specific marketing campaigns in France.
A. Distribution & Sales Channels
The Retail Network
France possesses a diverse and comprehensive retail network which
increasingly resembles that of the United States. From the largest
department store chains to the smallest individual proprietorships,
French distribution channels are exhibiting several important trends.
Small- and medium-sized family-owned firms, which traditionally
accounted for a majority of French wholesale and retail trade, are
rapidly losing ground to hypermarkets - large retail outlets carrying a
wide variety of products at discounted prices. At the same time, mail
order marketing and specialized chain stores have shown strong growth,
further demonstrating the changing needs and preferences of consumers.
Primary Retail Channels:
• Grands magazines - Department Stores
• Hypermarches - Hypermarkets
• Supermarches - Supermarkets
• Magasins populaires - Convenience Stores
• Vente par catalogue - Mail-order Marketing
• Grandes surfaces specialisees - Large Specialized Stores
• Multi-Channel Retail Groups
• Centrales d'achats - Central Buying Offices
Department Stores: In 1994, there were some 218 department stores,
employing 46,000 people and totaling $4.5 billion in sales. Paris has
the highest number of department stores of any French city, and nine of
the ten top-selling stores are located there. Department stores have
lost some market share in all areas except in the medium-to-high price
range. A unique feature of the French department store is that many
non-food products are sold by the manufacturer's own sales staff, which
can account for up to 20 percent of the store's total sales force.
Hypermarkets: Hypermarkets are self-service retail stores carrying
20,000-35,000 food articles and 3,000-5,000 non-food articles at
competitive prices. They are generally located in suburbs, and cover at
least 22,500 square feet each. In 1994, there were 945 hypermarkets,
employing 196,000 people. They generated a total of $66.3 billion in
sales.
Supermarkets: Also self-service retail stores, supermarkets are smaller
versions of hypermarkets. They usually carry 3,500-4,500 food articles
and 500-1,500 non-food articles. They generally cover 3,600-22,500
square feet. In 1994 there were 7,138 supermarkets, employing 170,000
people. They generated a total of $61.4 billion in sales.
Convenience Stores: Convenience stores are generally self-service and
carry a varied assortment (7,000-10,000) of food and non-food articles.
In 1994, there were 483 convenience stores, employing close to 21,400.
They generated a total of $3.6 billion in sales.
Mail Order Marketing: The French market for mail-order consumer
products is the fourth largest in the world. This market has tripled in
the last ten years, reaching $9.4 billion in 1994. One out of two
French households buys through mail order. Textile products make up
46.1 percent of mail-order sales, books and records 13.8 percent, and
furniture and home decoration 10.7 percent.
Large Specialized Stores: Large specialized stores offer an extensive
choice of goods in a specific category at a competitive price and with
an emphasis on customer service. With over 10,000 stores of this type,
this dynamic sector generates $18 billion in sales and represents 56.3
percent of non-food retail sales. Furniture stores are the most
numerous (2,500), followed by do-it-yourself equipment stores (1,500).
Multi-Channel Retail Groups: The distinctions made above between
hypermarket chains, supermarket chains, etc. are becoming blurred. In
the last several years, major multi-channel retail groups have emerged,
which own chains of different types of stores. Pinault-Printemps and
Nouvelles Galleries Reunies fall into this category, because they own
chains of specialty and convenience stores.
Central Buying Offices: In addition to contacting the largest store
chains listed above, introducing products via central buying agencies is
an excellent distribution method. A complete list of French central
buying agencies, the Annuaire des Supermarches, Hypermarches, Centrales
d'Achat et Groupements d'Achats, is available at about $130 (freight
included) from:
m L.S.A
Mrs. Majean
B.P. 142
92304 Levallois Perret cedex, France
Tel: (33-1) 47 58 20 00
Fax: (33-1) 47 59 07 64
Distribution Systems for Food Products in France
France has one of the most highly developed distribution systems for
agricultural and food products in the world. There is an extensive
network of transportation and distribution channels that assure
consumers will receive the final product in good quality and at the
proper time.
Normally, French imports of agricultural and food products are brought
in from the west Atlantic via the northern French port of Le Havre, or
via the ports of Antwerp and Rotterdam in the Netherlands. Imports from
the Mediterranean and African countries come through the southern port
of Marseilles. Imports from other EU and European countries are often
brought in by trucks through the world's largest wholesale food market
at Rungis, which is located south of Paris. Since much of the processed
food products in France are of domestic origin, there are well developed
regional markets throughout the country.
Despite the fact that France has a very modern and relatively efficient
distribution and transport system, frequent disruptions occur in product
movement, due to unexpected strikes by port dockers or truck drivers, or
some other labor disputes. Fortunately, the availability of alternative
entry ports minimizes the magnitude of this problem for U.S. exporters.
Wholesale Distribution
There are about 27,000 wholesalers of food and agricultural products
(including raw products) in France. The industry continues to
consolidate and diversify with individual firms adding new services to
their basic wholesale activities. Wholesalers now offer a whole
"platform" of services for small and medium-size food retailers and
processors. Despite consolidation, many traditional French wholesale
food companies continue to lose ground to large super and hypermarket
chains, and most recently to the "hard discounts" who are increasingly
expanding their own wholesale activities with "private labels".
Retail Food Distribution Channels
There are six principal categories of retail food outlets in France.
The first five (hard-discounts, hypermarkets, supermarkets, city-center
stores and department stores) represent the mass market and control
about 56 percent of total food distribution. The sixth category,
traditional outlets, includes neighborhood stores and specialized food
stores.
It is expected that mass market outlets will control 75 percent of the
market by the year 2000. As of January 1, 1995, there were almost 8,083
super and hypermarkets in France. Hard-discounts have a total of 1,545
stores all over France and represent 8.4 percent of food sales in France
in volume. It is expected that hard-discounts sales may reach $15
billion within five years, and the next few years are expected to see a
contest between the full-range super/hypermarkets concept and the
greater savings cooperative/hard-discounts concept.
Restaurants, Hotels and Food Institutions
Last year, French consumers eat 5.8 billion meals valued at almost $28
billion outside of the home in 131,000 restaurants, cafes, cafeterias
and university dining halls. This represents about 13 percent of all
meals consumed in the country. Out-of-home food is growing at the low
rate of one percent a year. Almost 40 percent of out-of-home meals are
consumed at commercial facilities (restaurants, hotels, fast food,
etc.), while 60 percent are consumed at schools, hospitals or
workplaces. French restaurants, hotels and institutions usually use the
services of wholesalers or processed food buyers. In these cases, the
well developed distribution channels of the wholesalers/importers are
often the key to getting a new food product into that sector.
B. Use of Agents and Distributors
Considering the host of distribution options available in France, it is
important for the would-be exporter to select the method best suited to
his or her product. French buyers generally prefer to purchase through
an intermediary, making sales directly to the end-user a scarce
practice. However, sales of expensive, technically sophisticated goods
are an exception to this rule.
Intermediaries may take one of three primary forms under French law:
• Distributor
• Agent
• Salaried Representative
Distributor
A distributor (concessionaire) is an individual or legal entity who
purchases goods directly from a producer for the purpose of resale. The
distributor operates independently and is only bound by the written
provisions of the distribution agreement. These agreements, however,
are subject to specific rules and regulations regarding exclusive
distribution and price-fixing.
The conditions of contract termination are an important concern, and
vary with the type of distribution agreement. A distribution agreement
of specified duration may be terminated at the end of the contract
period by either party without prior notification or indemnification.
If the termination takes place before the end of the contract period,
the terminating party may be sued for breach of contract.
A distribution agreement with an unspecified duration may be terminated
by either party without indemnification after a fair notice period,
usually six months. The termination of such a contract by the producer
without fair notice may be grounds for damage claims by the distributor.
Agent
This category covers commercial agents as well as those persons acting
as agents but not fulfilling the requisites for commercial agent status.
Unlike distributors, agents do not actually purchase goods for resale;
instead, they match up buyers and sellers on a commission basis. All
agents exercise their activities in an independent manner, and their
principals are exempt from payment of payroll taxes. Agents assume
their own fiscal charges (business license tax and value-added tax) and
social charges (health insurance, social security and retirement/pension
benefits).
Commercial Agent: Agents with a written contract have the status of
commercial agents (agents commerciaux) if they exercise their activity
as a sustained independent profession and fulfill the following
conditions:
-- do not have a written employment contract;
-- negotiate sales and purchases on behalf of producers, manufacturers,
or dealers;
-- are registered with the Tribunal of Commerce as commercial agents.
A commercial agent is independent and free to act on the behalf of any
other firm. However, in the case where the agent wishes to represent
one of his or her principal's competitors, consent of the principal must
first be secured.
The principal may justifiably terminate the commercial agent contract
only if the agent shows substantial deficiency in carrying out his or
her obligations. Otherwise, contract termination gives the agent a
right to indemnification, often equal to two years' commission.
Other agents: Persons who do not fulfill all the requirements for
commercial agency, and who are not in a position of subordination to the
company they represent, are considered agents. Authorization of an
agent can be effected by notarial act or private agreement. Either
party may terminate the agency agreement at will, but the non-
terminating party has a right to indemnification of losses.
Salaried Representatives
Unlike agents, salaried representatives have employment contracts. They
and their employers share the burden of payroll taxes contributing to
social security, unemployment compensation, and retirement/pension
plans.
Statutory Representatives: Whatever their qualifications or title,
persons are considered statutory representatives if they exercise their
activity as a sustained independent profession and fulfill the following
conditions:
-- engage in the activity of a sales representative for the account of
one or more employers;
-- desist from executing commercial operations on their own behalf;
-- institute mutual commitments with employers regarding the nature of:
the goods or services offered for sale, the region of activity or the
category of clients, and the rate of compensation.
Statutory representatives, like all employees, perform their work
according to the instructions of their employers and benefit from the
system of labor law protection. However, they possess a special right
to indemnification if their employment is unjustly terminated. This
indemnity is based on the size and importance of the clientele created
by the statutory representative.
Nonstatutory Salaried Representatives:
Representatives who are subordinate to their employers and who do not
fulfill the requisites for statutory representative status fall into a
separate category and are considered regular employees.
Finding a Partner
The Department of Commerce's International Trade Administration offers
several services to help the would-be exporter identify potential
foreign representatives. The three primary services available from the
Commercial Service in France are the Gold Key Service, the Agent
Distributor Service (ADS) and Industry Targeted Mailings. To request
any one of these services, firms should contact the nearest U.S.
Department of Commerce District Office.
Contacting and Evaluating Potential Representatives
Once the U.S. company has identified several potential representatives,
it should contact them directly in writing. Just as the U.S. firm is
seeking information on the French representative, the representative is
interested in corporate and product information on the U.S. firm. The
U.S. firm should provide full information on its history, resources,
personnel, the product line, previous export activity, and all other
pertinent matters.
At the same time the firm is providing information on itself, it should
also engage in a thorough investigation of the potential representative.
Following is a list of important facts the firm should endeavor to find
out:
-- Current status and history, including background on principal
officers
-- Personnel and other resources
-- Sales territory covered
-- Current sales volume
-- Typical customer profiles
-- Methods of introducing new products into the sales territory
-- Names and nature of U.S. firms currently represented
-- Trade and bank references
-- Assessment of whether U.S. firm's special requirement can be met
-- View of in-country market potential for the U.S. firms products
The U.S. firm should not hesitate to ask potential representatives or
distributors detailed questions; exporters have the right to explore the
qualifications of those who propose to represent them overseas.
In addition, the U.S. firm is advised to obtain at least two supporting
business and credit reports to ensure that the distributor or
representative is reputable.
The French agency of Dun & Bradstreet offers this service.
Dun & Bradstreet France
Service Renseignements de Notoriete
Immeuble Defense Bergeres
345, av. G. Clemenceau
TSA 590003
92882 Nanterre
Tel: (33-1) 41 35 18 98
Fax: (33-1) 41 35 19 20
Negotiating an Agreement with a French Representative
Once the U.S. firm has selected a prospective representative, the next
step is to negotiate a foreign sales agreement. The content of this
agreement is extremely important, as it will determine the legal basis
for any relationship between the exporter and the representative.
Although U.S. Department of Commerce District Offices can provide
counseling to firms planning to negotiate agreements with French
representatives, engaging a French lawyer is strongly advised.
In drafting the agreement, special attention must be paid to
safeguarding the exporter's interests in cases in which the
representative proves less than satisfactory. Procedures and conditions
for terminating the relationship should be clearly defined.
Furthermore, any right to indemnification on the part of the exporter or
distributor should be specified.
C. Franchising
France is the strongest market for U.S. franchise development within the
EU. Out of a total of 34 foreign franchises in France, 18 are American,
accounting for 4.2 percent of the total franchise market. The market
size in 1994 was $38 billion. The estimated annual growth rate for 1995-
1997 is 10 percent. U.S. exports reached $9.2 billion in 1994; the
estimated average annual growth rate for U.S.-owned firms is 12 percent.
The franchising industry has stayed strong despite unfavorable economic
conditions. Fast-food has been the most successful sector, but is now
very competitive. The greatest potential for U.S. franchisors lies in
sub-sectors yet to be fully exploited, such as computer education and
renovation services.
D. Direct Marketing
Direct Marketing in France is a fast growing industry with sales
evaluated at $6.7 billion in 1993. This figure includes expenses for
all Direct Marketing media: mailings, catalogs, telephone marketing,
targeted and non-targeted fliers, press and television.
The market is expected to grow at the rate of 4.5 percent per year.
Some media have experienced tremendous growth in volume and in value
over the past 10 years. For example, non-targeted fliers have increased
in volume by 16 percent in 1993, while targeted fliers or catalogs only
increased by 2 percent. However, catalog sales remain a good
opportunity for U.S. companies. The French market for mail order
consumer products reached $9.4 billion in 1994. Catalog sales represent
80 percent of this market. U.S. companies rank second after Germany in
mail order sales in France with $245 million in sales. The best
prospects in this sector remain apparel, followed by books and records
as well as entertainment videos.
E. Approaches to the French Market
American companies have prospered in the French market and will continue
to do so if special attention is paid to their approach to the market
and the products/services they offer. As outlined above, the best "first
step" is to appoint an agent or distributor; however, expansion in the
market can take various other forms, depending on the product/service.
Joint Venture/Licensing
A joint venture with a French firm having similar commercial interests
is one recommended approach. The French government encourages this type
of investment and offers a wide range of incentives. In selecting a
joint venture partner, the American company must carefully analyze its
strengths and weaknesses and search for a firm that offers the
appropriate support. Traditionally, a French joint venture partner
strengthens the marketing activities of an American firm with its in-
place distribution system. In certain industries, French manufacturers
have skills that augment those of the American partner. Financing is
also of special concern. Each joint venture proposal requires special
analysis and conditions if it is to be successful. A joint venture with
a French firm that has full French government support can be beneficial
as long as manufacturing decisions can be made independently of
government involvement. Recognizing the differences in each market is
essential for success; consequently, it is recommended that companies
interested in forming joint ventures consult with the Embassy in Paris
before making any entangling alliances.
Steps to Establishing an Office
Establishing a subsidiary/branch office in France is also an advisable
approach for some industries. The French government encourages the
formation of new enterprises and, in conjunction with the Paris Chamber
of Commerce and other Chambers throughout the country, offers extensive
counseling and assistance to those wishing to set up an office in
France. Detailed "how to" guides are available not only from the various
chambers of commerce, but also from the Commercial Service and the
numerous American consulting firms present in France.
F. Selling Factors/Techniques
Selling your product or service in France is similar to the United
States. Buying decisions are made on the basis of quality, price and
after-sales service. The principal difference in France is, in fact, the
language. Since August 1994, the "Loi Toubon" requires that all
advertising, labeling, instructions and promotional programs be in
French. Consequently, we strongly recommend close contact with the
Commercial and Agricultural sections in the Embassy and arranging for
local legal representation.
Advertising and Trade Promotion
There are far too many newspapers, magazines and technical journals to
list; however, judicious use of the media is an important part of any
and all promotional programs. Below is a list of the most prominent
French newspapers and magazines:
Le Figaro
37, rue du Louvre
75081 Paris Cedex 02 France
Tel: (33-1) 42 21 62 00
Fax: (33-1) 42 21 64 05
President Director General (P.D.G.): Robert Hersant
Director de la redaction : Franz-Olivier Giesbert
Le Monde
15, rue Falguiere
75501 Paris Cedex 15 France
Tel: (33-1) 40 65 25 25
Fax: (33-1) 40 65 25 99
Director General: Jean Marie Colombani
Secretaire General: Alain Fourment
L'Express
61, avenue Hoche
75411 Paris Cedex 08 France
Tel: (33-1) 40 54 30 00
Fax: (33-1) 40 54 99 72
P.D.G.: Francoise Sampermans
Directrice de la redaction : Christine Ockrent
Liberation
11, rue Beranger
75154 Paris Cedex 03 France
Tel: (33-1) 42 76 17 89
Fax: (33-1) 42 72 94 93
P.D.G. : Serge July
Director de la publication: Serge July
France Soir
37 rue du Louvre
75002 Paris France
Tel: (33-1) 44 82 87 00
Fax: (33-1) 44 82 88 45
P.D.G.: Robert Hersant
Director de la redaction : Robert Hersant
Le Parisien
25, avenue Michelet
93400 Saint-Ouen France
Tel: (33-1) 40 10 30 30
Fax: (33-1) 40 12 90 90
P.D.G.: Philippe Amaury
Director General: Fabrice Nora
International Herald Tribune
181, avenue Charles de Gaul
92200 Neuilly Sur Seine France
Tel: (33-1) 41 43 93 00
Fax: (33-1) 41 43 93 38
Publisher: Richard McLean
Vice President: John Vinocur
Le Nouvel Observateur
8, rue Aboukir
75002 Paris France
Tel: (33-1) 44 88 34 34
Fax: (33-1) 44 88 34 28
P.D.G.: Claude Perdriel
Director de la redaction: Jean Daniel
Le Point
140, rue de Rennes
75006 Paris France
Tel: (33-1) 49 54 10 10
Fax: (33-1) 45 49 30 20
P.D.G.: Bernard Wouts
Director de la redaction: Denis Jeambar
Les "Echos"
46, rue la Boetie
75381 Paris Cedex 08 France
Tel: (33-1) 49 53 65 65
Fax: (33-1) 45 61 48 92
P.D.G.: Eric Noblet
Dir. Gen. de la redaction: Nicolas Beytout
L'Expansion and La Vie Francaise
Groupe Expansion
25, rue Leblanc
75842 Paris Cedex 15 France
Tel: (33-1) 40 60 40 60
Fax: (33-1) 40 60 41 22
President: Christian Bregou
Dir. Gen. de la redaction: Jacques Barraux
La Tribune Desfosses
Cote-Desfosses
42-46, rue Notre Dame des Victoires
75002 Paris France
Tel: (33-1) 44 82 16 16
Fax: (33-1) 44 82 17 16
P.D.G.: Pierre-Antoine Gailly
Dir. Gen.de la redaction : Jacques Jublin
Le Nouvel Economiste
10 rue Guynemer
92130 Issy les Moulineaux France
Tel: (33-1) 41 09 30 00
Fax: (33-1) 41 09 30 98
P.D.G.: Philippe Berthin
Director de la redaction: Vincent Beaufils
G. Pricing Product
The U.S. exporter can usually determine the export price of his/her
manufactured product using 70% of the domestic price (after deduction of
all local marketing costs). This will allow the French importer to
price his imports from the U.S. on the same price level as his American
counterpart. A simple way of comparing U.S. and French retail prices
consists of taking the net U.S. retail price and comparing it with the
French retail price without Value Added Tax (V.A.T.) currently 18.6%.
French V.A.T. will increase to 20.6% on August 10, 1995. The French
consumer is generally willing to pay a maximum of 10-15% over the
American retail price.
When determining the export price, it is important to consider that if
prices are FOB, the French importer will have to pay for transportation,
insurance, customs duties, value-added tax and fixed fees per shipment.
Terms of Payment
For U.S. exporters, what is called "the financing of export sales" is
not basically different from financing domestic sales. The fundamental
concern in both cases is that one is paid in a timely manner for the
goods and/or services delivered.
France's modern banking system offers a full range of payment means, the
most significant of which are:
-- commercial letters of credit
-- sight and time drafts
-- bank transfers
-- certified checks
Although bank transfers and certified checks are fairly self-explanatory
methods of payment, commercial letters of credit and sight and time
drafts may be less familiar to the would-be exporter but are potentially
attractive terms of payment.
H. Sales service/Customer support
Although less developed than in the U.S., French businesses also provide
all kinds of services such as after sale service, home delivery,
maintenance contracts, warehousing facilities, hot lines or toll free
numbers for any technical assistance.
For some products such as electrical appliances, e.g. T.V., replacement
service is available.
I. Selling to the Government
The French Government generally pursues procurement policies in
accordance with EU regulations, which call for non-discrimination vis-a-
vis foreign firms. In France, procurement regulations do not usually
present barriers to entry for foreign firms. However, local political
pressure and administrative procedures often said to favor French
companies.
French Government procurement comes under the jurisdiction of Ministry
of Economy and Finance. The "Commission Centrale des Marches" (CCM), or
Central Procurement Board, has overall responsibility for monitoring
compliance with procurement regulations.
France, as a member of the EU, is obliged to follow EU public works
regulations which require government purchasing entities to publish
tender notices for all public works projects valued at over 5 million
ecus, or approximately $5.75 million. Tender notices that exceed this
threshold must be published in the Official Journal of the European
Union, as well as in the French Bulletin Officiel des Annonces des
Marches Publics. In the case of telecommunications, transportation and
water utilities, however, a European Community Utilities Directive
(January 1, 1993) requires France to give EU bidders a three percent
price preference and gives France the option to reject bids with more
than 50 percent non-EU content. This same preference has been waived
for U.S. content with respect to electrical utilities as the result of
U.S. - EU agreements on procurements. Certain defense-related
industries are also excluded from regular procurement rules. In
addition, public projects must conform to the following requirements:
-- a minimum of 52 days is required for bid submissions after an offer
is announced.
-- the reason for a bid's rejection must be provided upon request.
-- the values of the winning bids must be publicly disclosed.
For information on French Government procurement regulations and
procedures, contact:
CCM
Tour de Lyon
139, rue de Bercy
75012 Paris, France
Tel: (33-1) 44 87 17 17
Fax: (33-1) 53 17 87 04
Information on current and past French and EU procurement tenders and
bids may be obtained through France's MINITEL service, an on-line
information bank. This service offers up-to-date information and
immediate access.
MINITEL Services Company
888 Seventh Avenue, 28th Floor
New York, NY 10106
Tel: (212) 399-0080
Fax: (212) 399-0129
Access to procurement tenders and bids may also be obtained by
subscribing to the Official Journal of the European Union (OJEU), or the
Bulletin Officiel des Annonces des Marches Publics (BOAMP). However,
these publications often do not arrive from overseas in a timely manner.
OJEU can be ordered from:
UNIPUB
4611F Assembly Drive
Lanham, MD 20706-4391
Tel: (800) 274-4888
Fax: (301) 459-0056
For subscriptions to BOAMP, contact:
BOAMP
Direction des Journaux Officiels
26, rue Desaix, France
75727 Paris Cedex 15, France
Tel: (33-1) 40-58-77-58
or (33-1) 40-58-75-00
J. Protecting your Product from IPR Infringement
Intellectual property consists of industrial property as well as
literary/artistic property. Under the French intellectual property
rights regime, industrial property is protected by patents, trademarks,
and designs and models, while literary/artistic property is protected by
copyrights.
By virtue of the Paris Convention and the Washington Treaty regarding
industrial property, U.S. nationals are entitled to receive the same
protection of industrial property rights in France as French nationals.
In addition, U.S. nationals have a "right of priority period" after
filing a U.S. patent, trademark, design or model, in which to file a
corresponding application in France. This period is twelve months for
patents and six months for trademarks, designs and models.
Patents
There are three types of patents: patents of invention (Brevets
d'Invention), patents of addition (Brevets d'Addition), and certificates
of utility (Certificats d'Utilite). Patents of invention cover all
inventions, whereas patents of addition cover supplements to those
inventions. Certificates of utility cover all inventions except those
of a pharmaceutical nature.
In order to qualify for patent protection, the invention must:
* Have an industrial or agricultural application
* Imply a non-obvious procedure, and
* Have absolute novelty.
Duration: Patents for inventions have a twenty-year life span, after
which they become part of the public domain. Patents of addition are
only valid for the unexpired term of their parent patents. Certificates
of utility have a six-year, non-renewable life span.
Patent Registration: Applications for patent registration must be filed
with the French National Institute for Industrial Property, the Institut
National de la Propriete Industrielle (INPI), before the invention is
publicly disclosed. INPI receives applications, examines their
validity, and registers the patents. After the application for a patent
is filed, INPI conducts a check for comparable inventions. Upon
approval and registration, a patented invention may be manufactured,
operated, used or sold only with the authorization of the patent's
owner. The owner can transfer, or sell the patent, or grant a license
for others to use it. A patent must be used to be retained. Applicants
can consult INPI's library to check for the existence of similar
inventions prior to filing.
INPI
Division des Brevets
26 bis, rue de Saint-Petersbourg
75800 Paris Cedex 08, France
Tel: (33-1) 42 94 52 52
Fax: (33-1) 42 93 59 30
Patent protection in France may also be obtained through ownership of a
European Patent, which is filed through the European Patent office in
Munich:
Office European des Brevets
Erhardtstrasse 27
8000 Munich 2, Germany
Tel: (49) 89 23 990
Fax: (49) 89 99 4465
Patent registration in France requires a French address, which may be
obtained through a legal representative in France. A list of patent
advisors who can act as legal representatives can be obtained from the
French Association of Patent Advisors, Compagnie Nationale des Conseils
en Propriete Industrielle:
CNCPI
21, rue de Saint-Petersbourg
75800 Paris Cedex 08 France
Tel: (33-1) 45 22 55 11
Fax: (33-1) 40 08 07 97
Certificate of Utility Registration:
Certificates of Utility are also granted by INPI (see above). However,
in this case, INPI does not conduct a check for comparable inventions.
Fees:
* Patents for Inventions
- Application fee: $50, which includes the first year of annual
renewal fees.
- Documentation and research fee: $900. This amount is to be paid
at the latest one month after the application.
- The annual renewal fee is calculated each year on a sliding
scale.
* Patents for Additions
- Registration fee: $500
* Certificates of Utility
- Registration fee: $50
- Annual renewal fees are calculated on a sliding scale.
Trademarks
Trademark protection can apply to both goods and services. In a general
sense, trademarks recognize and protect indicators which serve to
distinguish one product or service from similar products or services.
In the French regime, trademarks:
* Can be written or designed trademarks.
* Can be sonorous trademarks, such as musical tunes, jingles,
words, slogans.
* Must not be deceptive as to the nature or origin of the goods.
* Must be recognizable by sight or sound.
* Must have novelty for the specified product line.
Duration: A trademark has a ten-year life span and is renewable every
ten years.
Trademark Registration: Applications must be filed with INPI, which
receives applications, examines their validity, and registers
trademarks. After registering the trademark, it must be publicly and
unequivocally exploited for five consecutive years, or all trademark
rights are forfeited. It may be sold totally or partially, by product
or service category.
INPI
Division des Marques
32, rue des Trois-Fontanot
92016 Nanterre, France
Tel: (33-1) 46 92 58 00
Fax: (33-1) 49 01 07 37
Registration of trademarks, as in the case of patents, requires a French
address, which may be obtained through a legal representative in France.
A list of trademark advisors who can act as legal representatives can be
obtained from CNCPI, whose address is listed above.
Fees:
* Application fee (first registration or renewal): $240 for up to
three product/service categories; $50 for each additional category
protected.
For designs and models specifically:
* For the first photographic reproduction: $50.
* For each additional reproduction up to the 100th: $30.
Designs and Models
Designs and models have the following characteristics:
* Designs are an assembly of traits or colors on the surface of an
object. They constitute an original two additional decoration.
* Models are all creations (ornaments).
* They must have absolute novelty.
Although some designs and models can be protected under patent or
copyright procedures, others fall into a category which requires special
treatment. Designs or models having an industrial function follow
patent procedures, while designs or models having a purely ornamental
function follow copyright procedures. Those designs or models which
have both a practical and an ornamental function are subject to the
following:
Duration: Infringement protection has a 25 year life span, and is
renewable for another 25 years.
Registration: Exclusive proprietary rights to the design or model are
acquired through the act of creation itself. Registration merely serves
as proof of that creation. Designs and models are to be registered with
the INPI:
INPI-Designs and Models Section
26 bis rue de Saint Petersbourg
75008 Paris, France
Tel: (33-1) 42 94 52 52
Fax: (33-1) 42 93 59 30
To prove the date of creation of a design or model without formal
registration, a designer may wish to use a special envelope (envelope
speciale) for a $11 fee. The date of creation begins when the envelope
is received by the INPI.
Copyrights
Copyrights cover artistic works, literary works and software. In the
French IPR regime, in order to qualify for a copyright, the language
used to express the idea must be original, not the idea itself.
Duration: Copyrights are valid for 50 years after the death of the
author, with two major exceptions: music copyrights are valid for
seventy years after the death of the composer, and software copyrights
are valid for 25 years after creation. Contrary to other copyrights,
software designed by a salaried employee belongs to the employer.
Registration: Artistic and literary works are automatically protected
once created and fixed in tangible form. Therefore, registration is not
required, but nonetheless recommended.
For musical works, including songs, instruments, poems, sketches under
20 minutes, monologues, and other musical audiovisual productions,
applications must be filed with the French Society for Musical Authors,
Composers and Editors:
Societe des Auteurs, Compositeurs et Editeurs de Musique (SACEM)
225, avenue Charles de Gaul
92521 Neuilly sur Seine, France
Tel: (33-1) 47 15 47 15
Fax: (33-1) 47 45 12 94
Membership acceptances are restricted to reputable applicants who are
already known for the quality of their works. If not qualified for
SACEM, applications must be filed with the National Association of
Musical Authors and Composers:
Syndicat National des Auteurs et Compositeurs de Musique (SNACM)
80, rue Taitbout
75009 Paris, France
Tel: (33-1) 48 74 96 30
Fax: (33-1) 42 81 40 21
For theatrical works, including plays, operas, operettas, musical
comedies, films and theatrical scripts, applications must be file with
the Society for Theatrical Authors and Composers:
Societe des Auteurs et Compositeurs Dramatiques (SACD)
11 bis, rue Ballu
75442 Paris Cedex 09, France
Tel: (33-1) 40 23 44 44
Fax: (33-1) 45 26 74 28
For literary works and software, applications must be filed with the
French Literary Society:
Societe des Gens de Lettres (SGDL)
38, rue du Faubourg Saint-Jacques
75014 Paris, France
Tel: (33-1) 40 51 33 00
Fax: (33-1) 43 54 92 99
For documentary and educational works, applications must be filed with
the Civil Society for Multimedia Authors:
Societe Civile des Auteurs Multimedia (SCAM)
38, rue du Faubourg Saint Jacques
75014 Paris, France
Tel: (33-1) 40 51 33 00
Fax: (33-1) 43 54 92 99
K. Need for Local Attorney
Establishing an entity to do business in France is not a good occasion
for a "do it yourself" approach. A lawyer with experience in France
should be retained as soon as the establishment of a French business
entity is contemplated. The American Embassy in Paris maintains a list
of American Lawyers practicing in France, which is available upon
request. More detailed information about professional backgrounds can
be obtained from the Martindale-Hubbell Law Directory and for the Bar
Register of Pre-eminent Lawyers. Lawyers and bankers in the United
States also will normally have means of recommending lawyers in France.
France has two major categories of legal practitioners:
Avocats: An "avocat" must be a lawyer. "Avocats" may render legal
advice on all matters, draft agreements and contracts, handle commercial
disputes and collection cases, and plead and defend civil and criminal
cases before the French courts to which they are admitted.
Notaries (Notaires): A French "notaire" is a public official appointed
by the Ministry of Justice, and not the equivalent of a public notary in
the United States. The number of "notaires" in each jurisdiction is
limited, and their fees fixed by law. Their functions include the
preparation and recording of notarial acts (wills, deeds, acts of
incorporation, marriage, contracts, etc.), the administration and
settlements of estates (excluding litigation in court) and serving as
the repository of wills. They are not lawyers, but very specialized
members of the legal profession. They may not plead in court.
CHAPTER V.. LEADING TRADE PROSPECTS FOR U.S. EXPORTS AND INVESTMENT
Listed below are 19 industry sectors which the U.S. Embassy in France
considers "best prospects" for U.S. business; they are ranked by
increasing forecast total imports from the U.S.
RANK TOTAL IMPORTS SECTOR SYMBOL NAME
FROM U.S.
1 3,700 IRA
2 3,085 CSF
3 2,533 ICH
4 2,197 EMP
5 1,812 ELC
6 1,478 INS
7 1,430 CPT
8 1,085 SEC
9 990 EPS
10 633 AIR
11 533 FLM
12 447 APG
13 440 MED
14 428 DFN
15 400 APS
16 310 AUT
17 307 POL
18 300 PUC
19 150 TEL
1 - TRAVEL & TOURISM (TRA)
The French travel and tourism market is showing two distinctive trends.
First, the United States is no longer a destination for a privileged
few. In fact, it has become a bread-and-butter mainstay of both tour
operators and retailers. Second, as the French continue to be highly
individualistic in their travel behavior, worries about personal safety
are bringing about an upward trend in the escorted and inclusive tour
segment of the market.
Since 1982, French interest in travel to the U.S. has more than doubled
reaching 863,345 visitors in 1994, with an average growth rate of 4
percent forecast for 1995 and 1996. In 1995, 930,000 French travelers
are expected to visit the U.S., with New York being their primary
destination. According to a 1994 survey conducted by SOFRES of 1000
French households, 57 percent of the French take a summer vacation away
from home. Of those, 19 percent go on vacation for two weeks, 12
percent for three weeks, 8 percent for four weeks, and 5 percent for
more than four weeks. Of the respondents, 79 percent would take a one
week vacation and 20 percent would divide their available leave into two
vacations. The annual paid vacation entitlement of the French workforce
is 5 weeks.
Only 23 percent of French travelers used a travel agent in 1994. For
travel to the United States that figure was 50 percent. The best
customers for U.S. agents are corporate managers, professionals, and
people in the administrative professions. By and large, wholesalers and
tour operators play a smaller role than in other markets. Roughly 30
percent of the French buy packaged products, 10 percent of which involve
fly-drive arrangements. Wholesalers, however, view their investment in
catalog production as a form of cost-effective direct consumer
advertising and hence a basic consumer sales tool. The active Visit USA
travel trade in France consists of roughly 2000 retail agents, 50
wholesalers/tour operators, 20 incentive specialists, and some 120
business and group specialists. All major hotel companies, rental car
firms, rail and cruise lines, and attractions are represented. Nine air
carriers, of which 8 are American, serve 13 U.S. cities on a non-stop
basis.
1994 1995 1996
A. Total Market Size 81,600 83,600 85,700
B. Total Local Production 95,500 98,400 101,400
C. Total Exports 26,900 28,200 29,600
D. Total Imports 13,100 13,800 14,500
E. Total Imports from U.S. 3,200 3,400 3,700
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
2 - COMPUTER SOFTWARE (CSF)
The recessionary environment of the early 90's had a strong negative
impact on French companies' budget policies for computer expenditures.
In addition to this, heightened competition among computer software
vendors caused them to drop their prices at an accelerated pace. In
spite of these challenges, the French computer software market should
continue presenting positive long-term prospects. The introduction of
the latest generation of micro-computers, the accelerating development
of telecommunications, and the creation of networked systems will all
contribute to this growth.
French companies tend to outsource a greater proportion of their
software development than in other European countries, thus making
France the largest software market in Europe, with over 6,000 software
firms. Furthermore, French flagship firms such as Bull (leading
hardware manufacturer) and Cap Gemini Sogeti (leading software and
services company) have helped ensure that adequate resources are
invested in the software industry. The recent growth of the software
industry at the expense of the hardware industry has also led major
hardware companies such as IBM, DEC, BULL and UNISYS to redirect their
resources towards the software sector.
American firms also control the French packaged software market with
products for databases, spreadsheets, CAD/CAM systems and word
processing. The increasing availability of sophisticated off-the-shelf
products as replacements for more expensive custom-made software is
shifting the market toward packaged software products. The U.S.
technological edge in these areas, coupled with the anticipated growth
of the PC software market, should facilitate a continued strong American
presence in the French market. Due to exchange rate fluctuations
between 1994 and 1996, the growth rate of this sector appears to be
declining in terms of dollars, but is in fact growing in terms of units.
1994 1995 1996
A. Total Market Size 18,503 21,805 23,063
B. Total Local Production 16,653 19,857 21,200
C. Total Exports 3,700 4,315 4,522
D. Total Imports 5,550 6,263 6,385
E. Total Imports from U.S. 2,775 3,089 3,085
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
3 - INDUSTRIAL CHEMICAL (ICH)
In 1994, in spite of a world-wide recession, the French chemicals
industry is still quite strong. Demand for all types of chemicals is
increasing, granted at a slower rate than in the 1990-1992 period. As
technological advances continue, and various needs from different
industries arise, the markets for industrial chemicals should continue
to grow. The pharmaceutical and vitamin industries continue to grow due
to consumer trends towards healthy lifestyles (vitamins), and new
medical advances in pharmaceuticals. At the same time, French cosmetics
manufacturers continue to dominate demand worldwide. These markets,
however, are highly competitive.
A few potential issues are:
-- an increasing number of environment-related regulations are raising
costs and discouraging investment
-- a change in the level of reimbursement of pharmaceuticals by the
French social security could affect consumption and ultimately imports.
-- worldwide prices are being rocked by the influx of chemicals from
former Eastern Block countries.
1994 1995 1996
A. Total Market Size 95,600 108,400 109,473
B. Total Local Production 68,300 77,400 78,196
C. Total Exports 37,700 42,709 43,136
D. Total Imports 21,950 24,883 25,131
E. Total Imports from U.S. 2,210 2,510 2,533
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
4 - EMPLOYMENT SERVICES (EMP)
Unemployment, currently 11,6 percent of the working population, remains
a major economic problem. The employment services industry having
suffered a 20 percent decrease in turnover in 1993, saw the trend
reversed in 1994 as recruitment firms enjoyed a 9 percent increase in
sales. The beginning of 1995 seems to have confirmed this trend, and
professionals are optimistic.
Temporary employment services are usually a good indicator of the
employment market. After three years of decline, the industry
registered an increase of 27 percent in sales in 1994 compared to the
previous year. The recovery is evident in the industrial sector,
particularly due to the special government allowance, "Prime Balladur",
which boosted the sales of cars and positively affected other industry-
related sectors.
In the temporary services sector, four major companies account for 50
percent of the market. The leading employment services company, ECCO,
is French, followed by the U.S. company MANPOWER, the French company
BIS, and the Swiss company ADIA.
American recruitment firms figure most prominently in executive search
where they represent some 25-30 percent of the market and account for
about 43 percent of revenue. Almost all major U.S.
headhunter/recruitment companies are already present in France and enjoy
a good reputation.
Access to the French employment services market is relatively easy as
there are no trade barriers, and U.S. firms are subject to the same
regulations and standards as are local firms.
The most promising subsectors are in heavy industry, with an estimated
1995 market size of USD 5,066 million, and services, with an estimated
1995 market size of USD 2,430 million.
1994 1995 1996
A. Total Market Size 9,900 9,990 10,989
B. Sales by Domestic Firms 7,326 8,092 8,900
C. Export Sales 1,049 1,059 1,164
D. Sales by Foreign-owned Firms 2,871 2,897 3,186
E. Sales by U.S.-owned Firms 1,782 1,998 2,197
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
5 - ELECTRONIC COMPONENTS (ELC)
The figures listed below, other than the projections for 1995 and 1996,
are based on official trade statistics for electronic components, both
passive and active.
It is difficult to assess the true U.S. portion of electronic component
imports in France. It is estimated that the United States accounts for
32 percent of active component imports and 11 percent of passive
component imports. However, many American-made products transit through
third-party countries before reaching France, and do not appear as U.S.
origin imports. In addition, U.S. firms such as Motorola and Texas
Instruments France have major manufacturing facilities in France, but
the output of these plants are considered to be local French production.
Total French demand for electronic components is distributed among the
following products: 31 percent for semiconductors, 17 percent for
printed circuits, 10 percent for connectors, 9 percent for passive
components, 8 percent for tubes, 4 percent for hybrids and 21 percent
for other miscellaneous components. Some segments boosted by emerging
new end-user markets, such as mobile telecommunication systems,
automobile electronics, and smart card IC applications, should be
experiencing strong growth rates averaging 7 to 15 percent. Due to
exchange rate variations between 1994 and 1996, the growth rate of this
sector appears to be declining in terms of dollars, but is in fact
growing consistently in terms of units.
1994 1995 1996
A. Total Market Size: 5,637 7,005 7,828
B. Total Local Production: 5,606 6,934 7,750
C. Total Exports: 5,615 6,979 7,800
D. Total Imports: 5,646 7,050 7,879
E. Total Imports from U.S.: 1,310 1,621 1,812
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
6 - INSURANCE SERVICES (INS)
In the early '90s, French insurance companies started diversifying their
investments. In 1994, the industry was hurt both by the downturn in
financial markets as well as the real estate crisis. Today, as a result
of these unfortunate investments, the insurance industry is
restructuring to concentrate on its core activity
The French insurance industry is ranked fifth in the world after the
United States, Japan, the United Kingdom, and Germany. The French
companies UAP and AXA are among the ten leading insurance companies
worldwide.
Despite difficult times in 1994, the industry has continued its
development with an approximate overall growth rate of 10 percent. The
most promising subsectors include insurance of the person, especially
life insurance with more than 20 percent growth over the last two years,
and an estimated market size of USD 88,800 million. While analysts
expect slight stagnation in life insurance during the coming years
because of increased competition, insurance companies are looking into
new proposals with high growth potential, such as pension funds.
Many analysts have high expectations for pension funds, pending
government approval. U.S. companies could certainly benefit from such a
decision, when adopted. The French insurance industry has already taken
the lead by creating its own employee pension funds will from January 1,
1996. This initiative is expected to put pressure on the government
decision process.
The French market is highly competitive, however foreign companies can
access to it through a branch or a subsidiary upon approval of the
French Ministry of Economy and Finance.
1994 1995 1996
A. Total Market Size 134,040 148,935 165,485
B. Sales by Domestic Firms 121,976 135,530 150,590
C. Export Sales 1,608 1,787 1,985
D. Sales by Foreign-owned Firms 12,465 13,850 15,390
E. Sales by U.S.-owned Firms 1,192 1,325 1,478
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
7 - COMPUTER AND PERIPHERALS (CPT)
France is the second largest information technology market in Europe,
and the fourth largest computer market in the world. This reflects the
high priority given by the French government to the computerization of
the country's institutions.
PCs and workstations will be the fastest growing segment of the French
computer and peripheral market, rising 10 percent annually between 1993
and 1997. Small-scale multi-user computers sales should also post
modest gains during this period.
Worldwide recession affected the French hardware market into early 1994.
However, growth of personal computer sales from 1994-1996 is expected to
reach 14 percent, with more modest growth anticipated for mid-range and
mainframe systems.
The six largest suppliers of hardware in France are IBM, BULL, DIGITAL,
COMPAQ, ICL and APPLE. Four of these are American. Although large
companies still dominate the micro-computer industry, smaller
organizations are entering the market through innovative marketing
methods such as mail-order and telemarketing.
In terms of product choice, the widespread acceptance of Windows, the
operating system developed by Microsoft, has shifted the market toward
IBM-compatible products and away from Apple products. Consumers have
also become more targeted on their choices and now prefer well-known
brands over clones, especially as the price differences between the two
product categories have become negligible. Due to exchange rate
fluctuations between 1994 and 1996, the growth rate of this sector
appears to be declining in terms of dollars, but is in fact growing in
terms of units.
1994 1995 1996
A. Total Market Size 8,437 9,520 9,647
B. Total Local Production 4,935 5,708 5,774
C. Total Exports 422 479 483
D. Total Imports 3,902 4,292 4,356
E. Total Imports from U.S. 1,255 1,416 1,430
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
8 - SECURITY AND SAFETY EQUIPMENT (SEC)
The French market for security and safety equipment is the second
largest in Europe after Germany. The rapid and considerable growth of
this industry between 1989 and 1992 has slowed down along with the
French economy. However, market demand has enjoyed sustained growth
over the past two years and by 1997 is expected to return to its normal
annual growth rate of 10-12 percent. Industry experts believe that
market demand will rise by 100 percent in the next ten years, due to the
aging of the population.
U.S. industry exports to France were estimated to be worth USD 1,028
million in 1994, representing approximately 49 percent of the French
import market. By 1995, they are expected to continue to increase in
line with projected market growth. There is a lack of domestic and
foreign competition in this segment.
In the security and safety equipment market, some subsectors are more
buoyant than others. Electronic surveillance and access controls should
remain the most dynamic. Tele-assistance is another subsection which
promises to offer short and mid-term growth opportunities. Best
prospects for American companies include telesurveillance equipment for
boiler rooms and elevators, biometrics systems, fire extinguishing
agents, and sprinklers.
1994 1995 1996
A. Total Market Size 5,438 5,601 5,806
B. Total Local Production 4,358 4,445 4,614
C. Total Exports 1,035 1,053 1,094
D. Total Imports 2,115 2,209 2,286
E. Total Imports from U.S. 1,028 1,051 1,085
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
Please note that the statistics above do not include security services
and technical control, and are unofficial estimates.
9 - ELECTRICAL POWER SYSTEMS (EPS)
The French market for electrical power systems has remained stable over
the past two years. Market growth for 1996 is not expected to exceed 2-
3 percent.
The search for the most environmentally sound, energy efficient and cost
efficient means of generating and transmitting electric power will
continue to drive the market over the next five years. In addition,
environmental concerns are leading to more stringent legislation.
Consequently, great potential exists for fuel gas desulphurization
equipment (FGD), gas turbines, waste heat boilers and cogeneration
systems. The safety of nuclear power stations, which continues to be a
priority of the French government, will keep demand rising for
pressurized water reactors (PWR).
Presently, ninety percent of the domestic market is served by
Electricite de France (EDF), a French government-owned electricity
company, and its subsidiaries or partner firms. However, under pressure
from Brussels, EDF has indicated that it plans to reconsider its
monopolistic position, opening the way for other operators, and offering
major energy users the possibility of acquiring energy from independent
producers. Furthermore, as a result of EU directives on government
procurement, France should offer a more competitive and open market for
foreign electrical power system manufacturers. Thus should offer
promising opportunities for U.S. electrical equipment manufacturers.
1994 1995 1996
A. Total Market Size 11,050 11,060 11,220
B. Total Local Production 10,350 10,350 10,400
C. Total Exports 6,320 6,340 6,460
D. Total Imports 5,620 5,630 5,660
E. Total Imports from U.S. 970 970 990
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.0 FRF 5.1
The above statistics are unofficial estimates.
10 - AIRCRAFT AND PARTS (AIR)
Although noting the improved market in 1994, industry experts predict a
slight decline in revenues for 1995 followed by a modest improvement in
1996.
The rise in worldwide passenger traffic helps explain the European
Airbus consortium's return to profitable trading in 1994. New orders
rose to 125 and cancellations dropped to 54, adding 71 aircraft to the
order books.
During the year, Airbus delivered 123 aircraft, over half from the
A320/321 family, to companies in 33 countries. At year's end the total
number of aircraft on order was 615, or 52 less than the 667 on order at
the end of 1993. This represents a little over four year's production.
The Franco-Italian ATR consortium delivered 48 turpoprop transports in
1994, increasing its output from 1993. On the business aircraft front,
1994 was a better year for French manufacturer Dassault Aviation as
well. With 45 firm orders, almost all from export markets, Dassault
sold twice as many Falcons as in 1993.
France's helicopter market, however, remained depressed. The drop has
been particularly felt in military markets. France's overall aircraft
market is split roughly 50/50 between civil and military customers.
Revenues from space programs are buoyant, reflecting the full manifest
of the Ariane space launcher.
Source: GIFAS
1994 1995 1996
A. Total Market Size 2,360 2,308 2,343
B. Total Local Production 5,664 5,539 5,622
C. Total Exports 4,720 4,616 4,685
D. Total Imports 1,416 1,385 1,406
E. Total Imports from U.S. 637 623 633
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
11 - FILMS, VIDEOS AND OTHER RECORDINGS (FLM)
A total of 115 films were produced in 1994, of which 89 were French-
initiated films and 36 minority co-productions, including four with
Central and East European countries. Two-thirds of the French-initiated
films were wholly French-produced, and a third were principally French-
produced with minority partners.
In 1994, 126 million people filled France's 4,235 movie theaters
representing USD 860 million of box office receipts. The film viewing
public was divided as follows: U.S. films were seen by 76 million
people, European films by 51 million people, and French films by 35
million people.
According to the French Ministry of Culture, French adults spent on
average USD 14.4 on cinema tickets, USD 54 on the annual TV license or
pay-TV services, and USD 51.4 on videocassettes. Consumer spending on
pay-TV and videocassettes grew 230 percent between 1980 and 1993, while
box-office receipts fell 20 percent during the same period.
Household expenditures on video cassettes amounted to USD 567.63
million, including rentals (USD 63.94 million) and sales (USD 503.69
million). Household expenditures on laser disks amounted to USD 15.75
million, a 19.82 percent decrease compared with 1993 figures (19.65
million). Laser disks represented 3.12 percent of 1994 video cassette
sales.
In 1994, video sales were broken down as follows: French films accounted
for 6.5 percent, foreign films for 44.5 percent, special event videos
for children for 35 percent, while other video recording accounted for
the remaining 14.0 percent of sales.
1994 1995 1996
A. Total Market size 763.46 779 792
B. Total Local Production 243.23 248 252
C. Total Exports 73.40 75 76
D. Total Imports 593.63 605 616
E. Total Imports from U.S. 513.71 524 533
F. Exchange Rate: USD 1 FRF 5.50 FRF 5.0 FRF 5.10
The above statistics are unofficial estimates.
12 - AVIONICS AND GROUND SUPPORT EQUIPMENT (APG)
The United States is France's leading foreign supplier of avionics and
ground support equipment with approximately 45 percent share of the
import market.
Long term U.S. suppliers to the Airbus program include, Allied Signal,
Auxitrol, BF Goodrich, Fairchild, Litton, Raychem, Rockwell-Collins,
Rohr, Sundstrand, among others. These firms could offer opportunities
for small and medium sized firms to enter the market.
In spite of pessimistic projections by trade specialists for the short
term, some sub-sectors may still offer potential to France. Demand for
on-board telecommunications (SATCOM) and entertainment (Video Equipment)
is expected to increase. The French company Alcatel Telspace is
developing an European network TFTS (Terrestrial Flight Telephone
System) that will permit in-flight passengers to be connected to public
lines. According to media reports, however, TFTS is several years
behind its American counterpart.
Modernization and expansion programs are underway at international
airports in Paris, Marseilles, and Lyon. The Paris Airport Authority is
spending USD 1.4 to upgrade Orly and greatly expand Roissy-Charles de
Gaul. There is also a project to enlarge Marseilles Provence Airport,
expanding total capacity to 90,000 spm before the year 2000. At Lyon, a
four-year expansion program is underway, designed to turn Lyon-Satolas
Airport into an international connecting hub with a focus on intermodal
transportation.
1994 1995 1996
A. Total Market Size 1,880 1,839 1,866
B. Total Local Production 4,512 4,413 4,479
C. Total Exports 3,760 3,677 3,732
D. Total Imports 1,128 1,103 1,120
E. Total Imports from U.S. 450 440 447
F. Exchange Rate: USD 1 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
13 - MEDICAL EQUIPMENT (MED)
The French medical equipment sector continues to grow at levels
commensurate with the population increase and extended life expectancy.
The recent growth of U.S. medical procedures and techniques in France
such as (outpatient) same day surgery should benefit U.S. medical
product manufacturers. Along with products used by the elderly and
home-medical care recipients, these products will be in great demand in
the future.
The current strain on public budgets has re-emphasized the importance of
the price/quality factor, as well as a need for more cost-effective
equipment. Since up to 70 percent of all French medical costs are
reimbursed, there has been a historical tendency for health-care
providers and patients to overconsume and pay little attention to costs.
Such overconsumption has endangered the social security system and
caused health-care professionals to become more price-sensitive. This
shift in priorities provides opportunities for suppliers of price-
competitive products.
American products also enjoy a positive reputation in France. They are
perceived to feature the latest technology and to be of high quality and
well-serviced. This opinion is reinforced by French trade publications,
scientific journals and, most importantly, by word-of-mouth among the
various end-users. In sum, the French market is large and receptive to
American products.
The best sales prospects for medical equipment include newly developed
areas such as non invasive surgery, orthopedic and disposable medical
equipment. The medical equipment sector depends highly on imports,
mainly from the U.S., followed by Germany, Japan and Italy.
1994 1995 1996
A. Total Market Size 2,086 2,149 2,213
B. Total Local Production 1,042 1,040 1,046
C. Total Exports 526 550 577
D. Total Imports 1,570 1,660 1,766
E. Total Imports from U.S. 392 415 440
F. Exchange Rate: FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
14 - DEFENSE INDUSTRY EQUIPMENT (DFN)
France has arguably the largest and most sophisticated armed forces in
Europe. The budget to sustain this force structure and the size of the
French defense industry point to a potentially huge export market. On
the other hand, national defense is at the core of an established
industrial policy that favors indigenous development over procurement
from non-French sources. Actual exports to the French defense
establishment are mainly European exports in the scope of common
european defense programs. Imports increased by more than 100 percent
over the past ten years -- much of the increase benefiting U.S.
suppliers. In order to be successful in France, U.S. defense firms need
to establish a permanent presence, they must understand the role of the
Delegation General for Armament (DGA); on a case by case basis, they
could be required to offer offsets, and, for large programs, they need a
French partner. U.S. export opportunities are still viable in cases
where French concerns cannot justify parallel development. Most U.S.
companies enter the French market as a subcontractor.
Source: DGA, EIA, and post files
1994 1995 1996
A. Total Market Size 21,203 21,588 20,508
B. Total Local Production 34,005 34,685 32,950
C. Total Exports 13,602 13,847 13,155
D. Total Imports 800 750 713
E. Total Imports from U.S. 416 400 428
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.0 FRF 5.1
The above statistics are unofficial estimates.
15 - AUTOMOTIVE PARTS AND SERVICE EQUIPMENT (APS)
French automobile equipment industry sales increased a small 1.5 percent
in 1994, largely due to governmental measures. Prospects for 1995 are
looking better, with a probable two figure increase.
Aftermarket sales, particularly since the implementation of mandatory
inspections for vehicles over 5 years old, are expected to profit from
this increase. Two major segments of the aftermarket sector (tires and
lubricants) show that the general environment is favorable: Market size
for car lubricants in 1994 was up 0.8 percent in the replacement market
and up 14 percent in the O.E.M market. Tires experienced an overall +
12.7 percent increase in volume.
In 1994, the market share of the automotive parts sold by independent
networks, agents, and distributors rose by 3 points while those sold by
manufacturers declined by 2 points. Because of lower overhead costs,
auto centers have become very popular with DIY car repairers as part
prices are very competitive and on-the-spot servicing is also available.
There has been an increasing development of auto centers specializing in
tire and oil replacement in large supermarkets and malls.
1994 1995 1996
A. Total Market Size 11,905 12,499 12,749
B. Total Local Production 14,817 15,557 15,868
C. Total Exports 10,371 10,889 11,107
D. Total Imports 7,459 7,831 7,988
E. Imports from the U.S. 372 391 400
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
16 - AUTOMOBILES AND LIGHT TRUCKS (AUT)
In 1994, the French vehicle fleet represented approximately 29,450,000
automobiles. France manufactured 3,175,213 private cars in 1994, a 11.9
percent increase from 1993. Of these, 1,975,436 were exported. During
the same period, France imported (and registered) 765,521 vehicles,
representing 38.8 percent of the country's 1,972,919 registered
vehicles. Industry experts expect car sales to stablize in 1995 to
around a 2 to 4 percent sales increase.
Electric vehicles constitute an important market trend. French car
manufacturers Automobiles Renault and Peugeot PSA will be launching
three electric car models in September 95. To date, France has
approximately 1,500 electric vehicles equipped with either lead-acid or
nickel-cadmium batteries. Trade specialists predict that 200,000
vehicles will be operating in major European cities within 10 years, and
that sales of electric cars will reach 50,000 units annually by the year
2000.
Small city cars, such as the Mercedes-Swatch project, with hybrid
propulsion (electric/diesel or gas engines) are also a trend in
development. This model is expected to reach consumers in 1997.
1994 1995 1996
A. Total Market Size 53,974 53,944 57,008
B. Total Local Production 59,770 62,160 63,348
C. Total Exports 27,501 26,728 27,262
D. Total Imports 19,905 20,512 20,922
E. Imports from the U.S. 298 304 310
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
17 - POLLUTION CONTROL EQUIPMENT & SERVICES (POL)
The French market for pollution control equipment and services continues
to grow steadily as a result of French legislation and European
Directives. Landfill management techniques, waste incineration,
recycling methods, bio-remediation of contaminated sites, increased
emphasis on monitoring and limiting air pollution are all important
issues being addressed by the Ministry for the Environment. New taxes
are being levied on the disposal of industrial wastes to pay for the
clean-up of some 700 polluted sites throughout France. Additional sites
are expected to be identified in the near future.
As a result of European directives, French authorities have developed a
long-term plan to bring France's environmental standards to a level
comparable to those enforced in other EU countries. For example,
massive investment programs in waste water treatment infrastructure will
be spent over the next ten to fifteen years.
The difficulty in evaluating an industry composed of so many often
unrelated markets (i.e. analytical instruments, trash containers,
incineration ovens or bio-remediation chemicals), is that most
manufacturers of equipment for use in environmental applications also
produce a broad range of unrelated products. However, the sales figures
from these firms consolidate the sales of both their environmental and
non-environmental products.
U.S. firms active in France provide high-tech, innovative and unique
solutions to controlling pollution. Competition from nearby European
countries is high, particularly from Germany, U.K., Sweden, Netherlands
and Switzerland.
The pollution control equipment sector includes the production of goods
and services for measuring, preventing, limiting, or treating
environmental damage including the pollution of water, air, and land,
noise pollution, and waste. Due to exchange rate fluctuations between
1994 and 1996, the growth rate of this sector appears to be declining in
terms of dollars, but is in fact growing in terms of units.
1994 1995 1996
A. Total Market Size: 13,498 15,590 16,049
B. Total Local Production: 20,564 23,299 23,985
C. Total Exports: 10,440 11,536 11,768
D. Total Imports: 3,375 3,828 3,833
E. Total Imports from U.S.: 243 285 307
F. Exchange Rate: FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
18 - PUMPS, VALVES AND COMPRESSORS (PUC)
The French valve market is the largest in Europe and one of the most
competitive, generating USD 2.1 billion in local sales and exports.
From 1988 to 1994 the French market experienced an average 8.5 percent
annual growth rate, with a period of contraction in 1992-1993. The taps
were re-opened in 1994 as the market flowed at a healthy 7.9 percent
rate of growth.
The industrial valve sector generally followed the same pattern, but
exceeded expectations in 1994 by posting a sales volume of USD 560
million (up from USD 460 million in 1993). Activity in the industrial
valve sector represents 60 percent of the total valve market.
French companies retain control of the domestic market for regulation
valves, and are leaders in the production of "high security" valves.
However, the presence of foreign companies is growing stronger. In
fact, imports contribute 35 percent to the total industrial valve
market. With 10 percent of the import market share, the U.S. is the
third largest source of imported valves and maintains leading import
positions in security valves, check valves and steel gate valves.
With USD 850 million the French pump market is the largest in Europe and
certainly one of the most competitive vis-a-vis the number of firms
present as well as the level of technology requested. Cutback in the
nuclear program have reduced the demand for large industrial pumps, but
nuclear applications still represent 28 percent of the global market.
Focus has been shifted to water treatment applications, which represent
50 percent of the market and which are expanding due to the continuous
need for infrastructure and public funds directed to those programs. In
1994, France pump imports represented more than USD 930 million. Germany
is by far the largest supplier, leading the U.S., Spain and Italy.
France 's compressor market is valued at USD 400 million. This sector
is largely dominated by foreign firms that often have production
facilities in France or control French firms. The U.S. has a strong
position thanks to world-wide leading companies such as Ingersoll-Rand
and Dresser.
1994 1995 1996
A. Total Market Size 2,750 3,000 3,100
B. Total Local Production 2,950 3,300 3,180
C. Total Exports 2,200 2,650 2,740
D. Total Imports 2,200 2,450 2,525
E. Total Imports from U.S. 270 295 300
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The above statistics are unofficial estimates.
19 - TELECOMMUNICATIONS EQUIPMENT (TEL)
France Telecom operates virtually all public communications networks in
France. Among these are the public switched telephone network (PSTN),
packet-switched data network, telex network, private leased circuits,
mobile communications networks, and the integrated services digital
network (ISDN) known as Numeris. The French network uses digital,
fiber-optic and terrestrial microwave systems and is generally
considered to be one of the most advanced and reliable systems in
operation.
The number of telephone lines installed in 1994 reached 31.6 million,
including Numeris-ISND Access lines. With a receiver for every 1.5
inhabitants, France ranks behind the United States and Canada and ahead
of Germany, United Kingdom and Italy.
In 1993, France represented an estimated 4.1 percent of the world market
for telecommunications equipment. Current growth trends indicate that
France, for several years to come, will be one of the world's most
attractive markets for mobile infrastructure, satellite antennae,
optical fiber, telephone sets, mobile telephones and pagers, and fax
machines.
All the hardware and software used by France Telecom is purchased from
the private sector, thereby accounting for a large share of the nation's
telecommunications equipment acquisitions. France Telecom is also a
major buyer of customer premises equipment (CPE), although private
companies currently dominate this market. With robust growth in this
sector, and the expansion that is expected to accompany European
telecommunications deregulation in 1998, American companies should be
prepared to take advantage of the manifold sales opportunities presented
by the French market.
1994 1995 1996
A. Total Market Size 3,692 3,810 3,881
B. Total Local Production 4,759 4,900 5,010
C. Total Exports 1,653 1,850 1,970
D. Total Imports 586 760 841
E. Total Imports from U.S. 120 142 150
F. Exchange Rate: USD 1.00 FRF 5.50 FRF 5.00 FRF 5.10
The figures above are unofficial estimates.
B. BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
New market opportunities (or current opportunities which need to be
heavily targeted) in France for U.S. agricultural exporters exist in a
number of areas: fresh fruits and vegetables (particularly tropical and
exotic), fruit juices and other beverages, including flavored spring
waters, frozen foods (both ready-to-eat meals and specialty products
like pizza and ice cream), snack foods such as cookies, chips and nuts,
"ethnic" products featuring distinctive themes and flavors such as Tex-
Mex, Cajun or California-style cuisine's, seafood (particularly salmon),
wild rice, innovative dietetic and health products, organic products,
soups, breakfast cereals and pet foods.
Listed below are 6 agricultural sectors which FAS France considers "best
prospects" for U.S. business (figures in USD millions):
RANK TOTAL IMPORTS SECTOR SYMBOL NAME
FROM U.S.
- 61 MISC. FOOD PREPARATIONS;
-INCL SOUPS, SAUCES & ICECREAMS
- 70 PROCESSED FRUITS & VEGETABLES,
- INCL. FRUIT JUICES
- 125 FISH AND SEAFOOD, FRESH OR FROZEN
- 115 WOOD
- 12 BEVERAGES, INCLUDING MINERAL
WATER, BEER, WINE AND SPIRITS
- 115 FRESH AND DRIED FRUITS;
INCLUDING NUTS
Rank: n/a
Name of Sector: FRESH AND DRIED FRUITS; INCLUDING NUTS
HS Code: 08
1994 1995 1996
(Jan-Dec) (P) (F)
A. Total Market Size 3,790 3,900 4,020
B. Total Local Production 2,519 2,595 2,672
C. Total Exports 1,226 1,265 1,300
D. Total Imports 2,497 2,570 2,650
E. Total Imports from U.S. 125 135 145
F. Exchange Rate: USD 1.00 = FRF 5.55
Rank: n/a
Name of Sector: WOOD
HS Code: 44
1994 1995 1996
(Jan-Dec) (P) (F)
A. Total Market Size 2,924 2,985 3,045
B. Total Local Production 2,630 2,680 2,735
C. Total Exports 1,728 1,765 1,795
D. Total Imports 2,022 2,062 2,103
E. Total Imports from U.S. 113 115 120
F. Exchange Rate: USD 1.00 = FRF 5.55
Rank: n/a
Name of Sector: FISH AND SEAFOOD, FRESH OR FROZEN
HS Code: 03
1994 1995 1996
(Jan-Dec) (P) (F)
A. Total Market Size 2,804 2,860 2,920
B. Total Local Production 1,452 1,480 1,510
C. Total Exports 778 795 800
D. Total Imports 2,130 2,175 2,220
E. Total Imports from U.S. 97 100 105
F. Exchange Rate: USD 1.00 = FRF 5.55
Rank: n/a
Name of Sector: PROCESSED FRUITS AND VEGETABLES, INCLUDING FRUIT JUICES
HS Code: 20
1994 1995 1996
(Jan-Dec) (P) (F)
A. Total Market Size 4,787 4,885 4,980
B. Total Local Production 4,126 4,210 4,295
C. Total Exports 851 870 885
D. Total Imports 1,512 1,540 1,570
E. Total Imports from U.S. 68 70 75
F. Exchange Rate: USD 1.00 = FRF 5.55
Rank: n/a
Name of Sector: MISCELLANEOUS FOOD PREPARATIONS; INCLUDING SOUPS, SAUCES
AND ICE CREAMS
HS Code: 21
1994 1 995 1996
(Jan-Dec) (P) (F)
A. Total Market Size 4,279 4,320 4,360
B. Total Local Production 5,276 5,360 5,435
C. Total Exports 1,745 1,800 1,850
D. Total Imports 748 760 775
E. Total Imports from U.S. 54 56 60
F. Exchange Rate: USD 1.00 = FRF 5.55
Rank: n/a
Name of Sector: BEVERAGES, INCLUDING MINERAL WATER, BEER, WINE AND
SPIRITS
HS Codes: 22.01 to 22.06 and 22.07 + 22.08
1994 1995 1996
(Jan-Dec) (P) (F)
A. Total Market Size 11,869 12,105 12,350
B. Total Local Production 17,838 18,190 18,555
C. Total Exports 7,334 7,480 7,630
D. Total Imports 1,365 1,390 1,420
E. Total Imports from U.S. 31 35 40
F. Exchange Rate: USD 1.00 = FRF 5.55
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
A. Tariffs and Import Taxes
The member states of the European Union have established a Community
Integrated Tariff (TARIC) system, under which duties are applied to
imports from non-EU countries. TARIC was established by the 1958 Treaty
of Rome as part of the European Economic Community (EEC).
The duties levied on imports from non-EU countries, including the United
States, are moderate. Most raw materials enter duty-free or at low
rates, while most manufactured goods are subject to rates of between 5 -
17 percent. Most agricultural product imports are covered by the Common
Agricultural Policy (CAP), under which many items are subject to
variable levies designed to equalize the prices of imported commodities
with those produced in the EU.
France and other EU member states extend varying preferential tariff
treatment to imports from the African, Caribbean and Pacific developing
countries (under the Lome Conventions), several French and Dutch
territories and departments, Turkey, Egypt, Morocco, Tunisia, Algeria,
Israel, Malta, Cyprus, Jordan, Lebanon, and Syria. Tariff preferences
are also extended to over 100 developing countries under the Generalized
System of Preferences (GSP).
To export consumer-ready food products to France, a U.S. exporter should
consider market access restrictions and food laws. Most processed
products entering the European Union and France are subject to
additional import charges based on the percentage of sugar, milk fat,
milk protein and starch in the product. These additional import
charges may make certain imported processed products non-competitive in
the European market, vis-a-vis similar products produced in the EU. The
situation should improve over the next few years because these charges
will be converted to fixed tariff equivalents and reduced under the
Uruguay Round Agreement. Interested U.S. exporters should contact the
Office of Agricultural Affairs for up-to-date information on this issue.
The EU tariff schedule is based on the Customs Cooperation Council
Nomenclature (CCCN), also referred to as the Harmonized System. This
system was introduced to provide a standard tariff classification regime
for all products imported and exported throughout the world.
B. Trade Barriers
U.S. companies sometimes complain of France's complex technical
standards and of unduly long testing procedures. Testing requirements
(which must usually be done in France) and standards sometimes appear to
exceed reasonable requirement levels needed to assure proper performance
and safety. Most of the complaints have involved electronics,
telecommunications equipment and agriculture phytosanitary standards.
The 1989 EU Broadcast Directive requiring a "majority proportion" of
programming to be of European origin was incorporated into French
legislation on January 21, 1992. France, however, specifies a
percentage of European programming (60 percent) and French programming
(40 percent). These broadcast quotas were approved by the EU Commission
and became effective on July 1, 1992. They are less stringent than
France's previous quota provisions which required that 60 percent of all
broadcasts be of EU origin and that 50 percent be originally produced in
French. The 60 percent European/40 percent French quotas are applicable
throughout the day, as well as during prime time slots. The prime time
rules go beyond the requirements of the EU Broadcast Directive and will
limit the access of U.S. programs to the French market. Nevertheless,
the market share of U.S. films and television shows remains high.
The French government has recently revised its legal services system.
Non-EU lawyers may no longer practice as legal consultants and are
required to qualify as "avocats," on the basis of full-fledged
membership in the French bar. Under the implementing legislation which
went into effect on January 29, 1993, this means that non-EU lawyers
will have to pass either a "short-form" exam or the full French bar
exam. Non-EU lawyers will qualify for a "short-form" exam provided they
are able to prove that the foreign state or territorial unit in which
they practice allows French lawyers to practice law "under the same
conditions." Failing that, they will have to take the full French bar
exam. Due to EU regulations, France is required to recognize law
degrees for EC nationals but not third country nationals. Nevertheless,
non-French EU lawyers, who are also required to qualify as "avocats",
may do so via exams less stringent that those for non-EU lawyers.
Meaningful access will now hinge on how implementing regulations are
administered, including the interpretation of what is meant by granting
access on a 'reciprocal basis' and the nature of the exam to be imposed
on the non-EU lawyers.
C. Customs Valuation
Import duties are calculated on an ad valorem basis, i.e. expressed as a
percentage of the value of the imported goods. This dutiable value is
the "transaction value" plus freight, insurance, commissions, and all
other charges and expenses incidental to the sale and delivery of the
goods to the point of entry into EU customs territory. The invoice
price will normally be accepted as the transaction value if the seller
and the buyer are not related.
Under Article VII of the General Agreement on Tariffs and Trade (GATT),
there are four additional methods for the determination of customs
valuation in the event that the method described above is rejected by
customs authorities.
These methods are to be applied in the following order: (1) the
transaction value of incidental goods; (2) the transaction value of
similar goods; (3) the deduction method, i.e. the resale price, less
such costs as customs duties, taxes and commissions; and (4) the
computed value, utilizing costs of production, profit, and other
expenses.
D. Internal Taxes
In addition to the duties levied under the Common External Tariff, goods
imported into France are also subject to a Value Added Tax (VAT).
Currently, the VAT in France is generally charged at one of two rates:
- the standard rate of 18.6 percent
- the reduced rate of 5.5 percent, applicable mostly to
agricultural products and foodstuffs, original artworks and certain
medicines.
VAT must be added to the price of all goods and services sold in France
in connection with an industrial or commercial activity. The supplier
of any goods or service bills his customer at his selling price, plus
the amount of VAT at the applicable rate. The supplier collects the
full amount, subtracts his own VAT expenditures from the total amount of
VAT collected, and periodically pays over the difference to the tax
authorities.
E. Export Controls
France cooperates with her trading partners, including the U.S., to
control the export of products and technologies with potentially
strategic applications. There are no restrictions or regulations on the
export of merchandise from France, with the exception of strategic
products (including arms and dual-use technologies) and antiques.
Before exporting these items, special license must be obtained from
customs officials to insure that the objects being exported are not a
part of the national heritage of France.
Information on U.S. export controls is available from:
Office of Export Administration
U.S. Department of Commerce
Washington, DC 22030
Tel: (202) 482-4811
For overseas companies: (202) 482-2547
F. Import/Export Documentation
Import and export transactions exceeding FRF 250,000 in value must be
conducted through an approved banking intermediary. Goods must be
imported/exported no later than six months after all financial and
customs arrangements have been completed.
For products originating in countries other than EU member states or
participants in the General Agreement on Tariffs and Trade (GATT), and
for a limited number of products considered to be sensitive, a specific
import/export license may be required by product or by category of
products. Otherwise, the following documents are required to import
into France:
Shipping Documents. The documents generally required by France on all
sea and air shipments from the United States include the commercial
invoice, the bill of landing or air waybill, and a certificate of
origin.
Commercial Invoice. As in a domestic transaction, the commercial
invoice is a bill for the goods from the buyer to the seller. No
special form of commercial invoice is prescribed; the firm's letterhead
may be used. The invoice should contain the following details both in
English and French:
-- Names and addresses of seller and buyer.
-- Place and date the invoice was prepared.
-- Method of shipment.
-- Number, kind and markings of the packages and their numerical
order.
-- Exact description of the goods-customary commercial description
according to kind, quality, grade, etc., with special emphasis on
factors increasing or decreasing their value.
-- Quantity of goods, expressed in units customary in international
trade.
-- Agreed price of the goods (unit cost, total cost, including
shipping and insurance charges, as well as other expenses charged to the
costs of the goods).
-- Delivery and payment terms.
-- Although not a requirement, it is advisable to have the signature
of a responsible official of the exporting firm on each invoice.
Bill of Landing or Airway bill. This is a contract between the owner of
the goods and the carrier. Either a straight or negotiable bill of
landing is acceptable. No consular formalities are required, and
shipments may be made freight collect.
Certificate of Origin. This document certifies that the goods entering
French territory are made in the United States, and thus are subject to
the duties, taxes and restrictions that apply to U.S. goods. Although
certificates of origin are not expressly required for all imports into
France, they are strongly recommended. If a shipment is not accompanied
by a certificate of origin, it may be held up by customs. French
authorities accept certificates of origin certified by local U.S.
chambers of commerce.
Other Documents. Information on documents required for exportation to
France of agricultural products (including food items), plants and
animals is available from the Foreign Agricultural Service of the
Department of Agriculture. Owing to the complexities of these
regulations, U.S. exporters should also obtain information directly from
the importer prior to shipment.
For information on duties, taxes, and documentation, contact one of the
following two offices:
Office of European Community Affairs
U.S. Department of Commerce
14th & Constitution, Rm. 3314
Washington, D.C. 20230
Tel: (202) 482-2905
Fax: (202) 482-2155
Centre de Renseignements des Douanes
23, rue de l'Universite
75007 Paris France
Tel: (33-1) 40-24-65-10
Fax: (33-1) 40-24-65-30
G. Temporary Entry
Samples and Carnets. Samples of no commercial value enter France free
of duties and taxes. When sending such samples parcel post, the sender
must specify what type of samples are being shipped. "No commercial
value" should be written on the appropriate shipping documents.
In order for samples of commercial value to enter France duty- and tax-
free, a bond or deposit of the total amount of duties and taxes must be
arranged. Samples must be reexported within one year if the deposit is
to be recouped. An alternative to placing such a deposit is applying
for an ATA Carnet.
ATA Carnet. An ATA carnet is a special international customs document
designed to simplify and streamline customs entry procedures for
merchandise into participation countries for up to one year. The
initials "ATA" are an abbreviation of the French and English words
"Admission Temporaire/Temporary Admission." Customs authorities in the
United States and France accept carnets as a guarantee that all customs
duties and excise taxes will be paid if any of the items covered by the
carnet are not reexported within the time period allowed. Carnets may
be used for commercial samples, professional equipment, and goods
destined for exhibitions and fairs.
To enquire about or apply for an ATA Carnet, contact the U.S. Council
for International Business:
USCIB
1212 Avenue of The Americas
New York, NY 10036
Tel: (212) 354-4480
Fax: (212) 575-0327
H. Labeling and Marking Requirements
Labeling must provide consumers with precise information which answers
six basic questions about the product:
-- What is it?
-- What is it used for?
-- What is it made of?
-- What does it cost?
-- How is it used?
-- When should it be used?
As labeling is strictly controlled in France, the answers are found in
many regulatory texts.
U.S. firms entering the French market are strongly advised to examine EU
as well as French laws. Each EU country is integrating the rulings of
the EU into its national legislation. As much legislation regarding
labeling is still in the developmental stage, EU labeling regulations
and standards need to be carefully monitored.
For agricultural products, the Office of Agricultural Affairs has an up-
to-date extensive listing of labeling and packaging regulations and
requirements on a product by product basis.
Labeling in France serves an increasingly informational and even
promotional role. Labels often act as "silent salespeople," especially
due to the recent growth of large retail stores offering little sales
assistance.
Basic Labeling Requirements. Though many labeling regulations are
sector related, the following information is generally required for all
categories of products:
Language: Labels must be written in French. Any foreign words or
abbreviations must have been authorized must have been authorized by
French or international law. The writing must be clear and non-
promotional.
Designation: State what the product is. For example: "olive oil."
Brand Names/Trademarks: Any names, symbols and marks relating to the
product must be found on the exterior of the packaging, the product
label, and the bottle-top or lid, as the case applies. Registered brand
names and trademarks can only be used by the manufacturer.
Composition: All ingredients or materials constituting the product must
be listed.
Usage Instructions: Explain how the product is to be used.
Required Dates: These include when the product was made, the consumption
limit for perishable items, and recommended "use by" date for pre-
packaged and frozen food products.
Qualifiers: For example: "made by hand" on leather goods.
Name/Address of Manufacturer or Vendor
Specifications: Labels must inform the consumer of any particular
product limitations or sales conditions.
Price: The price (including all taxes) must be marked on all pre-
packaged goods, unless they are sold by mail-order.
Bar Code Price Labeling (GENCOD): Stores are increasingly using this
system to speed up the passage of clients at cash registers. GENCOD,
France's bar code price labeling system, is generally used for products
with a low per-unit value and rapid turnover, as well as for food and
non-food products requiring an individual price marking because of their
value, nature, or presentation.
Quality and Ecological Labels. More established quality seals and
labels exist in France than in any other European country. Though
desirable because they offer extra information to the customer, they are
not mandatory.
Quality Labels: There are two types of French quality certificates:
- Certificates issued by professional associations; each must be
contacted individually for more information. For a list of professional
associations, contact the Consul National du Patronat Francais (CNPF):
CNPF
31, avenue Pierre-1er-de-Serbie
75784 Paris Cedex 16
Tel: (33-1) 40-69-44-44
Fax: (33-1) 47-23-47-32
- Certificates issued by AFNOR, which controls the coveted and highly
regarded French "NF" Mark. This quality seal certifies that a product
complies with all applicable French standards.
Environmental Labels: AFNOR also issues the "NF Environment" label,
which certifies that a specific product meets the environmental criteria
to qualify for an NF mark. This label is only available for a limited
number of goods, as it is still in the early stages of development.
Currently, an "NF Environment" label can be issued for paints,
lubricants, trash bags, household chemicals, heating equipment,
cosmetics, insulating materials and papers.
The member states of the European Union are currently developing a
European Ecolabel, which would certify products as environmentally
friendly across the EU. AFNOR is the issuer of the Ecolabel for
products manufactured in, first marketed in, or imported to France. An
Ecolabel can already be issued for washing machines and dishwashers.
There are a further twenty-five products for which certification
criteria are currently being drawn up by member states.
For information on the "NF" and the "NF Environment" marks, contact
AFNOR directly.
(see section J)
I. Prohibited Imports
While not traditionally considered to be a "closed market", certain
regulations exist in both France and the EU which limit the market
access for specific U.S. agricultural exports. The ongoing
harmonization of EU import regulations will hopefully result in the
revocation of several French regulations that currently prohibit the
importation of some agricultural and food products. Products which are
subject to restrictive regulations include: poultry meat, enriched
flour, genetic material, "exotic meats" such as alligator and buffalo,
crayfish, and certain fruits and vegetables which are subject to
seasonal price restrictions. Other fruits such as pineapples and
bananas are subject to import certificates. Fresh vegetables such as
artichokes, cucumbers, eggplants, tomatoes, lettuce, and squash are also
subject to seasonal price restrictions.
J. Standards
U.S. exporters should note that all goods entering France should conform
to French and European Union standards. This is mandatory for all
products satisfying publicly- funded contracts, as well as for all
machinery, tools, household appliances, sporting equipment, toys, etc.
Conformity is generally optional for other goods satisfying private
contracts. Products which meet French and EU standards have increased
marketability.
These standards often differ substantially from those in the U.S. In
many cases, particularly with goods of a technologically complex or
potentially harmful nature, rigorous testing and approval procedures
must be undertaken before the goods in question can be sold in France.
Although one of the goals of the European Union is to harmonize
standards across the twelve EU member states, many of these EU standards
remain in the developmental stage. Where an EU standard does not
currently exist, French standards apply.
United States companies often complain of France's complex standards and
of unduly long testing procedures. Testing requirements sometimes
appear to exceed reasonable requirement levels needed to ensure proper
performance and safety. Most of the complaints have involved
electronics, telecommunications equipment, medical/veterinary equipment,
and agricultural phytosanitary products.
Mutual Recognition Agreements covering the testing and certification of
specified regulated products have been proposed to permit U.S. companies
to obtain product certification in the United States which will be
recognized by the EU members. Such recognition will enable U.S. firms
to market their products throughout the EU and could eliminate the
expense of multiple testing and certification procedures. However,
certain regulated products covered by MRA's may still be required to
have some testing or evaluation done in Europe. MRA's have been
proposed in the following sectors: telecommunications terminal
equipment, medical devices, pressure equipment and simple pressure
vessels, personal protective equipment, visual display units,
construction projects, lawn mower noise, recreational craft, equipment
for use in explosive atmospheres, and measuring devices.
The National Institute of Standards and Technology of the U.S.
Department of Commerce is represented at the French International Bureau
of Weights and Measures. The Paris Embassy also has held and will
continue to hold discussions with French standards organizations to
press them to provide openness and transparency in the standards
development process.
The Association Francais de Normalization (AFNOR) is the French
authority in charge of coordinating the establishment of standards.
AFNOR prepares new and revised standards, subjects them to public
enquiry, and finally submits them to the relevant ministry for approval.
Copies of the most up-to-date standards can be obtained directly from
AFNOR:
AFNOR
Tour Europe
92049 Paris La Defense Cedex 7
Tel: (33-1) 42-91-56-55
Fax: (33-1) 42-91-56-56
Information on standards may also be requested from:
American National Standards Institute
11 West 42nd Street, 13th Floor
New York, NY 10036
Tel: (212) 642-4900; Fax: (212) 302-1286
National Institute of Standards and Technology (NIST)
National Center for Standards and Certification Information
U.S. Department of Commerce
Building 101, Rm. A-629
Gaithersburg, MD 20899
Tel: (301) 975-4040; Fax (301) 926-1559
EU Hotline (on draft standards of the CEN, CENELEC, and ETSI).
Tel: (301) 921-4164
Underwriters Laboratories, Inc. can assist U.S. exporters in und
understanding and complying with French and EU standards. UL is
authorized by the French government to test and certify electrical
equipment:
Underwriters Laboratories
International Compliance Services Department
1285 Walt Whitman Road
Melville, NY 11747
Tel: (516) 271-6200; Fax: (516) 271-8259
Standards and testing for medical devices:
Commission National d'Homologation (CNH)
1, place de Fontenoy
75350 Paris FRANCE
Tel: (331) 40 56 60 00; Fax: (331) 40 56 50 45
Laboratoire Nationale d'Essais
1, rue Gaston Boissier
75015 Paris FRANCE
Tel: (331) 40 43 37 00; Fax: (331) 40 43 37 37
Questions regarding standards and certification of machinery, heavy
equipment, and plant facilities should be directed to U.S. the office of
APAVE, the primary French technical inspection organization:
APAVE
American European Services, Inc.
Suite 120 1054 31st Street, NW
Washington, DC 20007
Standards - ISO 9000 Certification
The AFNOR (Association Francaise de Normalization) coordinates work and
research relating to standardization in France. AFNOR prepares new and
revised standards, subjects them to public inquiry, and then submits
them to the relevant ministry for approval. It is the French branch of
the European Standardization System (CEN) and a member of the
International Organization for Standardization (ISO).
Following EC harmonization policy, the official French standards or
"Normes Francaises" (NF) are now in line with those of ISO 9000. In
France, compliance with national standards is mandatory for only 5% of
the cases. These are for the most part safety and health standards on
the product itself. However, one must bear in mind that ISO 9000
certifies the company's management organization, not its products.
Hence, the ISO 9000 certification will not necessarily fulfill these
product-related requirements.
The recognition and use of ISO 9000 in France is expanding at a very
fast pace. The ISO 9000 certification is never mandatory, but it
increasingly plays a determining role, especially for sub-contracting
companies. Contracts between firms now often include a request for
quality assurance. In this respect, ISO 9000 is the most widespread and
recognized quality management program in France.
A source at AFNOR noted that ISO 9000 has become a great marketing tool
in France, sometimes more cost-effective than advertising. However, its
efficiency as a marketing device varies from sector to sector. ISO 9000
is meant to provide quality recognition from firm to firm, rather than
from a firm to end-users. For sub-contractors in the public sector or
in a heavily competitive field in the private sector, ISO 9000 generally
provides added-value. In fields such as those under EC directives (i.e.
medical equipment) or subcontracting in the auto-industry, conformity to
ISO 9000 is crucial to stay competitive.
The AFAQ (Association Francaise pour l'Assurance de la Qualite) is the
French quality system registrar, which delivers ISO 9000 certifications.
The AFAQ has issued approximately 1200 companies with ISO 9000
certifications and it is estimated that about 200 more companies in
France have the certification. Requests are now booming, with 3500
being processed by the AFAQ. The certification takes about 6 months to
complete. A foreign company with an ISO 9000 certification from abroad
simply needs to contact the AFAQ in order to be certified in France.
The demand for ISO 9000 registration in France as well as in Europe
comes primarily from the marketplace as a contractual rather than a
regulatory requirement. As compliance with the ISO 9000 standards
becomes recognized and required by foreign and domestic buyers and used
by manufacturers as a competitive marketing tool, the demand for ISO
9000 conformity will increase. It is therefore critical for
manufacturers to determine what are their buyers' requirements regarding
ISO 9000 compliance.
Useful Addresses:
AFNOR - Association Francaise de Normalization
Tour Europe
92049 Paris La Defense Cedex 7
Tel: (33-1) 42 91 55 55
Fax: (33-1) 42 91 56 56
AFAQ - Association Francaise pour l'Assurance de la Qualite
B.P. 40
92224 Bagneux Cedex
Tel: (33-1) 46 11 38 50; (33-1) 46 11 37 11
Fax: (33-1) 46 11 37 10
In the United States:
AFAQ, Inc.
Woodfield Executive Center
1101 Perimeter Drive, Suite 450
Schaumburg, IL 60173
Tel: (708) 330-0606
Fax: (708) 330-0707
AES - American European Services
1054 31st Street, NW Ste. 330
Washington, D.C. 20007
Tel: (202) 337-3214; Fax: (202) 337-3709
K. Membership in Free Trade Zone/Warehouse Agreements
As a member of the European Union, France is subject to all European
Union Free Trade Arrangements. European Union laws and regulations
provide that member states may designate parts of the customs territory
of the Community as free trade zones and free warehouses. Information
on free trade zones and free warehouses is contained in Title IV,
Chapter three, of Council Regulation (EEC) No. 2913/92 of October 12,
1992, establishing the Community Customs Code, titled, "Free Zones and
Free Warehouses" (Articles 166 through 182).
Article 166 states that free zones and free warehouses are part of the
customs territory of the Community or premises situated in that
territory and separated from the rest of it in which:
- Community goods are considered, for the purposes of import duties
and commercial policy import measures, as not being on Community customs
territory, provided they are not released for free circulation or placed
under another customs procedure or used or consumed under conditions
other that those provided for in customs regulations;
- Community goods for which such provision is made under Community
legislation governing specific fields qualify, by virtue of being placed
in a free zone or free warehouse, for measures normally attaching to the
export of goods.
Articles 167-182 details the customs control procedures, how goods are
placed in or removed from free zones and free warehouses and their
operation.
The use of free trade zones vary from member state to member state. In
France, the process of applying for the status of a free trade zone or
free warehouse is administered by the Ministry of Economy/Budget at the
following address:
Ministry of Economy/Finance
139, rue de Bercy
75572 Paris Cedex 12
Tel: (33-1) 40 04 04 04
CHAPTER VII. INVESTMENT CLIMATE IN FRANCE
The French government actively courts foreign investment and has
progressively liberalized its investment approval regime since the mid-
1980s. Green field investments establishing new firms and acquisitions
of smaller companies are no longer subject to prior approval, and the
approval process for major acquisitions has become more transparent.
With unemployment remaining high, and French government officials well
aware that U.S. companies can now gain access to the entire EU market by
investing in any EU country, attracting foreign investment has become a
priority. The stock of foreign investment in France continues to
increase, and now represents a significant percentage of production in
many sectors. However, non-EU investors still do not receive full
national or EU treatment in many sectors, and authorities in France
continue to interfere more in the entry and operation of businesses than
authorities in some other european countries. In what will be a major
reform, the French government has announced that it intends to abolish
most remaining restrictions against non-European Union investors in
order to attract foreign investment and to enhance the standing of Paris
as a financial center.
France offers a variety of financial incentives to foreign investors and
its investment promotion agency, DATAR, provides extensive assistance to
potential investors both in France and through its agencies around the
world. Using balance of payments data based on the historical book
value of investment, the United States is the second largest foreign
investor in France, with U.S. firms representing over 19 percent of the
stock of foreign investment at the end of 1991. However, this
substantially understates the extent of U.S. investment. Since U.S.
firms have been in France a long time, using the book value instead of
the market value of investments underestimates the value of U.S.
investments compared to newer investments. In addition, U.S.
subsidiaries finance much of their expansions and acquisitions by
borrowing in French financial markets, which is not included in balance
of payments statistics. Furthermore, according to French officials many
investments made by firms in France's "largest" investor, the
Netherlands, are holding companies set up to take advantage of tax
regulations, and are really ultimately controlled by U.S. and other
investors. Correcting for these statistical biases they estimate that
the U.S. is by far the largest investor in France, accounting for 36
percent of total sales by foreign-owned subsidiaries. U.S. subsidiaries
in France account for about 3 percent of French non-bank business
employment and non-banking private sector value-added.
A. Openness to Foreign Investment
The French government actively courts inward foreign investment, which
government officials now regard as an important source of new jobs.
Over the last several years, French direct investment outflows have
consistently exceeded inflows which has increased French officials'
concerns about attractiveness of France's investment climate. The
government is fully aware that with the arrival of the single european
market, investors can gain access to the French market from anywhere in
the EU. Accordingly, the domestic business and investment climate,
rather than the performance of the French economy itself, has been
recognized as key to attracting and retaining investment.
Notwithstanding the pro-investment attitude voiced by French officials,
U.S. investors do not yet find a completely open, market-reliant
approach on the part of the government. The French state has a
centuries old tradition of extensive control of business and the
economy. During the 1960s and 1970s the French authorities tended to
take an ambivalent approach to foreign investment, with the positive
aspects often being counterbalanced by misgivings over possible
disadvantages of multinational or foreign domination of French industry.
However, after a decade of rapid and comprehensive economic deregulation
foreign investors in France now face much less interference from
government officials.
B. Authorization Process
The Ministry of Economics and Finance is responsible for regulating
foreign investment in France. Over the last several years, particularly
due to reforms in 1990 and 1992, the French government has significantly
liberalized prior approval requirements for foreign direct investment
and now only requires, in many cases, after-the-fact notice. For
example, only notice is required for investments in new companies or
start-ups (so-called greenfield investment) and for expansion of
existing investments. However, acquisitions, except for small
unincorporated activities, continue to require prior approval from the
government in a process that discriminates against non-EU investors.
Economics Minister Madelin announced in July the government's intention
to eliminate this latter Economics requirement in the near future.
C. Key Definitions
Direct Investment
The French authorities define direct investment as the purchase,
creation or expansion of a business or any other operation that enables
one or several persons to assume or increase control of a company or to
expand a company already under their control.
Nationality of an Investor
French authorities determine the nationality of a company based on the
residency of its ultimate beneficial owners, without regard as to place
of incorporation. The deciding factor is residency and not citizenship,
so U.S. citizens legally residing in the U.K., for example, qualify as
EU residents. Also, firms incorporated in the European Union, but owned
or controlled by American residents are deemed to be American.
The French government defines publicly traded entities as non-EU
investors if a physical person or a group of persons acting together,
who are not EU residents, ultimately own more than 20 percent of a
firm's capital, unless physical persons who are EU residents also own
more than 50 percent of the firm's capital. Thus, two shareholders of
the investing company who were not EU residents and were not deemed to
be acting in concert could each hold 19 percent of a firm's capital and
the firm would still qualify as an EU investor. In addition, if 21
percent of a firm's shares are owned by a Japanese resident and 51
percent of its shares are owned by EU residents, the firm would also
qualify as an EU investor. The French government defines non-publicly
traded entities as non-EU investors if a physical person or a group of
persons acting together, who are not EU residents, ultimately own or
control more than 33.3 percent of a firm's capital, unless physical
persons who are EU residents also own more than 50 percent of the firm's
capital.
However, for both publicly and non-publicly traded firms, the French
government retains the authority to declare that a firm is controlled by
non-EU investors, even if the share of capital held by non-EU investors
fell short of the thresholds noted above. To determine whether non-EU
investors control a firm, the French government could look, among other
factors, at the residency of members of the board of directors, and the
ability of non-EU investors to veto key management decisions, or
commercial ties (such as loans, guarantees, options, licenses or
contracts) if these factors effectively make the French company
dependent on foreign investors.
Firms wishing to qualify as EU investors must establish their status by
filing an application with the Ministry of Economics and Finance before
concluding an investment. The Ministry then determines whether a firm
qualifies as an EU investor, generally within 10-15 days. The Office of
Foreign Investments is responsible for administering the authorization
process, and can be contacted at the following address:
Investissements Etrangers en France
Direction du Tresor
139 rue de Bercy
75012 Paris, France
Tel: (33-1) 44.87.72.43
D. Investments Not Subject to Screening
The following activities do not require prior notification to, or
approval by, French authorities:
-- creation of new enterprises or subsidiaries or expansion of existing
investments;
-- liquidation of any direct investment;
-- an increase in control of a company by a foreign investor who already
controls two-thirds of the company's shares or voting rights or an
increase in a foreigner's investment that does not increase his
percentage of control of the company;
-- mergers or other financial operations within a group of companies
under the control of a foreign investor;
-- investment of less than FRF 10 million in real estate including
unutilized agricultural land (except for vineyards);
-- investments of less than FRF 10 million in crafts and cottage
industries; and
-- all investment activities (except those that affect the exercise of
government functions, public order, public health or national security)
by "established" EU investors. To qualify as an "established" EU-
controlled firm, besides the nationality requirements noted above,
businesses must have annual sales of more than FRF 1 billion and must
have been in business for at least three years.
E. Investments Subject to Screening
Acquisitions other than those listed above face the following rules.
-- For firms that are controlled by EU residents which do not qualify
as "established," and for acquisitions by non-EU investors of French
firms valued at less than FRF 50 million and with annual sales of less
than FRF 500 million, acquisitions are automatically approved.
However, prior notification must be given to the Economics Ministry,
which has 15 days to verify that the investor is an EU firm or that the
French firm's sales or assets are under the thresholds.
-- Acquisitions by non-EU investors and firms controlled by such
investors must be first approved by the Ministry of Economics and
Finance. Acquisitions valued at over FRF 50 million or with sales of
over FRF 500 million are considered approved automatically unless the
economics ministry acts within 30 days of receipt of a complete
investment application to delay approval or deny authorization.
Acquisitions by non-EU investors may be denied authorization altogether
if the French government determines that the acquisition is not in
France's "national interest." (Normally a specific reason, e.g.,
national security, would be cited in such a denial, but the French
government has full discretion in deciding what is the "national
interest.") On July 10, Economics Minister Madelin announced that the
government will soon eliminate this category of screening.
-- All acquisitions, irrespective of size or the nationality of the
investors, involving the health, public order or the national security
of France are also subject to this one month review.
The investment application itself generally includes essential financial
and business information on the investing firm and the firm to be
acquired as well as a summary of the investing firm's plans,
particularly regarding employment. While not legally enforceable as
performance requirements, the French government officials monitor the
fulfillment of these business plans and can call in the investor for
consultations on them.
F. Screening in Practice
The French government has progressively liberalized the screening
procedures over the last several years and claims that they now
represent no more than a formality, particularly for U.S. investors.
The French claim that the process is necessary both for national
security reasons and to keep out undesirable, such as criminal
investors. They note that the overwhelming majority of applications are
approved rapidly, and only a handful are rejected. For applications
from non-EU investors, the French government completes its decisions in
an average of 12 calendar days. According to French government
officials, of the approximately 3000 applications which the Economics
Ministry received 1992 and 1993, only 7 were rejected. Five of the
rejects involved Libyan or Syrian controlled firms and the rejections
were part of U.N. sponsored economic sanctions. One rejection involved
a firm believed to be involved in international money laundering, and
the other rejection was an African controlled company which the French
government believed might take actions affecting French national
security. Since the French government revised its screening regulations
in 1990, no U.S. investment has been denied authorization.
While the authorization system involves relatively short delays, the
process itself is not transparent nor are the criteria for rejection
limited by law in any way. Moreover, the continued imposition of a
prior authorization requirement could put U.S. investors at a
disadvantage compared to their EU and French competitors by increasing
delay and uncertainty. The system can lend itself to abuse by
government officials used to taking an active role directing French
business. The 30 day waiting period for reviewing applications does not
begin until the investor submits "all necessary information." For
example, in one instance, by requesting more information, the
authorities restarted the clock and extended the review period. In
addition, by requesting more information or clarification, the
authorities can exact explicit commitments from the investor regarding
his intentions, particularly concerning potential plant closings or job
cuts. While such abuse of the process appears to be rare, the
government's announced intention to eliminate the prior authorization
requirement is a welcome development.
Several U.S. investors who have complained about the review process
since 1990 had been in competition with a government-owned enterprise
that had an interest in the acquisitions. The future potential for such
problems is likely to decline, as the French government sells off a
large part of its shares in companies. However, in those sectors where
the French government is likely to maintain its interests, particularly
in aircraft manufacturing, transportation, telecommunications, and
financial services, there will continue to be a conflict between the
French government's role as shareholder (either in the target entity or
a domestic competitor of that entity or a competing investor) and
regulator (either of inward investment or the sector in question.)
G. Sectoral Investment Restrictions
Besides general screening of foreign investment, the French government
restricts foreign investment in certain sectors. French government
officials argue that most of the sectoral restrictions have been imposed
in response to sectoral restrictions in other countries, and in
particular, the United States. The French government has notified the
OECD that in the following sectors it treats foreign investors
differently than domestic investors and may treat foreign investors from
different countries differently:
Agriculture
Residents of non-EU countries or groups of companies controlled by a
majority of such nationals, who wish to acquire agricultural land must
get approval from both the Economics Ministry and the local Agriculture
Department.
Aircraft Production
The French government limits the right of foreign investors to control
firms engaged in aircraft construction.
Air Transport
The French government does not allow foreign-owned airlines to provide
transportation between two cities in France (cabotage). The French
government grants landing rights to airlines from different countries
based on bilateral air agreements.
Atomic Energy
The French government requires prior authorization for foreign-
controlled firms to undertake the following activities: the use of
artificial radio-elements, the operation of nuclear plants and
installations dealing with liquid radioactive waste from such plans.
The French government may also limit foreign investment in uranium
mining, and the holding of fissile materials.
Audiovisual
Nationals of OECD countries that are not members of the EU may not hold,
directly or indirectly, more than 20 percent of the capital or voting
rights of a company that has been granted a license for radio and
television broadcasting in the French language, unless the investors'
home country allows French nationals to own more than 20 percent of such
companies in that country under an international agreement.
Banking/Financial Services/Accounting Services
The French government may deny national treatment, in some
circumstances, to non-EU companies in banking, securities brokers, and
accounting services, and base treatment instead on reciprocity. Article
15-1 of the 1984 Banking Law, as revised, gives French banking
authorities the right to prohibit banks controlled by non-EU investors
from establishing or acquiring a credit institution, if the EU council
or commission decides that banks controlled by EU investors do not have
access to the foreign market or do not receive national treatment from
the foreign government.
Defense Industry
The French government reserves the right to treat foreign-controlled
firms differently than French-controlled firms involved in any activity
directly or indirectly related to the national defense or armaments.
Insurance
Enterprises with corporate headquarters in non-EU countries must obtain
a license to operate in France. For branches on non-EU countries, the
French government will only grant a license for those types of insurance
underwritten by the enterprise in its home country. The restriction does
not apply to subsidiaries of non-EU firms.
Legal Services
The French government revised its legal services system in December
1990, merging all legal professions into one category, that of
"avocats." All lawyers are now required to qualify as "avocats," based
on full-fledged membership in the French bar. For foreign
practitioners, the ability to become a member of the French bar depends
on whether or not one is an EU or foreign national. Under the
implementing legislation that went into effect on January 29, 1993, non-
EU lawyers must pass either a "short-form" exam or the full French bar
exam. Non-EU lawyers will qualify for a "short-form" exam provided they
are able to prove that the foreign state or territorial unit in which
they practice allows French lawyers to practice law "under the same
conditions." Failing that, they must take the full French bar exam.
Due to EU regulations, France is required to recognize law degrees for
EU nationals but has the right to discriminate against third country
nationals. Nevertheless, non-French EU lawyers may also have to take a
"short-form" exam to be admitted into the new profession of "avocats."
Meaningful access will now depend on how implementing regulations are
administered, including the interpretation of what is meant by granting
access on a "reciprocal basis" and the nature of the exam to be imposed
on non-EU lawyers.
Maritime Transportation
Without authorization from the Ministry of Industry and the Ministry of
the Economy, enterprises controlled by foreign nationals may not have a
controlling or participating interest in a shipping company sailing
under the French flag. To sail under the French flag, ships must
either: (a) be owned by physical persons and at least 50 percent of the
shares must be owned by French nationals, or b) be owned by a
corporation whose headquarters is on French territory.
Publishing
Persons who are not EU nationals, or firms controlled by non-EU
nationals, may not acquire, directly or indirectly, more than 20 percent
of the capital or voting rights of enterprises that publish in the
French language, unless the investors' home country allows French
nationals to own more than 20 percent of publishing companies in that
country under an international agreement.
Road Transportation
Non-EU citizens may not be road transport commissioners, unless their
home country allows French citizens to undertake the same activities in
the home country. A road transport commissioner is a person employed in
the private-sector who oversees road freight shipments on behalf of
persons sending freight. He ensures proper delivery of the freight and
coordinates, if necessary, transactions among shippers.
Telecommunications
Telecommunication networks open to public use may only be established by
the French telecoms operator, France Telecom. The Minister of
Telecommunications may authorize a person other than France Telecom to
operate a radio-electric network to provide telecommunication services.
However, persons who are not EU nationals, or firms not registered in
the EU, may not own, directly or indirectly, more than 20 percent of the
capital or voting rights of such enterprises, unless the investors' home
country allows French nationals to own more than 20 percent of such
companies in that country under an international agreement.
Tourism
The French government reserves the right to refuse to award travel agent
licenses non-EU nationals of oecd countries if their home governments do
not award such licenses to French nationals.
H. Treatment of Foreigners in France's Privatization Program
In March 1993, the French government began a massive privatization
program, and has already sold some of the largest and best known
government-owned corporations. A seven-member privatization commission,
appointed for a five-year period, decides the minimum price for the
shares to be sold and chooses the core of stable investors for each
privatization. The Economics Ministry decides the percentage of shares
to be sold, the proportion to be sold in foreign financial markets, and
the extent of "core" shareholdings.
The law prevents the government from selling to non-EU investors more
than 20 percent of a firm's capital at the time the government sells its
shares. However, this ceiling does not apply to shares already held by
non-EU investors. For example, suppose the government privatizes a
company with 100,000 shares outstanding. Of these outstanding shares,
60,000 are held by the government, 25,000 are held by EU-investors, and
15,000 are held by non-EU investors. In this case the law would
prohibit the government from selling more than 20,000 of its 60,000
shares to non-EU investors. However, once the government had sold its
shares, the provision would not prohibit private EU-investors from
reselling their shares to non-EU investors.
Furthermore, the government insisted on adding a provision that allows
the privatization commission to waive the 20 percent limit if the
purchase of other shares by non-EU investors is part of an industrial,
commercial, or financial cooperation agreement. Thus, if the French
government sold a significant portion of "core shares" to non-EU
investors, it could rule that these sales were covered by this provision
and would not count as part of the 20 percent limit.
Before each privatization, the French government also decides whether it
is necessary to maintain a golden share "to protect its national
interests." While not a share that is bought or sold, the golden shares
would give the government three legal rights:
1) the right to require prior authorization from the Economics Ministry
for any investor or group of investors acting in concert to own more
than a certain percentage of a firm's capital. The thresholds would
apply to all investors, whether or not EU residents, and would be
established at the time the government announces that it is establishing
a golden share, before each privatization;
2) the right to name up to two non-voting member's of the firm's board
of directors; and
3) the right to block the sale of any asset to protect "national
interests." Assets could include not only shares, but buildings,
technology, patents, trademarks, and any other tangible or intangible
property.
Once invoked, the government would retain these rights until they were
specifically revoked.
In practice, foreign investors have been treated the same as French
investors in France's privatization program. While no foreign investor
has been allowed to gain controlling interest in a privatized company,
several foreign, as well as non-EU investors have been approved by the
French government to become "core shareholders." Only in the
privatization of Elf Acquitaine and the partial sale of Renault have
French government officials promised to keep the companies controlled by
French citizens.
I. Foreign Participation in R&D Programs
The French government sponsors R&D and technology development programs
at three different levels:
1) international/European programs (accounting for 12 percent of
French R&D budget);
2) technology development programs in the private sector (54 percent
of industrial R&D expenditures are funded by French government), with
specific programs to encourage transfer of research and to aid small and
medium firms; and
3) national research programs, with specific emphasis given to
space, physical science, aeronautics, telecommunications, nuclear, and
engineering.
At each level, French government officials contend that all foreign
companies registered in France receive the same treatment as French
companies and have similar access to R&D funding. U.S. companies
registered in France agree. In 1994, the U.S. Embassy surveyed 95 U.S.
companies and received responses from 34. With one exception, they
believe that they receive treatment from the French government equal to
that given French companies. In certain cases, U.S. companies commented
that they receive better treatment since, to lure a high profile and
prestigious U.S. company to their region, regional councils will
sometimes offer attractive grants. (See section on investment
incentives)
If the U.S. companies are not registered in France, they are treated
like other non-French companies. A possible exception exists for EU R&D
programs (Eureka) that were designed to strengthen European
competitiveness and productivity by promoting intra-European R&D, and in
which companies from non-European countries are disadvantaged. However,
American companies, whether registered in France or not, can and do
participate in Eureka R&D programs. As one French government official
pointed out, the program managers may want selected U.S. participation
to obtain access to technology and expertise not available in Europe.
U.S. firms have participated in Eureka projects, totaling 5.1 billion
dollars, in biotechnology, robotics, environment and transportation.
According to French government officials, there are no specific
restrictions regarding R&D collaboration except for defense-related
reasons and there is no legislation restricting foreign access to French
R&D projects. Certain programs, aimed at general technological
development, permit the participating companies to identify specific
projects appropriate to the programs' goals. The surveyed U.S companies
felt involved in shaping strategies and developing R&D programs in
France although electronics and computer companies did not feel as
involved as other sectors.
The experience of U.S.-French defense industry cooperation is comparable
to non-defense cooperation. The U.S. Embassy's Office of Defense
Cooperation has monitored many collaborative programs in the defense
industry. These have been very successful with benefits accruing to
both sides. This experience has shown that, when both parties felt that
the cooperation was mutually advantageous and that shared technology
would not damage national or industrial interest, then access to French
R&D facilities has been open and available.
J. Visa, Work Permit Requirements
The government of France requires that foreign citizens follow an
extensive procedure if they wish to work in France. The requirements
are essentially the same whether foreign citizens work for a French or
foreign-controlled firms. However, with unemployment above 12 percent
in 1994, the French government has become stricter in its approval of
applications for work permits, which may make it more difficult for
foreign firms to bring in employees.
Non-EU nationals who intend to work or conduct any commercial activity
in France must receive a long-term visa and a work permit (carte de
travail) or business permit (carte de commercant) before establishing
residence in France. A business permit (carte de commercant) is
required of any non-EU national working as follows:
- chief executives, general managers, and directors of any
business organizations established under French law
- non-resident chief executives of companies which have a branch
in France
- branch managers
- traveling salespeople
- self-employed individuals
K. Investment Incentives
France offers a variety of financial incentives to foreign investors and
its investment promotion agency, DATAR (Delegation a l'Amenagement du
Territoire et a l'Action Regionale), provides extensive assistance to
potential investors both in France and through its agencies around the
world. In addition, financial subsidies and tax incentives are offered
at the local, regional and national government level to attract
investment to the country's less affluent areas. Incentives are
available equally to French and foreign investors and eligibility
requirements are the same.
Within the French government, foreign investment promotion is the
responsibility of the invest in France mission headed by an ambassador
at-large, who is based at the Ministry of the Economy, and backed-up by
DATAR. DATAR maintains offices throughout France and around the world
to seek out and advise potential investors on project development, site
selection, investment incentives (the largest of that are administered
by DATAR) and administrative and legal requirements. There are four
DATAR "invest in France" agencies in the United States:
New York
610 Fifth Avenue, Suite 301
New York, NY 10020
Tel: (212) 757-9340
Fax: (212) 245-1568
Chicago
Invest in France Agency
401 North Michigan Ave., Suite 600
Chicago, IL 60611
Tel: (312) 661-1640
Fax: (312) 661-0623
Los Angeles
Invest in France Agency
1801 Avenue of the Stars, Suite 1248
Los Angeles, CA 90067
Tel: (213) 785-9735
Fax: (213) 785-9213
Houston
Invest in France Agency
2727 Allen Parkway, Suite 960
Houston, TX 77019
Tel: (713) 526-1565
Fax: (713) 526-3802
Senior French Economics Ministry officials often participate in
roundtable discussions with major foreign investors to alleviate
problems faced by foreign owned firms where possible. One positive
outcome of these efforts has been a pledge by the government to
streamline review and approval of administrative requirements such as
work permits for foreign executives. Besides DATAR, several French
cities and regions have developed their own investment promotion
agencies that advise potential investors, offer administrative
assistance, and oversee investment incentives. All incentives are
covered by regulations set by the European commission.
The following are the primary types of investment incentives:
- Prime de l'Amenagement du Territoire (PAT)
regional development grants
- Prime Regionale à l'Emploi (PRE)
regional employment grants
- Prime Regionale à la Creation d'Entreprise (PRCE)
regional new enterprise grant
- research and development project and headquarter grants
- tax incentives
listed below is the latest information available to the U.S. Embassy on
French incentives. The French government is currently reviewing the
level of subsidies, and is expected to modify some of the ceilings at
the end of 1994.
Prime de l'Amenagement du Territoire (PAT) - these subsidies are
administered by DATAR and are the most important incentives offered by
the French government. The upper limit for the PAT is generally FRF
75,000 per job created by the investment, up to a limit of 25 percent of
the total fixed investment. In less disadvantaged regions there is a
ceiling of FRF 35,000 per job up to 17 percent of the total, but in
practice these lower limits, and even the FRF 50,000 ceiling can be
overlooked. The 25 percent of the value of the investment limit,
however, cannot be exceeded. While these represent maximum limits, the
actual amount offered is determined on a case-by-case basis by a French
government interministerial committee. Generally, the PATs are granted
only to larger firms (with gross annual sales of at least FRF 300
million) or for investment projects of at least FRF 20 million. On
average, one-third of the requests for PAT packages come from foreign
investors.
Prime Regionale à l'Emploi (PRE) - regional councils have the authority
to offer investors a job creation subsidy. Each regional council
establishes the criteria for the PRE and select recipients. This grant
can total between FRF 10,000 to FRF 40,000 per job, up to 30 jobs, and
can only be awarded to small or medium sized firms with sales less than
FRF 300 million. The PRE cannot exceed an amount double the investing
firm's equity.
Prime Regionale à la Creation d'Entreprise (PRCE) - regional councils
may also award a subsidy for the creation of new firms, which can total
up to FRF 150,000. In certain priority areas this amount may be
increased to FRF 200,000. The subsidy is intended to finance the
purchase of new equipment. Like the PRE, the regional council has the
power to select the award criteria as well as the recipients.
Research and development project grants - the French government has set
up specific programs to assist foreign investors in locating their
research and development centers or their headquarters in France. To
receive these grants, investments should meet the following criteria:
the business should be in engineering, management or software
development; the location cannot be in the Paris metropolitan area; the
investment must create at least 30 jobs over a three year period, or a
minimum of 20 when the investor can provide evidence of world-wide sales
of over FRF 300 million. These grants provide up to FRF 35,000 per job
created (FRF 50,000 in major urban areas), but the total cannot exceed
twice the shareholder's equity (including current accounts of partners
and directors.)
Tax treatment for headquarters - investors seeking to establish
corporate headquarters in France to manage French and other regional
holdings may be eligible for special tax treatment and other
considerations for both the company and its employees. A headquarters
operation is one engaged exclusively in management functions for a group
of companies and which has no independent income except the central and
management charges allocated to its subsidiaries. Under a headquarters
ruling granted by French tax authorities, headquarters operations are
taxed based on a percentage of expenses charged to subsidiaries. This
percentage can range from 8 to 12 percent depending on the functions of
the headquarters. A headquarters may also allow companies to include
certain expatriate benefits as corporate income, in which case they are
excluded from an employee's taxable income. Besides tax benefits, there
is agreement within the French government that foreign headquarters
operations will be permitted to locate in Paris without regard to the
official decentralization policy.
Other tax incentives - regional and local authorities can grant
investors full or partial holidays on local taxes, including
professional and property taxes, for up to five years. For the first
two years, the degree of exemption is 100 percent, for the third year 75
percent, for the fourth year 50 percent and for the fifth year 25
percent. Eligibility varies by region.
The French government has also established three enterprise zones, each
of which is about 750 acres in size. They are at Dunkerque on the
north-east coast, and at Toulon-La Ciotat and Aubagne-La Seyne on the
mediterranean coast. Although these zones are now closed to further
investment, new zones may be established. Companies incorporated and
operating in these zones, and with at least 10 full time employees, are
exempt from corporate income taxes for the first ten years of
operations. Certain industry sectors are excluded. The French
government and EU authorities have also set up a joint program to
promote specific location development in northeastern France. This
program offers grants that can be as much as 35 percent of the total
amount invested.
Regional governments can also offer loans at preferential interest rates
and loan guarantees to investors. Local governments at the commune and
department level can only offer subsidies for investments that are also
being subsidized by the regional government. The sole exception is for
real estate subsidies, in which local governments (as well as regional
governments) can buy industrial property in order to sell or lease it to
investors at below-market rates. The central, regional and local
governments can also offer free or low-cost managerial and technical
assistance to new investors, particularly small firms. In addition,
investors can benefit from programs established by several large French
industrial companies in areas where these companies have closed down
factories or reduced their workforce. In these areas, the French
companies have established programs to attract investors, to establish
ventures, often in the French companies' old factories, and to encourage
the new investors to hire the old workforce. The incentives to the
investor can be in cash, low interest loans, or other assistance.
Finally, several quasi-public financial institutions offer a variety of
low-cost financing to small businesses. This includes the Credit
d'Equipment des Petites et Moyennes Entreprises (CEPME), which provides
loans for investment, Societes de Development Regional, which also
provides loans for projects in certain regions, and Sofaris, which
guarantees commercial bank loans to small businesses. In all cases, if
a foreign-owned firm meets the qualifications as a small businesses, it
is eligible to take advantage of these programs. Whether French or
foreign-owned, subsidiaries of large corporations are ineligible.
L. Discriminatory Trade Policies
France's trade policies are determined by European Union agreements and
practices. These policies include preferential trade agreements with
African, Caribbean and Pacific countries, under the Lome Convention.
While the vast majority of bilateral trade occurs without controversy,
U.S. companies sometimes complain of France's complex technical
standards and of unduly long testing procedures. Testing requirements
(which must usually be done in France) and standards sometimes appear to
exceed reasonable requirements to ensure proper performance and safety.
Most complaints concern the electronics, telecommunications equipment,
and medical/veterinary equipment and product industries, and
agricultural sanitary and phytosanitary standards.
An area where French trade policy is clearly discriminatory is in
audiovisual trade. The 1989 EU broadcast directive requiring a "majority
proportion" of programming to be of European (i.e. EU and central
European) origin was incorporated into French legislation on January 21,
1992. France, however, goes beyond this rule, specifying a percentage
of European programming (60 percent) and French programming (40
percent). These broadcast quotas were approved by the EU commission and
became effective on July 1, 1992. They are less stringent than France's
previous quotas which required that 60 percent of all broadcasts be of
EU origin and that 50 percent be originally produced in French. The 60
percent European/40 percent French quotas are applicable throughout the
day, including prime time slots. The prime time rules go beyond the
requirements of the EU broadcast directive and limit the ability of U.S.
firms to offer programs in the French market.
M. Conversion and Transfer Policies
All inward and outward payments must be made through approved banking
intermediaries by bank transfers.
Repatriation of capital and earnings: there is no restriction on
repatriation of capital provided this is carried out through an approved
bank and the investment was authorized. Similarly, there is no
restriction on transfers of profits, interest, royalties, or service
fees, provided the investment was authorized and made through approved
banks.
Businesses: foreign-controlled French businesses are required to have a
resident French bank account and are subject to the same regulations as
other French legal entities. The use of foreign bank accounts by
residents is permitted.
Individuals: the exchange control regulations applicable to both French
citizens and foreigners have been relaxed significantly since the
beginning of 1990. For exchange control purposes, the French government
considers foreigners as residents from the time they arrive in France.
French and foreign citizens are subject to the same rules. Residents
are entitled to open an account in foreign currency with a bank
established in France and to establish accounts abroad. Residents must
report the account number for all foreign accounts on their annual
income tax returns. French-source earnings may be transferred abroad,
without limitations if carried out through an approved bank.
N. Expropriation and Compensation
Under French law, private investors are entitled to compensation if
their properties are expropriated, and such compensation must be
adequate and paid promptly. In France's bilateral investment treaties,
the French government promises to provide both prompt and adequate
compensation. There have been no recent disputes involving
expropriation of U.S. investments.
O. Dispute Settlements
There have been no major investment disputes involving established U.S.
firms since 1984. However, there have been individual cases in which
the French government held up a U.S. investor's acquisition of a French
firm until the potential investor made commitments in suggested areas
(such as employment levels, input souring, or export levels) or so that
a domestic buyer could be found, though this has become increasingly
rare. Government decisions in investment cases can be appealed to
administrative tribunals and ultimately to the Council of State (Consul
d'Etat). The rights of U.S. investors are also protected by the U.S.-
French bilateral treaty (see below).
The judicial system is independent. Property and contractual rights are
enforced by the French civil code. Judgments of foreign courts are
accepted and enforced by courts in France once they have been "declared
executory" by a French judge through "exequatur" proceedings (Art. 2123
of the French Civil Code and Art. 509 of the Civil Procedure Code).
However, in some civil cases and in bankruptcy cases, foreign judgments
are recognized and enforced by French courts without executory
proceedings.
France adopted a new law on liquidation and bankruptcy on June 19, 1994.
The main purpose of this new law is to reinforce the rights of all
creditors, especially banks, by giving priority to debts incurred before
a company has filed for bankruptcy. Under the previous bankruptcy law,
debts incurred after a company filed for bankruptcy were paid off first,
mainly so as to encourage buy-outs. As a result, French banks were
hesitant to lend to small and medium-sized companies having financial
difficulties. Banks argued that the prior law was one reason why the
number of bankruptcies more than doubled between 1985 and 1993 (though
the 1992-93 recession was probably the most important factor). The new
law also ensures that creditors are paid in a buy-out. Under the old
system, an individual or company could take over a bankrupt firm "free
from debt."
France is a member of the International Center for the Settlement of
Investment Disputes (ICSID). In addition, in most of its bilateral
investment treaties it has agreed to accept binding arbitration to
resolve investor-state disputes. However, because most of France's bit
partners are developing countries, investors from these countries have
few investments in France. (See below).
P. Performance Requirements and Incentives
Other than those linked to incentives, there are no mandatory
performance requirements established by law. However, the French
government will generally require commitments regarding employment or
research and development from both foreign and domestic investors
seeking government financial incentives. For example, to be eligible
for DATAR grants, the French government usually requires that firms,
whether owned by EU or non-EU residents, create a minimum of 20 jobs
within the first three years. As noted in the section on incentives,
PAT and R&D subsidies are based on the number of jobs created. In
addition, the authorities have occasionally sought commitments as part
of the approval process for acquisitions by foreign investors.
Nonetheless, foreign firms need the French government's approval on a
variety of regulatory issues, and in France, officials generally have
much wider discretion than their U.S. counterparts. This often leaves
firms subject to "unwritten" performance requirements, with regulatory
officials making it known that a firm's request would be more favorably
viewed if it increased employment, R&D, or exports. For example, a
priority of French financial regulators in recent years has been to
promote Paris as a financial center. When subsidiaries of U.S. banks
seek regulatory approval, whether to become primary dealers in
government bonds, or participate in the government's privatization
program, those firms which agree to increase employment and undertake
certain activities in France often receive more favorable treatment.
Q. Right to Private Ownership and Establishment
French industrial policy has traditionally considered the development of
many domestic industries as critical to national security. Thus, until
the mid-1980s, many sectors were not open to private investors, be they
French or foreign. This situation is gradually changing due to the
current government's efforts to privatize many state-owned industries.
The French government has a monopoly in the following sectors: basic
telephone services (France Telecom), postal services (La Poste),
national rail transportation (SNCF), Parisian bus and metro services
(RATP), the supply and production of gas and electricity (GDF/EDF), and
tobacco manufacturing and distribution (Seita). This situation is also
changing in view of the European Union's efforts to gradually do away
with state monopolies.
Despite its privatization program, the French government remains a major
shareholder in many enterprises which compete with private firms. Both
French and foreign private sector firms occasionally complain that
government-owned enterprises receive favorable treatment in getting
licenses, credit, and procurement contracts from the government. For
example, in the past, the French government has directed other state-
owned firms to inject capital, or has provided government funds to bail-
out government-owned enterprises experiencing financial difficulties.
Thus, private sector firms argue that these arrangements lower the cost
of financing for government-owned firms. However, government ownership
can just as often hurt a firm's competitiveness. The government's
willingness to bail-out firms in the past has shielded many of these
firms from having to take the necessary cost-cutting measures to remain
competitive. In addition, having to undertake certain activities for
political, as opposed to commercial, reasons can put state-owned firms
at a competitive disadvantage. For example, in recent years, the French
government has pressured many government-owned firms not to trim excess
staff to keep unemployment from rising further. However, as the
government sells off more of its firms, private firms' concerns about
competing with state-owned firms will diminish.
R. Protection of Property Rights
France is a strong defender of intellectual property rights worldwide.
Under the French intellectual property rights regime, industrial
property is protected by patents and trademarks, while literary/artistic
property is protected by copyrights. By virtue of the Paris Convention
and the Washington Treaty regarding industrial property, U.S. Nationals
have a "priority period" after filing an application for a U.S. patent
or trademark, in which to file a corresponding application in France.
This period is twelve months for patents and six months for trademarks.
The 1992 code on intellectual property governs the protection of
property rights (IPR). There are three types of patents: patents of
invention (brevets d'invention), patents of addition (certificats
complementaires) which cover supplements to those inventions, and
certificates of utility (certificat d'utilite). To qualify for patent
protection, the invention must have an industrial or agricultural
application, imply a non-obvious procedure, and have absolute novelty.
Patents have a twenty-year life span, after which they become part of
the public domain. Patents of addition are only valid for the unexpired
term of their parent patents. Certificates of utility have a six-year,
non-renewable life span.
Copyrights cover artistic works, literary works, computer programs and
data bases, as well as sound recordings. Copyrights are valid for 50
years after the death of the author, with two major exceptions: music
copyrights are valid for 70 years after the death of the composer, and
software copyrights are valid for 25 years after creation. Contrary to
other copyrights, software designed by a salaried employee belongs to
the employer.
Trademark protection can apply to both goods and services. Trademarks
recognize and protect marks or symbols which serve to distinguish one
product or service from similar products or services. In the French
regime, trademarks:
-- can be written or designed trademarks;
-- can be sonorous trademarks, such as music tunes, jingles, words,
slogans;
-- must not be deceptive as to the nature or origin of the goods;
-- must be recognizable by sight or sound;
-- must be novel for the specified product line.
A trademark has a ten-year life span and is renewable every ten years.
However, this protection can be lifted if the trademark has not been
used over a period of 5 years after filing. Fines for counterfeiters
can be up to FRF 120,000 with prison sentences of six months to 2 years.
Protection of trade secrets is provided for in the code on intellectual
property which states that "any attempt by a director or an employee to
reveal a company trade secret is punishable by two-year imprisonment and
a FRF 200,000 fine."
Protection for layout design of a semiconductor chip is valid for 10
years from filing or first commercial use. Such protection is granted
to nationals or residents of the European Union. Nationals of third
countries or companies established in third countries are subject to a
condition of reciprocity. This protection includes the exclusive right
to reproduce and commercially use the layout design of a semiconductor
chip.
S. Regulatory System: Laws and Procedures
French anti-trust and competition rules are generally not as
comprehensive as those found in the U.S. This stems in part from the
fact that when the government owned many commercial firms, such policies
were not deemed to be necessary, since the government already had
adequate means for ensuring that companies acted in the public interest.
Furthermore, an important component of French industrial policy was the
belief that French companies needed to be large enough to compete
against U.S. multinationals. As a result, the largest French firms
often account for a significant market share of many sectors. Both
French and foreign small and medium-sized firms sometimes complain that
the government allows large French firms to undertake anti-competitive
practices to maintain or expand market share. For example, because of
effective control of the market by French banks, U.S.-controlled firms
are unable to act as lead managers of public or private sector French
franc bond issues, though they participate in the syndicates.
Nevertheless, the French government has strengthened its enforcement of
competition policy in recent years. Restrictive business practices that
are forbidden include: price fixing; minimum resale prices; misleading
advertising; tying arrangements; the use of loss leaders; requiring the
use of long-term contracts; and price dumping. Ministers, companies,
consumer organizations and trade associations may petition the unfair
competition council to investigate anti-competitive practices.
Like their counterparts in other industrialized countries, French
bureaucrats occasionally require extensive and detailed reports, often
requesting more information than their immediate needs require.
T. Efficient Capital Markets and Portfolio Investment
Access to Capital and Capital Markets
After significantly deregulating its capital markets in the mid-1980s,
France now has one of the most open financial markets in the world.
Private sector firms have access, both in French and international
markets, to a variety of financing methods. In addition, foreign
portfolio investment has soared in recent years. At the end of 1992,
non-residents held 19 percent of French stocks and 32 percent of all
French government bonds. While the French government still subsidizes
home mortgages and loans to small business, most loans are provided at
market rates. An increasing share of firms in France are bypassing
banks and going directly to financial markets for their financing needs.
French legal, regulatory and accounting systems may not be as
transparent as U.S. systems, but are consistent with international
norms.
The French banking system underwent a fundamental structural reform in
1984, which removed the distinction between commercial banks and
merchant banks and grouped most financial institutions under a single
supervisory system. The largest French commercial banks, such as
Societe Generale, Credit Lyonnais, Banque Nationale de Paris, Credit
Agricole, Paribas, Indosuez, CIC, and Credit Commercial de France, rank
among the largest banks in the world. These commercial banks offer all
classic financing instruments, including short, medium, and long-term
loans, short-and medium-term credit facilities, and secured and non-
secured overdrafts. Commercial banks also assist in public offerings of
shares and corporate debt, and mergers, acquisitions and takeovers.
Banks also offer hedging services against interest rate and currency
fluctuations. France also has more than 170 foreign banks; some have
sizable branch networks. Foreign companies have access to all banking
services. The five largest French banks hold FRF 6.7 trillion in
assets, about 41 percent of total French banking assets.
The other main financing is through French financial markets. The
center of the French stock market ("Bourse") is the Paris stock exchange
which accounts for 95 percent of all stock transactions. For a foreign
company to be listed in one of French stock exchanges, it must send an
application to both the Ministry of Economy and the "Commission des
Operations de Bourse (COB)" (the French equivalent to the SEC). The COB
makes a recommendation and submits it to the Ministry of Economy, which
makes the ultimate decision. A financial futures market, the "Marche a
Terme des Instruments Financiers," commonly known as the MATIF, opened
in 1986. The MATIF is under the general supervision of the COB, and
trades standard contracts on short-term treasury bonds. An options
exchange, the "Marche des Options Negociables de Paris (MONEP)," was
established in September 1987, trading a limited number of shares of
larger companies. Finally, though not nearly as active as in the United
States or the United Kingdom, venture capital has become an increasingly
important way for start-up firms to raise funds.
Foreign companies account for about 20 percent of the number of
companies offering stocks in French financial markets. Non-EU
controlled companies must be sponsored by a bank in France and must
prepare a prospectus subject to the approval of the COB and the stock
market council (Consul des Bourses de Valeurs -- CBV, a self-regulatory
agency similar to the New York Stock Exchange). They must submit French
translations of two years of financial statements and an auditor's
report on these statements. The translations must be certified by an
independent accountant in France. The sponsoring bank is responsible
for placing the securities with investors when the securities are
listed, and acting as a market maker once the securities are listed.
Cross-shareholding
One barrier to foreign acquisitions of French firms is the intricate and
extensive network of cross-shareholdings among French corporations.
Often, two French companies will each own a significant share of the
other. This system evolved from the time when the French government
owned most large banks and insurance companies, and used investments by
these institutions and other government-owned enterprises as a way of
controlling other firms. French government officials point out that,
lacking large private pension funds, cross-shareholding is a crucial
source of capital for many French firms. In addition, the relationships
between many French companies are more than financial. Most top French
executives are alumni of the same universities (Grandes Ecoles), often
sit on each others' board of directors, and are often hesitant to let a
newcomer, and in particular, a foreigner, "join the club."
In its privatization program, the French government continues to
negotiate separate sales to "core" shareholders who hold up to 20
percent of shares. This practice is, according to some analysts,
necessary to ensure that hostile investors do not take over companies.
The government has attempted to address past criticism that it
previously favored certain well-connected individuals in deciding who
would be eligible for "core" holdings by having a privatization
commission determine the core investors.
Mergers and Aquisitions
Until the late 1980s, takeovers of publicly traded companies, whether
friendly or hostile, were exceedingly rare in France. Many companies
were either privately held or owned by the government. Of those
publicly traded, many firms were undercapitalized, and interwoven by
cross ownership into large groups controlled by minority shareholders.
The French government was an avid practitioner of industrial policy and,
as majority owner of the country's financial sector, was well placed to
implement its strategies.
In the 1990s, takeovers have become much more common, particularly those
aimed at integrating complementary operations or product lines or at
expanding market share. However, "speculative" raids intended to
maximize the value of a company by dismembering it are dreaded by both
the private and public sectors and have not occurred to date. Asset
sales by French companies are subject to heavy transfer and capital
gains taxes in a breakup. While French laws regarding takeovers do not
discriminate against foreign investors, a hostile takeover in France by
a foreign investor would be extremely unlikely, particularly if highly
leveraged, due to the private or narrowly-held nature of corporate
ownership, severe limitations on leverage, and the French government's
authority to block inward direct investment. Perhaps most importantly,
as noted above, French corporate leaders remain a cohesive group.
Members of an elite social class sharing a common education experience,
they tend to defend each other's interests against outsiders.
Stockholders are required to reveal to the company and the authorities
their holdings in any publicly traded company when these total 5, 10,
20, 33 or 50 percent of the capital of the company. On crossing the 20
percent threshold, purchasers must declare their intentions. If an
investor acquires one-third of either the shares in a publicly-traded
company, a takeover bid for at least another third of the shares of
target must be launched immediately. Moreover, when an investor
acquires a controlling stake in a publicly-traded firm, the investor is
required to support the share price of that company on the market for 15
working days, thus providing other shareholders the ability to liquidate
their holdings on equal terms. For investors who hold between one-third
and one-half of the shares of a listed company, the obligation to launch
a tender offer is triggered by acquisition of a further two percent of
the company in any 12 month period.
U. Foreign Participation in Industry Standards-Setting
All products satisfying publicly-funded contracts, and all machinery,
tools, household appliances, sporting equipment, toys, should conform to
French and European Union standards. Conformity is generally optional
for goods satisfying private contracts. These standards often differ
from those in the U.S. Often, particularly with goods of a
technologically complex or potentially harmful nature, rigorous testing
and approval procedures must be undertaken before the goods can be sold
in France.
Although one goal of the European Union is to harmonize standards across
the twelve member states, many EU standards remain in the developmental
stage. Where an EU standard does not exist, French standards apply.
The "Association Francaise de Normalization" (AFNOR) is the French
authority in charge of preparing new and revised standards. Mutual
recognition agreements covering the testing and certification of
specified regulated products have been proposed to permit U.S. companies
to obtain product certification in the United States which will be
recognized by the EU members. Such recognition will enable U.S. firms
to market their products throughout the EU and would eliminate the
expense of multiple testing and certification procedures. In addition,
the National Institute of Standards and Technology of the U.S.
Department of Commerce is represented at the French International Bureau
of Weights and Measures. The U.S. Embassy in Paris also has held and
will continue to hold discussions with French standards organizations to
press them for more openness and transparency in the standards
development process.
Industry associations have an influential role in developing both
government policies and influencing self-regulatory organizations. To
play a more active role in the formulation of national policies, U.S.
firms should be encouraged to become members of local industry groups.
However, experience has shown that even "observer" status can offer U.S.
firms an insight into new investment opportunities and greater access to
government-sponsored projects. Due in part to the concentration in many
sectors (see above), foreign investors occasionally complain that they
lack adequate influence in these industry associations, and that they
are not always given an adequate opportunity to participate in the
determination of regulations.
V. Political Violence
Periodically, anti-American sentiments, particularly among groups likely
to be economically harmed by U.S. policies, produce demonstrations
against U.S. investments. For example, during the GATT negotiations,
French farmers demonstrated against several American icons, such as
McDonalds restaurants or the Euro Disney resorts, and in certain
instances damaged property. However, these have mostly been isolated
incidents, and there is no risk of nascent insurrections, belligerent
neighbors, or widespread civil disturbances.
W. Bilateral Investment Agreements
1959 U.S.-France Convention on Establishment
U.S. Investment in France is subject to the provisions of the convention
on the establishment between the United States of America and France,
which was signed in 1959 and is still in force. Some of the rights it
provides to U.S. nationals and companies include:
-- the right to be treated like domestic nationals and companies in:
o all types of commercial activities including the right to
establish offices and acquire majority control of French firms. (This
right does not apply to firms involved in communications, air
transportation, water transportation, banking, the exploitation of
natural resources, certain "professions," and the production of
electricity.); and
o in obtaining and maintaining patent and trademarks;
-- the right to receive the best treatment accorded to either domestic
nationals and companies or third country nationals and companies with
respect to transferring funds between France and the U.S.; and
-- the requirement that property may only be expropriated for a public
purpose and that payment must be just, realizable, and prompt.
The treaty does not apply to the use of production of fissionable
materials, arms, or any materials used directly or indirectly to supply
military establishments. Finally, the treaty does not prevent the
application of any measure necessary to protect essential security
interests.
Investments in France by other EU member states are governed by the
provisions of the Treaty of Rome and by Union Law. As of the fall of
1994, France had also signed 47 Bilateral Investment Treaties (BITs)
with the following countries: Argentina, Bangladesh, Bulgaria, China,
the former Czechoslovakia, Egypt, El Salvador, equatorial Guinea,
Hungary, Indonesia, Israel, Jamaica, Jordan, Kuwait, Laos, Liberia,
Malaysia, Malta, Mauritius, Morocco, Mongolia, Nepal, Nigeria, Pakistan,
Panama, Paraguay, the Philippines, Poland, Romania, Russia, Singapore,
South Korea, the former Soviet Union, Sudan, Sri Lanka, Syria, Trinidad
and Tobago, Tunisia, Vietnam, Yemen, former Yugoslavia, and Zaire.
Other treaties signed but not yet in force include the following
countries: Bolivia, Costa Rica, Ecuador, Estonia, Latvia, Lithuania,
Peru, and United Arab Emirates. French BITs generally provide French
investors with the following rights:
-- just and equitable treatment that is no less favorable than that
accorded to domestic investors or the most favored investor from a third
country;
-- restrictions on when the host country can expropriate French
investments and requirements that, in the case of expropriation,
compensation is prompt and adequate;
-- free transfers; and
-- the ability to resolve investor-state disputes through binding
international arbitration.
X. OPIC and Other Investment Insurance Programs
Given France's high per capita income, the U.S. Overseas Private
Investment Corporation (OPIC) does not insure investments made in France
by U.S. Investors.
Labor
The French labor force is one of the country's strongest points in
attracting foreign investment, combining high quality with competitive
unit wage costs. In a recent survey of U.S. investors in France,
management was unanimous in agreeing that the quality of local personnel
was adequate and 90 percent found labor costs to be competitive.
The labor code sets out minimum standards for working conditions
including the work week, overtime, vacation and personal leave. Other
labor standards are contained in collective agreements, which are
usually negotiated on a national or regional basis by the various unions
and employers' associations. French absenteeism is modest by European
standards while the number of hours lost to strikes is at an all-time
post World War II low. Despite highly visible nuisance strikes in the
public sector and a high profile shutdown of Air France, peaceful labor
relations have been the order of the day, particularly in the private
sector.
While the rate of unionization in France is about half that of the
United States, French labor law provides an extensive institutional role
for employee representatives and for organized labor.
-- In companies with more than 10 employees, employee delegates (shop
stewards) are elected for a one-year term. They are authorized to
present individual or collective claims and grievances relating to
working conditions, to inform government labor inspectors of any
complaints under the labor law, and to concur in any reorganization of
the work week. Management is required to meet with employee delegates
at least monthly.
-- Companies employing more than 50 individuals are required to have a
joint management/employee enterprise committee, to which union
representatives are elected. The committee must be consulted by
management for all major corporate decisions affecting economic and
professional areas but has no power of veto. The enterprise committee
must be provided with the same information that is made available to
shareholders. It is funded by the company at a rate equal to at least
0.2 percent of the firm's payroll, and uses this money to finance social
and cultural activities for the benefit of employees.
-- Workers also hold most slots on occupational health and safety
committees, which are mandatory in medium and large size companies.
Labor tribunals (playing a role largely equivalent to the NLRB in
resolving labor disputes) are comprised of equal numbers of union and
employer representatives.
Due to a variety of factors, businesses in France tend to use less labor
intensive procedures and rely more on labor saving technology than
businesses in other countries. This is one reason France's unemployment
rate remains more than 12 percent during 1994. These factors include:
high payroll taxes, a high minimum wage, and rigid labor laws. In the
fall of 1993, the French government carried out some reforms to increase
the flexibility of the labor market.
Foreign Trade Zones/Free Ports
As a member of the European Union, France is subject to all European
Union free trade zone arrangements. European Union laws and regulations
provide that member states may designate parts of the customs territory
of the Union as free trade zones and free warehouses. Information on
free trade zones and free warehouses is contained in Title IV, Chapter
Three, of Council Regulation (EEC) no. 2913/92 of October 12, 1992,
establishing the community customs code, titled, "Free Zones and Free
Warehouses" (articles 166 through 182).
Article 166 states that free zones and free warehouses are part of the
customs territory of the union or premises in that territory and
separated from the rest of it in which:
-- union goods are considered, for the purposes of import duties and
commercial policy import measures, as not being on community customs
territory, provided they are not released for free circulation or placed
under another customs procedure or used or consumed under conditions
other that those provided for in customs regulations;
-- union goods for which such provision is made under union
legislation governing specific fields qualify, by virtue of being placed
in a free zone or free warehouse, for measures normally attaching to the
export of goods.
Articles 167-182 detail the customs control procedures, how goods are
placed in or removed from free zones and free warehouses and their
operation.
Capital Outflow Policy
There are no restrictions or administrative controls on outward capital
flows including outward direct investment. France continues to provide
limited tax incentives to French firms for foreign investments intended
primarily to commercialize French products.
COFACE
The "Compagnie Francaise d'Assurance pour le Commerce Exterior
(COFACE)," a quasi-governmental agency, supports French investors in
markets that conventional insurance companies are not willing to cover
due to perceived risks. These involve large projects, such as aircraft
financing, as well as high risk markets such as the third world and
central Europe. In these cases, COFACE acts for and with the backing of
the French government. This category includes market survey insurance,
medium-term credit insurance on large scale projects and capital goods,
investment risks in foreign countries, and exchange rate guarantees on
major contracts or large amounts. In this case, COFACE acts as the
manager for the French government, in particular for the French treasury
("Tresor"). The Tresor pays COFACE for services rendered, which takes
the form of an annual payment calculated each year according to defined
criteria.
Y. Foreign direct investment statistics
Foreign Direct Investment in France (FRF billions)
Position - by Country of Origin
-------------------------------------------------
1990 1991 1992
OECD 423.0 485.0 524.6
EU 258.1 283.8 324.7
Of which
Netherlands 83.3 102.6 119.9
United Kingdom 69.4 61.5 68.2
Germany 41.3 52.4 51.5
Belgium/Luxembourg 29.5 30.7 42.6
Italy 26.8 28.6 33.4
Spain 4.0 4.4 5.8
Denmark 2.2 2.2 1.6
Other 1.6 1.7 1.7
North America 94.1 102.3 103.8
USA 90.6 97.5 99.5
Canada 3.5 4.8 4.3
Other OECD countries 70.8 99.2 122.3
Switzerland 36.1 50.8 50.6
Sweden 9.3 23.5 21.1
Japan 13.6 15.8 18.3
Finland 3.2 4.4 4.3
Other 8.6 4.5 28.0
Non-OECD countries 20.7 15.5 19.9
Other N.A 5.7 7.3
443.7 506.6 551.8
Total as % of GDP 6.8 7.5 7.9
Source: Bank of France
Foreign Direct Investment in France (FRF billions)
Position - by Main Industrial Sector Destination
-------------------------------------------------
1990 1991 1992
Holding companies
(diversified) 78.6 79.2 121.8
Wholesale/Retail Trade 53.0 57.5 58.5
Banking 68.8 70.5 95.8
Chemicals 40.4 46.7 45.0
Energy 26.9 26.7 27.9
Transportation N.A. 22.3 19.5
Processed food 18.0 30.0 28.2
Precision equipment 17.1 18.9 14.6
Paper, press, editing
Equipment 16.3 19.5 15.1
Office machines,
Electrical/electronic 20.5 18.1 23.8
Insurance 3.1 15.7 15.1
Other 101.1 101.5 86.5
Total 443.7 506.6 551.8
Source: Bank of France
Foreign Direct Investment in France (FRF billions)
Net Flows - by Country of Origin
-------------------------------------------------
1990 1991 1992 1993
OECD 29.5 41.9 62.5 66.9
EU 16.6 21.5 43.5 49.9
Of which
United Kingdom 2.5 1.4 2.2 14.5
Belgium/Luxembourg 1.3 3.0 10.8 11.0
Italy 3.8 3.2 14.1 8.7
Germany 5.3 9.3 5.9 7.9
Netherlands 2.9 4.1 9.3 5.9
Spain 0.4 0.2 0.7 1.4
Denmark 0.2 0.1 0.4 0.2
Other EU 0.1 0.2 0.1 0.4
North America 2.8 3.1 12.5 5.1
USA 2.7 2.7 11.8 4.4
Canada 0.1 0.5 0.7 0.7
Other OECD countries 10.1 17.2 6.6 11.8
Switzerland 0.9 0.3 2.8 7.8
Japan 2.6 1.8 1.7 2.0
Sweden 1.9 13.1 0.2 1.0
Finland 1.9 0.9 1.0 0.6
Other 2.7 1.1 0.9 0.4
Non-OECD Countries 0.7 0.5 0.4 2.5
Total 30.2 42.3 62.9 69.3
Source: Bank of France
French Direct Investment Abroad (FRF billions)
Position - by Country of Destination
---------------------------------------------
1990 1991 1992
OECD 518.4 578.2 655.8
EU 333.1 391.8 450.1
Of which
Netherlands 97.1 117.3 152.0
United Kingdom 64.7 72.7 70.3
Spain 44.6 58.7 53.9
Belgium/Luxembourg 52.5 60.1 69.0
Italy 34.7 33.2 36.9
Germany 26.0 30.7 50.6
Other 13.5 19.1 17.4
North America 134.9 131.3 148.6
USA 119.4 118.1 132.6
Canada 15.5 13.2 16.0
Other OECD countries 50.4 55.1 57.1
Switzerland 39.3 36.1 36.9
Other 11.1 19.0 20.2
Non-OECD countries 46.4 42.8 61.6
Latin America 14.9 17.7 23.8
CFA Zone 8.4 7.0 7.6
Eastern countries 0.1 1.0 2.0
Other 23.0 17.1 28.2
Other N.A. 51.9 56.7
Total 564.8 672.9 774.1
Total as % of GDP 8.7 9.9 11.0
Source: Bank of France
French Direct Investment Abroad (FRF billions)
Position - by Main Industrial Sector Destination
------------------------------------------------
1990 1991 1992
Banking 109.9 117.7 122.1
Equipment 39.0 64.2 N.A.
Chemicals 57.4 62.9 68.9
Energy 59.4 61.7 76.6
Insurance 43.4 55.1 68.5
Repairs,trade 31.5 41.6 47.9
Other retail services 30.8 40.6 N.A.
Transportation 25.1 34.2 32.1
Processed foods 27.9 33.3 33.9
Metals 29.8 29.8 33.9
Electrical/electronic N.A. N.A. 50.7
Other 116.7 131.8 239.5
Total 564.8 672.9 774.1
Source: Bank of France
French Direct Investment Abroad (FRF billions)
Net Flows by Country of Destination
-----------------------------------
1990 1991 1992 1993
OECD 109.3 91.4 77.0 52.1
EU 79.9 51.4 67.7 38.1
Of which
Spain 11.5 9.6 11.1 8.1
Netherlands 18.7 7.9 17.9 7.1
United Kingdom 20.2 8.2 5.5 6.2
Italy 8.5 7.0 9.8 6.2
Germany 9.5 6.8 4.3 6.0
Belgium/Luxembourg 9.7 8.7 17.5 2.6
Portugal (1) N.A. N.A. N.A. 1.0
Other 1.8 3.2 1.4 0.9
North America 22.2 24.8 3.9 9.8
USA 21.1 22.0 3.6 9.8
Canada 1.04 2.8 0.3 0.0
Other OECD Countries 7.3 15.2 5.4 4.2
Other 0.8 1.6 1.8 2.1
Switzerland 4.4 1.6 1.7 1.5
Sweden 1.9 11.9 1.4 0.4
Japan 0.2 0.2 0.6 0.3
Non-OECD Countries 2.7 2.2 3.6 16.8
Total 112.1 93.6 80.6 68.9
(1) Portugal included in "Other" in 1990-92
Source: Bank of France
Z. Major Foreign Investors
Today, foreign-controlled firms play a significant role in France's
economy: they account for 22 percent of the workforce, 27 percent of
capital expenditures, 30 percent of exports and 30 percent of
production.
Major foreign investors by industry include:
Agribusiness
Beghin-Say (Eridania, ITA)
Nestle (Nestle, SWISS)
Unilever France (Unilever, NL)
Source Perrier (Nestle, SWISS)
Unisabi (Mars, USA)
Francaise de Brassiere (Heineken, NL)
Mars Alimentaire (Mars, USA)
CPC France (CPC Europe, USA)
Chemicals
Bayer France (Bayer, GER)
BASF France (BASF, GER)
ICI France (ICI, GB)
Kodak Pathe (Eastman Kodak, USA)
Solvay (Solvay, BEL)
Procter & Gamble France (Procter & Gamble, USA)
Francaise Hoechst (Hoechst, GER)
Francaise Exxon Chemical (Exxon, USA)
Electrical/Electronics/Information Technology
Compagnie IBM France (IBM, USA)
Philips France (Philips, NL)
Hewlett Packard France (Hewlett Packard, USA)
Sony France (Sony, JPN)
Digital Equipment France (Digital Equip., USA)
Siemens France (Siemens, GER)
Rank Xerox (Rank Xerox Ltd, GB)
Cables Pirelli (Pirelli, ITA)
Mechanics
Case Poclain (Tenneco Case, USA)
Celcius Ex Cich (Blue Circle, GB)
John Deere (Deere, USA)
Caterpillar France (Caterpillar, USA)
Liebherr France (Liebherr Inter., SWISS)
Massey-Fergusson (Varity, CAN)
Saunier Duval (Hepworth, GB)
Fenwick-Linde (Linde, GER)
Metals Industry
Metaleurop (Preussag, GER)
Trefimetaux (Europe Metalli, ITA)
Haironville (Cockerill Samb., BEL)
Alusuisse-lonza France (Alusuisse-Lonza, SWISS)
Alcan France (Alcan, CAN)
Fabrique de Fer de Maubeuge (Boel, BEL)
Thyssen Aciers Speciaux (Thyssen, RFA)
Ferembal (Viatech, USA)
Transportation Equipments
Groupe Fiat France (Fiat, ITA)
Ford France (Ford Motor, USA)
VAG France (Volkswagen, GER)
Mercedes-Benz France (Mercedes-Benz, GER)
General Motors France (GM, USA)
Robert Bosch (Bosch, GER)
Fiat Auto France (Fiat, ITA)
Bendix Europe (Allied Signal, USA)
Paper/wood
Aussedat Rey (International Paper, USA)
Kayserberg (Ja-Mont, NL)
Stora Feldmuehle Corbehem (Stora Feldmuhle, GER)
Peaudouce (Molnlycke, SWE)
Chapelle Darblay (Kymmene, SF)
Cascades (Cascades, CAN)
Kaysersberg Packaging (David S. Smith, GB)
Papeteries de Clairefontaine (Nusse, SWISS)
Energy
Groupe Shell France (Royal D. Shell, NL)
Esso SAF (Exxon, USA)
BP France (BP, GB)
Mobil Oil Francaise (Mobil, USA)
Fina France (Petrofina, BEL)
AGIP Francaise (AGIP Petroli, ITA)
Esso REP (Exxon, USA)
Omya (Pluess-Staufer, SWISS)
Textile/clothing
Bata (Leader, SWISS)
DIM (Sara Lee, USA)
Chaussures Bailly France (Bailly, SWISS)
Griffine (Solvay, B)
Lee Cooper International (Lee Cooper, NL)
Triumph International (Triumph Univer, SWISS)
Brochier (Ciba Geigy, SWISS)
Filix Lastex (Willcox & Gibbs, USA)
Communication/leisure
Euro Disneyland (Disney Corp., USA)
Carat (Aegis, GB)
Prisma Presse (Gruner + Jahr, GER)
Selection du Reader's Digest (Reader's Digest, USA)
Editions Atlas (De Agostini Bv, NL)
Mattel France (Mattel, USA)
Les Echos (Pearson, GB)
Tonka France (Tonka International, USA)
Building
Kaufman & Broad France (Kaufman & Broad, USA)
RMC France (RMC, GB)
Nord France (Philip Holzmann, GER)
Origny (Holderbank, SWISS)
Villeroy & Boch (Villeroy & Boch, GER)
Siplast (Icopal, DEN)
Spac (Socogetra, BEL)
Sika (Sika Finanz, SWISS)
Distribution
Cargill (Cargill, USA)
Pum Station Service Acier (Cockerill Samb., BEL)
Compagnie Continentale France (Continental Grain, USA)
Safic Alcan & Cie (Ifint, LUX)
Meubles Ikea France (Ingeka, SWE)
Granit (Itex Itagrani, ITA)
Stora Feldmuehle Beghin (Stora Feldmuehl, RFA)
Quelle (Schickedanz, GER)
Transportation/tourism
Eurest (Ciwlt, BEL)
Seavt Wagons-Lits Tourisme (Ciwlt, BEL)
Pullman International Hotel (Ciwlt, BEL)
Simotra (Branbles Invest.,NL)
PLM (Ciwlt, BEL)
Safaa (Merkur Selecta, SWISS)
Voyages (Kuoni, SWISS)
Hotel Jamet le Bristol (Oeteker, GER)
Services
Manpower France (Manpower, USA)
Adia France (Adia International, SWISS)
Europe Assistance (Generali, ITA)
Avis Location de Voiture (Avis Europe, GB)
GFI Informatique (EDS, USA)
Alliance Gestion Commerciale (Prenussag, GER)
Foster Wheeler Cee (Foster Wheeler, USA)
SGS Qualitest (SGS, SWISS)
CHAPTER VIII. TRADE AND PROJECT FINANCING
A. Banking System
The French banking system underwent a fundamental structural reform in
1984, which removed most of the distinction between commercial banks and
merchant banks and grouped most financial institutions under a single
supervisory system. The largest French commercial banks, such as
Societe General, Credit Lyonnais, Banque Nationale de Paris, Credit
Agricole, Paribas, Indosuez, CIC, and Credit Commercial de France, rank
among the largest banks in the world. These commercial banks offer all
classic financing instruments, including short, medium, and long-term
loans, short-and medium-term credit facilities, and secured and non-
secured overdrafts. Commercial banks also assist in public offerings of
shares and corporate debt, as well as mergers, acquisitions and
takeovers. Banks also offer hedging services against interest rate and
currency fluctuations. France also has more than 170 foreign banks;
some have sizable branch networks.
The Bank of France ("Banque de France") is both a central bank and an
issuing bank. As the national issuing bank, it alone issues bank notes.
As a central bank, it has supervisory powers over credit distribution
and control. The governor of the Bank of France is president of the
Committee on Credit Institutions, which grants or withdraws banking
licenses. The governor is also president of the Banking Commission,
which ensures that banks adhere to banking regulations. Since January
1994, the Bank of France is also independently responsible for the
conduct of the French monetary policy, i.e. control of money supply and
official interest rates.
In the past 8 years, the French government has sold most of its equity
stake in major banks and insurance companies. It plans to continue this
process. However, the government will retain ownership in several major
financial institutions, such as Credit Agricole and Caisse des Depots et
Consignations (CDDC).
B. Foreign Exchange Controls
All inward and outward payments must be made through approved banking
intermediaries by bank transfers.
Repatriation of Capital and Earnings. There is no restriction on
repatriation of capital provided this is carried out through an approved
bank and the investment in question was authorized. Similarly, there is
no restriction on transfers of profits, interest, royalties, or service
fees, provided the investment was authorized and made through approved
banks.
Businesses. Foreign-controlled French businesses are required to have a
resident French bank account and are subject to the same regulations as
other French legal entities. The use of foreign bank accounts by
residents is permitted.
Individuals. The exchange control regulations applicable to both French
citizens and foreigners have been relaxed significantly since the
beginning of 1990. For exchange control purposes, foreigners are
considered to be residents from the time they arrive in France. French
and foreign citizens are subject to the same rules. Residents are
entitled to open an account in foreign currency with a bank established
in France and to establish accounts abroad. Residents must report the
account number for all foreign accounts on their annual income tax
returns. French-source earnings may be transferred abroad, without
limitations if carried out through an approved bank.
C. General Financing Availability
Foreign companies have access to all banking services described in
Section A. The other main financing is through French financial
markets. The center of the French stock market ("Bourse") is the Paris
stock exchange which accounts for 95 percent of all stock transactions.
In addition, there are six provincial exchanges, in Bordeaux, Lille,
Lyon, Marseilles, Nancy and Nantes. For a foreign company to be listed
in one of French stock exchanges, an application must be sent to both
the Ministry of Economy and the "Commission des Operations de Bourse
(COB)" (the French equivalent to the SEC). The COB makes a
recommendation and submits it to the Ministry of Economy, which makes
the ultimate decision. A financial futures market, the "Marche a Terme
des Instruments Financiers," commonly known as the MATIF, opened in
1986. The MATIF is under the general supervision of the COB, and trades
standard contracts on short-term treasury bonds. An options exchange,
the "Marche des Options Negociables de Paris (MONEP)," was established
in September 1987, trading a limited number of shares of larger
companies.
D. Export Financing
France has a sophisticated export financing market. In general, large
commercial banks provide the bulk of export financing. These loans can
be made to the French supplier or the foreign buyer. Most major U.S.
banks and the U.S. Export-Import Bank provide both financing and
technical assistance for the exports of American companies to France.
Through its special toll-free number (the "Export Financing Hotline": 1-
800-424-5201), Eximbank provides information on its export credit
insurance, pre-export financing through working capital guaranteed
loans, and medium and long-term loans and guarantees to overseas buyers.
COFACE. The "Compagnie Francaise d'Assurance pour le Commerce Exterieur
(COFACE)," a quasi-governmental agency, has two distinct functions.
First, it insures French exporters against the short-term non-payment
risks, principally involving trade with other OECD countries. These
include the insolvency of private buyers, unfavorable currency
fluctuations on ordinary business, and political risks in OECD
countries. In these cases, COFACE acts like any other insurer: it set a
competitive premium based on perceived risks.
COFACE's second function is to support French exporters in markets that
conventional insurance companies are not willing to cover due to the
perceived risks. These involve large projects, such as aircraft
financing, as well as high risk markets such as the Third World and
Eastern Europe. In these cases, COFACE acts on behalf of and with the
backing of the French Government. This category includes market survey
insurance, medium-term credit insurance on large scale projects and
capital goods, investment risks in foreign countries, and exchange rate
guarantees on major contracts or large amounts. In this case, COFACE
acts as the manager for the French government, in particular for the
French Treasury ("Tresor"). The Tresor pays COFACE for services
rendered, which takes the form of an annual payment calculated each year
according to a defined criteria.
COFACE also provides "expert credit insurance" for French agricultural
exports into "high risk" markets. These coverages are usually in direct
competition with U.S. agricultural exports.
COFACE's data for FY 1992/93 shows that out of total French exports of
FRF 1,248 billion, COFACE covered some FRF 300 billion or 24 percent.
About half of covered amounts were for COFACE's commercial account, i.e.
commercial risks for OECD trade, and the remaining half was for the
Tresor account. For the Tresor account, the largest amount (FRF 61
billion) was for medium-term export credit insurance, followed by short-
term export credit insurance for political risks on non-OECD countries
(FRF 43 billion).
E. Correspondent U.S. Banking Arrangement
All large French banks have correspondent U.S. banking arrangements.
Many French banks also have branch offices in the United States:
Credit Agricole
520 Madison Avenue
New York, NY 10022
Tel: 212-418-2200
Credit Lyonnais
Credit Lyonnais Building
1301 Avenue of the Americas
New York, NY 10019
Tel: 212-261-7000
Banque Nationale de Paris
499 Park Avenue
P.O. Box 7589
New York, NY 10022
Tel: 212-415-9400
Societe General
50 Rockefeller Center
14th Floor
New York, N.Y. 10020
Tel: 212-278-6000
Banque Paribas
Equitable Tower
787 7th Ave.
New York, N.Y. 10019
Tel: 212-841-2020
Union European de CIC
520 Madison Ave.
New York, NY 10022
Tel: 212-715-4400
Banque Indosuez
Indosuez North America Inc.
Rockefeller Center
1230 Avenue of the Americas 4th Floor
New York, NY 10020
Tel: 212-408-5883
CHAPTER IX. BUSINESS TRAVEL
Although French executives are becoming increasingly international in
their outlook, Americans will occasionally encounter differences in
business practices and cultural standards. Attention to the following
points may improve the chances of a successful business trip to France.
A. Business Etiquette
The most important characteristic of French business behavior is its
emphasis on courtesy and a certain formality. Appointment schedules and
hierarchical titles are to be respected and correspondence--whether by
mail or by FAX--should be acknowledged promptly. A hand-shake is
customary upon initiating and closing a business meeting, accompanied by
an appropriate greeting. Professional attire is expected.
Today, many French executives put less emphasis on long, heavy business
lunches for reasons of health and time. Nevertheless, informal business
discussions in restaurants where everyone appreciates a good meal are
one of the best ways to promote good working relations.
The work-days abutting the French holidays and vacation periods are not
"prime time" for business meetings; this could include the month of
August and the several vacation periods between Christmas and Easter.
Business hours in France are generally 9:00 AM to 6:00 PM (banking hours
9:00-4:30) Monday through Friday while stores are generally open 10:00
AM to 7:00 PM, Monday through Saturday. To ensure availability, advance
appointments are recommended.
B. Entry of persons and things
Every U. S. citizen entering France must present a valid American
passport; for stays of less than 3 months there is no requirement for
visas, entry permits or health certificates.
Bona fide personal effects in a visitor's luggage (or hand-carried) are
not normally subject to customs duties nor the 18.6 percent value-added
tax. Items to be declared, however, include those intended to be left
in France, goods for professional/commercial use as well as any
prohibited items. Goods imported for exhibition may enter under bond,
deposit or an ATA carnet. Professional equipment may be temporarily
imported into France free of duty and tax under the Customs Convention
on Temporary Importation of Professional Equipment; the appropriate
carnet may be obtained from the U. S. Council of the International
Chamber of Commerce.
C. Electrical Characteristics/Communications
Electric current in France is 220 volts AC, 50 cycles. A transformer is
needed for most U. S. electrical equipment and appliances.
Telecommunications to and from Paris compare favorably with those in any
large U. S. city. A direct-dial telephone system links France to the U.
S. and most of the world. Calls to the States may be charged to
international telephone cards such as AT&T, MCI and Sprint;
international directory inquiries may be reached by dialing 19-00-11
(AT&T Direct U. S. operator). Most public phones in France are equipped
for the convenient pre-paid "Telecartes" (credit cards) available in
tobacco shops, post offices and subway/railway stations at 40 francs for
50 units.
D. Transportation
Frequent direct air service is available to many U. S. and French
cities. The two airports serving Paris--Charles DeGaulle (Roissy) and
Orly--are easily accessible by excellent bus (Air France) and rail
service. The French railway system is among the best in the world; its
efficient network ties in conveniently with public transportation in
most French cities.
Buses and the Metro (subway) may be crowded during rush hours but they
provide fast and efficient service, but a word to the wise: As in many
large cities world-wide,one should be alert to the dangers of pick-
pockets while in public places.
E. Climate and Clothing
France's climate is temperate which varies somewhat from north to south.
Rain is frequent and most experienced travelers carry collapsible
umbrellas. Average temperatures in Paris range from 25 degrees Celsius
(77 F) in mid-summer to 6 Celsius (43 F) in winter. Collar, tie and a
dark business suit for men are very useful, especially in Paris. For
women, similar attire is appropriate, but it should be noted that women
in France do not dress as conservatively as women in the U.S.
F. Bed and Board in Paris
May 1994 estimates of the Department of State for reasonable lodging and
meal/incidental expenses for a business traveler are 132 dollars and
108, respectively per day. One could pay less or a great deal more than
this $240 amount.
In France the ground floor in buildings is identified as "RC" (Rez-de-
Chausee) and the next floor up is considered the first floor.
Tipping in France is largely optional since a 15 percent service charge
is normally included in restaurant bills. Small, additional tips are
often left for particularly good service. Parisian taxi drivers may be
tipped by rounding up the payment to include up to 10 percent of the
fare. At no time in France are tips obligatory.
G. Commercial Language
While French is the official language in France, many business people
speak English. Product literature, correspondence and negotiations in
the French language provide a distinct advantage over competitors who
use only English. It should be noted that other EU suppliers are
accustomed to dealing in the French language.
H. Useful Addresses
Foreign Agricultural Service (FAS)
U.S. Embassy
2 avenue Gabriel
75382 Paris Cedex 08
TEL: (33-1) 43 12 22 45
FAX: (33-1) 43 12 26 62
U. S. & Foreign Commercial Service (US&FCS)
U.S. Embassy
2 avenue Gabriel
75382 Paris Cedex 08
TEL: (33-1) 43 12 22 22
FAX: (33-1) 43 12 21 72
U. S. Travel & Tourism Administration (USTTA)
U.S. Embassy
2 avenue Gabriel
75382 Paris Cedex 08
TEL: (33-1) 42 60 57 15 --
FAX: (33-1) 40 15 08 74
Notes: -- Recorded messages in French - USTTA deals exclusively with
promotion of tourism from France to the U.S.
American Hospital in Paris
63, blvd. Victor Hugo
92202 Neuilly sur Seine
Telephone: (33-1) 46 41 25 25
(24-hour English-speaking medical and dental emergency service; credit
cards accepted.)
Emergency Medical Team and Ambulance (SAMU)
Telephone: 15 (or 33-1 45 67 50 50)
Police Department
Telephone: 17
Fire Department
Telephone: 18
I. French Holidays
January 1, 1996 New Year's Day
April 8, 1996 Easter Monday
May 1, 1996 Labor Day
May 8, 1996 Veterans' Day (W.W. II)
May 16, 1996 Ascension Day
May 27, 1996 Whit Monday
July 14, 1996 French National Day
August 15, 1996 Assumption Day
November 1, 1996 All Saints' Day
November 11, 1996 Veterans' Day (WWI)
December 25, 1996 Christmas
APPENDIX A - COUNTRY DATA
1. PROFILE
POPULATION:
58 million
RELIGION:
90% Roman Catholics, 5% Muslim, 2% Protestants,
1% Jewish, 2% unaffiliated
GOVERNMENT:
Republic
Head of State: Jacques Chirac
Head of Gov't: Alain Juppe
LANGUAGE:
French
WORK WEEK:
39 hours
CONTACTS:
Foreign Commercial Service
Senior Commercial Officer: Peter G. Frederick
TEL: (33-1) 43 12 23 70; FAX: (33-1) 43 12 21 72
Commercial Counselor: Edward Ruse
TEL: (33-1) 43 12 23 83; FAX: (33-1) 43 12 21 72
Country Desk Officer: Elena Mikalis
TEL: (202) 482-6008; FAX: (202) 482-2897
US&FCS Regional Director/Europe: George Knowles
TEL: (202) 482-1599; FAX: (202) 482-3159
U.S. Department of Agriculture - Foreign Agricultural Service
Minister Counselor for Agricultural Affairs: Mattie S. Sharpless
TEL: (33-1) 43 12 22 77, FAX (33-1) 43 12 26 62
APPENDIX B. DOMESTIC ECONOMY
(USD millions, except as noted)
1994 1995 1996
(f) (f)
GDP (current USD, billions) 1343 1520 1598
GDP real growth rate (percent) 2.8 3.0 2.9
GDP per capita (USD) 23,155 26,111 27,409
Government spending as
a percentage of GDP (1) 55.3 55.9 55.3
Inflation - CPI (percent) (2) 1.7 1.9 2.1
Unemployment rate (percent) 12.6 12.0 11.5
Foreign Exchange Reserves (minus gold)
(Current USD billions) 26.3 n.a. n.a.
Average Exchange Rate (4) 5.6 5.1 5.1
(Francs per USD)
APPENDIX C - TRADE
Merchandise Trade (USD billions, except as noted)
1994 1995 1996
(f) (f)
Total Exports (F.O.B.) 234.6 286.7 314.1
Total Imports (C.I.F.)
excl. military equipment 218.7 268.5 298.8
Exports to U.S. (F.O.B.) 16.4 n.a. n.a.
Imports from U.S. (C.I.F.) 19.4 n.a. n.a.
excl. military equipment
U.S. share of imports (percent) 8.9 n.a. n.a.
Imports of manufactured goods
from all countries (C.I.F.) 183.9 220.0 239.0
Imports of manufactured goods
from the U.S. 18.2 n.a. n.a.
U.S. share of manufactured
imports (percent) 9.9 n.a. n.a.
Manufactured trade balance -3.1 n.a. n.a.
with the U.S.
Average real growth rate
imports of manufactured products
from world (percent) 8.2 10.1 9.0
Average real growth rate
imports of manufactured
products from the U.S. (percent) 12.9 n.a. n.a.
Trade balances with three
leading partners (cif/fob)
Germany -0.7 n.a. n.a.
Italy -1.0 n.a. n.a.
Belgium -0.4 n.a. n.a.
n.a. = non available
Sources: 1993-94: Official French Government Data; 1995-96: June 95 OECD
forecasts.
MAJOR AMERICAN EXPORTS TO FRANCE - 1994
INDUSTRY AND AGRICULTURE COMBINED
Rank / HS Description
1/ 714 - Engines, motors, non electric parts
2/ 792 - Aircraft and associated equipment, spacecraft, etc.
3/ 752 - Automatic data processing machines, units and parts
4/ 874 - Measuring, checking, analyzing and controlling equipment
5/ 759 - Parts for office and automatic data processing machines
6/ 776 - Thermionic, cold cathode, photocathode valves, etc.
7/ 971 - Gold (excluding ores and concentrates)
8/ 541 - Medicinal products (except medication)
9/ 872 - Medical and dental instruments
10/ 764 - Telecommunications equipment
MAJOR AMERICAN IMPORTS FROM FRANCE- 1994
Rank HS Description
1/ 792 - Aircraft and associated equipment, spacecraft, etc.
2/ 714 - Engines, motors, non electric parts
3/ 112 - Alcoholic beverages
4/ 784 - Parts and accessories for motor vehicles
5/ 553 - Perfumery, cosmetics and toiletries
6/ 896 - Works of art, collectors pieces, antiques
7/ 776 - Thermionic, cold cathode, photocathode valves, etc.
8/ 874 - Measuring, checking, analyzing and controlling equipment
9/ 723 - Civil engineering and contractor's plant and equipment
10/ 665 - Glassware
-- HS refers to the Harmonized System by which goods are classified for
the purpose of international trade
FRENCH IMPORTS OF FOOD AND AGRICULTURAL PRODUCTS
AND US MARKET SHARE VALUE CY 1994 (In FRF millions)
High Value Products:
Total From U.S % U.S
- Meat & offals 20,109 226 1.1
- Dairy & eggs 9,820 13 0.1
- Coffee, tea, & spices 5,881 44 0.7
- Manufactured tobacco 7,178 1 --
- Prepared meat 1,512 -- --
- Fish and seafood, fresh
or frozen 11,823 537 4.5
- Prepared fish and seafood 3,342 20 0.6
- Processed grains 1,014 8 0.8
- Sugar & confectionery 3,518 12 0.3
- Cocoa & chocolate 6,399 92 1.4
- Prepared grain products 6,961 41 0.6
- Fresh & dry vegetables 7,749 145 1.9
- Fresh & dried fruits 13,861 696 5.0
- Processed fruits & veg. 1/ 8,390 375 4.5
- Misc. food preparations 4,154 300 7.2
- Beverages (except spirits) 4,532 29 0.6
- Spirits 3,071 147 4.8
Subtotal High Value
Products FRF 119,314 2,686 2.2
USD (millions) 21,498 484
Subtotal Bulk
Products (-- ) FRF 35,798 2,204 6.1
USD (millions) 6,450 397
TOTAL HIGH VALUE
+ BULK PRODUCTS FRF 155,112 4,890 3.1
USD (millions) 27,948 881
(-- ) Includes live animals & animal products, nursery products,
grains, oilseeds and seeds, plants for weaving, vegetable extracts, oils
and greases, protein meals and other feeds, wood, unmanufactured tobacco
and raw products (i.e., cotton, silk, wool & other animal hair, raw
hides and skins)
-- Means nil or insignificant
1/ Including fruit juices
Source: French Customs
APPENDIX D. INVESTMENT STATISTICS
FOREIGN DIRECT INVESTMENT IN FRANCE (FRF billions)
POSITION - BY COUNTRY OF ORIGIN
1990 1991 1992
OECD 423.0 485.4 524.6
EU 258.1 283.8 324.7
of which
Netherlands 83.3 102.6 119.9
United Kingdom 69.4 61.5 68.2
Germany 41.3 52.4 51.5
Belgium/Luxembourg 29.5 30.7 42.6
Italy 26.8 28.6 33.4
Spain 4.0 4.4 5.8
Denmark 2.2 2.2 1.6
Other 1.6 1.7 1.7
NORTH AMERICA 94.1 102.3 103.8
USA 90.6 97.5 99.5
Canada 3.5 4.8 4.3
Other OECD countries 70.8 99.2 122.3
Switzerland 36.1 50.8 50.6
Sweden 9.3 23.5 21.1
Japan 13.6 15.8 18.3
Finland 3.2 4.4 4.3
Other 8.6 4.5 28.0
NON-OECD COUNTRIES 20.7 15.5 19.9
Other n.a. 5.7 7.3
TOTAL 443.7 506.6 551.8
TOTAL AS % OF GDP 6.8 7.5 7.9
FOREIGN DIRECT INVESTMENT IN FRANCE (FRF billions)
POSITION - BY SECTOR
1990 1991 1992
Companies (diversified) 78.6 79.2 121.8
Wholesale/Retail Trade 53.0 57.5 58.5
Banking 68.8 70.5 95.8
Chemicals 40.4 46.7 45.0
Energy 26.9 26.7 27.9
Transportation n.a. 22.3 19.5
Processed Food 18.0 30.0 28.2
Precision equipment 17.1 18.9 14.6
Paper,press, editing
equipment 16.3 19.5 15.1
Office machines, 20.5 18.1 23.8
Electrical and electronical
Insurance 3.1 15.7 15.1
Other 101.0 101.5 86.5
TOTAL 443.7 506.6 551.8
FOREIGN DIRECT INVESTMENT (FRF billions)
FLOWS -- BY COUNTRY OF ORIGIN
1990 1991 1992
OECD 29.5 41.9 62.5
EU 16.6 21.5 43.5
of which
Italy 3.8 3.2 14.1
Belgium/Luxembourg 1.3 3.0 10.8
Netherlands 2.9 4.1 9.3
Germany 5.3 9.3 5.9
United Kingdom 2.5 1.4 2.2
Spain 0.4 0.2 0.7
Denmark 0.2 0.1 0.4
Other EU 0.1 0.2 0.1
NORTH AMERICA 2.8 3.1 12.5
USA 2.7 2.7 11.8
Canada 0.1 0.5 0.7
Other OECD countries 10.1 17.2 6.6
Switzerland 0.9 0.3 2.8
Japan 2.6 1.8 1.7
Finland 1.9 0.9 1.0
Other 2.7 1.1 0.9
Sweden 1.9 13.1 0.2
NON-OECD
COUNTRIES 0.7 0.5 0.4
TOTAL 30.2 42.3 62.9
FRENCH DIRECT INVESTMENT ABROAD (FRF billions)
POSITION - BY COUNTRY OF DESTINATION
1990 1991 1992
OECD 518.4 578.2 655.8
EU 333.1 391.8 450.1
of which
Netherlands 97.1 117.3 152.0
United Kingdom 64.7 72.7 70.3
Spain 44.6 58.7 53.9
Belgium/Luxembourg 52.5 60.1 69.0
Italy 34.7 33.2 36.9
Germany 26.0 30.7 50.6
Other 13.5 19.1 17.4
NORTH AMERICA 134.9 131.3 148.6
USA 119.4 118.1 132.6
Canada 15.5 13.2 16.0
Other OECD countries 50.4 55.1 57.1
Switzerland 39.3 36.1 36.9
Other 11.1 19.0 20.2
NON-OECD COUNTRIES 46.4 42.8 61.6
Latin America 14.9 17.7 23.8
CFA zone 8.4 7.0 7.6
Eastern countries 0.1 1.0 2.0
Other 23.0 17.1 28.2
OTHER n.a. 51.9 56.7
TOTAL 564.8 672.9 774.1
TOTAL AS PERCENTAGE OF GDP 8.7 9.9 11.0
FRENCH DIRECT INVESTMENT ABROAD (FRF billions)
POSITION -- BY SECTOR
1990 1991 1992
Banking 109.9 117.7 122.1
Equipment 39.0 64.2
Chemicals 57.4 62.9 68.9
Energy 59.4 61.7 76.6
Insurance 43.4 55.1 68.5
Repairs,trade 31.5 41.6 47.9
Other retail services 30.8 40.6
Transportation 25.1 34.2 32.1
Processed food 27.9 33.3 33.9
Metal 29.8 29.8 33.9
Electrical and electronical 50.7
Other 1116.7 131.8 239.5
TOTAL 564.8 672.9 774.1
FRENCH DIRECT INVESTMENT ABROAD (FRF billions)
FLOWS -- BY COUNTRY OF DESTINATION
1990 1991 1992
OECD 109.3 91.4 77.0
EU 79.9 51.4 67.7
of which
Netherlands 18.7 7.9 17.9
Belgium/Luxembourg 9.7 8.7 17.5
Spain 11.5 9.6 11.1
Italy 8.5 8.0 9.8
United Kingdom 20.2 8.2 5.5
Germany 9.5 6.8 4.3
Denmark 0.0 0.1 0.1
Other 1.8 3.2 1.4
NORTH AMERICA 22.2 24.8 3.9
USA 21.1 22.0 3.6
Canada 1.04 2.8 0.3
Other OECD countries 7.3 15.2 5.4
Switzerland 4.4 1.6 1.7
Sweden 1.9 11.9 1.4
Japan 0.2 0.2 0.6
Other 0.8 1.6 1.8
NON-OECD
COUNTRIES 2.7 2.2 3.6
TOTAL 112.1 93.6 80.6
Sources: Official French Government Data
APPENDIX E
U.S. AND COUNTRY CONTACTS
U.S. EMBASSY TRADE PERSONNEL
AMBASSADOR
Pamela Harriman
American Embassy
2, avenue Gabriel
75008 Paris
Unit 21551, APO AE 09777
Tel: 33 (1) 43 12 27 00
Fax: 33 (1) 42 66 97 83
DEPUTY CHIEF OF MISSION
Avis T. Bohlen
American Embassy
2, avenue Gabriel
75008 Paris
Unit 21551, APO AE 09777
Tel: 33 (1) 43 12 28 00
Fax: 33 (1) 42 66 97 83
MINISTER-COUNSELOR FOR ECONOMIC AFFAIRS
John Medeiros
American Embassy
2, avenue Gabriel
75008 Paris
Unit 21551, APO AE 09777
Tel: 33 (1) 43 12 26 54
Fax: 33 (1) 42 66 97 83
MINISTER-COUNSELOR FOR COMMERCIAL AFFAIRS
Peter G. Frederick
American Embassy
4, avenue Gabriel
75382 Paris Cedex 08
Unit 21551, APO AE 09777
Tel: 33 (1) 43 12 23 70
Fax: 33 (1) 43 12 21 72
DIRECTOR OF THE UNITED STATES TRAVEL AND TOURISM ADMINISTRATION
Max J. Ollendorff
American Embassy
4, avenue Gabriel
75008 Paris
Unit 21551, APO AE 09777
Tel: 33 (1) 43 12 27 70
Fax: 33 (1) 40 15 08 74
MINISTER-COUNSELOR FOR AGRICULTURAL AFFAIRS
Mattie R. Sharpless
American Embassy
2, avenue Gabriel
75008 Paris
Unit 21551, APO AE 09777
Tel: 33 (1) 43 12 23 29
Fax: 33 (1) 42 66 61 06
U.S. CONSULATE - Bordeaux
Alan Eastham
Consul General
22 cours du Marechal Foch
33080 Bordeaux Cedex
Tel: 33 (16) 56 52 65 95
Tel: 33 (16) 56 51 60 42
U.S. CONSULATE - Marseille
Jackson McDonald
Consul General
12 blvd. Paul Peytral
13286 Marseille
Tel: 33 (16) 56 51 60 42
Tel: 33 (16) 91 55 09 47
U.S. CONSULATE - Strasbourg
Shirley Barnes
Consul General
15, avenue d'Alsace
67082 Strasbourg Cedex
Tel: 33 (16) 88 35 31 04
Tel: 33 (16) 88 24 06 95
U.S. Commercial Delegation - Lyon
Philippe Minard
Trade Specialist
Lyon Commerce International
69289 Lyon Cedex 02
Tel: 33 (16) 72 40 59 20
U.S. Commercial Delegation - Nice
Reine Joguet
Trade Specialist
Agence Consulaire
31, avenue du Marechal Joffre
06000 Nice
Tel: 33 (16) 93 88 89 55
Tel: 33 (16) 93 87 07 38
U.S. Mission to O.E.C.D.
19, rue Franqueville
75016 Paris
Tel: 33 (1) 45 24 74 37
WASHINGTON BASED USG COUNTRY CONTACTS
UNITED STATES DEPARTMENT OF STATE
Office of Western European Affairs EUR/WE
Anne Carson
France Desk Officer
Washington, D.C. 20520
Tel: (202) 647-1559
Fax: (202) 647-3459
UNITED STATES DEPARTMENT OF COMMERCE
Office of Western Europe - France Desk
Elena Mikalis
France Desk Officer
14 Street and Constitution Avenue
Room 3042
Washington, D.C. 20230
Tel: (202) 482-6008
Fax: (202) 482-2897
UNITED STATES TRAVEL AND TOURISM ADMINISTRATION
Mary Tack
Marketing Research Analyst
Department of Commerce
14 Street and Constitution Avenue
Washington, D.C. 20230
Tel: (202) 501-8170
Fax: (202) 482-2887
UNITED STATES DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
Trade Assistance and Promotion Office (TAPO)
14 Street and Independence Avenue SW
Washington, D.C. 20250
Tel: 202 690-0207
FOREIGN AGRICULTURAL SERVICE, International Trade Policy
14th & Constitution Avenue, SW
Room 5522
Washington, DC 20250
Meritt Chesley, Western Europe Group
Tel: (202) 720-1322
Fax: (202) 720-0069
FOOD AND DRUG ADMINISTRATION, International Affairs Staff
5600 Fishers Lane, Room 15A-30
Rockville, MD 20857
Donald Aronson, Europe Desk
Tel: (301) 443-4480
Fax: (301) 443-0235
ENERGY DEPARTMENT, Office of International Energy Relations
1000 Independent Avenue, SW
Room 7G-046
Washington, DC 20585
Ken Workman, Western Europe
Tel: (202) 586-6383
Fax: (202) 586-6148
ENVIRONMENTAL PROTECTION AGENCY, International Environmental Policy
401 M Street, SW
Room 1135 West Tower
Washington, DC 20460
Kelly Jacobs, Western Europe
Tel: (202) 260-4870
Fax: (202) 260-4470
FOOD AND DRUG ADMINISTRATION, International Affairs Staff
5600 Fishers Lane, Room 15A-30
Rockville, MD 20857
Donald Aronson, Europe Desk
Tel: (301) 443-4480
Fax: (301) 443-0235
LABOR DEPARTMENT, Bureau of International Labor Affairs
200 Connecticut Avenue, NW
Room S-5006
Washington, DC 20210
William Brumfield, France Desk
Tel: (202) 219-6234
Fax: (202) 219-5613
TREASURY DEPARTMENT, International Affairs
1500 Pennsylvania Ave., NW
Room 5050
Washington, DC 20220
Susan Rzemien, France Desk
Tel: (202) 622-0166
Fax: (202) 622-0134
OFFICE OF THE U.S. TRADE REPRESENTATIVE
Office of Europe and the Mediterranean
Executive Office of the President
Washington, DC 20506
Tim Richards
Tel: (202) 395-3211
Fax: (202) 395-3911
U.S. BASED MULTIPLIERS RELEVANT FOR COUNTRY
FRENCH EMBASSY
Mr. Jean-Daniel Gardere
Minister-Counselor for Economic and Commercial Affairs
4101 Reservoir Road, N.W.
Tel: 202 944-6000
Fax: 202 944-6336
FRENCH-AMERICAN CHAMBER OF COMMERCE IN THE U.S.
Mr. Serge Bellanger
President,
520, Madison Avenue
New-York NY 10022
Tel: 212 715-4444
Fax: 212 715-4441
INVEST IN FRANCE AGENCY (I.F.A.)
Mr. Bernard Giraud
Director
Suite 301
610 Fifth Avenue
New York, NY 10020
Tel: 212 757-9340
Fax: 212 245-1568
COUNTRY GOVERNMENT AGENCIES
AGENCY FOR CORPORATE DEVELOPMENT OF ILE DE FRANCE
Mr. Jean Maurice Parnet
Director General
16, Boulevard Raspail
75007 Paris, France
Tel: 33 (1) 45.44.34.87
Fax: 33 (1) 45.48.43.59
FRENCH INDUSTRIAL DEVELOPMENT AGENCY - D.A.T.A.R
Mr. Olivier Auguin
Director, North America
1 avenue Charles-Floquet
75007 Paris
Tel: 33 (1) 40.65.10.06
Fax: 33 (1) 40.65.12.40
Institut National des Statistiques et des Etudes Economiques (INSEE)
195 rue de Bercy
75012 Paris
Tel: 33 (1) 43.45.70.75
INVEST IN FRANCE MISSION
Mr. Jean-Daniel Tordjman
French Roving Ambassador for Foreign Investments
Ministere de l'Economie et des Finances
139, rue de Bercy
75572 Paris Cedex 12
Tel: 33 (1) 44.87.70.21/23/28
Fax: 33 (1) 44.87.70.36/26
(Most regions have local economic development agencies. For more
information, consult with US&FCS France, Tel: 33 (1) 43.12.22.22; Fax:
33 (1) 43.12.21.72
FRENCH CUSTOMS
Centre de Renseignements des Douanes
Ministere de l'Economie et des Finances
Bat H1
238 quai de Bercy
75572 Paris cedex 12
Tel: 33 (1) 42.60.33.00
Statistics : Tel: 33 (1) 40.24.65.20
Duties : Tel: 33 (1) 40.24.65.10
Fax: 33 (1) 40.24.65.30
FRENCH CONSUMER AGENCY
Direction General de la Concurrence, de la
Consommation et de la Repression des Fraudes
Carre Diderot
3-5, Boulevard Diderot
75572 - Paris
Tel: 33 (1) 44.87.17.17
Fax: 33 (1) 45.55.60.97
FRENCH FOREIGN INVESTMENT CONTROL AGENCY
Ministere de l'Economie, des Finances et du Budget
Direction du Tresor
Service des Participations et Financements
Sous-Direction D des Financements
Bureau D3 Investissements Etrangers en France
Teledoc 267
139, rue de Bercy
75572 - Paris Cedex 12
Tel: 33 (1) 40.04.04.04
FRENCH NATIONAL TESTING LABORATORY - L.N.E.
Gilbert Revise
Chef de Department
1, rue Gaston-Boissier
75015 Paris
Tel: 33 (1) 40.43.37.00
Fax: 33 (1) 40.43.37.37
OFFICIAL GAZETTE - J.O.
Bernard Sarazin
Director
26, rue Desaix
75727 Paris Cedex 15
Tel: 33 (1) 40.58.75.00
Fax: 33 (1) 40.58.77.80
NATIONAL AGENCY FOR THE VALORIZATION OF RESEARCH - ANVAR
Mr. Gilbert Santini
Director
43, Rue Caumartin
75009 - Paris Cedex 09
Tel: 33 (1) 40.17.83.00
Fax: 33 (1) 40.17.83.19
NATIONAL FRENCH STANDARDS ASSOCIATION - AFNOR
Tour Europe
92049 Paris-La Defense
Tel: 33 (1) 42.91.55.55
Fax: 33 (1) 42.91.56.56
NATIONAL INSTITUTE OF INDUSTRIAL PROPERTY - INPI
26 bis, rue de Leningrad
75800 Paris Cedex 08
Tel: (1) 42.94.55.65
Fax: (1) 42.93.59.30
Note: The US & Foreign Commercial Service, the Office of Agricultural
Affairs at the American Embassy in Paris maintains an up-to-date listing
of French Governments contacts by Ministry and subject matter.
COUNTRY TRADE ASSOCIATION/CHAMBERS OF COMMERCE
Chambers of Commerce:
AMERICAN CHAMBER OF COMMERCE
Mr. Barrett Dower
Director
21, avenue Georges V
75008 Paris
Tel: 33 (1) 47.23.80.26
Fax: 33 (1) 47.20.18.62
CHAMBER OF COMMERCE AND INDUSTRY OF PARIS - CCIP
Ms. Delorme
North America Desk Officer
2 rue de Viarmes
75001 Paris
Tel: (1) 45.08.36.00
Fax: (1) 45.08.35.80
CHAMBER OF COMMERCE AND INDUSTRY OF VAL D'OISE - YVELINES
Mr. Jean-Francois Marmey
Director, International Trade
21, avenue de Paris
78021 Versailles Cedex
Tel: 33 (1) 30.84.79.79
Fax: 33 (1) 30.38.57.34
FRENCH CHAMBER OF COMMERCE IN THE U.S.
Mrs. Claudine Serre
Director, French Chapter
7, rue Jean Goujon
75008 Paris
Tel: 33 (1) 42.56.05.00
Fax: 33 (1) 43.59.50.15
(Each district in France has a chamber of commerce and industry. For
more information, consult with US&FCS France, Tel: 33 (1) 43.12.22.22;
Fax: 33 (1) 43.12.21.72)
Trade Associations:
IMPORTERS' ASSOCIATION FOR MECANIC AND ELECTRONIC
Federation des Entreprises Industrielles et Commerciales Internationales
de la Mecanique et de l'Electronique (FICIME)
Mr. Michel Grandemange
President
25-27 rue d'Astorg
75008 Paris
Tel: 33 (1) 44.51.14.60
Fax: 33 (1) 42.65.39.49
APPLIANCE MANUFACTURERS' ASSOCIATION
Groupement Interprofessionnel des Fabricants d'Appareils d'Equipement
Menager (GIFAM)
Mr. Jacques Mourlon
President
39, avenue d'Iena
75783 Paris
Tel: 33 (1) 47.20.32.20
Fax: 33 (1) 47.20.20.73
AUTOMOTIVE EQUIPMENT INDUSTRY ASSOCIATION
Federation des Industries des Equipements pour Vehicules (FIEV)
Mr. J. Pages
Director
79, rue J.J. Rousseau
92150 Suresnes
Tel: 33 (1) 46.97.00.56
Fax: 33 (1) 46.97.00.80
BAKERY EQUIPMENT INDUSTRY ASSOCIATION
Union des Fabricants d'Equipements pour la Boulangerie et Patisserie
(UFFEB)
Mr. Jean-Paul Broutin
Secretary
13, rue Saint-Lazare
75009 Paris
Tel: 33 (1) 42.80.44.41
Fax: 33 (1) 42.85.29.00
BUILDING MATERIAL, COMPONENTS AND EQUIPMENT ASSOCIATION
Syndicat des Producteurs de "l'Amisie" et de Stratyfies
Mr. Laval
Managing Director
11, rue Hamelin
75783 Paris Cedex 16
Tel: 33 (1) 45.05.71.28
BUILDING MATERIALS AND QUARRIES INDUSTRY ASSOCIATION
Union Nationale des Industries de Carriers et Materiaux de Construction
(UNICEM)
Mr. Xavier Salmon-Legagneur
President
3, rue Alfred-Roll
75849 Paris Cedex 17
Tel: 33 (1) 44.01.47.01
Fax: 33 (1) 47.63.26.90
BUSINESS GIFTS PROFESSIONALS UNION
Syndicat des Producteurs de Cadeaux d'Affaires
Mr. Jean Paoli
34, bd Haussmann
75009 Paris
Tel: 33 (1) 48.01.48.01
Fax: 33 (1) 45.23.18.30
CHEMICAL INDUSTRY ASSOCIATION
Union des Industries Chimiques
Mr. Pierre Laroche
Project Officer
14, rue de la Republique
Cedex 99
92909 Paris-La-Defense
Tel: 33 (1) 46.53.11.00
Fax: 33 (1) 46.53.11.05
CYCLE MANUFACTURERS ASSOCIATION
Chambre Syndicale Nationale du Cycle
Mr. Jean-Marie Caudron
General Manager
79, rue J.J. Rousseau
92150 Suresnes
Tel: 33 (1) 46.97.00.56
Fax: 33 (1) 40.99.06.20
ENERGY AND ENVIRONMENTAL EQUIPMENT INDUSTRY ASSOCIATION
Federation Nationale de la Gestion de l'Equipement de l'Energie et de
l'Environement
Mr. Augustin
President
5, rue de Teheran
75008 Paris
Tel: 33 (1) 40.75.04.11
Fax: 33 (1) 40.75.04.07
FARM MACHINERY INDUSTRY ASSOCIATION
Syndicat General des Constructeurs de Tracteurs et Machines Agricoles
(SYGMA)
Mr. Walter Reber
President
19, rue Jacques Bingen
75017 Paris
Tel: 33 (1) 42.12.85.90
Fax: 33 (1) 40.54.95.60
FEDERATION OF ELECTRIC AND ELECTRONIC INDUSTRIES
Federation des Industries Electriques et Electroniques (FIEE)
Mr. Deogeorges
President
11-17, rue Hamelin
75783 Paris Cedex 16
Tel: 33 (1) 45.05.70.70
Fax: 33 (1) 45.53.03.93
FRENCH FEDERATION OF JEWELRY, GOLDSMITHING, GIFTS, DIAMONDS, GEMS,
PEARLS AND RELATED ACTIVITIES
Federation Francaise de la Bijouterie, Joaillerie, Orfevrerie, du
Cadeau, des Diamants, Pierres et Perles et Activites qui s'y rattachent
Mr. M. Gruson
President
58, rue du Louvre
75002 Paris
Tel: 33 (1) 42.33.61.33
Fax: 33 (1) 40.26.29.51
FRENCH FEDERATION OF TOY INDUSTRIES
Federation Francaise des Industries du Jouet
Mr. Daniel Aboaf
Managing Director
47, bd Berthier, BP 518
75825 Paris Cedex 17
Tel: 33 (1) 43.80.60.75
Fax: 33 (1) 42.27.82.72
FRENCH FISHING EQUIPMENT INDUSTRY ASSOCIATION
Groupement d'Industrie Francaise d'Articles de Peche
Mr. Pierre Noreau
President
17, rue Arnoux
92340 Bourg-la-Reine
Fax: 33 (1) 40.91.03.24
FRENCH INTERNATIONAL TRADE ASSOCIATION
Confederation Francais du Commerce de Gros Interentreprises et du
Commerce
International (CGI)
Mr. Bernard Clerc
President d'Honneur
Mr. Antonin De Bono
Mr. Guy Laporte
Co-Presidents
31, av. Pierre-1er-de-Serbie
75784 Paris Cedex 16
Tel: 33 (1) 44.55.35.00
Fax: 33 (1) 47.23.47.32
FOOD PRODUCT INDUSTRY ASSOCIATION
Association Nationale des Industries Agro-Alimentaires (ANIA)
Mr. Victor Scherrer
President
155, boulevard Hausmann
75008 Paris
Tel: 33 (1) 53.83.86.00
Fax: 33 (1) 45.61.96.64
FRENCH AERONAUTIC AND SPACE INDUSTRY ASSOCIATION
Groupement des Industries Francaises Aeronautiques et Spatiales (GIFAS)
Mr. Dassault
President
4, rue Galilee
75782 Paris Cedex 16
Tel: 33 (1) 44.43.17.00
Fax: 33 (1) 40.70.91.41
FRENCH AUTOMOBILE MANUFACTURERS COMMITTEE
Comite des Constructeurs Francais d'Automobiles
Mr. H. Streit
President
2, rue de Presbourg
75008 Paris
Tel: 33 (1) 49.52.51.00
Fax: 33 (1) 47.23.74.73
FRENCH EMPLOYERS' ASSOCIATION
Consul National du Patronat Francais (CNPF)
Mr. Bernard Deschamps
Secretary General
United States Committee
31, avenue Pierre 1er de Serbie
75784 Paris Cedex 16
Tel: 33 (1) 40.69.43.89
Fax: 33 (1) 47.23.47.32
GAZ AND PETROLEUM INDUSTRY ASSOCIATION
Groupement des Entreprises Parapetrolieres et Paragazieres (GEP)
Mr. Pierre DUPAL
President
45, rue Louis Blanc
La Defense 1
92400 Courbevoie
Tel: 33 (1) 47.17.60.00
Fax: 33 (1) 47.17.67.47
LABORATORY EQUIPMENT INDUSTRY ASSOCIATION
Chambre Syndicale des Fabricants et Negociants d'Appareils de
Laboratoire (FABRILABO)
Mr. Daniel Constant
President
39-41, rue Louis Blanc
Cedex 72
92038 Paris La Defense
Tel: 33 (1) 47.17.64.06
Fax: 33 (1) 47.17.62.47
MEASURE, CONTROL EQUIPMENT INDUSTRY ASSOCIATION
Syndicat de la Mesure du Controle et de la Regulation Automatique
(SYMECORA)
Mr. Francis Martinez
President
39-41, rue Louis Blanc
Cedex 72
92038 Paris La Defense
Tel: 33 (1) 47.17.68.01
Fax: 33 (1) 47.17.68.11
MECHANICAL ENGINEERING INDUSTRIES ASSOCIATION
Federation des Industries Mecaniques (FIM)
Mr. Marc Bay
Director
39-41, rue Louis Blanc
Cedex 72
92038 Paris La Defense
Tel: 33 (1) 47.17.60.00
Fax: 33 (1) 47.17.64.99
MEDICAL INDUSTRY ASSOCIATION
Syndicat National de l'Industrie des Technologies Medicales (SNITEM)
Mr. Jean-Pierre Ravut
President
39-41, rue Louis Blanc
Cedex 72
92038 Paris La Defense
Tel: 33 (1) 47.17.63.88
Fax: 33 (1) 47.17.63.89
MINERALS, AND NON-FERROUS METALS INDUSTRY ASSOCIATION
Federation des Chambres Syndicales des Minerais, Mineraux industriels et
des Metaux non Ferreux
Mr. Yves Rambaud
President
30, avenue de Messine
75008 Paris
Tel: 33 (1) 45.63.02.66
Fax: 33 (1) 45.63.61.54
MOTION PICTURE INDUSTRY ASSOCIATION
Federation Nationale des Techniques du Film, Cinema et Television
Mr. Jean-Fleurent Didier
Representative
50, avenue Marceau
75008 Paris
Tel: 33 (1) 47.23.75.76
Fax: 33 (1) 47.23.70.47
NATIONAL UNION OF PRODUCT ADVERTISING
Syndicat National de la Publicite par l'Objet
Mr. Gilles Lefevre
President
15, rue de Chateaudun
75009 Paris
Tel: 33 (1) 48.78.75.98
Fax: 33 (1) 45.26.25.39
NATIONAL BUILDING FEDERATION
Federation Nationale du Batiment
Mr. Jean Domange
President
33, av. Kleber
75784 Paris Cedex 16
Tel: 33 (1) 40.69.51.00
Fax: 33 (1) 45.53.58.77
NATIONAL FEDERATION OF PUBLIC WORKS
Federation Nationale des Travaux Publics (FNTP)
Mr. Philippe Levaux
President
3, rue de Berri
75008 Paris
Tel: 33 (1) 44.13.31.10
Fax: 33 (1) 47.61.04.47
NATIONAL CONFEDERATION WOOD INDUSTRY FOR CONSTRUCTION
Confederation Nationale des Industries du Bois
Mr. Bernard Merceles
President
36, av. Hoche
75008 Paris
Tel: 33 (1) 45.61.00.90
Fax: 33 (1) 42.56.19.94
NATIONAL ASSOCIATION OF HOME REPAIR AND RELATED HOBBIES
Union Nationale Industries Bricolage Activites Loisir
Mr. Alain Vicart
Representative
14, rue du 8 Mai 1945
75010 Paris
Tel: 33 (1) 40.35.34.30
Fax: 33 (1) 40.35.59.52
NATIONAL UNION OF FRENCH FURNITURE INDUSTRIES (UNIFA)
Union Nationale des Industries Francaises de l'Ameublement
Mr. Philippe Mayer
President
28 bis, avenue Daumesnil
75012 Paris
Tel: 33 (1) 44.68.18.00
Fax: 33 (1) 44.68.18.01
NATIONAL WOOD FEDERATION
Federation Nationale d'Exploitants Forestiers, Scieurs et Industriels du
Bois
Mr. Roger Lesbats
President
1, place Andre Malraux
75001 Paris
Fax: 33 (1) 42.60.58.94
NAUTICAL INDUSTRY FEDERATION
Federation des Industries Nautiques
Mr. Thierry Roulois
President
Port de Javel-haut
75015 Paris
Tel: 33 (1) 45.77.79.79
Fax: 33 (1) 45.77.61.88
OPTICAL INDUSTRY ASSOCIATION
Groupement des Industries Francaises de l'Optique (GIFO)
Mr. Jean-Claude Mas
President
39-41, rue Louis Blanc
Cedex 72
92038 Paris La Defense
Tel: 33 (1) 47.17.64.00
Fax: 33 (1) 47.17.63.98
PAINTS & INKS INDUSTRY ASSOCIATION
Federation des Industries des Peintures, Encres, Couleurs et Produits
Connexes (FIPEC)
Mr. Michel Magnan
President
42, avenue Marceau
75008 Paris
Tel: 33 (1) 47.23.36.12
Fax: 33 (1) 47.20.90.30
PAPER, CARDBOARD, CELLULOSE INDUSTRY ASSOCIATION
Confederation Francaise de l'Industrie des Papiers, Cartons et
Celluloses (COPACEL)
Mr. F. Blondot
President
154, bd Haussmann
75008 Paris
Fax: 33 (1) 45.62.82.47
PERFUME INDUSTRY ASSOCIATION
Federation des Industries de la Parfumerie (FIP)
Mr. Mosser
President
57, avenue de Villiers
75017 Paris
Tel: 33 (1) 44.15.83.83
Fax: 33 (1) 44.15.83.84
PHARMACEUTICAL INDUSTRY ASSOCIATION
Federation Francaise des Industries du Medicament (FEFIM)
Mr. Mesure
President
88, rue de la Faisanderie
75782 Paris Cedex 16
Tel: 33 (1) 45.03.88.61
Fax: 33 (1) 45.04.07.98
PHOTOGRAPHIC AND VIDEO EQUIPMENT INDUSTRY ASSOCIATION
Syndicate des Industries du Materiel Photo, Cinema substandard, Video et
des Industries Connexes
Mr. Patrick Posso
President
5 bis, rue Jacquemont
75017 Paris
Tel: 33 (1) 46.27.47.29
Fax: 33 (1) 42.29.02.22
PLASTIC TRANSFORMERS FEDERATION
Federation de la Plasturgie
Mr. Jean Heaume
President
65, rue de Prony
75854 Paris Cedex 17
Tel: 33 (1) 44.01.16.16
Fax: 33 (1) 44.01.16.55
PRINTING AND GRAPHIC ARTS FEDERATION
Federation de l'Imprimerie et de la Communication Graphique (FICG)
Mr. Joelle Bouzy
President
115, bd Saint-Germain
75006 Paris
Tel: 33 (1) 44.44.90.64
Fax: 33 (1) 44.41.90.63
PROFESSIONAL UNION OF PLASTICS MANUFACTURERS
Union Professionnelle des Fabricants de Plastique
Mr. Pierre Avenas
President
14, rue de la Republique
Cedex 99
92909 Paris-La Defense
Tel: 33 (1) 46.53.10.53
Fax: 33 (1) 46.53.10.73/10.75
RAILROAD INDUSTRY FEDERATION
Federation des Industries Ferroviaires
Mr. Guillemard
Representative
12, rue Bixio
75007 Paris
Tel: 33 (1) 45.56.13.53
Fax: 33 (1) 47.05.29.17
SHIP BUILDERS UNION
Chambre Syndicale des Constructeurs de Navires
Mr. Alain Grill
President
47, rue de Monceau
75008 Paris
Tel: 33 (1) 45.61.99.11
Fax: 33 (1) 42.89.25.32
SPORTING GOOD INDUSTRY ASSOCIATION
Federation Francaise des Industries du Sport et des Loisirs (FIFAS)
Ms. Nicole Berthier-Stoops
Managing Director
3/5, rue Jules Guesde
92305 Levallois-Perret
Tel: 33 (1) 47 31 56 23
Fax: 33 (1) 47 31 56 32
STATIONARY PRODUCERS' UNIONS
Federation des Syndicats de Fabricants d'Articles de Papeterie
Mr. Francois Nusse
President
71, av. Marceau
75116 Paris
Tel: 33 (1) 47.20.90.12
Fax: 33 (1) 49.52.05.88
STATIONARY AND OFFICE PRODUCTS ASSOCIATION
Federation Francaise d'Articles de Papeterie et des Fournitures de
Bureau
Mr. Bertand
President
9 ter, rue Auguste-Barbier
75011 Paris
Tel: 33 (1) 43.57.63.13
Fax: 33 (1) 43.57.81.41
TELECOMMUNICATION INDUSTRY UNION
Syndicat des Industries de Telecommunication (SIT)
Mr. Lavenir
Representative
64, rue de Monceau
75008 Paris
Tel: 33 (1) 45.63.96.44
Fax: 33 (1) 45.62.05.14
TEXTILE INDUSTRY UNION
Union des Industries Textiles
Mr. G. Jolles
President
37-39, rue de Neuilly
92110 Clichy
Tel: 33 (1) 47.56.31.21
Fax: 33 (1) 47.30.25.28
UNION OF PLASTIC AND RUBBER INDUSTRY DISTRIBUTORS
Union pour Industries et de la Distribution des Plastiques et du
Caoutchouc (UCAPLAST)
Mr. Peyronnet
President
1, square La Bruyere
75009 Paris
Tel: 33 (1) 42.82.10.22
Fax: 33 (1) 42.80.55.45
VETERINARIAN DRUG INDUSTRY ASSOCIATION
Syndicat de l'Industrie du Medicament Veterinaire (SIMV)
Mr. Ghislain Follet
President
6, rue de la Tremoille
75008 Paris
Tel: 33 (1) 47.23.94.20
Fax: 33 (1) 40.70.00.13
Note: this list is not exhaustive. The Commercial Service at the
American Embassy in Paris maintains an up-to-date and comprehensive
listing of industry associations.
COUNTRY MARKET RESEARCH FIRMS
A.C. NIELSEN
Mr. C. Charbit
44, boulevard de Grenelle
75732 Paris Cedex 15
Tel: 33 (1) 40.58.40.00
Fax: 33 (1) 45.79.13.31
ADEGE
Mr. G. Saurais
45, boulevard Brotteaux
69006 Lyon
Tel: 33 72.74.44.57
Fax: 33 72.74.23.57
ALGOE
Mr. J. Clement
President and Managing Director
9 bis, route de Champagne
69134 Ecuilly Cedex
Tel: 33 78.33.14.30
Fax: 33 78.33.59.87
ARTHUR D. LITTLE FRANCE
Mr. Michel d'Halluin,
President and Managing Director
230, rue du Faubourg Saint Honore
75008 Paris
Tel: 33 (1) 45.63.14.59
Fax: 33 (1) 42.89.03.02
AVISO CONSUL
Mr. B. Vincent
President and Managing Director
11, quai Rambaud
69002 Lyon
Tel: 33 78.37.52.71
Fax: 33 78.42.16.10
BURKE MARKETING RESEARCH
Mr. G. Hustaix
Tour Gallieni 1
7880, avenue Gallieni
93174 Bagnolet Cedex
Tel: 33 (1) 43.60.20.40
Fax: 33 (1) 43.60.72.93
B.V.A (Brule Ville Associates)
Mr. Michel Brule & Mr. Jean Pierre Ville
191, avenue du General Leclerc
78200 Viroflay
Tel: 33 (1) 30.84.88.00
Fax: 33 (1) 30.84.88.01
CATHERINE DELANNOY & ASSOCIATES
Mrs. G. Delannoy
21, rue de Miromesnil
75008 Paris
Tel: 33 (1) 42.65.27.42
Fax: 33 (1) 47.42.25.89
CEGOS
Mr. Claude Maire
Tour Chenonceaux
204, Rond Point de pont de Sevres
92516 Boulogne Billancourt Cedex
Tel: 33 (1) 46.20.63.03
Fax: 33 (1) 46.20.88.60
E.S.O.P
Mr. Morgensztern
92, avenue d'Ivry
75013 Paris
Tel: 33 (1) 45.80.50.60
Fax: 33 (1) 45.85.24.93
E.S.T.E.L
1, rue Alsace Lorraine
94140 Alfortville
Tel: 33 (1) 43.96.01.12
Fax: 33 (1) 43.96.02.01
Mr. J. Poulton
EURO-MARKETING ASSOCIATES, INC.
European Liaison Office
The Heron Building
10, rue de la Paix
75002 Paris
Tel: 33 (1) 42.86.54.31
Fax: 33 (1) 40.20.98.98
FRENCH MARKET RESEARCH ASSOCIATION - SYNTEC
Comite Etudes de Marches
Maison de l'Ingenierie
3, rue Leon Bonnat
75016 Paris
Tel: 33 (1) 45 24 43 53
Fax: 33 (1) 42 88 26 84
GROUPE MV2
Mr. Ferdinand Weisenfeld
89, avenue Aristide Briand
92120 Montrouge
Tel: 33 (1) 46.73.31.31
Fax: 33 (1) 46.76.31.60
IMS S.A.R.L
Mr. Philippo,
President and Managing Director
9, avenue Franklin D. Roosevelt
75008 Paris
Tel: 33 (1) 45.62.98.25
Fax: 33 (1) 45.61.26.00
Note: The Office of Agricultural Affairs at the American Embassy in
Paris maintains an up-to-date and comprehensive listing of market
research firms. As functions, contacts, and assigned responsibilities
change often, interested exporters are requested to direct specific
inquiries to the US & Foreign Commercial Service or to the Office of
Agricultural Affairs at the American Embassy in Paris for up-to-date
references.
COUNTRY COMMERCIAL BANKS
French Subsidiaries of U.S. Banks:
AMERICAN EXPRESS INTERNATIONAL BANKING CORPORATION
12-14, Rond-Point des Champs-Elysees
75008 Paris
Tel: 33 (1) 42-25-15-16
Fax: 33 (1) 42-25-08-68
BANK OF AMERICA
Mr. Christian Bartholin
President and Managing Director
43-47, avenue de la Grande Armee
75782 Paris Cedex 16
Tel: 33 (1) 45-02-68-00
Fax: 33 (1) 45-01-77-89
BANK OF NEW YORK
Mrs. Deidre Perroux
President and Managing Director
36, bd Haussmann
75009 Paris
Tel: 33 (1) 42-46-26-25
Fax: 33 (1) 42-47-02-36
CHASE MANHATTAN BANK SA
Mr. Philippe Leroy
Director General
18, bd Malesherbes
75361 Paris Cedex 08
Tel: (33-1) 40.17.15.34
Fax: (33-1) 40-17-15-34
CITIBANK
Mr. Claude Jouven
Managing Director
Citicenter, 19 Le Paris
92073 Paris La-Defense Cedex 36
Tel: 33 (1) 49-06-10-10
Fax: 33 (1) 47-67-07-04
THE FIRST NATIONAL BANK OF BOSTON
Mr. Robert Ward
Managing Director
104, avenue des Champs-Elysees
75008 Paris
Tel: 33 (1) 40-76-75-00
Fax: 33 (1) 40-76-75-95
MANUFACTURERS HANOVER BANQUE
Mr. Jean-Olivier Bartholin
President and General Manager
16, place de l'Iris
Tour GAN
92082 Paris-La Defense 2 Cedex 13
Tel: 33 (1) 49-06-36-00
Fax: 33 (1) 47-76-48-55
MIDLAND BANK SA
Mr. Bernard Pouy
Chairman of the Board
6, rue Piccini
75116 Paris
Tel: 33 (1) 44-28-80-80
Fax: 33 (1) 44-28-85-99
MORGAN GUARANTY TRUST CO OF NEW YORK
Mr. Didier Cherpitel
Managing Director
14, place Vendôme
75001 Paris
Tel: 33 (1) 40-15-45-00
Fax: 33 (1) 40-15-44-77
NATIONAL WESTMINSTER BANK
Mr. Paul Imison
President and Managing Director
18, place Vendôme
75001 Paris
Tel: 33 (1) 44-58-53-00
Fax: (33-1) 40-15-07-37
PHILADELPHIA NATIONAL BANK
Mr. John Knutson
Managing Director
231, rue St.-Honore
75001 Paris
Tel: 33 (1) 42-60-21-87
Fax: 33 (1) 49-27-95-02
REPUBLIC NATIONAL BANK OF NEW YORK
Mr. Robert Sevrin
Managing Director
20, place Vendôme
75001 Paris
Tel: 33 (1) 44-86-18-61
Fax: 33 (1) 42-60-05-62
French and other Foreign Banks:
ASSOCIATION FRANCAISE DES BANQUES - AFB
Mr. Michel Freyche
President
18 rue Lafayette
75440 Paris Cedex 08
Tel: 33 (1) 48 00 52 52
Fax: 33 (1) 42 46 76 40
BANQUE INDOSUEZ
Mr. Antoine Jeancourt-Galignani
President
96, boulevard Haussman
75008 PARIS
Tel: 33 (1) 44 20 20 20
Fax: 33 (1) 44 20 29 56
BANQUE FRANCAISE DU COMMERCE EXTERIEUR (B.F.C.E.)
Mr. Michel Freyche
President
21, boulevard Haussman BP 265-09
75427 PARIS Cedex 09
Tel: 33 (1) 48 00 48 00
Fax: 33 (1) 45 23 10 56
BANQUE NATIONALE DE PARIS
Mr. Michel Pebereau
President and Managing Director
16, boulevard des Italiens
75450 PARIS cedex 09
Tel: 33 (1) 40 14 45 46
Fax: 33 (1) 40 14 69 73
BANQUE PARIBAS
Mr. Andre Levy-Lang
President
5, rue d'Antin
75002 PARIS
Tel: 33 (1) 42 98 12 34
Fax: 33 (1) 42 98 11 42
COMPAGNIE BANCAIRE
Mr. Francois Henrot
President
5, avenue Kleber
75116 PARIS
Tel: 33 (1) 45 25 25 25
Fax: 33 (1) 45 01 78 05
CREDIT COMMERCIAL DE FRANCE (C.C.F.)
Mr. Charles de Croisset
President and Managing Director
103, avenue des Champs-Elysees
75008 PARIS
Tel: 33 (1) 40 70 70 40
Fax: 33 (1) 47 23 71 04
CREDIT NATIONAL (C.N.)
Mr. Philippe Calavia
Director General
45, rue St. Dominique
75700 PARIS
Tel: 33 (1) 45 50 90 00
Fax: 33 (1) 45 55 89 58
CREDIT AGRICOLE
Mr. Marc Bue
President and Managing Director
48, rue de la Boetie
75008 PARIS
Tel: 33 (1) 49 53 43 23
Fax: 33 (1) 49 53 44 81
CREDIT LYONNAIS
Mr. Jean Peyrelevade
President and Managing Director
19, boulevard des Italiens
75002 PARIS
Tel: 33 (1) 42 95 70 00
Fax: 33 (1) 42 95 59 02
GROUPE DES BANQUES POPULAIRES
Mr. Jacques Delmas-Marsalet
President and Managing Director
115, rue Montmartre
75002 PARIS
Tel: 33 (1) 40 39 30 00
Fax: 33 (1) 40 26 62 27
SOCIETE GENERALE
Mr. Marc Vienot
President and Managing Director
29, boulevard Haussman
75009 PARIS
Tel: 33 (1) 40 98 20 00
Fax: 33 (1) 40 98 75 55
UNION EUROPEAN DE CIC
Mr. Jean-Pierre Aubert
President
4, rue Gaillon
75107 PARIS Cedex 02
Tel: 33 (1) 42 66 70 00
Fax: 33 (1) 42 66 78 90
Note: this list is not exhaustive. The US & Foreign Commercial Service
at the American Embassy in Paris maintains an up-to-date and
comprehensive listing of commercial banks.
APPENDIX F
UPCOMING DOC INDUSTRY SECTOR ANALYSES (ISA)
- Industrial Pumps - ISA - Jul.31/96
- Fertilizers - ISA - Mar.31/96
- Printing Machines - ISA - Jan.31/96
- Computer Numerical Controllers for Machine Tools - ISA - Oct.31/95
- CD-Rom Video Games - ISA - Oct.31/95
- Housewares - ISA - Nov.30/95
- Franchising - ISA - Dec.31/95
- Equipment and Services for Upgrading/Refurbishment of Power Generation
Facilities - ISA - Mar.31/96
- Large Transport Aircraft - ISA - Apr.30/96
- Airport Expansion Projects - ISA - Dec.31/95
- Composite Materials for the Automotive Sector - ISA - Nov.30/95
- Intelligent Transportation Systems - ISA - Jul.31/96
- Telecom Services Infrastructure - ISA - Jul.31/96
- Automotive Electronics - ISA - Aug.31/96
- Solid Waste Management - ISA - Feb.28/96
- Software for Groupware Applications - ISA - May.31/96
- Function Analysis Medical Equipment - ISA - Jun.30/96
Available DOC Industry Sector Analyses (ISA)
- Access Controls - ISA '95
- Processing Equipment in the Food Industry - ISA '95
- Children's Wear - ISA '95
- Books - ISA '95
- Agricultural Machinery - ISA '95
- Floor and Wall Covering Equipment - ISA '95
- Salmon - ISA '95
- Sporting Kites - ISA '95
- Fire Extinguishing Equipment - ISA '95
- Aeroports de Paris - ISA '95
- Jeanswear - ISA '95
- Lobsters - ISA '95
- Building Products - ISA '95
- Industrial Textiles - ISA '95
- Medical Equipment - ISA '95
- Satellite Telecommunications - ISA '95
- Integrated Circuits - ISA '95
- Micro Computers - ISA '95
- Inflatable Boats - ISA '95
- Industrial Valves - ISA '95
- Sport Shoes - ISA '95
- Printing and Graphic Arts - ISA '95
- Clean Coal Technology for Power Generation - ISA '95
- Electrical Generating Equipment - ISA '95
- Cellular Telephony Information - ISA '95
- Air Traffic Control Systems - ISA '95
- Water Pollution Controls - ISA '95
- Pet Industry - ISA '95
- Education Services - ISA '95
- Dental Implants - ISA '95
- Telecommunication Value Added Services - ISA '95
- Control, Test and Quality Assurance Equipment - ISA '95
- Packaged Software - ISA '95
- Mobile Communication Equipment - ISA '95
- Water Treatment Chemicals - ISA '95
- Packaged Software - ISA '94
- Vacuum Packaging - ISA '94
- Landscape Equipment - ISA '94
- Automotive Accessories - ISA '94
- Heavy Construction Equipment - ISA '94
- Forestry Equipment - ISA '94
- Sportswear - ISA '94
- Toys: Models & Miniatures - ISA '94
- Special Metals - ISA '94
- Operational Maintenance Services - ISA '94
- Laptop Computers - ISA '94
- Plastics - ISA '94
- Medical Prostheses - ISA '94
- Do-It-Yourself Products - ISA '94
- Air Filters - ISA '94
- Fiber Optics - ISA '94
- Coal - ISA '94
- Basic Chemicals for Pharmaceutical Applications - ISA '94
- Solid Waste Disposal - ISA '94
- Pre-press (Printing Equipment) - ISA '94
- Defense Sales in France - ISA '94
- Pilot Vision Aids - ISA '94
- Computers and Peripherals - ISA '94
- Scientific Laboratory Equipment - ISA '94
- Electronic Surveillance - ISA '94
- Household Linen - ISA '94
- Telecommunications Equipment - ISA '94
- Medical Imaging - ISA '94
- Lingerie - ISA '94
- Welding Protective Equipment - ISA '94
- Fitness Equipment - ISA '94
- Industrial Baking Equipment - ISA '94
- Catalog Sales - ISA '94
- Monkfish - ISA '94
- Computer Software - ISA '94
- Franchised Auto Repair Centers - ISA '94
- Telecommunications Networks - ISA '94
- Semiconductors - ISA '94
Available DOC Industry Market Insights (IMI)
- French Auto Market - IMI '95
- Electronic Waste Control - IMI '95
- Privatization of Seita - IMI '95
- Pronic Trade Show - IMI '95
- Elec'94-Electricity Exhibition - IMI '95
- French Furnishing Fabrics Show - IMI '95
- Industrial Subcontracting Exhibit - IMI '95
- French Biomedical Market - IMI '95
- Trends in the Door, Window, Solar Protection, and Veranda Markets -
IMI '95
- End of Show Report - Study USA '95 - IMI '95
- Int'l Women's Wear Trade Show, Paris - IMI '95
- The Rising Cost of Water in France - IMI '95
- The French Market for IBM as/400 Versus Unix-Based Systems - IMI '95
- French Investments into Info Superhighway - IMI '95
- Biotechnology in Alsace - IMI '95
- U.S. Investments in the Bas-Rhine (Alsace) - IMI '95
- Cost of Living in France - IMI '95
- New Media Market Trade Show, Cannes - IMI '95
- Midem '95, Cannes - IMI '95
- Paris International Show Fashion Fair -IMI '95
- Unique Healthcare System - IMI '95
- France Telecom is Being Scrutinized - IMI '95
- Financial Health of Artisan Fishing Industry - IMI '95
- The French Beer Market - IMI '95
- Bio-Avenir (Research in Health, Agricul., Biochem., and Method.) - IMI
'95
- Sales of Textile in Hypermarkets - IMI '95
- French Market Trends for Heavy Construction Equipment - IMI '95
- CE Marketing for Medical Devices - IMI '95
- The Incubator Program & the Montpelier - IMI '95
- Languedor-Roussillon Technopole (Eurocite) - IMI '95
- IRIS Challenges France Telecom - IMI '95
- Info. on Emergency Numbers in France - IMI '95
- Interselection Trade Show at Exhibition Center of Paris - IMI '95
- A new start for IT Forum - IMI '95
- New President's Views on Info Tech. Issues - IMI '95
- France Telecom Discloses Its Accounts - IMI '95
- Trade Show "Arcaide '95": Focus On The Market - IMI '95
- TDR and Infomobile Challange France Telecom in The Field of .- IMI '95
- The Status of France Telecom and Deutsche Telekon's Joint venture -
IMI '95
- Problems Pose By The Privatization of France Telecom - IMI '95
- 700 Polluted Sites in France - IMI '95
- France Liberalizes Its Mobile Telecommunication Industry - IMI '95
- The Status of 800 Numbers in France - IMI '95
- New Shareholders for Bull - IMI '95
- France Telecom's Government Contract Is Signed - IMI '95
- Data Changes The Criteria for One of Its Invest. Incentive Prog. - IMI
'95
- Delay in French Information Highway - IMI '95
- Used Refurbished Equipment - IMI '95
- Status of The Movie Theater Industry in Europe - IMI '95
- Alcatel Acquires Stake in Euronews - IMI '95
- The Used and Remanufactured Medical Equipment Market In France - IMI
'95
- The French Market Is Warming Up To The Multimedia Industry - IMI '95
- Computer and Network Security an Emerging Market in Belgium - IMI '95
- Durables Recycling Plan - IMI '95
- Dioxin Study Proj - IMI '95
- Prince Trends - IMI '95
- EU Electric Capacitor Purchase - IMI '95
- EU Special Vehicle Regulation - IMI '95
- Science News - IMI '95
- Telecom Service Regulation - IMI '95
- Economic Statistic - IMI '95
- Trade Statistic - IMI '95
- EU Construction Lifting Equip Purchase - IMI '95
- EU Electric Distribution Trends -IMI '95
- EU Valve Purchase - IMI '95
- Industrial production Trends - IMI '95
- Women's Clothing Trade - IMI '95
- Water Cost Trends - IMI '95
- Direct Marketing Trade Show - IMI '95
- Information Superhighway Plan - IMI '95
- Computer Use Trends - IMI '95
- Record Trade Show - IMI '95
- Biotechnology Overview - IMI '95
- Lingerie Trade Show - IMI '95
- Publishing Trade Show - IMI '95
- EU Power Transmission Proj - IMI '95
- Alsance Economic News - IMI '95
- Banking Trends - IMI '95
- Economic News - IMI '95
- EU Computer Laesing Proj - IMI '95
- EU Kitchen Furniture Purchase - IMI '95
- Cost of Living Statistic - IMI '95
- Auto Market Trends - IMI '95
- Trade Statistic - IMI '95
- Door, Window Market Trends - IMI '95
- EU Nuclear Power Plant Proj - IMI '95
- EU Wire Fencing Purchase - IMI '95
- Electric Industry Trade Show - IMI '95
- Component Production Trade Show - IMI '95
- Tobacco Company Privatization - IMI '95
- Financial News - IMI '95
- EU Office Building Proj - IMI '95
- Furnishing Fabrics Trade Show - IMI '95
- Inflation Statistic - IMI '95
- EU Telephone System Purchase - IMI '95
- Biomedical Market Trends - IMI '95
- EU Market Research Proj - IMI '95
- Economic Statistic - IMI '95
- Industrial Research Trends - IMI '95
- Carminat Automobile Systems in France - IMI '94
- SFR the American Alliance - IMI '94
- European Broadcasting Union - IMI '94
- Bouygues is Rushing into the Beeper Service - IMI '94
- Brussels Approves $ 2.17 Billion - IMI '94
- Subsidy to Group Bull - IMI '94
- Premiere Vision, The World Meeting of Textiles and Fashion - IMI '94
- The Int'l Babycare, Nursery, and Infant Toy Exhibition - IMI '94
- End-of-Show Report: Pollutec '94 Environmental Trade Show - IMI '94
- New French Regulations Concerning Third Brakelight for Cars- IMI '94
- Interselection Trade Show - IMI '94
- The European Market for Cogeneration Systems - IMI '94
- French Market for Heat Pumps & Dehumidifiers - IMI '94
- Overview of 1993 French Leather Industry - IMI '94
- France Telecom's New Minitel Videotext Systems - IMI '94
- Market Trends and Industry Standards - IMI '94
- For Sanitary Faucets in France - IMI '94
- France Selected as Manufact. Base for the Future Mercedes-Swatch.. -
IMI '94
- TV Shopping in France - IMI '94
- End of Show Report, US Catalog Exhibition at Expoprotection '94 - IMI
'94
- Aeroport de Paris - IMI '94
- The European Market for Lithium Batteries - IMI '94
- Mosheim and Lahr Among Finalists for Site of Swatchmobile.. - IMI '94
- Appointment of New Snecma President/CEO - IMI '94
- French Industrial Waste Disposal Market - IMI '94
- The French Air Pollution Control Market - IMI '94
- European Defense Industry Restructuring - IMI '94
- Trends and Opportunities in the French Packaging Market .. - IMI '94
- Auto Production Proj - IMI '94
- Pollution Clean Up Plan - IMI '94
- TV Shopping Overview - IMI '94
- Economic News - IMI '94
- EU Computer Purchase - IMI '94
- Sanitary Faucet Market Trends - IMI '94
- Security Trade Show - IMI '94
- EU Water Distribution Proj - IMI '94
- EU Industrial Equipment Purchase - IMI '94
- EU pharmaceutical Purchase - IMI '94
- Gene Therapy Research - IMI '94
- EU Shelving Purchase - IMI '94
- EU Public Lighting Purchase - IMI '94
- EU Electronic Equipment Purchase - IMI '94
- Eyewear Trade Show - IMI '94
- EU Polo Shirt Purchase - IMI '94
- Airport Overview - IMI '94
- EU Eletrics Supplies Purchase - IMI '94
- High-tech Conference With Russia - IMI '94
- New Aircraft Company President - IMI '94
- Experiment Car Plan - IMI '94
- Air Pollution Control Market Trends - IMI '94
- Industrial Waste Disposal Market Trends - IMI '94
- EU Gas Supply Equipment - IMI '94
- EU Construction Supplies Purchase - IMI '94
- Industrial Production Statistics - IMI '94
- Computer Company Privatization - IMI '94
- Packaging Trade Show - IMI '94
- EU Computer, Electrical Equipment Purchase - IMI 94
- Interest Rate Trends - IMI '94
- EU Gas Tap Purchase - IMI '94
- Economic News - IMI '94
- Fashion Trade Show - IMI '94
- Tax Free Trade Show - IMI '94
- Heat Pump, Dehumidifier Market Overview - IMI '94
- EU Power Transmission Equipment Purchase - IMI '94
- Leather Industry Overview - IMI '94
- EU Power Transmission Equipment Purchase - IMI '94
- Heating Equipment Purchase - IMI '94
- Consumer Price Trends - IMI '94
- New Videotext Service - IMI '94
- Science News - IMI '94
- Economic News - IMI '94
- EU Military Uniform Purchase - IMI '94
- EU Power Equipment Purchase - IMI '94
- Canal Proj - IMI '94
- Industrial Diversification - IMI '94
- Lingerie Trade Show - IMI '94
- Videotape Trade Show - IMI '94
- TV Program Trade Show - IMI '94
- Auto Navigation System Market Trends - IMI '94
- Nice Exhibit Center -IMI '94
- New Beeper Company - IMI '94
- Mobile Communications Company Profile - IMI '94
- Financial Statistic - IMI '94
- Industrial Production Statistics - IMI '94
- Travel Conditions - IMI '94
- Fashion Textiles Trade Show - IMI '94
- Baby Products Trade Show - IMI '94
- Unemployment Statistics - IMI '94
- Household Goods Trade Shows - IMI '94
- Computer Company Sells US Operations - IMI '94
- Sports Goods Trade Show - IMI '94
- Economic Statistic - IMI '94
- Renault Privatization - IMI '94
- Trade Trends - IMI '94
- Industrial Production Statistic - IMI '94
- Science News - IMI '94
- Window Market Overview - IMI '94
- Telecom Service License - IMI '94
- Vehicle Emission Overview - IMI '94
- Bids For Water Treatment Plant Proj - IMI '94
- Telecom Delegation Reaction -IMI '94
- Industrial Production Statistic - IMI '94
- Yarn Trade Show - IMI '94
- Men's Cosmetics Market Overview - IMI '94
- Euroteleport Inaugurated - IMI '94
- Telecom Carrier Expands - IMI '94
- Computer Company Privatization - IMI '94
- Car Fleet Sales Overview - IMI '94
- Toy Market Overview - IMI '94
- International Standards - IMI '94
- DSC 1800 Standards Agreement - IMI '94
- Overview of Apparel - IMI '94
- Telecom Joint Venture - IMI '94
- Apparel Trade Show - IMI '94
- Consumer Price Statistics - IMI '94
- Telecom Service Rate Dispute - IMI '94
- Car Ferry Purchase - IMI '94
- Coalbed Methane Proj - IMI '94
- Electronic Measuring Instruments Purchase - IMI '94
- Paper Industry Overview - IMI '94
- Industrial Production Trends - IMI '94
- Franche-Comte Economic Profile - IMI '94
- Consumer Profile Trends - IMI '94
- Golf Equipment Market Overview - IMI '94
- Urban Development Proj - IMI '94
- Green Tech Center Proj - IMI '94
- Ecological Proj - IMI '94
- Nursing Products Trade Show - IMI '94
- Industrial Production Trends - IMI '94
- Bank Card Progress - IMI '94
- Police Communication Proj - IMI '94
- Luxury Goods Trends - IMI '94
- Plastic Industry Trends - IMI '94
- Study In USA Trade Show - IMI '94
- Consumer Price Trends - IMI '94
- Telecom Company Expansion - IMI '94
- Environmental, Science News - IMI '94
- Measurement Instruments Trade Show - IMI '94
- Medical Equipment Trade Show - IMI '94
- New Mobile Telephone Service - IMI '94
- Medicine Trade Show - IMI '94
- Lab Instrument Trade Show - IMI '94
- Yacht Market Overview - IMI '94
- In Vitro Instruments Market Overview - IMI '94
- Technology Research JV Proj - IMI '94
- Oil Company Privatization - IMI '94
- New Multimedia Company - IMI '94
- Mobile Telecom News - IMI '94
- Genetics Research Center - IMI '94
- Men's Clothing Trade Show - IMI '94
- Employment Trends - IMI '94
- Ministry of Economy Opens Bidding on the Privatization of Bull - IMI
'94
APPENDIX G - TRADE EVENT SCHEDULE
DATE
EVENT / INDUSTRY
CITY
ORGANIZER
TELEPHONE / FACSIMILE
10/02-05/95
SATIS / Image and Sound
Paris
SATIS
T:(33.1)47.20.84.44 / F:49.52.00.54
10/03-06/95
POLLUTEC
Environment and Pollution Control
Paris
Blenheim
T:(33.1)47.56.21.15 / F:47.56.21.10
10/06-15/95
MAISON INDIVIDUELLE / Houseware
Paris
CEP
T:(33.1)49.09.64.55 / F:49.09.60.03
10/06-15/95
INTERIEURS D'AUTOMNE / Houseware
Paris
CEP
T:(33.1)49.09.61.13 / F:49.09.60.03
10/06-15/95
IDEES MAISON / Houseware
Paris
CEP
T:(33.1)49.09.60.81 / F:49.09.60.03
10/06-15/95
FIAC / Art Fair
Paris
OIP
T:(33.1)49.53.27.20 / F:49.09.60.03
10/09-13/95
MIPCOM / Film, T.V., Cable
Cannes
REED MIDEM
T:(33.1)44.34.44.44 / F:44.34.44.00
10/11-14/95
MITCAR / Tourism Fair
Paris
Groupe Liaison
T:(33.1)41.29.96.21 / F:41.29.96.68
10/13-19/95
EQUIP'AUTO / Car Components
Paris
CEP
T:(33.1)49.09.60.00 / F:49.09.60.03
10/14-16/95
DIETEXPO / Dietetic & Cosmetic products
Paris
OIP
T:(33.1)49.53.27.00 / F:49.53.27.86
10/18-24/95
EQUIP'HOTEL
Hotels & Catering
Paris
Blenheim
T:(33.1)47.56.50.00 / F:47.56.14.40
10/20-23/95
SILMO
Optics and Eyewear
Paris
CEP
T:(33.1)49.09.61.35 / F:49.09.60.03
10/24-28/95
SITEF / Advanced Technologies
Toulouse
CCI Toulouse
T:(33.1)61.33.66.70 / F:61.33.66.99
10/24-28/95
EUROPACK/EUROMANUT
Packaging
Lyon
CEP
T:(33.1)49.68.51.00 / F:47.37.74.47
10/25-27/95
ALARMES PROTECTION SECURITE
Security (2)
Paris
Blenheim
T:(33.1)47.56.51.46 / F:47.56.14.40
11/01-12/95
CONFOREXPO
Lifestyle and Comfort
Bordeaux
CE de Bordeaux
T:(33.1)56.11.99.00 / F:56.11.99.09
11/01-12/95
CONFORT MENAGER
Houseware
Lille
NOREXPO
T:(33.1)20.15.81.95 / F:20.15.81.91
11/7-12/95
BATIMAT (1)
Building Materials (2)
Paris
Blenheim
T:(33.1)47.56.51.62 / F:47.56.14.40
11/20-23/95
PHYSIQUE / Scientific Expo
Paris
SF de Physique
T:(33.1)47.07.32.98 / F:43.31.74.26
11/20-24/95
MIDEST
Sub-Contracting (2)
Paris
Blenheim
T:(33.1)47.56.50.00 / F:47.56.14.40
11/20-25/95
INTERTRONIC
Electronic Components (2)
Paris
Blenheim
T:(33.1)47.56.50.00 / F:47.56.14.40
11/21-23/95
SITEVI
Grape & Fruit Tree (2)
Montpellier
EXPOSIMA
T:(33.1)49.68.51.00 / F:47.37.74.47
11/21-24/95
MILIPOL (1)
Police, Military & Security (2)
Paris
IMEXPO
T:(33.1)46.27.82.00 / F:46.27.91.63
11/21-24/95
INTERSELECTION
Inter Selection (3)
Paris
Fed. de la Maille
T:(33.1)47.56.32.32 / F:47.56.32.99
12/01-10/95
CHEVAL & PONEY
Horse & Poney
Paris
CEP
T:(33.1)49.09.60.00 / F:49.09.60.03
12/01-11/95
NAUTIQUE INTERNATIONAL
Nautical
Paris
OIP
T:(33.1)49.53.27.10 / F:49.53.27.86
12/01-11/95
PISCINE SPA SAUNA
Pools, Saunas
Paris
OIP
T:(33.1)49.53.27.10 / F:49.53.27.86
11/04-08/95
INTERCHIMIE
Chemical Process (4)
Paris
SEPIC
T:(33.1)49.68.54.80 / F:49.68.54.84
12/12-15/95
FORAINEXPO
Traveling Show
Paris
SEPFI
T:(33.1)47.56.21.07 / F:47.56.21.20
01/96
CONFORTEC
Household Appliances (2)
Paris
Blenheim
T:(33.1)47.56.50.00 / F:47.56.14.40
01/27-30/96
SEHM (1)
Men's Clothing (3)
Paris
F.F.I.V.
T:(33.1)44.55.66.50 / F:44.55.66.65
02/96
EXPOBOIS
Woodworking Machinery (2)
Paris
CEP
T:(33.1)47.56.14.40 / F:44.55.66.65
02/96
INTERGLACES
Ice & Ice-Cream (2)
Paris
CEP
T:(33.1)49.09.60.00 / F:49.09.60.03
02/96
EUROPEAN
World Bread & Pastry Exhibition (2)
Paris
CEP
T:(33.1)49.09.61.52 / F:49.09.60.03
02/96
INTERSIMA
Agrosupplies & Meat Production (2)
Paris
EXPOSIMA
T:(33.1)49.68.51.00 / F:47.37.74.47
03/96
SEMBO
Coffee, Hotels & Institutional Food (2)
Bordeaux
CE de Bordeaux
T:(33.1)56.11.99.15 / F:56.11.99.99
03/96
MECANELEN
Mechanical Eng. Components (2)
Paris
SEPIC
T:(33.1)49.68.54.60 / F:49.68.54.84
03/96
PROFESSIONS DE L'IMAGE
Photo, Video (2)
Paris
SIPI
T:(33.1)46.27.47.29 / F:42.29.02.22
03/96
TRANSFOMETAL
Machine Tool (2)
Lyon
SEPELCOM
T:(33.1)72.22.32.56 / F:72.22.32.70
03/96
SITAl
Dental Trade (4)
Paris
Comident
T:(33.1)48.74.11.08 / F:42.85.20.32
03/96
SPECIAL VIDEO MISSION (1)
Paris
The Commercial Service, Paris
T:(33.1)43.12.21.49 / F:43.12.21.72
03/25-29/96
HOSPITAL-EXPO /Hospital Equipment (2)
Paris
P.G. Promotion (Lyon)
T:(33.1)78.42.67.70 / F:78.42.37.70
03/28-31/96
SALON DE L'ETUDIANT (2)
Education
Paris
L'Etudiant
T:(33.1)48.07.41.41 / F:48.07.02.92
04/24/26/96
JEC Composites
Paris
CPC
T:(33.1)44.01.16.44 / F:47.63.57.39
04/96
FORUM LABO Laboratory Techniques (2)
Paris
MCI
T:(33.1)44.53.72.20 / F:44.53.72.21
04/96
GRAPHITEC
Graphic Arts Industry (2)
Paris
Sepic
T:(33.1)49.68.54.40 / F:49.68.54.84
04/96
PLASTEXPO Plastic & Rubber (3)
Lyon
Blenheim
T:(33.1)47.56.50.00 / F:47.56.14.40
04/96
SAM Mountain Industries (2)
Grenoble
ALEXPO
T:(33.1)76.39.63.28 / F:76.09.36.48
05/96
EUROFOUR
Furnace & Heating (2)
Paris
SEPIC
T:(33.1)49.68.54.80 / F:49.68.54.84
05/96
INTEROUTIL
Cutting & Shaping Tools (2)
Paris
SEPIC
T:(33.1)49.68.54.80 / F:49.68.54.84
05/96
EUROASSEMBLAGE
Assembly Machines (2)
Paris
SEPIC
T:(33.1)49.68.54.80 / F:49.68.54.84
05/96
MACHINE OUTIL
Mechanical Industries (2)
Paris
SEPIC
T:(33.1)49.68.54.80 / F:49.68.54.84
06/05-08/96
AUTONOMIC Disabled and Elderly Independence
Paris
SIS
T:(33.1)43.39.41.45 / F:43.39.33.45
06/96
MESUCORA
Measure, Control Devices (4)
Paris
MESUCORA
T:(33.1)42.27.33.14 / F:47.55.69.15
06/24-29/96
EUROSATORY (1)
Defense Industry
Paris
COGES
T:(33.1)44.14.58.10 / F:42.30.70.88
09/96
BATIMAT-DECOR-PARITEX Decoration (2)
Paris
Blenheim
T:(33.1)47.56.50.00 / F:47.56.14.40
09/96
VEGECOM
Horticulture (2)
Orleans
CDHRO (Saint Cyr en Val)
T:(33.1)37.76.24.04 / F:38.69.07.92
09/96
CUIR Leather (2)
Paris
SIC SA
T:(33.1)43.59.05.69 / F:43.59.30.02
09/96
SEHM (1)
Men's Clothing (3)
Paris
F.F.I.V.
T:(33.1)44.55.66.50 / F:44.55.66.65
09/96
TOP RESA
Tourism
Deauville
Blenheim
T:(33.1)47.56.50.98 / F:47.56.14.40
(1). The U.S. Government is participating and supporting this event.
(2). Every two years
(3). Every six months
(4). Every three years
FOOD AND AGRICULTURAL TRADE SHOWS IN FRANCE - 1995/1996
MOFEL-NICE
International Fruits and
September 18-20, 1995
Vegetables Exhibition
DIETEXPO
Health and Dietetic Food and Drink
Paris - Porte de Versailles
October 14-15-16, 1995
FOIRE INTERNATIONALE DE DIJON
International Food and Wine
October 31-November 12, 1995
INTERSUC'96
International Confectionary Products Show
Paris-Nord Villepinte
February 24-28, 1996
FLORISSIMO'96 - DIJON
VI th International Flowers and Plants Exhibition
March 8-18, 1996
EUROBIERE
International Beers and Refreshments Show
Strasbourg
April 12-16, 1996
SIAL'96/SIAL BOISSONS'96
International Food Products and Drinks Show
Paris-Nord Villepinte
October 20-24, 1996
3 940 exhibitors in 1994
USDA/FAS will sponsor U.S.
Pavilion in 1996
HORTI-AZUR
Subtropical Vegetal Show
Nice
November '96
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