Professional Documents
Culture Documents
ON
FRANCE
SUBMITTED BY :
SAHIL POPLI
21/153
Economy Overview
Region
OECD high
income
66,028,467
Paris
France has been a WTO member since 1 January 1995 and a member of
GATT since 1 January 1948. It is a member State of the European Union
(more info). All EU member States are WTO members, as is the EU (until
30 November 2009 known officially in the WTO as the European
Communities for legal reasons) in its own right.
Rankings on Doing Business topics - France (Scale: Rank 189 center, Rank 1 outer edge)
How France and comparator economies rank on the ease of doing business
Market Opportunities
France is an economically developed nation with a large, diverse and sophisticated
consumer base. It has a strong manufacturing sector that seeks out quality
components from foreign suppliers. Finally, its comparatively affluent populace is a
leading consumer of services, particularly in the educational and travel sectors. It
should be noted that while the overall French market can be viewed as essentially
similar to the U.S. market, the individual French consumer of products and services is
very discriminating and care and planning are essential to success for U.S. exporters
in this market.
There are significant market opportunities for consumer food/edible fishery products
in a number of areas: fruit juices and soft drinks (including flavored spring waters),
dried fruits and nuts, fresh fruits and vegetables (particularly tropical and exotic),
frozen foods (both ready-to-eat meals and specialty products), snack foods, tree nuts,
"ethnic" products, seafood (particularly salmon & surimi), innovative dietetic and
health products, organic products, soups, breakfast cereals, and pet foods. In addition,
niche markets exist for candies, chocolate bars, wild rice, kosher, and halal foods.
Market opportunities for U.S. exporters also exist for oilseeds, protein meals and
other feeds, as well as for wood products and grains. Socio-economic and
demographic changes continued to alter food trends in France. French consumers
desire innovative and more convenient foods offering quality image, better taste, and
increased health benefits. France offers market opportunities for U.S. suppliers in a
number of areas such as fish and seafood, processed fruits and vegetables (including
fruit juices), beverages (including wine and spirits), dried fruits and nuts, but also
confectionery products, wild rice, organic products, kosher and halal foods.
Market Challenges
Foreign investors say they find Frances skilled and productive labor force, good
infrastructure, technology, and central location in Europe attractive. Frances
membership in the European Union (EU) and the Eurozone (as the 18 countries that
use the Euro currency are known) facilitates the movement of people, services,
capital, and goods. However, notwithstanding French efforts at economic reform,
market liberalization, and attracting foreign investment, perceived disincentives to
investing in France include the tax environment, high cost of labor (with the
minimum wage, called the SMIC for Salaire Minimum Interprofessionnel de
Croissance, at 1,445 per month), rigid labor markets, and occasional strong negative
reactions toward foreign investors planning to restructure, downsize or close. The
2013 AmCham-Bain Barometer (an annual study conducted by the American
Chamber of Commerce in France and Bain & Company), released in October 2013,
details U.S. businesses concerns about some of Frances economic policies under
President Franois Hollande (in office since May 2012), notably the lack of
predictability in economic and budget policy and increased complexity of the tax and
labor regimes,
POLITICAL ENVIRONMENT
power.
The French Communist Party (parti Communiste Franais - PCF).
The Green Front (Front National). Party (EELV - Europe Ecologie Les Verts)
France also has some surprisingly resiliant extremist parties on the left and on the
right, including the NPA (Nouveau parti anticapitaliste) and the trotskyist Workers'
Party (Lutte ouvrire), and the National
LEGAL ENVIRONMENT
1. The nature of legal systems
Unlike English-speaking countries, which use a system of "Common Law", France has a
system of "Civil law".
Common law systems are ones that have evolved over the ages, and are largely based on
consensus and precedent. Civil law systems are largely based on a Code of Law.
Worldwide, Common Law forms the basis of the law in most English-speaking countries,
whereas Civil law systems prevail in most of the rest of the world, with the notable
exception of many Islamic nations and China.
In line with the democratic principle of the separation of powers, the French judiciary although its members are state employees - is independent of the legislative authority
(government).
6. Ongoing reforms
In 2008, President Sarkozy announced plans to further reform and streamline the French
judiciary. Among the reforms are plans to reduce the number of courts, move court
procedures towards a more adversarial system, and to get rid of the system of avous in the
courts of appeal. This change has not yet been implemented.
One reform recently tried out in a couple of Tribunaux correctionnels (criminal courts)
was the introduction of trial by jury, previously limited to the assize courts. Juries in this
case were made up of six members of the public, and three magistrates. But in 2013, the
socialist administration of Franois Hollande decided to scrap this reform, claiming the
process was expensive, slowed down the judicial procedure, and did not produce any
significant change in results.
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