Exporting to France

There are advantages and also potential challenges for Northern Ireland companies doing business in France.

With a population of over 68 million, a strong industrial base, and many large national businesses, France offers good export potential. 

Advantages of exporting to France

France can offer numerous benefits to companies looking to do business in the region.

Some advantages include:

• dual market access allows businesses in Northern Ireland to trade goods freely with France as it is part of the European Union. Read more about how to take advantage of dual market access.
• large consumer population
• highly developed transportation infrastructure
• diverse, skilled workforce
• spending on social services is the highest in the world

Challenges of exporting to France

You should also be aware of some challenges you could face when exporting to France including:

• language barriers
• high labour costs
• high business tax rates
• business entity establishment laws can be complex

The European Union (EU) is an economic and political union of 27 countries. 

Dual market access allows businesses in Northern Ireland to trade goods freely with France as it is part of the European Union.

What is dual market access?

Dual market access allows businesses in Northern Ireland to trade goods freely with both Great Britain and the European Union.

This means goods can move from Northern Ireland to Great Britain and the EU without customs checks or tariffs, offering businesses a competitive advantage in both markets.

What are the benefits of dual market access when exporting to France?

With dual market access, your manufacturing business based in Northern Ireland can: 

• Expand your customer base: Sell goods seamlessly to both GB and EU markets.
• Avoid trade barriers: no customs declarations or tariffs when trading with the EU.
• Enhance your competitiveness: access to two major markets provides a unique edge over businesses operating in only one.
• Reduce compliance costs: Northern Ireland maintains regulatory alignment on goods with EU regulations and there are no additional approvals required to place qualifying goods on the on the market in GB.
• Simplify your supply chains: businesses in Northern Ireland can act as a gateway between the UK and EU, leveraging their unique position to enhance logistics and distribution networks.  

Dual market access presents opportunities for businesses meaning that Northern Ireland-based companies can strengthen relationships with both UK and EU customers while maintaining supply chain efficiency. 

Read more about how you can maximise the opportunities of dual market access.

Opportunities exist for UK companies across a wide range of sectors, including renewable energy, advanced manufacturing and technology.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Renewable energy

France aims to have renewable energy sources contributing 40% of its electricity production by 2030. The country currently ranks fourth in EY’s Renewable Country Attractiveness Index (EY, 2024), behind Germany, China and the USA, with large projects expected in offshore wind including floating and solar power.

Advanced manufacturing

In 2023, French manufacturing contributed 9.73% of the country's GDP. The service sector dominates the French economy however manufacturing remains a significant contributor, particularly in sectors like aerospace, automotive, and luxury goods. France’s automotive manufacturing accounts for nearly 10% of global production (PWC,2018) and has a full vehicle and equipment supply chain. Its aerospace industry exports €55 billion of its annual outputs (Techniques de l'ingenieur, 2020).

Technology

France is a digital economy, with more than 25,000 start-ups. The digital sector accounts for more than 6% of the country's GDP (2023). The "French Tech" initiative brings together the most dynamic digital ecosystems throughout France. The government is focusing on promoting strategic sectors, with a technological component to emerge and develop.

Infrastructure and construction

With a 392 billion euro turnover (Statista, 2022) and major projects underway, the dynamic construction sector offers growing opportunities. French contractors are open to innovation and interested in BIM (building information modelling) services and digital planning tools. There are also opportunities in clean growth and energy saving techniques, smart cities related goods and services and prefab and renovation expertise.

Retail

France is Europe’s second largest consumer base, with an affluent population. The French retail market is mature, sophisticated and its luxury sector is world-renowned. With high levels of household consumer confidence, it is important to consider factors such as quality and innovation to be attractive in a highly competitive market.

There are a lot of things to consider before you start exporting to France. It's essential to find out about local rules and regulations on tax and duty in your intended market.

Taxation

The UK and France have signed a double taxation agreement, meaning the same income is not taxed twice. The French tax service for foreign companies is the Service des impôts des Entreprises Etrangères (SIEE).

VAT

If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to France, provided certain conditions are met.

VAT is known as Taxe sur la Valeur Ajoutée (TVA). French VAT rules are based on EU regulations and the standard French rate is 20%.

Advice can be sought from France’s tax authority – the Direction régionale des finances publiques.

Regulations

Packaging must conform to EU legislation on health risks to consumers and environmental protection. Labelling in French should be visible. Certain products such as foodstuffs and textiles have specific labelling requirements.

The Franco-British Chamber of Commerce & Industry is a good source of advice and information. It offers insight from members who themselves have set up a business in France or have specialist expertise in supporting that process.

Services regulations

See information on rules for selling services and business travel to France.

Trade barriers

You can check for any reported barriers to trading with France.

Report any trade barriers that are affecting your business so you can get help fixing them.

Routes to market

Having staff or local representatives with French language capability is necessary for long term success in this market.

Options which may work well for you are:

• agents and distributors using local agents or distributors with native fluency in French is an effective way to develop a presence in this market. France’s geographical size means you might need representatives in several regions to ensure national reach.
• direct sales due to the closeness of the market, a direct sales approach is possible. The need for French language skills is an important consideration in this option.
• e-commerce selling online or through e-marketplaces may be a good option for your company. It’s relatively cheap and easy to deliver products into France. The Department for Business and Trade (DBT) can suggest online marketplaces to help you get started. DBT’s E-Exporting Programme can also help.
• The Trade Advisory Service provides businesses with tailored export consultancy from Invest Northern Ireland advisors based in overseas markets. For information on the Trade Advisory Service call the Invest NI Business Support Team helpline on Tel 0800 181 4422.

The Franco British Chamber of Commerce is a useful source of further information on routes to market in France.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for businesses in Northern Ireland can be found through a network of IP attachés, based in key UK export markets.

Payment terms

Your contract should specify terms for payment. If there's any dispute you will need to go through the French legal system for resolution. French customers may require credit to buy your products. Payment conditions must be factored into prices. For business-to-business transactions these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment.

Business culture

Regular meetings and visits are important to build relationships. The market is competitive and a strong unique selling point is helpful. Speaking French can be an important step in building relationships.

Developing exports to France could be a part of growing your business. But breaking into the market can be challenging. The right support and advice can significantly improve your prospects.

Invest NI offers a range of advice, plus additional support services for businesses trading with France.

• Explore international markets – get support with market research and market visits.
• Exhibitions and trade missions - join trade missions and exhibitions to access new opportunities, strengthen relationships, and accelerate your business’s global growth.
• Export and capability development – access export and capability solutions to get the knowledge and skills to structure and build on your export activity.
• Export Health Check - assesses your business's readiness for exporting and get a tailored report sent to you, detailing your journey, next steps, practical tips, templates, and support available.
• Invest NI offers advice and support to help businesses maximise dual market access.
• Invest NI can advise on how to use digitalisation solutions to support your exports
• Invest NI can advise on financing your export business and may be able to provide financial support directly to businesses.

As well as Invest NI, there are other sources of support to assist with trading with France.

• The Northern Ireland Chamber of Commerce (NICC) provides members with a range of opportunities and services to learn, up-skill and connect as they grow locally and internationally.
• Department for Business and Trade (DBT) in-market support - eligible UK businesses can access trade expertise and knowledge on exporting to specific countries from the DBT global network of international market hubs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.