France is often referred to as the ‘gateway to EU trade’, particularly given its strategic location and being the second-largest economy in the European Union.
French-Australian Chamber of Commerce and Industry WA President Jerome Monteiro agrees with this sentiment, saying that establishing an export footprint or operations base in France is a great strategy for businesses seeking further growth into Europe.
He says France offers “three unbeatable advantages to access the larger European market”:
- Geographical advantage: located at the heart of Europe, France shares borders with key countries and has a well-developed transport network.
- Strong economy: a robust domestic market and access to over 450 million consumers across Europe.
- Trade agreements: as an EU member, France benefits from trade agreements that provide privileged access to other European countries and the rest of the world, which is an asset for WA businesses looking to expand.
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As Europe’s second-largest consumer market of more than 67 million people, two-way trade between Australia and France was valued at $12.9 billion in 2023.
Australia’s biggest exports to France were coal, oil seeds and oleaginous fruits, professional, technical and other business services, and recreational travel.
“France leads in sectors like renewable energy and aerospace, while WA excels in natural resources and agriculture, creating opportunities for collaboration between these distinct markets,” Monteiro says.
Key growth exports: tech, wine, food, minerals
Monteiro says French businesses “are an important source of information” for WA’s technology sector, including in artificial intelligence, cybersecurity and digital transformation.
“There are opportunities for WA businesses to tap into French technological advancements to improve their own operations and gain access to European markets,” he says.
WA startups and tech companies can collaborate with La French Tech, which offers opportunities for WA businesses to collaborate with French expertise on smart cities, IoT and digital infrastructure.
Monteiro says food and beverage trade between WA and France has also experienced growth.
“French businesses are increasingly interested in WA’s premium agricultural products, including wine and gourmet food, while WA has become an important importer of French wines and culinary products,” he says.
In recent years, Australia and France have engaged in various initiatives to strengthen cooperation on critical minerals supply chains, develop energy transition technologies, and climate and environment collaboration in the Indo-Pacific.
“To support better this sector and the mutual benefits in working together, France is currently appointing a Critical Minerals ETI (Technical International Expert) which they aim to position in WA,” Monteiro says.
Considerations for French market entry
While France has a robust economy, highly skilled workforce and recent pro-business reforms to attract foreign investment, Monteiro says there are some key considerations for new entrants:
- Cultural understanding: formal culture and direct but tactful communication.
- Legal and regulatory environment (French as well European): understand the various business structures, France’s labour laws and strong worker protections, consumer protection laws.
- Taxation: high corporate tax rate but offers incentives for certain sectors.
- Market knowledge: understand local consumer preferences and regional differences, identify local competitors and analyse their strategies to position your product effectively.
- EU regulations: France adheres to EU laws, including product standards and data protection (GDPR/RGPD). Ensure compliance with EU-wide regulations.
- Language: while many speak English, proficiency in French is advantageous and appreciated in business contexts.
CCIWA’s International Trade Services team helps businesses reduce the time, cost and risk of going global. Contact the team for a free consultation on (08) 9365 7620 or via [email protected].
