Free trade with Europe has made it possible to increase commercial exchanges between Quebec and France, but it is far from having eliminated all economic barriers.
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From 2016 to 2023, French exports to Quebec jumped by more than 50% to reach $3.8 billion. On the other hand, Quebec exports to France only increased by 28% during the same period, amounting to $1.6 billion.
“Overall, what we can see is that trade between Canada and the European Union has increased on both sides. I think that’s the good news and that’s what we need to focus on,” says Patrick Leblond, professor at the University of Ottawa.
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It must be said that large French companies are much more present here than Quebec Inc. In France. No less than 70% of the companies that make up the main index of the Paris Stock Exchange (CAC 40) are present in the Quebec metropolis, underlines Montréal International. They employ more than 45,000 people.
France does not hesitate to protect its national champions. At the start of 2021, French Economy Minister Bruno Le Maire blocked the sale of retailer Carrefour to Couche-Tard. Yet French giants like Airbus, Alstom, Michelin and Keolis have all made acquisitions in Quebec, often with the support of the government or the Caisse de dépôt et placement du Québec.
“It’s very difficult in France”
CGI and Boralex are among the rare Quebec companies that have a significant presence in France.
“I have already heard many CEOs from Quebec, Canada and other countries say that it is very difficult in France. Yes, it is and we got there,” says Boralex CEO Patrick Decostre.
Patrick Decostre
Photo Boralex
“We didn’t arrive by saying ‘this is how we do it in Quebec, this is how you should do it in France,’” he says. We adapted.”
Today, Boralex is the largest independent producer of wind energy in France with an installed capacity of more than 3,000 megawatts.
“We learned about wind and solar power in France,” says Mr. Decostre.
Francis Repka, CEO of the Canadian subsidiary of the Société Générale bank, believes that economic rapprochement between France and Quebec will continue.
Francis Repka, CEO of Société Générale Canada and president of the French Chamber of Commerce and Industry in Canada.
Photo Societe Generale
“I note that there are a lot of points of contact,” he says, referring to sectors such as aeronautics, life sciences and energy.
In the battery sector file, Société Générale also acted as financial advisor for Nouveau Monde Graphite, Hydro-Québec and Investissement Québec.
Four hot files
Cheesemakers still angry
Photo IGA Extra Amos
More than six years after the entry into force of free trade with the European Union, Quebec cheesemakers are still denouncing it. Quebec imports of European cheeses have more than doubled since 2016 to reach $205 million. “The European product that enters here is made with milk which costs about 60% less than our milk,” notes Charles Langlois, CEO of the Council of Dairy Industrialists of Quebec. “It’s clear that if the agreement was not renewed, there wouldn’t be many cheesemakers who would cry,” he says. Even though the French Senate recently rejected the agreement, Mr. Langlois believes it is unlikely that it will be abandoned.
The French on our roads
Photo Eurovia
After making several acquisitions, including former Tony Accurso companies, the French giant Vinci has a strong presence in Quebec. In 2023, its revenues will exceed $3 billion in Canada, up 40% compared to 2021. Vinci is currently participating in the renovation of the Louis-Hippolyte-La Fontaine tunnel and the Billy-Diamond road, in La Baie- James. Another French group, Keolis, is present on the roads of Quebec, among others with its subsidiary Orléans Express. The Caisse de dépôt et placement du Québec owns 30% of Keolis.
A big bet that is still fragile
The public investment of nearly $1.7 billion in the Airbus A220 aircraft program (formerly Bombardier C Series) is the largest ever made by Quebec in a company. Owner of the A220 for more than five years, Airbus is still struggling to make the program profitable. The aircraft manufacturer is currently at loggerheads with its Mirabel union members.
A mega-investment that goes off the rails
“AFP Photo”
In 2021, the Caisse de dépôt et placement du Québec invested more than $4.5 billion in the French rolling stock manufacturer Alstom to help Bombardier sell off its railway subsidiary. At the end of 2023, this investment was worth less than $1.2 billion. It cannot be ruled out that the Caisse and other Alstom shareholders will have to reinvest in the company to get it back on track.