PARIS: French companies are warning that their government’s tough stance in the Iranian nuclear negotiations could be hurting their chances of winning business when sanctions are lifted.
France’s main business lobby group, Medef, is in Iran on Monday with a delegation of ministers and about 150 companies, including Total and PSA Peugeot Citroën, to improve relations. very tough stance has created some aggressive thinking vis-à-vis France and everything that represents France, like our company,” said Carlos Tavares, the chief executive of PSA, which is planning an assertive re-entry into the country.
France was the most demanding world power in talks ahead of a deal struck earlier this year to curb Iran’s nuclear programme in exchange for far-reaching sanctions relief, which is set to start in early 2016.
Laurent Fabius, the French foreign minister, had said in July that his country’s hawkish posture would not hurt local companies attempting to tap into the $400bn economy, the region’s second-largest after Saudi Arabia.
But ahead of the delegation, French business leaders have warned that France risks losing out.
“We have fallen behind, so now we have to make up lost ground,” said Thibault de Silguy, the vice-president of Medef leading the delegation, citing Germany, Austria, China and the US as countries that are in front.
“This visit is very important for us,” he said, speaking to journalists before the trip. “There will need to be offers that have a strong local dimension and are competitive in pricing.”
