U.S.-French Business
and Agricultural Relations
Eric Beaty
Economic and Commercial Attaché
U.S. Consulate for Western France
at Rennes Rotary Club
November 15, 2010
U.S. Consular Districts in France
U.S.-French Business Relations –
and how the U.S. Government helps
Companies do Business
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The role of the American Presence
Post in Western France
How the U.S. Government helps
Companies do Business
US-France bilateral relationship
US Consulate for Western France
Our mission: to strengthen
economic, commercial, and
cultural links between France
and the United States, while
offering services to American
citizens living in the region.
What We Do
Official Representation
 Consular Services
 Public Diplomacy
 Commercial Promotion
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Commercial Promotion
Help American companies who
want to enter the French market
 Help American investors identify
opportunities in the region
 Serve as a source of information for
U.S. and French companies
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Commercial Diplomacy
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Provide advice, guidance and market
intelligence to U.S. business
Build an effective advocacy strategy
Resolve commercial and investment disputes.
Assist companies in their relations with the
press.
Who in the US Government?
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Department of State
Department of Commerce
Department of Agriculture
Export-Import Bank
Small Business Administration
A Strong Economic Relationship
Foreign direct investments
(FDI) and the high volume of
trade between the two
countries are the
cornerstone of the strong
French-American economic
relationship.
U.S.-France Trade Relations:
$1 billion in financial transactions daily
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In 2009, the United States exported 39
billion dollars’ worth of goods and services
to France. France exported over 50 billion
dollars’ worth of goods and services to the
United States.
France ranks as our 8th largest export
market and our 8th largest source of
imports. The United States is France's
most important trading partner outside the
European Union.
U.S.-France Trade Relations (2)
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American tourism to France
contributes greatly to the close
relationship of our countries.
Well over 2 million Americans
visited France in 2009. About 1
million French citizens visited the
United States in the same year.
What does France export to the U.S.?
French exports to the U.S. are mainly
industrial products (38%) of which the
aeronautics sector (airplanes, reactors
and machines) represents 21 % .
Consumer goods make up 19% of French
exports. Food products (8%), including
wines/spirits, represent a far smaller
proportion . Due to insufficient refinery
capacity in the US, energy products
represent 8% of French exports to the US.
Cross Investment
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$210 billion in cross investment yearly.
Total U.S. investment in France in 2008
was around 70 billion dollars, while
French investment in the U.S. exceeded
140 billion dollars. The U.S. is the
second largest investor in France.
France is the 5th largest investor in the
U.S.
Where does the U.S. invest?
In 2009, the U.S. ranked second among
investors in France, with a 17 % share
(just ahead of the U.K and just behind
Germany ) of total FDI in France,
concentrated in real estate and business
services (45%), the manufacturing sector
(25%), and the financial sector (14%).
Where does France invest?
French investment in the U.S. has
increased 4-fold over the past ten years!
These investments are concentrated in
manufacturing (40%, of which chemicals
16% and machinery 15%), the financial
sector (19%), the information sector
(18%) and the wholesale trade (11%).
Cross Investment (2)
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U.S. companies in France have total assets of
$256 billion. French affiliates in the United
States have total assets of $610 billion!
There are 200 U.S. companies in the three
regions covered by the U.S. Consulate for
Western France; e.g. Tenneco, Promotal
Midmark, Cargill, York, Lydall, Schering
Plough, Johnson Controls, Visteon, Silicon
Labs, Alcatel Lucent, Envivio and many more.
Jobs
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This relationship has translated into a
considerable source of jobs in both
countries. The 2500 U.S.-owned firms
in France represent over 600,000 jobs,
while the 2400 French affiliates in the
United States represent nearly 500,000
jobs.
Sales Turnover for U.S. And
French firms in both countries
- U.S. Firms in France: $135 billion in
sales figures (2008)
- French Firms in the United States: $160
billion in sales figures (2008)
U.S.-French Agricultural Trade
Major U.S. Exports to France,
2009
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1. Nuclear reactors, boilers, machinery and mechanical appliances
such as gas turbines, computers, and office machinery: 6.5 billion
dollars.
2. Aircraft, spacecraft, and parts thereof 3.2
3 . Optical, photographic, and medical instruments 2.6
4. Electrical machinery and equipment, such as integrated circuits 1.9
5 . Organic chemicals, such as hormones and glycosides 1.6
6 . Pharmaceutical products 1.3
7. Agricultural exports 1.28 billion dollars
8 . Vehicles and parts 0.6
9 . Miscellaneous chemical products 0.6
U.S. agricultural exports to France
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U.S. agricultural exports to France—
totaling $1.28 billion in 2009—
consisted primarily of tree nuts,
planting seeds, hides and skins,
tobacco, red meats, seafood, hardwood
lumber, and grapefruits.
Major U.S. Imports from France,
2009
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Major U.S. Imports from France, 2009
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(billions of dollars)
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1 -Nuclear reactors, boilers, machinery and mechanical appliances
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such as gas turbines, bulldozers, and machinery for working rubber
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or plastics5.9
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2 Aircraft, spacecraft, and parts thereof 4.3
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3 Pharmaceutical products 3.9
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4 Beverages and spirits such as wine and liqueurs + food products 2.3
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5 -Mineral fuels, mineral oils and related products; bituminous
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substances; mineral waxes 2.0
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6 Works of art, collectors’ pieces and antiques 1.9
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7 Electrical machinery and equipment such as electronic
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integrated circuits, TV equipment and video cameras 1.8
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8 Optical, photographic, medical or surgical instruments 1.6
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9 Vehicles and parts 1.3
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10 Essential oils, perfumes, and cosmetic preparations 1.3
France : The World’s second largest
agricultural producer
France is the world's second largest
agricultural producer, after the United
States. The destination of 70% of its
exports is other EU member states. Wine
and beverages, wheat, meat, and dairy
products are the principal exports.
French agricultural exports to the U.S.
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French agricultural exports to the
United States amounted to $2.3 billion
in 2009, with well over half of it being
wine and spirits.
French agricultural exports to the U.S. (cont.)
French agricultural exports include:
cheese, wine, spirits, soybeans and
products, feeds and fodders, seafood,
and consumer oriented products,
especially snack foods and nuts.
French food products to U.S.
Evolution of French food & beverage
exports to the U.S.
Best prospect for French exporters
to the U.S.
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In 2009, the fastest growing French
food export to the U.S. were cane and
beet sugar which showed an impressive
increase of $4.4 million at a rate of
627%.
Best prospect for U.S. Exporters to
France: Agricultural machinery
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France has the largest market for tractors
and agricultural machinery in Europe with a
quarter of the European market. The French
ag machinery market was estimated at $4
billion in 2009. US companies sold $400
million worth of machinery to France in the
same year.