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France to pressure firms to boost home-made content

Published 08/17/2010, 04:49 AM
Updated 08/17/2010, 04:52 AM

PARIS, Aug 17 (Reuters) - France is setting up a new body to vet the amount of foreign-made components in goods produced on French soil and may introduce a law to ensure firms use more domestic suppliers, Industry Minister Christian Estrosi said.

Speaking on RMC radio, Estrosi said the steps were aimed at supporting "French industrial patriotism" at a time when many big companies in France were "not behaving very well" by using inputs from abroad.

"(In September) I will set up a new monitoring agency for French products to ensure ... a percentage of the components for products that are put together here are made in France," Estrosi said.

"What is important is the number of components, to ensure that the large majority come from French suppliers. All this will lead me to think about a law on inter-industrial relations to better protect our suppliers," he added.

Unemployment in France is hovering around 10 percent and President Nicolas Sarkozy, who faces an election in 2012, is under pressure to show results on the economy.

Earlier this year, both Sarkozy and Estrosi tried to pressure managers at carmaker Renault to centre production of the company's new Clio 4 small car in France, but were unsuccessful.

Estrosi said the government wanted to organise a new relationship between producers and suppliers on an industry-by-industry basis, mentioning the car, aerospace, energy, biotechnology and luxury goods sectors.

(Writing by Noah Barkin; editing by Stephen Nisbet)

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