At a time when “risks of protectionism” are worrying him in the United States, Prime Minister François Legault wants to see economic exchanges between Quebec and France increase significantly in the coming years.
“If we include imports and exports, there are billions of trade between Quebec and France. It is not enough. We need to diversify our exports. Right now, 70% of our exports go to the United States. And no matter who is elected next fall, there are risks of protectionism,” Mr. Legault argued on Friday before the Chamber of Commerce of Metropolitan Montreal (CCMM).
At his side, French Prime Minister Gabriel Attal, who thus concluded his visit to Canada and Quebec, argued that France “has transformed” in recent years to make more room for businesses. “In 2017, corporate taxes were around 33%. We have now dropped to 25%, i.e. at the level of our European neighbors,” he noted.
Mr. Attal also recalled that the Contribution on Business Value Added (CVAE), a tax imposed on industries, has decreased by five billion in seven years. “It will be zero in 2027, since we are eliminating this tax,” he said, promising overall tax cuts of 30 billion for businesses.
“We are the country in Europe which has regained its pre-crisis GDP the earliest,” finally argued the French Prime Minister, who insisted on the fact that France “does not want to depend on countries where an election in one direction or the other can have an absolutely major impact on economic relations.”
Two-way entrance door
In his speech, François Legault pleaded “that Quebec must be the gateway for French companies to distribute in North America”. “And conversely, France must be the gateway for Quebec companies to Europe. It’s give and take,” he said, ironically about the fact that “Gabriel [Attal] bought this.”
PHOTO MARCO CAMPANOZZI, THE PRESS
François Legault and Gabriel Attal
A “great opportunity” is also emerging with Alstom, says Mr. Legault, who argued that “large American cities will have to build trains, trams, metros”.
“Alstom’s only two competitors are Siemens in Germany and there are the Chinese. There are no big players in the United States. And it turns out that the Caisse de dépôt is now the largest shareholder of Alstom, so there are a lot of opportunities,” continued the Quebec Prime Minister.
It is certain that decarbonization will involve public transport. We have to work together. I see this as an opportunity.
François Legault, Premier of Quebec
Gabriel Attal also speaks of decarbonization “as a major issue”, all industries combined. “In France, we want to get away from dependence on the hydrocarbons of the great powers. We saw how Russia used gas,” he noted, deploring that Moscow “is using it today to finance its war effort” in Ukraine.
Dare to do more?
“We’re going to have to dare, right, Gabriel? “, joked Mr. Legault, showing, among other things, concern that there is “no price difference between gray aluminum which comes from China and green aluminum which comes from Saguenay–Lac-Saint -Jeans “.
In his eyes, Quebec and France must ultimately be “capable of saying […] that for products that come from countries where there are not high standards, there is a cost that must be added to the price paid by companies for it to make sense, otherwise it is unfair.”
The CAQ leader also considered it “important” that Quebec “more commercializes its research”, taking inspiration from France. “That does not mean that we are putting fundamental research into competition with applied research. You have to do both,” he noted.
Together, Mr. Attal and Mr. Legault took part on Friday in an economic panel organized by the CCMM on the theme of “strengthening trade and cooperation in strategic sectors” and “Franco-Quebec partnerships in a world in transition”.