France Poised to Reconquer International Art Market Following Reform
October 21, 2000 - 0:0
PARIS Fifty years ago Paris still ruled the art trade, but today London and New York call the tune, with 95 percent of international sales being handled by Anglo-Saxon auction houses Sotheby's, Christie's and Phillips. Paris handled only the remaining five percent. But now France is aiming for a comeback. "We are on the brink of a big bang. Things are about to change in the international art market," said a spokesman for the Association of French Antique Dealers at the recent 20th International Antique Biennial in the French capital.
The cause for the optimism among the 122 dealers taking part in the event is the imminent reform of France's encrusted and protectionist auction system. After more than 400 years, the new reform will end the monopoly of the 458 licensed French auctioneers.
In future they will have to compete with commercial companies.
Only compulsory auctions will remain the preserve of the pampered French auctioneers, whose high charges are set by the state.
Up to now, foreign auction houses such as Sotheby's and Christie's have only been allowed to buy and exhibit works of art in France they had to sell them in their galleries in New York, London or Monaco. "Many works of art will now remain in France or will return here," said one antique dealer in Faubourg Saint Honore, the luxury shopping street which is home to many exclusive galleries and antique dealers.
The French Auction House Drouet, home of the Company of Parisian Auctioneers, estimates the annual value of works exported from France up to now at $2.9 billion. "France has been bled dry," said a spokesman. But in future, foreign auction houses will finally be able to offer works bought in France or elsewhere to art lovers and dealers in Paris. "Many new foreign dealers have already opened branches in Paris in recent months and are eagerly awaiting the starting gun," said a spokesman for the Association of Antique Dealers. Yet while France will now theoretically be open to foreign auction houses, in practice a few obstacles still remain.
Companies wanting to sell and auction in France must obtain a permit from the Conseil de Vente (Sales Council), but so far this council only exists on paper. There has not yet been an agreement on how this council will be comprised. Experts say the reform does not yet go far enough. They want tax breaks.
Foreign buyers are put off by having to pay 5.5 percent tax on contemporary art work, and inheritance tax of three percent to the artists or their inheritors. They prefer to buy in market- friendlier London or New York. However, this could change when a planned reform of French tax legislation is passed in the next few months.
Meanwhile, French companies are already making inroads in the international art market elsewhere. The French investor Bernard Arnault last autumn bought the British Company Phillips, the third largest auction house in the world, and incorporated it into his giant company LVMH (Louis Vuitton Moet Hennessy). In June 1998 the businessman Francois Pinault took over Christie's, the "essence of British style". "We will reconquer the international art market. It is just a matter of time," said a spokesman for the French Association of Antique Dealers.
(DPA)
The cause for the optimism among the 122 dealers taking part in the event is the imminent reform of France's encrusted and protectionist auction system. After more than 400 years, the new reform will end the monopoly of the 458 licensed French auctioneers.
In future they will have to compete with commercial companies.
Only compulsory auctions will remain the preserve of the pampered French auctioneers, whose high charges are set by the state.
Up to now, foreign auction houses such as Sotheby's and Christie's have only been allowed to buy and exhibit works of art in France they had to sell them in their galleries in New York, London or Monaco. "Many works of art will now remain in France or will return here," said one antique dealer in Faubourg Saint Honore, the luxury shopping street which is home to many exclusive galleries and antique dealers.
The French Auction House Drouet, home of the Company of Parisian Auctioneers, estimates the annual value of works exported from France up to now at $2.9 billion. "France has been bled dry," said a spokesman. But in future, foreign auction houses will finally be able to offer works bought in France or elsewhere to art lovers and dealers in Paris. "Many new foreign dealers have already opened branches in Paris in recent months and are eagerly awaiting the starting gun," said a spokesman for the Association of Antique Dealers. Yet while France will now theoretically be open to foreign auction houses, in practice a few obstacles still remain.
Companies wanting to sell and auction in France must obtain a permit from the Conseil de Vente (Sales Council), but so far this council only exists on paper. There has not yet been an agreement on how this council will be comprised. Experts say the reform does not yet go far enough. They want tax breaks.
Foreign buyers are put off by having to pay 5.5 percent tax on contemporary art work, and inheritance tax of three percent to the artists or their inheritors. They prefer to buy in market- friendlier London or New York. However, this could change when a planned reform of French tax legislation is passed in the next few months.
Meanwhile, French companies are already making inroads in the international art market elsewhere. The French investor Bernard Arnault last autumn bought the British Company Phillips, the third largest auction house in the world, and incorporated it into his giant company LVMH (Louis Vuitton Moet Hennessy). In June 1998 the businessman Francois Pinault took over Christie's, the "essence of British style". "We will reconquer the international art market. It is just a matter of time," said a spokesman for the French Association of Antique Dealers.
(DPA)