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TRADE

French trade deficit widens to 20-month high

France's trade deficit shot up €1.3 billion last month to hit a 20-month high.

French trade deficit widens to 20-month high
Photo: AFP

France's trade deficit widened in February to a 20-month high of €5.2 billion ($5.6 bn), up €1.3 billion on the previous month, driven by higher auto and aerospace imports, the customs office said on Thursday.

“Exports edged down (off 0.2 percent after a a 0.5 percent January rise) while imports rose,” by 2.8 percent after a 0.6-percent January increase, the office of eurozone's second largest economy said.

The trade deficit helped to expand the current-account deficit to €3.9 billion in February from a revised #2.2 billion in January, the French central bank said, while noting export performance had been “particularly strong” in January.

The latest data show direct foreign investment in France, at €4.4 billion, topped French investment abroad of #1.7 billion in February.

The current account balance is a useful indicator of economic performance in going beyond mere exchange of goods, France having run a trade deficit consistently over the past decade.

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TRADE

Norway and UK strike post-Brexit trade deal

Norway and the United Kingdom have struck an agreement on a free trade deal, the Norwegian government announced on Friday.

Norway and UK strike post-Brexit trade deal
Erna Solberg outside 10 Downing Street in 2019. (Photo by LUDOVIC MARIN / POOL / AFP)

Negotiations over the agreement have been ongoing since last summer, and the Norwegian government said that the deal is the largest free trade agreement Norway has entered into, outside of the EEA agreement. 

“The agreement entails a continuation of all previous tariff preferences for seafood and improved market access for white fish, shrimp, and several other products,” the Ministry of Trade and Industry said in a statement.  

One of the sticking points of the negotiations was Norway wanting more access to sell seafood in the UK, while the UK wanted more access to sell agricultural products like cheese.

The latter was a problem due to Norway having import protection against agricultural goods. 

“This agreement secures Norwegian jobs and value creation and marks an important step forward in our relationship with the UK after Brexit. This is a long-term agreement, which at the same time helps to accelerate the Norwegian economy,” Prime Minister Erna Solberg said in a statement.  

 The United Kingdom is Norway’s second most important single market, after the EU. In 2020 Norwegian companies exported goods worth 135 billion kroner to the UK and imported around 42 billion kroner of goods from the UK. 

Norway has given Britain 26 quotas on agricultural products, but not for mutton and beef. The agreement does not increase the UK’s cheese quotas, state broadcaster NRK have reported. 

The agreement will still need to be signed by both the Norwegian and UK parliament. 

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