French International Trade Law

Introduction to French International Trade Law

French international trade law operates at the intersection of European Union competence, constitutional principles, and domestic regulatory implementation. As a founding member of the European Union and a permanent member of the WTO, France’s trade policy is conducted principally through the EU’s Common Commercial Policy under Article 207 TFEU. Nevertheless, France retains significant domestic authority in customs enforcement, export controls, and investment screening, exercised through the Code des douanes (Customs Code) and related legislative instruments. The Direction Générale des Douanes et Droits Indirects (DGDDI) serves as the principal implementing authority.

Constitutional Framework

The French Constitution of 1958 provides the foundation for trade law through Articles 34 and 53, which respectively allocate legislative competence for customs matters and require parliamentary approval for international trade agreements. Article 88-1 affirms France’s participation in the European Union, establishing the constitutional basis for the primacy of EU law, including the Common Commercial Policy. The Conseil Constitutionnel has reviewed the compatibility of EU trade agreements with the Constitution, including in its decision on the Comprehensive Economic and Trade Agreement (CETA) with Canada, Décision n° 2017-749 DC, in which it held that certain provisions of CETA relating to investment protection required constitutional amendment. The Conseil d’État exercises administrative review of trade regulatory measures, applying both domestic and EU legal standards.

Code des Douanes and the DGDDI

The Code des douanes national (National Customs Code), codified by Ordonnance n° 2023-1217 of 20 December 2023, consolidates French customs legislation. The Code implements the Union Customs Code (UCC), Regulation (EU) No 952/2013, while maintaining national provisions regarding customs enforcement, penalties, and procedural rules. The DGDDI, under the Ministry of Economy, Finance, and Industrial and Digital Sovereignty, is responsible for customs control, tariff classification, origin verification, and valuation assessment. The DGDDI also enforces trade restrictions, including sanctions, embargoes, and trade defence measures adopted at EU level.

French customs law provides for administrative and criminal penalties for customs infractions, including seizure of goods, monetary penalties calculated as a multiple of the value of the goods, and imprisonment for serious offences such as smuggling and tariff fraud. The Commission de conciliation et d’expertise douanière (Customs Conciliation and Expertise Commission) provides an alternative dispute resolution mechanism for classification and valuation disputes.

Export Controls

French export controls implement EU Regulation 2021/821 on dual-use items, supplemented by national provisions in the Code de la défense (Defence Code) for military equipment. The Direction Générale des Entreprises (DGE), through its Service des biens à double usage (Dual-Use Goods Service), administers export authorisations. The Commission interministérielle pour l’étude des exportations de matériels de guerre (CIEEMG) coordinates inter-agency review of defence exports.

France applies enhanced controls based on the Groupe de fournisseurs nucléaires (Nuclear Suppliers Group) and Régime de contrôle de la technologie des missiles (Missile Technology Control Regime) commitments. French law imposes extraterritorial restrictions, notably through the Blocage Law (Law No. 68-678 of 26 July 1968), which prohibits French companies from complying with foreign laws that have extraterritorial effect, and the Loi de blocage has been invoked in the context of US sanctions enforcement.

Investment Screening

France operates a foreign direct investment screening regime under the Code monétaire et financier (Monetary and Financial Code), Articles L. 151-1 to L. 151-8, as amended by Décret n° 2023-429 of 1 June 2023. The regime applies to investments by non-EU or non-EEA entities in sectors deemed critical to national interests, including defence, cybersecurity, artificial intelligence, semiconductors, energy storage, and health technologies. The Minister of Economy may subject foreign investments to prior authorisation, impose conditions, or prohibit transactions that threaten public order, public security, or national defence interests.

Décret n° 2023-429 expanded the scope of controlled sectors to include critical raw materials, quantum technologies, and space operations. The screening threshold for EU and EEA investors was reduced from 25% to 10% of voting rights for investments in listed companies in sensitive sectors. Non-compliance with screening obligations may result in annulment of the investment, monetary penalties, and criminal sanctions. The Veolia/Suez transaction review and the Carrefour potential acquisition case illustrate the practical operation of the French screening regime.

Trade Policy Coordination with the EU

France coordinates its positions within the EU’s trade policy architecture through the Secrétariat général des affaires européennes (SGAE), which operates under the authority of the Prime Minister. The SGAE coordinates French input into the Council of the European Union’s Trade Policy Committee and technical working groups. France has been an influential voice in shaping EU trade policy, advocating for the inclusion of clauses miroirs (mirror clauses) requiring imported goods to meet the same environmental and production standards imposed on EU producers. France was instrumental in securing the inclusion of a mechanism for suspending tariff preferences in EU trade agreements where partner countries do not comply with Paris Agreement commitments.

WTO and Multilateral Engagement

France participates in WTO dispute settlement as part of the EU, and French trade interests feature prominently in disputes concerning agricultural subsidies, geographical indications, and manufactured goods. France successfully litigated the defence of its geographical indication regime for cheese and wine products in the WTO, including in DS290 — European Communities — Protection of Trademarks and Geographical Indications for Agricultural Products and Foodstuffs. The French Institut National de l’Origine et de la Qualité (INAO) administers geographical indication protection, which is increasingly incorporated as a standard component of EU trade agreements.

Conclusion

French international trade law is characterised by its deep integration with the EU framework, a strong emphasis on national sovereignty in security-related sectors, and active enforcement through the DGDDI. The investment screening regime has been significantly strengthened in recent years, reflecting broader European concerns about technology protection and economic security. French trade policy continues to advocate for a more assertive European trade strategy that balances market openness with regulatory sovereignty and climate objectives.