France’s trade deficit was reduced in 2024 but remains high

The French trade deficit on goods was reduced to 81 billion euros in 2024. The comparison with the previous two years is necessarily flattering, after the record deficit of 164 billion euros recorded in 2022 against the backdrop of war in Ukraine And flight of the energy bill, followed by 99.6 billion euros in 2023 when the energy prices were still high.

According to customs in the 2024 annual balance sheet published this Friday, France benefited from a greater decrease in imports than exports and a decline in energy imports. The drop in the energy bill reached 13.3 billion euros. In detail, imports fall by 4.5 %, “after two years of exceptional increases, reaching 698.9 billion euros”, explain customs. At the same time, exports (in value still) start down, by 1.6 %, “after three years increase, and reach 598.3 billion euros”, a decline above all due to a fall in prices. “Most of this withdrawal is due to the automobile, hydrocarbons and electronic components and cards,” adds state services.

Perfumes and cosmetics display an excess balance

Perfumes, cosmetics, chemicals and electricity displayed record surpluses, and aeronautics has an excess balance, although less wide in 2023. The balance of the pharmaceutical sector displays the highest progression.

In addition to the balance on goods, the government highlights financial services on the record balance and tourism at the highest since 2013, with a balance of services above its levels before Pandemia. However, the balance of current transactions, which incorporates the balance of goods, that of services and that of income, is in deficit of 8.4 billion euros after 28.6 billion in 2023, according to the Banque de France.

To give a taste for export and energize the still in deficit trade balance, France adopted in 2023 the plan “Dare export” which provides for aid for companies wishing for internationalization (strengthening of the image of French products at the The foreigner, support on fairs, facilitation of access to funding, etc.). This plan aims to reach 200,000 exporting companies by 2030. According to government figures, the number of French companies opened internationally was 151,00 in the third quarter of 2024, or 5,600 more over the last twelve months . France also relies on the articulation of all export players: the Treasury, Business France which assists companies abroad and Bpifrance within the “Team France Export”.

The risk of customs duties with the United States

The fact remains that the trade balance of France remains fragile in a tense geopolitical context with the threat by Donald Trump to impose customs taxes against the European Union if with the United States, France displays a deficit commercial balance although in Improvement, at 4.1 billion euros, Germany has just released a record surplus, enough to rekindle tensions with Donald Trump.

“The risk is that exports that cannot go to the United States to flood our market”, in particular Chinese exports consider analysts who fear a low cost increase in imports.