Aerospace Exports From the UK to France – What Traders Need To Know
As Europe’s second-largest aerospace market, the French aerospace industry is a significant part of the French economy, with €70.2 billion in revenue in 2023. Home to industry giants like Airbus, this market also has extensive potential for UK businesses looking to expand their operations.
However, entering this lucrative market comes with its own set of challenges.
UK traders must navigate new regulations, local competition, and logistics requirements, all while adapting to cultural differences and new ways of doing business.
In this comprehensive guide, we’ll help UK traders successfully navigate the French aerospace market. We’ll examine the current state of UK-France trade relationships, explore the regulations that govern French aerospace imports, and discuss the challenges of exporting to the French market.
Contact clearBorder for tailored advice on exporting to the French market.
Overview of the French Aerospace Sector
France boasts a rich aviation history and is home to major players in the industry like Airbus, Dassault Aviation, and Safran. France also has strong ties with international aerospace companies such as Lockheed Martin, which has several suppliers and partners in the country. According to recent industry data, France is the world’s second largest exporter in the aerospace industry, with 22% of the global market share.
The country’s aerospace industry is characterised by its strong focus on research and development, cutting-edge technology, and a robust supply chain. The sector includes a range of activities, including civil and military aircraft manufacturing, space systems, engines, and avionics. France also plays a key role in the European Space Agency (ESA) and has a significant presence in satellite technology.
For UK businesses, the French aerospace market offers many opportunities, particularly in advanced materials, propulsion systems, and digital technologies. The close proximity between the two countries, coupled with longstanding trade relations, gives UK companies a great opportunity to enter the market and collaborate with French partners. However, UK exporters must be aware of local competition as well as EU and French regulations before entering the market.
The Role of Cross-Border Trade in the Aerospace Industry
International trade plays a crucial role in the aerospace industry in various ways. First, cross-border trade facilitates the exchange of knowledge and technological collaboration, enabling UK firms to stay at the forefront of aerospace advancements. Companies can also gain access to specialised components and materials not available domestically, enhancing product quality and capabilities.
By trading in other countries, businesses can also tap into global demand and diversify their customer base. This increased customer base can lead to improved economies of scale, reducing production costs and enhancing competitiveness for aerospace companies. It can also help mitigate the risks that come with fluctuations in local demand.
Understanding UK-France Aerospace Trade
Key Statistics
In 2022, UK civil aerospace turnover totalled approximately $34.5 billion. This industry is driven by exports, with 70% of domestic aerospace production being exported, with a significant amount of these exports going to France.
Despite the challenges posed by Brexit, the aerospace trade between the two countries has remained resilient. For the four quarters leading up to the end of June 2024, the value of aircraft exports from the UK to France was £1.9 billion.
Major Trade Relationships Between The UK and France
Many trade relationships already exist between British and French aerospace companies, Major UK companies such as BAE Systems, Rolls-Royce, and GKN Aerospace have strong ties with French counterparts like Airbus, Safran, and Thales.
These relationships often involve joint ventures, supply chain partnerships, and technology collaborations. For instance, Rolls-Royce supplies engines for various Airbus aircraft models, while BAE Systems works closely with Dassault Aviation on military projects.
These large French aerospace companies also rely on a network of SMEs, which means there are also plenty of opportunities for smaller UK businesses to collaborate with larger companies in the French aerospace industry.
UK and French Trade Associations
The ADS Group in the UK and GIFAS in France both play a pivotal role in fostering bilateral aerospace trade. These associations provide market intelligence, facilitate networking opportunities, and advocate for their members’ interests in trade negotiations.
They also organise trade missions and exhibitions, such as the Farnborough International Airshow and the Paris Air Show, which present enormous opportunities for UK and French aerospace companies to showcase their innovations and forge new business relationships.
French Aerospace Regulations
The French aerospace industry is subject to a comprehensive regulatory framework, both at the national and European Union (EU) levels.
French Aerospace Regulations
At the national level, the French Civil Aviation Authority (DGAC) is the primary regulatory authority overseeing the French civil aviation industry. The DGAC is responsible for issuing airworthiness certifications, approving aircraft and component designs, and ensuring compliance with safety standards.
Regulations on Military Equipment
France’s defence procurement agency (DGA) regulates the French military aerospace sector, including the export of defense-related products and technologies. UK exporters of military or dual-use goods must obtain the necessary export licenses and approvals from the DGA.
Consult with clearBorder for tailored support in exporting military or dual-use goods.
EU Regulations
The European Union Aviation Safety Agency (EASA) plays a crucial role in setting the EU regulatory framework for the aerospace industry across the member states, including France.
EASA is responsible for developing and implementing common safety and environmental standards, as well as issuing type certifications for aircraft and components. UK exporters must ensure that their products and services comply with EASA regulations.
Aerospace exports from the UK to France are also subject to the EU’s export control regulations, which aim to prevent the proliferation of sensitive technologies and goods. UK exporters must obtain the necessary export licenses and comply with the EU’s dual-use export controls.
Navigating this complex regulatory landscape is essential for UK aerospace companies seeking to do business in France. Failure to comply with the relevant regulations can result in delays, additional costs, or even the rejection of export applications.
Key Steps in the Export Process
The export process begins with determining the correct product classification and identifying any necessary export control requirements, followed by obtaining the appropriate export licenses.
Exporters must then prepare the required commercial documentation, including invoices and packing lists, and arrange for shipping and insurance, as well as complete customs declarations.
To clear UK customs, exporters must submit an Export Declaration and may also need to provide an Exit Summary Declaration for security purposes.
Compliance with French import procedures is also essential. UK businesses can leverage export services like clearBorder to receive personalised consultation and training on French customs procedures. The trade experts at clearBorder can ensure you have the correct documentation, keep you up-to-date on regulatory changes, and assist with any problems during the export process.
Challenges for UK Traders
Regulatory Changes
UK aerospace companies exporting to France face several regulatory challenges in the post-Brexit landscape. The UK’s departure from the EU has introduced new trade barriers, including additional customs procedures and potential tariffs. This has increased administrative burdens and trading costs for exporters. In addition, some UK certifications and standards are no longer recognised by the EU and may require additional compliance measures.
Global Competition
Competition from other countries (eg., China and Japan) poses another challenge for UK businesses looking to enter the French aerospace market. These nations are investing heavily in research and development, often with significant government support, challenging the UK’s position in the global market for aerospace goods.
Cultural Barriers
Considering cultural and business differences between the UK and France is also essential when trying to enter the French market. French business culture tends to be more formal and hierarchical, with a strong emphasis on personal relationships. UK companies must adapt their communication styles and business practices accordingly.
How to Succeed in the French Market
Succeeding in the French aerospace market requires a multifaceted approach. First, it’s essential to form strong partnerships when expanding into the French market. French companies can provide valuable local insight and facilitate market access. Participation in trade shows and industry events, such as the Paris Air Show, can help you connect with other players in the French aerospace industry.
To overcome the financial challenges of entering the French market, seek out government-backed initiatives and funding opportunities designed to promote international trade.
The trade experts at clearBorder can also provide comprehensive support when exporting to France. Through consulting services and Border Ready training, clearBorder can help you navigate customs compliance, shipping, and French regulations on aero exports. Through ongoing support, clearBorder can reduce delays, minimise costs, and ensure smooth market entry.
Contact clearBorder today for expert guidance on exporting to France.