With a GDP of approximately $2.57 trillion in 2017 (+ 1.9% compared to 2016), France is the world’s seventh-largest economy and the EU’s third largest economy.
On average, over $1 billion in commercial transactions, including sales of U.S. and French foreign affiliates, takes place every day.
It is the home to 29 of the world’s 500 largest companies. In 2017, the World Economic Forum ranked France 22nd in terms of global competitiveness. The United States is the 7th largest foreign investor in France. Around 4,600 U.S. companies in France, of all sizes, employ over 460,000 French citizens.
France initiated the G-20, is host to the OECD, and is a member of the G-7, the European Union, and the World Trade Organization, confirming its status as a leading economic player in the world.
U.S. exports to France include industrial chemicals, aircraft and engines, electronic components, telecommunications, computer software, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies, and broadcasting equipment.
The French government devotes significant resources to attracting foreign investment through policy incentives, marketing, overseas trade promotion offices, and investor support mechanisms. The United States is the top foreign destination for French investment and the United States is the largest foreign investor in France. In 2017, France was the ninth largest global market for foreign direct investment (FDI) inflows with a year-on-year increase of 16%. In total, there are more than 28,000 foreign-owned companies doing business in France.
Treaties and Agreements
The United States and France established diplomatic relations in 1778 and the United States’ first trade agreement, the Treaty of Amity and Commerce between the United States and France, was signed that year. Relations between the United States and France have remained active and friendly.
The United States and France have a bilateral convention on investment and a bilateral tax treaty addressing, among other things, double taxation and tax evasion.