France Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in france, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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The U.S.- French commercial and economic alliance is one of the United States’ oldest and closest partnerships. In 1778, the United States established diplomatic relations with France, and in that same year, entered into its first trade agreement, the Treaty of Amity and Commerce, with France. France and the United States traded $160.9 billion in goods and services in 2024, increasing from the $153.6 billion traded in 2023. In 2024 the United States had a trade deficit with France in both goods ($16.8 billion) and services ($4.3 billion). The United States is the leading foreign investor in France with a total stock of foreign direct investment (FDI) of $107.9 billion in 2024. U.S. FDI represents more than 4,600 U.S. firms that employ nearly 485,000 workers. France is our sixth-largest foreign investor with nearly $371 billion in FDI in the United States in 2023. About 5,500 French firms employ approximately 768,000 U.S. workers, making France the fifth-largest foreign employer in our country. Relations between the United States and France continue to be active, drawing from common values and similar policies on most political, economic, and security issues. 

France is the seventh largest economy in the world and second largest economy in Europe, after the UK and Germany. Its major exports include aircraft, packaged medicine, vehicles, and electrical machinery. The Gross Domestic Product (GDP) in France grew by 0.7 percent in 2025.

France is a member of the G-20, the G-7, the European Union, and the World Trade Organization. Additionally, France is one of the 38 members of the OECD and hosts the headquarters in Paris. France has substantial agricultural resources and maintains a strong manufacturing sector. 

France has a stable business climate that attracts investors from around the world.  The French government devotes significant resources to attract foreign investment through policy incentives, marketing, overseas trade promotion offices, and investor support mechanisms. The French President is seeking to make France a European leader in green industries with more than $24.8 billion in investments planned by 2030. This plan aims to achieve two objectives: The first is to become a leader in “green” technologies, and the second is to decarbonize existing industries. The service sector accounts for an increasingly large share of economic activity and is responsible for most job creation in recent years.

France has an educated population, first-rate universities, and a talented workforce. It has a modern business culture, sophisticated financial markets, a strong intellectual property rights regime, as well as innovative entrepreneurs and business leaders. The country is known for its world-class infrastructure, including high-speed passenger rail, maritime ports, extensive roadway networks, a dense network of public transportation, and efficient intermodal connections. High-speed telecommunication is nearly everywhere with the launch of 5G in 2020, which is available in large and many mid-sized metropolitan cities. Countrywide 5G coverage is expected to be complete by 2030.

Trade and investment ties between the United States and France are strong. 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.
France is the United States’ third-largest trading partner within the European Union (EU).  According to the French government, France accounted for almost 11 percent of total U.S. exports and imports of goods and services with the EU in 2024.  According to the U.S. Bureau of Economic Analysis (BEA), in 2024, the total investment by France is $5.71 trillion in the United States.  This investment represents close to 7 percent of total inward investment in the U.S.  

In 2024, the United States retained its position as the leading foreign investor in France in terms of projects and jobs, with over 252 projects, according to Business France. The Franco-American economic relationship creates more than 1.2 million jobs, nearly two-thirds of which are in the United States across 21 U.S. states and territories, as reported in the 2023 Economic Report - France in the United States.

In 2022, the Software and IT services sector led for French FDI, while, according to the French Treasury Department, the United States was the leading investor in manufacturing, R&D, and engineering. The main industrial sectors benefiting from R&D and engineering projects include electrical and IT equipment, aeronautical, naval and railway equipment, as well as medical equipment and devices. Projects related to IT services and business consulting and services captured 20 percent of American investment in France, the second largest share, in term of job creation, as the 2023 Economic Report - France in the United States also notes. 

Following the first election of French President Emmanuel Macron in May 2017, the French government implemented significant labor market and tax reforms. By relaxing the rules on companies hiring and firing employees, the government cut production taxes by 15 percent in 2021, and the corporate tax fell to 25 percent in 2022. The trend will continue with the total abolition of the CVAE tax spread over 2023 and 2024. Surveys of U.S. investors from the annual AmCham France – Bain 2026 report showed a downturn in investment sentiment by U.S. businesses in France. The 26th AmCham–Bain Barometer highlights a historically low perception of France’s attractiveness among U.S. investors, driven by heightened political, institutional, and geopolitical uncertainty. 

Confidence in the government’s ability to implement necessary structural reforms remains weak, with most investors anticipating continued economic deterioration and a persistently negative investment sentiment. While over half reported limited immediate impact on their projects, caution is increasing, and negative perceptions are rising. Despite these challenges, France’s strong fundamentals—particularly in infrastructure, innovation, and talent—remain key strengths, though structural reforms and improved regulatory and fiscal conditions are seen as critical to restoring competitiveness.  Macron’s reform agenda for pensions was initially derailed in 2018, however, when France’s Yellow Vest protests (a populist, grassroots movement for economic justice) highlighted wealth inequality and, to a lesser extent, income inequality, Macron’s pension reform ultimately passed via decree. It raised the legal retirement age from 62 to 64 and became effective September 2023; however, this social security reform was still not settled and continued to be debated resulting in a late 2025 two-year suspension voted by France’s National Assembly as part of the 2026 social security budget likely to be revisited after the 2027 presidential election.  

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