A strong competitor, a stronger ally

France, known for its glamour and sophistication, has long been a key player on the global stage. The UK's relationship with neighbouring France has historically been complex, with proximity and market similarities fostering strong trade ties. The 2024 Paris Olympic Games have further strengthened this Franco-British partnership, with UK companies contributing significantly to the event's success, achieving £200 million in exports. France stands as the UK's fourth-largest trading partner, with bilateral trade exceeding £104 billion. The Olympic and Paralympic sports industry alone is valued at £25 billion.

Olympic Spirit 

The Paris Olympics have demonstrated France's strategic and thoughtful investment. One of the major attractions of this summer's Games is the selection of venues, seamlessly integrating iconic and temporary sites. For example, the Palace of Versailles, a UNESCO World Heritage site, was chosen for the Equestrian events, blending royal history with breath taking scenery. Fencing was held at the Grand Palais, where the stunning architecture captivated the audience, almost distracting them from the competition.

These temporary venues are part of France's broader commitment to sustainability and minimising CO2 emissions during the Games. The aim is to reduce the carbon footprint associated with the event, including innovative installations like the temporary outdoor arena in the gardens of the Eiffel Tower. Unlike past Olympic games, Paris has shown that you don’t have to reinvent the wheel to host the Olympics, but rather work with the city's architecture and pre-existing tourist attractions. 

The Topic of Tourism 

France's economy is diverse and robust, offering a stable business environment that continues to attract global investors. The country's educated workforce and favourable business climate are significant draws.

The Paris 2024 Olympics has created 61,000 jobs in the tourism sector, representing around 8% of France's economy. The first half of this year saw a surge in international arrivals, boosting a tourism sector that, at its peak, contributed €220 billion to the national economy and supported 2.7 million jobs, according to WTTC data.

It is important to note that France is the most visited country globally, with more than 84 million tourists wanting a piece of the action every year. France’s population bought an estimated £23.8bn of UK exports last year, making France a fantastic location for UK exporters.

The World Stage

It's essential to place France's spending in the context of recent Olympic history. For instance, Beijing set a high bar with its $52.7 billion expenditure for the 2008 Games. The Paris Olympics, with its focus on sustainability and strategic venue selection, offers a modern twist on this global event's longstanding tradition of grandeur and economic impact.

Hosting the Olympic Games: Broad Benefits 

Hosting the Olympic Games generates significant benefits for both the economy and the overall development of a country. The number of jobs created by the Games is a key factor in a country's eagerness to host. For example, the London 2012 Olympics created 110,000 jobs in the six boroughs surrounding Queen Elizabeth Olympic Park in Stratford, offering equal opportunities for disadvantaged groups and unemployed Londoners. The International Olympic Committee (IOC) considers long-term social and economic development plans when organising the Games, ensuring that the benefits extend beyond the event itself. 

The Franco-British Economic Relationship 

France, with a population of 68 million and a 99% literacy rate, serves as a crucial hub for international business, acting as a gateway to the European Union. Its key sectors include manufacturing, particularly in automation, aerospace, and luxury goods, as well as services- including tourism. Paris, a major European financial center, has gained prominence post-Brexit, attracting companies that have relocated from the UK. The challenges and uncertainties in the commercial sector following the UK's departure from the EU have, in fact, bolstered France's finance, insurance, market capitalization, and asset management industries. This economic powerhouse significantly contributes to the nation's GDP and acts as a cultural epicentre for the country, with its rich history and picturesque landmarks setting it apart from other European cities.

With plenty of seaports and airports, France is a key strategic location for UK exporters. Post-Brexit regulations have meant that all goods traveling to and from the UK and EU member states are now subject to export and import customs procedures. France’s economy is extremely varied, with a presence of both private and publicly owned enterprises. Germany, Spain, Italy, the UK, Belgium, the USA, the Netherlands, and China are France’s major trading partners with machinery, automobiles, and aviation being the top 3 industries. 

The top 5 UK goods exports, in the four quarters to the end of Q1 2024, to France

The above data is taken from Department for Business and Trade. 

Bespoke Market Research

International Trade remains exciting and optimistic, but it can be daunting to many, especially companies with no previous experience trading overseas. Preparation and diligence are always key to combating the challenges that one may face in International Trade. Get the support you need from market experts who will help you draft your route to success in your overseas ventures. 

London Chamber of Commerce and Industry, through its Business Information Services, available to Premier Plus Members, can help companies access specialised overseas market information. Our reports include: 

• Overview of the country’s economy 
• In-demand products and services from the UK 
• Information on export and import procedures 
• What to expect when doing business in the country 
• UK and worldwide import and export data 

We are ready to assist you with trade documentation, information and market research, and expert advice for France and many other countries. 

Sources 

This country snapshot was prepared with information compiled from Croner-i, Department for Business and Trade, Paris Olympics 2024, International Olympic Committee, Just Trade, Dezeen, The National, ABS Paris, Focus Economics, UK Sport, and Building Design. 

Produced by Freya Bishop, International Business Assistant, LCCI.