ECONOMY
Industry:
Leading industrial sectors in France:
- Construction and civil engineering. Annual production : 797 billion francs ($159.4 billion). Four French groups (Bouygues, SGE, Eiffage and GTM-Entrepose) rank among the top ten in European construction, with an annual turnover of 158 billion francs ($31.6 billion).
- Agri-foodstuffs. Annual turnover: 637 billion francs ($127.8 billion). Leading sectors: meat and dairy production, cereals, confectionery, soft and alcoholic beverages. Leading exporter and second-ranked producer in the EU.
- Chemicals, rubber and plastics. Annual turnover: 348 billion francs ($69.6 billion), fourth world exporter.
- Parachemicals, pharmaceuticals. Annual turnover: 234 billion francs ($46.8 billion), third-ranked world exporter.
- Automobile industry. France is the world's third largest exporter of cars. Renault and PSA (Peugeot-Citroën) are respectively the tenth and 12th largest groups in the automobile sector worldwide. Some 3,558,400 vehicles were produced in 1994.
- Metallurgy, metals processing. Annual turnover: 251 billion francs ($50.2 billion)
- Telecommunications and postal services. Annual turnover: 205 billion francs ($41 billion). The French telephone network, over 95% digitized, is one of the most modern in the world.
- Shipbuilding, aircraft and railway industries. Annual turnover: 116 billion francs ($23.2 billion); 44.5% of production is exported.
Agriculture:
France is the European Union's leading agricultural producer, accounting for about one-third of all agricultural land within the EU. Northern France is characterized by large wheat farms. Dairy products, pork, poultry, and apple production are concentrated in the western region. Beef production is located in central France, while the production of fruits, vegetables, and wine ranges from central to southern France. France is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. The implementation of the Common Agricultural Policy (CAP) and the Uruguay Round of the GATT Agreement have resulted in reforms in the agricultural sector of the economy.
France is the world's sixth-largest agricultural producer and the second-largest agricultural exporter, after the United States. However, the destination of 70% of its exports are other EU member states and many poor African countries (including its former colonies) which face serious food shortage. Wheat, beef, pork, poultry, and dairy products are the principal exports. The United States, although the second-largest exporter to France, faces stiff competition from domestic production, other EU member states, and other third world countries. U.S. agricultural exports to France, totaling some $600 million annually, consist primarily of soybeans and products, feeds and fodders, seafood, and consumer oriented products, especially snack foods and nuts. French exports to the United States are mainly cheese, processed products and wine. They amount to more than $900 million annually.
The French agricultural sector is heavily dependent upon subsidies from the European Union, which account for €11bn. France is the main country in the EU that is against the reduction of subsidies. Subsidies have given France a competitive advantage which also demotes the concept of free trade. Specific government policies, such as the infamous reclassification of French wine as a 'health food' to avoid VAT, also goes a long way to create a thriving domestic sector.
Research & Development:
Human and funding resources: 33 billions € ($55 billions)
180,000 Researchers and research engineers (6.2 for 1,000 working people)
Public research:
- About 15 billions € (including 6 billions for Defence) i.e. $25 billions = 45%
- 89,000 researchers
Private research:
- 18 Billions € ($30 billions) = 55%
- 88,000 researchers