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FRANCE

Ball bearing giant bucks French resistance

Swedish firm SKF, the world's largest manufacturer of ball bearings, has shrugged off a local politician's vocal press criticism and is pushing ahead with plans to shut down a factory in France.

SKF said on Tuesday see through the closure despite Philippe de Villiers, the president of the General Council of the Vendee region, taking out a full-page advertisement in Britain’s Financial Times to criticise the move.

De Villiers, the president of the General Council of the Vendee region, hit out at SKF chief executive Tom Johnstone, slamming the decision to close the factory in the town of Fontenay-le-Comte “without any warning” as “profoundly inhuman and immoral.”

De Villiers, who also leads the right-wing Movement for France party, wrote in the open letter that the company was “sacrificing without the slightest scruple the livelihood of 380 employees.”

But SKF spokeswoman Ingalill Östman rejected de Villiers’ claims, telling AFP that the company had held talks with labour representatives to try and keep the plant running following its June 30th announcement.

“It was not an easy decision. We have had long discussions with unions to find all kinds of ways of keeping production at this facility,” she said.

Östman explained the factory is operating at “well below 50 percent of its capacity.”

SKF announced June 30th that it would close the plant as part of a wider plan to restructure and cut costs.

It currently employs 44,799 people worldwide including around 4,000 in France, according to its website.

At the close of trading on the Stockholm exchange on Tuesday, shares in SKF were up by 0.53 percent at 94.50 kronor.

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POLITICS

France vows to block EU-South America trade deal in current form

France has vowed to prevent a trade deal between the European Union and the South American Mercosur bloc from being signed with its current terms, as the country is rocked by farmer protests.

France vows to block EU-South America trade deal in current form

The trade deal, which would include agricultural powers Argentina and Brazil, is among a litany of complaints by farmers in France and elsewhere in Europe who have been blocking roads to demand better conditions for their sector.

They fear it would further depress their produce prices amid increased competition from exporting nations that are not bound by strict and costly EU environmental laws.

READ ALSO Should I cancel my trip to France because of farmers’ protests?

“This Mercosur deal, as it stands, is not good for our farmers. It cannot be signed as is, it won’t be signed as is,” Economy Minister Bruno Le Maire told broadcasters CNews and Europe 1.

The European Commission acknowledged on Tuesday that the conditions to conclude the deal with Mercosur, which also includes Paraguay and Uruguay, “are not quite there yet”.

The talks, however, are continuing, the commission said.

READ ALSO 5 minutes to understand French farmer protests

President Emmanuel Macron said Tuesday that France opposes the deal because it “doesn’t make Mercosur farmers and companies abide by the same rules as ours”.

The EU and the South American nations have been negotiating since 2000.

The contours of a deal were agreed in 2019, but a final version still needs to be ratified.

The accord aims to cut import tariffs on – mostly European – industrial and pharmaceutical goods, and on agricultural products.

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