Posted on 03/24/2003 8:47:13 AM PST by kattracks
PARIS, Mar 24, 2003 (United Press International via COMTEX) -- These are worrying days for fromages.com.
Until recently, the French Internet cheese exporter was turning over brisk sales from its primarily U.S.-based clientele. Today, e-mail messages are still flooding in -- not with orders, however, but with angry letters from former American customers.
"My wife and I have decided to boycott all French products," wrote one, signed simply A.M., adding he would buy more Spanish and Italian ones instead. "I cannot believe that France can treat the U.S.A as it does. It is ridiculous and unacceptable."
Overall, the company's sales have plummeted 20 percent in recent months. Part of the drop is due to the economic downturn and weak dollar in the international market, estimated Marc Refarbert, co-founder of the cheese exporter based in Tours, France.
"But the French position on Iraq has been the catalyst accelerating this movement," Refarbert said.
As France sits out the war against Iraq, such worries are spreading across the business and diplomatic community.
The concerns range from a boycott of French products, to fewer U.S. tourists, to more subtle, diplomatic retaliation by the United States and its allies.
Already a smattering of Washington lawmakers have demanded American boycotts on cheeses, wines and other French delicacies. Some congressional cafeterias have renamed french fries "freedom fries."
U.S. officials counter there will be no trade reprisals for months of vigorous French efforts to build international opposition to the war on Iraq -- an assessment echoed recently by French President Jacques Chirac.
"In trade terms, the Americans would find it very difficult to boycott French products without damaging European products -- because so many companies are European, rather than merely French," agreed Guillaume Parmentier, head of the Paris-based French Center on the United States.
"Secondly, nothing can be done officially without falling foul of WTO (World Trade Organization) rules," he said. "And I don't think the Americans will go down that road."
Indeed, France reaped few business benefits from joining the first Gulf War in 1991, Parmentier noted. French firms captured only a tiny slice of postwar reconstruction contracts in Kuwait and other affected areas.
But, he predicted, "There will be a political fallout, no question about that. The Americans are going to try to use methods and avenues that make it difficult for France to exert an influence. Even so, there's a limit to that."
But other diplomats and trade experts suggest a subtle widespread punishment may be looming for France's anti-war stance. That could range from a drop in U.S. investments in French-based enterprises, to a decline in future defense and aerospace contracts.
In a recent newspaper interview, for example, the France-based head of the European Aeronautic Defense and Space Company predicted it would be much more difficult in the future to penetrate the U.S. market.
So far, unofficial boycotts of French products -- such as the one affecting fromages.com -- appear isolated cases. Yet the fear of future sanctions looms.
In France's famous Bordeaux wine region, chateaux owners fret about a further slump in foreign sales, already reeling from less expensive competition from Chile and elsewhere.
But a threatened congressional wine boycott has yet to translate into a drop in exports to the United States, according to the Paris-based French Wines Council.
"For the moment, we're witnessing a few symbolic, highly mediated gestures," said the council's general manager, Jean-Luc Dairien. "There may be a fallout over time, but certainly not right away."
If U.S. trade does drop, Dairien predicted, it would have little to do with anti-French sentiments.
"When war is declared, the countries concerned concentrate their consumption on staple goods," he said. "And in the United States, wine is not a staple."
Nor -- for the moment, at least -- do war-related concerns appear to factor into U.S. foreign investment calculations.
"Since this whole crisis started, the chamber has not heard of a single U.S. business investment in France that has been canceled because of this," said Stephen Pierce, head of the American Chamber of Commerce, in Paris.
"There have been questions in recent years about the high cost of doing business in France," Pierce added. "But as far as political implications of the Iraq war -- not at all."
But the potential for a future backlash looms.
"I have had a great many contacts from Americans in various industries saying, 'I think we're not going to be buying any Airbuses in the future. I don't think we'll be buying any Michelin tires. I don't think we'll be doing this, or doing this,'" Pierce said. "But it's all hearsay and individuals -- nothing official, certainly."
American tourists are also shunning France -- a decline that began in 2001, after the Sept. 11 attacks. The number of American tourists to France dropped 18 percent last year and early 2003 figures suggest that trend is continuing.
But frosty French-US relations did not stop 43-year old Kentucky resident Ron Gash, from enjoying Paris one recent, sunny morning.
"I had some reservations at first," he said. "Everybody at home was saying do you really want to go to France? They don't like us anymore. But so far, I've had no problems."
Refarbert, of fromages.com, also remains optimistic that transatlantic business ties will mend quickly.
"But if the war is short, I don't think we'll have too many repercussions," he predicted.
"After all, its hard to pass up a good bottle of wine, and a good cheese."
By ELIZABETH BRYANT, United Press International
I dared him to wear it to French class today. He declined.
Agreed.
However, it is EASY to pass up FRENCH wine and cheese.
So true, and that's why I'll have a bottle of top California Cabernet or Zinfandel or an Australian Cabernet or Shiraz, with Vermont Cheddar, Sonoma Jack, Brie from the Marin-French Cheese company (soon to be renamed), or goat cheese from New York or Vermont.
I can live with that.
But, I thought we were cowboys who flaunt our superpower status and violate international law to impose our will. Surely, if the WTO stands in our way, we will simply bomb the daylights out of them and rape their women.
French fear most things, but here their fear is right on the money.
Apparently Ted Kennedy isn't participating.
Ron, Ron, Ron - the reason not to go to France is to show them we don't appreciate their position on Iraq. That means not putting Euros in their pockets. Whether US travelers there have "problems" is not the point.
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