Procurement Relations Between France and the UK: A Vital Cross-Channel Partnership
Keystone Procurement Limited
Procurement advisory business working with governmental and not for profit organisations.
The relationship between France and the UK, two of Europe's largest economies, has been essential for trade and procurement activities for decades. Despite political changes, particularly after the UK's departure from the European Union (EU) in 2020, both countries continue to maintain strong procurement ties, driven by mutual economic interests and the integration of key sectors such as transportation, defence, and energy.
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Trade and Procurement Before Brexit
Before Brexit, procurement between France and the UK was largely governed by EU regulations. Public procurement within the EU is regulated by directives designed to create a single market for public contracts, ensuring transparency, competition, and equal treatment across borders. This allowed French and British companies to bid on public contracts in each other's markets seamlessly.
For example, the construction of the Channel Tunnel was a significant cross-border procurement project. Both French and British contractors participated in its construction, showcasing the level of collaboration between the two countries.
In 2018, trade between the two nations reached €71 billion, with machinery, vehicles, and aerospace being key sectors involved in procurement. French firms were particularly active in supplying transport infrastructure and defence products to the UK.
Impact of Brexit on Procurement
Brexit marked a turning point in the procurement relationship between France and the UK. After the UK left the EU, it was no longer bound by the EU’s procurement directives, and a new framework was required to govern procurement activities between the two countries.
Under the Trade and Cooperation Agreement (TCA), which took effect on 1 January 2021, the UK and the EU (including France) reached a comprehensive agreement on trade, including public procurement. The TCA allows for continued access to each other's procurement markets, although the UK now has more flexibility to diverge from EU rules. This agreement ensures that UK companies can still bid on French public contracts and vice versa, maintaining a significant level of collaboration in procurement projects.
The UK Procurement Bill (expected to be fully operational in 2024) introduces changes aimed at streamlining procurement processes, allowing British companies to engage more freely with global partners, including France, while aligning with World Trade Organization (WTO) standards.
Key Sectors in Procurement Between France and the UK
France and the UK have a long history of defence collaboration, and procurement in this sector has remained vital even post-Brexit. Both nations are part of the European defence landscape and share interests in joint projects such as the development of military aircraft and submarines. Notable collaborations include the Lancaster House Treaties signed in 2010, which committed both countries to a deep defence partnership, including joint procurement and research initiatives.
The procurement relationship in the energy sector is also strong, especially regarding nuclear energy. France's électricité de France (EDF) is a key player in the UK’s nuclear power industry, operating several nuclear power stations and playing a significant role in the construction of the Hinkley Point C nuclear plant in Somerset, which is one of the largest ongoing procurement projects between the two nations. The project represents a multi-billion-pound collaboration, with French and British suppliers involved in different stages of the development.
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Transport infrastructure remains another important sector for procurement. The High Speed 1 rail link between the UK and France (through the Channel Tunnel) has encouraged further procurement deals. French companies like Alstom have been involved in supplying rolling stock and related technology for UK rail projects, while British firms have also contributed to French transport infrastructure developments.
Challenges and Opportunities
Post-Brexit, there have been some challenges in maintaining the procurement relationship between France and the UK. Increased paperwork, potential customs delays, and differing regulations have introduced complexities for businesses operating across borders. However, the TCA and the UK’s independent procurement regulations offer opportunities for both countries to deepen their bilateral ties.
Both governments are focusing on sustainable procurement. The UK has developed strategies aligned with net-zero carbon goals, while France is pursuing its Green Deal commitments. Collaborative procurement efforts, particularly in renewable energy projects, present further opportunities for the two nations to enhance their relationship.
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Despite the challenges posed by Brexit, the procurement relationship between France and the UK remains robust. Driven by shared interests in key sectors such as defence, energy, and transport, both countries have adapted to the new regulatory environment and continue to collaborate on significant projects. As procurement rules evolve in both nations, this relationship is expected to remain a cornerstone of their broader economic ties.
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