Germany Report

8/8/2019 Germany Report

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A Report on

Institutional Framework

of Global Trade

GERMANY:Trade Bodies

By:

Shrey Shah

[PGP-IBM 09-11]





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Germany:

Germany is the largest national economy in Europe, the fourth-largest by nominal GDP in

the world, and fifth by GDP (PPP) in 2008.

Since the age of industrialization, the country has been a driver, innovator, and beneficiary

of an ever more globalised economy. Germany is the world's second largest exporter with

$1.120 trillion exported in 2009 (Eurozone countries are included). Exports account for

more than one-third of national output.

Germany has a social market economy characterized by a highly qualified labor force, a

developed infrastructure, a large capital stock, a low level of corruption, and a high level of

innovation.

The service sector contributes around 70% of the total GDP, industry contributes 29.1%,

and agriculture 0.9%.

Most of the country's export products are in engineering, especially in machinery,

automobiles, chemical goods and metals. Germany is the leading producer of wind turbines

and solar power technology in the world. The largest annual international trade fairs and

congresses are held in several German cities such as Hanover, Frankfurt, and Berlin.

The major trade bodies of Germany are as follows:

1) The German Chamber of commerce

2) Germany Trade and Invest

3) The German Chambers of Industry and Commerce

4) The German Association of the Automotive Industry



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(1) Deutsche Auslandshandelskammern (AHK)

(The German Chamber of commerce):

Role:

The members of the German Chamber Network, the AHKs, are located in all countries

of particular interest for German industry and commerce.

AHKs unite three functions in their locations. AHKs are:

Official representation of the German industry and commerce

Member organizations

Service providers to companies

The AHKs are the most important partners abroad of the Federal German Ministry for

Economics and Technology in terms of promotion of business in other

countries. Together with Germany’s missions abroad (i.e. embassies and consulates) the

AHKs officially represent the interests of Germany’s industry and commerce in respect

of political and administration authorities in their host countries. This function obliges

the AHKs to neutrality and objectivity.

The AHKs have 40,000 member companies all over the world. These both German and

local companies put a lot of effort in intensifying and improving the whole spectrum of

foreign business relations, specifically those between Germany and the respective host

country.

AHKs support the market interests of German companies in the host country. At the

same time they provide services to local companies which are involved in bilateral

business. They are increasingly active in the marketing of Germany as a business

location for interested companies in the host country.

Under the service brand “DEinternational” the AHKs provide so-called basic services

which are globally harmonized and so-called special services according to special

requirements of the very location.



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Organization:

AHKs have existed for more than 100 years. The first AHK was established as far back as

1894 in Belgium. Further AHKs were set up as the German economy and the global

business relations developed during the last century.

Beyond the boundaries of changing history, the AHKs have always fulfilled their role in

successfully representing, promoting and developing the interests of German business

at the same time as the respective bilateral economic interests.

These days there are AHKs in 80 countries with 120 locations worldwide. There is an

AHK in all countries of particular interest to German business.

There are AHKs in three basic forms of organization and designation, according to the

legal framework prevailing in the respective host country:

Bilateral Chambers of Industry and Commerce

Delegations of German Industry and Commerce

Representations of German Industry and Commerce

Bilateral Chambers of Industry and Commerce are facilities in other countries funded by

companies with their registered headquarters either in the host country or in Germany.

Delegations and Representations of German Industry and Commerce as a rule are the

stage prior to a bilateral Chamber. They can be found in countries where it is not (yet)

possible to set up a bilateral chamber according to the German understanding of an

autonomous body or where they are busy preparing the establishment of such a

bilateral chamber.

The AHKs all over the world are closely linked to the Chambers of Industry and

Commerce (IHKs) in Germany. Jointly IHKs and AHKs support companies in building up

and consolidating their business relations in other countries.



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Via the IHK-AHK Intranet, all client enquiries received by IHKs are immediately

forwarded to the appropriate AHK location(s) and answered accordingly - and vice

versa.

Specific country or regional events in IHKs are organized and carried out in close

cooperation with the respective AHKs. In other words: export oriented German

companies are under the joint care of both IHKs and AHKs.

The close cooperation with all German business associations is a characteristic of the

market-oriented networking of the AHKs. Jointly they serve and represent the needs of

companies of all branches.

In view of the ever increasing global business activities of the German skilled craft

companies, the AHKs also work in close cooperation with the German Chambers for the

Skilled Crafts.

Other partners – with certain differences specific to the markets in various countries

where the AHKs are located are:

The German trade fairs

The Federal States in Germany

Other institutions in Germany involved in foreign trade promotion



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(2) Germany Trade and Invest:

Germany Trade and Invest is the foreign trade and inward investment agency of the

Federal Republic of Germany. Formed following the merger of the German Office for

Foreign Trade and the Invest in Germany GmbH, Germany Trade and Invest officially

came into being on January 1, 2009.

Germany Trade and Invest’s mission is to promote Germany as a location for industrial

and technological investments and to identify investors for the German market. The

organization advises foreign companies looking to expand their business activities in the

German market. It provides information on foreign trade to german companies thatseek to tap into foreign markets.

Germany Trade and Invest provides comprehensive and client-oriented economic and

industry data as well as information about calls for proposals in foreign countries,

investment and development projects, and legal and customs regulations. The

promotion of economic activity in Germany’s new federal states, including Berlin, also

forms an integral part of the agency’s external trade and business location marketing

remit.

Germany Trade and Invest can count upon an international network of industry analysts

who perform on-site research into foreign markets and supports foreign businesses

looking to establish a company in Germany. An International team of experts works

closely together with the German Chamber Network (AHK) abroad.

This growing partnership allows German exporters and potential foreign investors alike

to benefit from a centralized first point of contact overseas, with client-specific

information and consultancy services all provided under one roof. Germany Trade and

Invest is headquartered in Berlin with an additional office in Cologne.



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Germany Trade and Invest operates the websites iXPOS, e-trade-center, and the

German Business Portal. It performs this task together with other actors promoting

foreign trade in Germany and the Federal Ministry for Economics and Technology.

iXPOS combines the diverse offerings of foreign trade promotion in Germany into a

central internet platform.

The e-trade-center is the central internet forum for the promotion of foreign trade

in Germany to search for international business contacts.

The German Business Portal is the central information point about the German

market for international entrepreneurs.

Promoted by the Federal Ministry of Economics and Technology and the Federal

Government Commissioner for the New Federal States in accordance with a German

Parliament resolution.



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(3) The German Chambers of Industry and Commerce:

All German companies registered in Germany, with the exception of handicraft

businesses, the free professions and farms, are required by law to join one of the 80

German Chambers of Industry and Commerce. Thus, the Association of German

Chamber of Industry and Commerce (DIHK), the umbrella organization, speaks for more

than three million entrepreneurs. They include not only big companies but also retailers

and innkeepers. This gives the association considerable political influence. It does not

represent any specific corporate group but all commercial enterprises in Germany.

All main activities of the DIHKs are divided into six business segments. These businesssegments are subdivided in several activities concerning every important aspect of

business life and economic policy in Germany:

a) Regional Development (Policy):

Economic Policy

Tax and Finance Policy

Business information & situation reports

Facts and Figures

Regional & Urban Development

Industrial & Trade access

Regional Cooperation

Traffic & Other networks

b) Startup & Business Promotion:

Business Startup & Management

Succession of Companies

Expert & Factual Knowledge central





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(4) Verband Der Automobilindustrie (VDA)

(The German Association of the Automotive Industry):

It consists of about 600 member companies, who have come together to research and

produce clean and safe auto-mobility for the future. In the country that is known for its

successful invention of both automobiles and trucks, the VDA represents the

automotive manufactures and supply companies to ensure the continued competitive

utilization of their experience and skills. The cooperation between manufactures and

suppliers in the VDA is unique in the world of motoring.

Sustainable and modern mobility are the main objectives of the VDA. The VDA

nationally and internationally promotes the interests of the entire German automotive

industry.

It can bank on a strong power base of members consisting of automobile

manufacturers, suppliers and manufacturers of trailers, special bodies and containers.

Unlike in many other countries, they are organized under one association, resulting in

decisive advantages for the German automotive industry through direct dialogue and

rapid decision-making.

The VDA lends a powerful voice to the positions of its members, both nationally and

internationally. The promotion of our interests currently centers on the following core

topics:

Economic and transport policy

Environmental policy

Research policy and technology policy

Industrial policy

Trade policy

Taxation policy

Promotion for small and medium-sized enterprises (SMEs)



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The VDA represents its members in Berlin and Brussels both in direct dialog and through

its participation in national and international consultation bodies.

In addition to promoting interests on the political level, the VDA also provides support

for its members in other felds. In particular, the association is a forum for balancing

differing interests in its Manufacturer Groups and the development of common

standards to strengthen the automotive value chain. It is also active in the following

major subject areas:

Technology and the environment

Research and technical regulations

Quality assurance

Active and passive safety in vehicle construction

Market, statistics and the economy

Trade shows and participation at trade shows

Export issues

Law and taxation

Press and publicity

Promoting young people in the automotive industry

Documents

Germany Report