[ad_1]
PARIS (Reuters) – Turkish President Tayyip Erdogan urged compatriots to stop buying French goods, joining calls across the Muslim world for a consumer boycott in protest of images shown in France of the prophet. Muhammad, which Muslims consider blasphemous. [nL1N2HH1DS]
The impact of the boycott was difficult to determine, and only isolated reports of sales of French products were affected.
These are some of the French companies and sectors with exposure to Muslim-majority countries. There is no indication that any of them have been affected so far, unless otherwise noted.
GRAIN
France is a major global exporter of agricultural products, with 3% of exports going to the Middle East, according to the ANIA industry lobby. Cereals account for a large part of these exports. Algeria is the 10th export market for agricultural products in France, according to data from the French Ministry of Agriculture, with exports worth around 1.4 billion euros in 2019. Morocco, one of the Muslim countries that condemned the publication of the cartoons of the Prophet, he was the seventeenth of France. -Largest agricultural export market last year, with exports worth € 700 million.
The ANIA lobby group said the foreign ministry’s trade department had established a crisis center and was in contact with representatives of the agricultural industry.
SUPERMARKETS
One of the targets of the calls for boycotts in Saudi Arabia was the Carrefour
The French retailer operates in many parts of the Middle East and South Asia through a franchise agreement with partners. A partner has the exclusive rights to the Carrefour franchise in countries such as Pakistan, Lebanon and Bahrain. Another partner owns the Carrefour franchise rights for Morocco.
Reuters reporters in the Saudi capital Riyadh visited two Carrefour stores, which appeared to be as busy as usual. A Carrefour representative in Paris said the firm had so far not felt any shock from the boycott calls.
ENERGY
The French energy giant Total is present in many Muslim-majority countries. In Pakistan, Bangladesh and Turkey, countries where the backlash against France over the cartoons has been loudest, Total focuses primarily on selling its petrochemicals and petroleum products. In Saudi Arabia, as well as several other Gulf states, Total has investments in exploration and production and, in some cases, refining.
FASHION AND LUXURY
At a store Reuters visited in Kuwait City on Sunday, cosmetic and skincare products produced by L’Oreal had been removed from the shelves. The store was one of around 70 outlets linked to a cooperative union that decided to stop selling French products.
But L’Oreal’s exposure, along with other players in the French fashion sector, is limited.
Combined with Africa, the Middle East is the smallest contributor to L’Oreal’s earnings, accounting for just over 2%.
For the main French fashion brands, the Middle East represents a small share of sales compared to the United States, Asia or Europe. Big brands like Louis Vuitton, owned by LVMH, or Chanel, owned privately, have stores all over the Middle East, including in Saudi Arabia and Dubai. But wealthy customers from the Middle East tend to buy luxury items while traveling away from home. LVMH, which also owns Christian Dior, doesn’t disclose how much the Middle East contributes to earnings.
DEFENSE AND AEROSPACE
France is one of the world’s leading arms exporters. Thales sells weapons, aeronautical technology and public transportation systems to several Muslim-majority countries. Clients include Saudi Arabia, the United Arab Emirates, Turkey and Qatar, according to the company’s website. Egypt and Qatar are among the countries that have ordered the Rafale military aircraft from Dassault, which also sees the region as a large market for its private jets.
AUTOMATIC
French automaker Renault lists Turkey as its eighth largest market, with 49,131 vehicles sold there in the first six months of this year. PSA, which makes the Citroen and Peugeot brands, said in its latest financial results that sales in Turkey were increasing and represented a bright spot in a difficult market, although it did not provide figures.
(Reporting by Sybille from La Hamaide and Sarah White; written by Christian Lowe; edited by Nick Macfie)
[ad_2]
