Francois Delattre, France's ambassador to Canada, and Government Services Minister Kevin O'Brien sign a reciprocal agreement on licensing Friday in St. John's. (CBC)

Newfoundland and Labrador signed a deal Friday with the French government to recognize each other's driver's licences.

The deal will allow French citizens — including those in tiny islands of St-Pierre-Miquelon, just south of Newfoundland — to exchange their licence for a new one in Newfoundland and Labrador without having to be retested.

The same offer applies to residents of Newfoundland and Labrador who relocate to France.

Francois Delattre, France's ambassador to Canada, said the agreement cuts through a lot of red tape.

"Today we are the second largest foreign investor in Canada, supporting more than 80,000 Canadian jobs in this country, and we think we can do better," Delattre told reporters in St. John's.

"I think the agreement signed today is a good way to do that."

Government Services Minister Kevin O'Brien signed on behalf of the Newfoundland and Labrador government.

Delattre said the agreement will ease the lives of people from St.-Pierre-Miquelon when they come to work or study in Newfoundland and Labrador, as well as the rest of Canada.