France, a choice partner

His Excellency Denis Delbourg, 57 years old, has been Ambassador of France to
Portugal since February 2008. A graduate of the École Normale Supérieure as well as the École Nationale d’Administration, he was Diplomatic Counsellor in the French Prime Minister’s cabinet from 2000 to 2002. Before taking up his current position, he was Ambassador of France to Sweden.

Commerce International: Is Portugal an attractive market for French compagnies?
Denis Delbourg: “France occupies a privileged position in Portugal. One-quarter of Portuguese people speak French, including a large majority of decision-makers. France is the country’s third trade partner: its products and its culture are familiar and appreciated over there. And Portugal has moved with the times. The recovery plan of Prime Minister Socrates, re-elected last autumn, offers new opportunities for French companies. In the search for new opportunities and partnerships, our SMEs should become increasingly attractive for this neighbouring market, stable and on a human scale. The automobile sector represents over 20% of French exports. France also exports aircraft, pharmaceutical goods and goods from the agro-food industry. Other than reciprocal exchanges in the industrial sector, Portugal provides us with products from its traditional industries: textiles, wood, cork, Porto wine… The greatest French companies are present in the country in almost all sectors. Names such as Leclerc, Auchan, Leroy Merlin and Fnac today control 40% of local distribution. Portugal’s share in the value of French investment flows overseas has continued to rise since 2003. France became the leading foreign investor in Portugal in gross as well as net flows, in the first quarter of 2009.”

What was the impact of the crisis on  relations of the both countries ?
D.D.: “The global fall in international flows has affected exchanges at a rate of around 20%. In spite of everything, Franco-Portuguese partnerships have fared well. As far as I know, no major French company withdrew from the Portuguese market in 2009. Globally, companies have sought to consolidate or develop their market shares, and seize new opportunities.”

What sectors should be focused on?
D.D.: “Large infrastructure projects and the development of renewable energy are the pillars of Portugal’s recovery strategy over the period 2010-2015. Two major projects have been undertaken: high-speed ferry links connecting Lisbon to Madrid and Porto and the new airport in Lisbon. The city and inter-city railway sector will be the target of numerous calls for tenders in 2010. The modernisation of schools and the building of hospitals are also on the public investment programme. Portugal hosts the world’s largest photovoltaic centres, and is backing hydroelectricity and wind energy to reach 45% renewable energy in its electricity consumption from 2010 onwards. Mass retailing and franchising are two other rapidly expanding sectors. Consumer goods, services and new technologies retain an interesting potential.”

What initiatives have been carried out by the Portuguese government to encourage exchanges with France?
D.D.: “The AICEP, the counterpart of Ubifrance and the AFII, the French Agency for International Investments, in Portugal, is seeking partners in French companies wishing to invest in Portugal. It notably helps them to find local authorities offering the best land, infrastructures, tax incentives for setting up.”

What are the next highlights to come in Franco-Portuguese relations?
D.D.: “Around 20 missions covering growing sectors have been planned for 2010. The opening of a Ubifrance office in Lisbon is also good news. On February, the visit of Anne-Marie Idrac, French Secretary of State for Foreign Trade, will be a time for stocktaking with her Portuguese counterparts, and will also coincide with a “buyers’ meeting” organised by Ubifrance on “High Speed” in Portugal. Exchanges take place in the context of bilateral relations of great proximity. José Socrates’ visit to Paris on 7 January demonstrated the alliance between the two countries, in their common ambition to endow Europe with a truly coordinated and offensive strategy.”