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Trade policy issues for France

France participates actively in both regional and global trade agreements. It is a member

of several important regional trade blocs, including the European Economic Area (EEA) and the

European Union (EU). Additionally, France actively participates in several major international

economic groups, such as the Organization for Economic Co-operation and Development

(OECD), the International Monetary Fund (IMF), the World Trade Organization (WTO), the G-

5, G-7, G-8, G-10, and G-20. These connections demonstrate France's dedication to regional and

global trade cooperation. It gains from integrating European markets as an EU and EEA member.

At the same time, its membership in institutions such as the WTO and IMF highlights its

involvement in the international commercial scene. By participating in these trade agreements,

France demonstrates its commitment to promoting economic cooperation, guaranteeing

adherence to international trade regulations, and advancing the stability and expansion of the

world economy.

France uses trade barriers, including non-tariff barriers, particularly for agricultural and

textile products, to impose protectionist policies. These obstacles, complex rules, and

bureaucratic processes can make it difficult for some American goods to enter the French

market. Notably, France's protectionism aims to ensure adherence to EU norms and standards

rather than singling out individual nations. These actions are intended to respect EU standards,
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protect home industries, and guarantee the safety and quality of products. Protectionism exists,

but it is mainly motivated by EU regulations rather than specifically directed at specific trading

partners.

In an attempt to impose punitive charges on Chinese-made electric cars (EVs) imported

into the EU, France is attempting to start anti-dumping procedures against EV imports from

China. Thierry Breton, the French EU Commissioner for the Internal Market, favors this

measure. Meanwhile, Germany is against strengthening trade restrictions with China because of

its increased reliance on the Chinese market and the possibility of Beijing reprisal. Concerns

over the sharp increase in EV imports from China to the EU are brought to light by the conflict

since China's EV sales are expected to rise by 89% by 2022. Chinese enterprises find it simpler

to increase their market share in the EU thanks to the EU's open trade policy and reduced tariffs

on Chinese vehicles compared to the US. European automakers are facing a threat from the

growing number of Chinese-made electric vehicles (EVs), especially in France. Meanwhile,

Germany is worried that retribution may affect its interests in China. The trade war may affect

other industries, like the medical device industry.

France shows dedication to an industrial policy that promotes economic innovation. The

government's initiatives to promote technical innovation, R&D, and the expansion of creative

industries are reflected in this policy. France knows how critical innovation is to sustaining its

competitiveness in the global marketplace and promoting economic expansion. A major obstacle

still exists despite these aggressive steps: French exports still have a comparatively low benefit.

This indicates that, despite France's high innovation and technological advancement, its exported

goods and services command a different premium on international markets. There are multiple

elements involved in this occurrence. First, despite its investments in research and innovation,
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France might need help turning these efforts into widely demanded profitable goods and

services. Second, international competition might reduce France's ability to set its prices,

particularly if other nations can provide comparable products or services for less money.
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Works cited

Becuwe, Stéphane, et al. “The French (Trade) Revolution of 1860: Intra-Industry Trade and

Smooth Adjustment.” The Journal of Economic History, vol. 81, no. 3, Sept. 2021, pp.

688–722, doi:10.1017/s0022050721000371.

Centre for Eastern Studies (OSW). Trade Profile of France. 2022,

rbcglobalconnect.rbc.com/en/resources/explore-new-markets/country-profiles/france/

trade-profile.

“French Goods Exports and the Challenge of the Covid 19 Crisis.” Banque De France, 7 Sept.

2021, publications.banque-france.fr/en/french-goods-exports-and-challenge-covid-19-

crisis.

International Trade Administration. “France - Trade Barriers.” International Trade

Administration | Trade.gov, 2023, www.trade.gov/country-commercial-guides/france-

trade-barriers.

Ministère de l’Europe et des Affaires étrangères. “The French Government’s Trade Policy.”

France Diplomacy - Ministry for Europe and Foreign Affairs, 2023,

www.diplomatie.gouv.fr/en/french-foreign-policy/economic-diplomacy-foreign-trade/

the-french-government-s-trade-policy.

Payne, Julia, and Yuliia Dysa. “Farm Trade Dispute Creates Rift Between Ukraine and Its

Allies.” Reuters, 18 Sept. 2023, www.reuters.com/world/europe/farm-trade-dispute-

creates-rift-between-ukraine-allies-2023-09-18.