Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Calais: a no-man's land for migrants

Read more

MEDIAWATCH

Poland protests for right to abort

Read more

THE DEBATE

Poland's existential struggle: Abortion debate spurs protests over right-wing shift

Read more

THE INTERVIEW

'Equatorial Guinea's attempted coup began in France,' President Obiang tells FRANCE 24

Read more

ENCORE!

Film show: '3 Billboards', 'In The Fade' and 'Downsizing'

Read more

FOCUS

Why Hong Kong is Asia's electronic garbage dump

Read more

THE INTERVIEW

IOM chief: 'Migrants are the quintessential agents of development'

Read more

EYE ON AFRICA

Nigerian army releases 244 Boko Haram suspects

Read more

BUSINESS DAILY

Bitcoin takes a tumble over regulation fears

Read more

Europe

How Brexit will affect French industry

© FRANCE 24

Text by Sébastian SEIBT

Latest update : 2016-06-28

French industries are worried that last week’s Brexit vote threatens to undermine business dealings between the UK and France, with London ranked as one of Paris’s top trading partners.

The French agriculture industry was one of the first to sound the alarm the day after the Brexit vote. The British love to eat “à la française”, and according to a statement from France’s National Association of Food Industries (ANIA) the sectors “most touched [by Brexit] will be wine and dairy products, which make up the bulk of French agriculture exports”.

It’s a valid concern: in 2015, France exported €4.54 billion in food products to the UK, or 14 percent of total exports from that sector. The pound’s drop in value relative to the euro following the Brexit vote means that UK buyers will have to spend more to buy the same goods, which risks diminishing the zeal of those British businesses that import from across the Channel.

Up to €2.9 billion in losses?

The consequences would be felt well beyond the agricultural industry. The UK is France’s fifth-largest export market. The more the pound falls – on Monday it was at a 30-year low – the fewer Britons will be tempted to buy French products as they become more expensive. Plus there’s the spectre of a possible post-Brexit return to import tariffs. Insurance company Euler Hermes predicted in a May report on the economic effects of a Brexit that French exports might plummet, with the analysis offering a worst-case scenario of a €2.9 billion drop in the short term. In addition to agriculture, the industries most affected are likely to be machine and equipment supply (including agricultural, electronic and nuclear equipment), with losses estimated at €480 million, and the chemical industry, which could lose some €520 million.

British imports to France might also increase as the “Made in Britain” label becomes less costly. But this would be bad for France’s balance of trade: The UK is, by far, the country with which France has the highest trade surplus – exceeding €10 billion.

To better understand the trade ties between France and Britain, FRANCE 24 presents a sector-by-sector breakdown of the principal exports and imports between the two countries.

To view this graphic on your tablet or mobile device, click here.

Date created : 2016-06-28

  • UK - EU

    UK’s Cameron to face EU leaders after Brexit vote

    Read more

  • UK

    Xenophobic acts on the rise in post-Brexit Britain

    Read more

  • UK

    British Conservative party braces itself for tense leadership battle

    Read more

COMMENT(S)