U.S.-French Business and Agricultural Relations

1. U.S.-French Business and Agricultural Relations Eric Beaty Economic and Commercial Attaché U.S. Consulate for Western Franceat Rennes Rotary Club November 15, 2010

2. U.S. Consular Districts in France

3. U.S.-French Business Relations –and how the U.S. Government helps Companies do Business • The role of the American Presence Post in Western France • How the U.S. Government helps Companies do Business • US-France bilateral relationship

4. 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.

5. What We Do • Official Representation • Consular Services • Public Diplomacy • Commercial Promotion

6. 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

7. Commercial Diplomacy • 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.

8. Who in the US Government? • Department of State • Department of Commerce • Department of Agriculture • Export-Import Bank • Small Business Administration

9. 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.

10. U.S.-France Trade Relations:$1 billion in financial transactions daily • 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.

11. U.S.-France Trade Relations (2) • 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.

12. 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.

13. Cross Investment • $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.

14. 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%).

15. 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%).

16. Cross Investment (2) • 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, PromotalMidmark, Cargill, York, Lydall, Schering Plough, Johnson Controls, Visteon, Silicon Labs, Alcatel Lucent, Envivio and many more.

17. Jobs • 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.

18. 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)

19. U.S.-French Agricultural Trade

20. Major U.S. Exports to France, 2009 • 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

21. U.S. agricultural exports to France • 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.

22. Major U.S. Imports from France, 2009 • Major U.S. Imports from France, 2009 • (billions of dollars) • 1 -Nuclear reactors, boilers, machinery and mechanical appliances • such as gas turbines, bulldozers, and machinery for working rubber • or plastics5.9 • 2 Aircraft, spacecraft, and parts thereof 4.3 • 3 Pharmaceutical products 3.9 • 4 Beverages and spirits such as wine and liqueurs + food products 2.3 • 5 -Mineral fuels, mineral oils and related products; bituminous • substances; mineral waxes 2.0 • 6 Works of art, collectors’ pieces and antiques 1.9 • 7 Electrical machinery and equipment such as electronic • integrated circuits, TV equipment and video cameras 1.8 • 8 Optical, photographic, medical or surgical instruments 1.6 • 9 Vehicles and parts 1.3 • 10 Essential oils, perfumes, and cosmetic preparations 1.3

23. 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.

24. French agricultural exports to the U.S. • French agricultural exports to the United States amounted to $2.3 billion in 2009, with well over half of it being wine and spirits.

25. 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.

26. French food products to U.S.

27. Evolution of French food & beverage exports to the U.S.

28. Best prospect for French exporters to the U.S. • 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%.

29. Best prospect for U.S. Exporters to France: Agricultural machinery • 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.