France is a part of the European Union; it is subject to common rules across Europe especially regarding the foreign trade policy which is deemed to be quite liberal under the leadership of the European institutions. It was from 1 January 1993, all European countries constituted a single territory and then came to light the free trade area, with cancellation of customs duties.
However, some goods remain prohibited or subjected to particular formalities. These include drugs, waste, plants or live animals, etc, for obvious reasons with respect to safety. There are a number of restrictions, especially in agricultural products, arising from the implementation of the CAP (Common Agricultural Policy). The industry is heavily subsidized with respect to the agricultural imports.
Trade between France and Japan has not always been positive. It is only since the 90s that we observe real trade between them. In France there are 10,000 French companies exporting to Japan, the first 1000 of which represent nearly 5 billion Euros per year. Global trade grew by almost 50% over the period 1993-2004. This is the largest customer of French companies in Asia to near equality with China, with a French export volume of over 5.3 billion Euros. It is the agri-food sector that constitutes much of the French exports (more than half of sales in Japan cons quarter of French exports worldwide).
Good trade relations are also reflected by a remarkable presence of French investors in Japan (over 14% of the stock of FDI held in this country with more than $ 12.5 billion). This strong presence of France in Japan can be explained by the efforts employed by the two countries to promote (France-Japan, spirit partner) under the leadership of the Secretary of State for Foreign Trade in 2001 and 2003.
In 2004, the IFA (French Agency for International Investment) launched a new campaign entitled ‘The New France' to attract the attention of foreign investors, especially Japanese. French companies have adapted to the very demanding Japanese market. The Chamber of Commerce, and the French industry in Japan, founded in 1918, is the 1st and 2nd European chambers in the world after that of the United States.
The market opening measures taken by the Japanese authorities, take advantage of French companies in many areas. Furthermore Japan has signed agreements with the World Trade Organization and was forced to reduce its subsidies. Nevertheless, the trade balance remains in deficit with Japan; in 2004, France exported $ 5.4 billion and bought 10.4 billion. The growth of imports of Japan is not necessarily bound for France or Europe in general, but rather cultural and geographical neighbors of Japan (South Korea, China, etc).
In the first quarter of 2006, French exports of goods rebounded sharply. It took advantage of the increased foreign orders with a rise in the value of euro (1 EUR = 1.13 USD), which has attracted other foreign currencies. However, the appreciation of the exchange rate of the euro (December 13, 2006 1 EUR = 1.331 USD) throughout the year 2006, is expected to slow sales of France. Thereafter, if the exchange rate of the euro remains at high levels, export growth could slow again. However, export growth is much faster in 2006 than in 2005: 10.5% after 2.6% and the impact was very limited in the Asia as a whole, suggesting the substitution among Asian countries.
Tags: French exports, foreign currency, exports, Japan, China, foreign trade, European Union
[...] In other words, tariffs are calculated as a percentage of the property.For example, for a duty on a box of 6 bottles of wine at 600, the duty will amount to 30. Imports are administered by the Japanese Customs , under the responsibility of the Ministry of Finance . Japan is a member of the Organization of Customs since 1964 and has also established agreements to be part of APEC , which plans to establish a free trade zone by 2010 in Asia Pacific. [...]
[...] It is best to always open a documentary credit realizable in a French bank. However, great care is imperative for the regulations, because despite these techniques that provide guarantees, credit risk is always present: political aspect (war, boycott, economic failure, natural disaster ) bank declaring bankruptcy, customer's creditworthiness commercial aspect: breach of contract III. Risk Management BUSINESS FAILURES Managing this risk will be done in two steps: A. Prevention: We'll have to first learn about new customers. At this stage there are many ways through banks, CFCE, networks of agents, corporate business information . [...]
[...] The main banks in Japan The 11 general Japanese banks have engaged in a consolidation process that led to the emergence of three major multi-business banking groups by 2006: Mitsubishi UFJ Financial Group: born of the merger between Mitsubishi Tokyo Financial Group (MTFG) and United Financial of Japan effective since 1 January 2006, and in terms of balance sheet size, one of the largest banking group the world, with assets of up to 190,000 billion yen 1358 billion). Mizuho Financial Group: the group with nearly 138,000 billion yen of assets (986 billion euros). [...]
[...] However, in 2004, the appreciation of the euro led to a fall in imports in this category or hl) for the benefit of California wines carried by the depreciation of the dollar.With the current rise of the dollar, the situation of French table wine could improve. E.Fuel consumption It is estimated that two major conurbations such as Tokyo and Osaka concentrate nearly on 80% of wine sales, even if there are real opportunities in secondary cities in provinces. Consumption is now valued at about 2l/hab./an, and is substantially the same as those registered before 1998. [...]
[...] It was on the food sector that the major advantage of French exports (more than half of sales to Japan in the fourth against French exports worldwide) was felt. Apart from the subsidiaries, other companies decided to settle there with: representative offices (about also called liaison office, which are small, lightweight structures that enable a company to test a market in a foreign country. Not endowed with legal personality, the liaison office has neither its own assets nor any capital, or distinct names. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
