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U.S. Department of State
Germany Country Commercial Guide
Office of the Coordinator for Business Affairs
COUNTRY COMMERCIAL GUIDE
FOR GERMANY
FY 96
This Country Commercial Guide (CCG) presents a comprehensive look at
Germany's commercial environment through economic, political and market
analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annualy at U.S. Embassies through
the combined efforts of several U.S. governement agencies.
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
2. ECONOMIC TRENDS AND OUTLOOK
3. POLITICAL ENVIRONMENT
4. MARKETING U.S. PRODUCTS AND SERVICES
5. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
6. TRADE REGULATIONS AND STANDARDS
7. INVESTMENT CLIMATE
8. TRADE AND PROJECT FINANCING
9. BUSINESS TRAVEL
10. APPENDICES
a) Country Data
b) Domestic Economy
c) Trade
d) Investment Statistics
e) U.S. and Country contacts
f) Market Research
g) Trade Event Schedule
1. Executive Summary
Germany remains the largest economy in Europe and one which U.S.
companies must address. Unification made the united Germany all the
more important for U.S. exporters - Germany is the fifth largest export
market for U.S. products worldwide (exports to Germany reached $19.4
billion in 1994). What was the eastern border of western Europe is now
an economic powerhouse in the center of Europe with an estimated current
GDP for 1994 reaching $2,000 billion.
The western German market is a wealthy one, whose population enjoys a
very high standard of living. The market is normally distinguished by
high savings and low inflation rates, and a remarkably strong and stable
currency. To develop the market, U.S. exporters must take into account
German perceptions of American suppliers and the quality of U.S.
products, as well as features of the German market which may constitute
hurdles to doing business.
U.S. firms find Germany a good market for innovative, high quality
products in the high technology area. The country is also a good market
for high quality food products. New solutions in the multi-media area,
and technologies and services connected with data-highway projects offer
potential for U.S. exports. High-technology products made in the United
States are highly regarded, and in all high-tech sectors the American
talent for innovation is considered unsurpassed. U.S. products are
especially well regarded where cutting-edge technology is required:
computer software and peripherals, electronic components, health care
and medical devices, synthetics, and aerospace technology. Often such
sales are for intermediate stages of production. Since the customer's
own product depends on the quality and reliability of the inputs to the
production process, the importance of price is somewhat outweighed by
product dependability and supplier reliability.
Success in the German market requires long-term commitment to market
development and sales support. One of the most commonly voiced
complaints heard from the German business community is about the
American penchant for being "here today and gone tomorrow." While this
approach can produce occasional one-time deals, it will not establish a
solid position and reputation in the German market.
U.S. exporters must consider German demography. To a far greater degree
than its European neighbors, Germany's population and industry are
decentralized and evenly distributed. Major cities and businesses dot
the countryside in a landscape which features no single business center.
A U.S. supplier seeking sales in Germany must ensure that its
distributor, or its own dealerships, have a country-wide capability.
Too often U.S. companies seek to cover Europe from a single European
base, or even through periodic visits from the United States. The
German commercial customer expects to be able to pick up the telephone,
talk to his or her dealer, and have replacement parts or service work
immediately available. Consequently, we advise U.S. exporters to avoid
appointing distributors with impossibly large geographic areas, without
firm commitments regarding parts inventories or service capabilities,
and without agreements on dealer mark-ups.
The strongest competition is, and will remain, from German domestic
enterprises or their eventual trans-European successors. This is due
not only to geographic advantage and their role as traditional suppliers
to the market, but also to the average citizen's conviction that German
products are simply the best. However, there is a growing perception
that U.S. quality is improving and that prices of U.S. products are more
competitive than in the past.
Conditions in the eastern states are neither as bad as often portrayed
nor as good as the governing coalition would like. While long-term
prospects are bright, the road to prosperity will be both rocky and
tardy in reaching some corners of the region. Unquestionably, positive
things are happening, and people and goods are on the move. Frequent
travellers cannot fail to see that progress has been made, nor be blind
to the fact that there is much to be done. The traveller knows too well
that the transport system cannot completely cope with the volume.
Business visitors, only partly tongue in cheek, say that finding a hotel
room may be harder than finding a customer. Despite these difficulties,
the estimated $3 billion invested in eastern Germany, since 1989, by
American companies is clear evidence of confidence in the region.
Trade fairs play a crucial role in marketing in this country, a role
perhaps unique in the world. This is not too surprising when one
considers that the trade fair movement was born in Germany in the Middle
Ages and that -- even today -- a major portion of the truly world-class
vertical fairs take place within Germany's borders, attracting buyers
from around the world. During 1996, one or more major trade fairs will
be staged in Germany for almost any product or service Americans have to
sell.
Germany's extensive trade fairs are the most effective vehicle for
introducing new products or technologies. A recent poll by a German
market research firm showed that decision-makers in Germany value trade
fairs as, by far, the most important medium on which they base their
purchasing decisions. The large number of foreign visitors to German
shows often leads to sales to non-German customers.
Germany has one of the world's strongest market economies, and one
which poses few formal barriers to U.S. trade or investment interests
(with the exception of the EU Common Agricultural Policy). Germany's
regulations and bureaucratic procedures, however, can prove a baffling
maze, blunting the enthusiasm of U.S. exporters. While not
"protectionist" in the classic sense, government regulation is a high
art in Germany and does offer a degree of protection to local suppliers.
Safety standards, not normally discriminatory but sometimes zealously
applied, complicate access to the market for many U.S. products.
American companies interested in exporting to Germany should do their
homework thoroughly and make sure they know precisely which standards
apply to their product, and that they obtain timely testing and
certification. This is doubly important because, to the extent EU-wide
standards are developed, there is a high probability that the existing
German standard will form the basis for the eventual European standard.
The emergence of new trading rules in the European Community will have a
huge, but usually benign, impact on how U.S. companies operate in this
country. While Germans, quite naturally, focused on events to the east
during the past years, the single Europe evolution has been steadily
underway and will be of vast importance in this market. The movement
toward a Single European Market ("der Binnenmarkt") has now grabbed the
attention of Germany's producers, particularly those that have survived
in the eastern states and can no longer depend on customers in eastern
Europe or the former Soviet Union. The growth of the Single Market will
intensify the already strong competition from third-country suppliers,
especially from members of the European Union.
Country Commercial Guides are available on the National Trade Data Bank
CD-rom or through the Internet. Please contact STAT-USA at 1-800-STAT-
USA for more information. To locate Country Commercial Guides via the
Internet, please use the following worldwide WEB address: ww.stat-
usa.gov. CCGs can also be ordered in hard copy or on diskette from the
National Technical Information Service (NTIS) at 1-800-553-NTIS.
2. Economic Trends and Outlook
Introduction and Summary
The German economy is the world's third largest, and accounts for
somewhat more than one-fourth of the European Union's GDP. Among
European countries, Germany is the United States's second largest
trading partner. Germany's broadly diversified economy affords its
citizenry one of the highest standards of living in the world. The
German "social market" economy is organized on free market principles
and provides what some view as the industrialized world's most
comprehensive set of unemployment, health and educational insurances and
guarantees. As one of the world's foremost trading nations, Germany
traditionally has enjoyed substantial trade and current account
surpluses, although the financing demands of reunification have driven
the current account into the red. A strong currency and continued
international confidence in the management of Germany's monetary policy
ensure full access to external financing.
Despite some 5 percent appreciation of the trade-weighted value of the
DM in the first quarter of this year, Germany appears poised to record
moderate, non-inflationary growth in both 1995 and 1996. The German
economy grew substantially more rapidly in 1994 than had been assumed
initially when it expanded nearly three percent after having suffered a
decline of 1.2 percent in 1993. The main reason behind the German
turnaround was export growth, which was stimulated by healthy foreign
demand, particularly from recovery in Europe. Although export growth is
expected to slow down somewhat in the latter half of 1995 because of DM
strength, the consensus remains that in 1995 and 1996 real growth should
be around 2.5 to 3.0 percent. Unemployment nonetheless is expected to
remain high and the jobless rate likely will hover at the nine-percent
mark in 1995, and drop perhaps one-half percentage point the following
year. Easing inflation in 1995 gave central bank officials the
necessary scope for lowering interest rates at the end of March, 1995
when the discount rate was set at four percent, the first decline in
this key rate since mid-May 1994.
Moderate Recovery to Continue
Expected all German growth rates are a function of continued 8 to 9
percent growth in eastern Germany, combined with two percent-plus growth
in the former West Germany. Eastern Germany will continue to record
rapid growth as a result of the large social transfers from the west,
which exceeded USD 130 billion annually and supported personal incomes
as un- and underemployment persists at 25 to 30 percent owing to the
transformation of the former GDR to a market economy. Although growth in
private consumption spending throughout Germany will continue to be
rather weak in 1995, as it has been since 1992, this all-important GDP
component is expected to expand more robustly in 1996 as employment
expansion and tax cuts contribute to an increase in real incomes. This
notwithstanding, taxes and social security contributions will remain
among the highest in Europe.
The official German government forecast and those of private economists
are in agreement that overall economic growth throughout Germany in 1995
will continue to be led by exports and investment, with private
consumption taking a more important role in 1996. Investment spending
is expected to increase by nearly 6 percent in 1995, led by sharply
higher investment in machinery and equipment. Growth in public
consumption is projected at well below the growth in overall GDP for
both years. In 1996, the increase in equipment investment should ease
somewhat.
Employment in western and eastern Germany will rise only moderately
despite overall economic growth. In 1995, average employment is
forecast to rise by around one-quarter million and the annual average
unemployment rate to drop to around 9 percent (there are sharp regional
differences, as the rate in western Germany is expected to average
around 8 percent, while the eastern German unemployment rate should be
roughly 13 percent). The inflation rate is forecast to abate throughout
Germany, declining from 3.0 percent in 1994 to just above 2.0 percent in
1995. In 1996, inflation may rise moderately due to the pick-up in
private consumption and rising wage costs.
In mid-1995, observers of the German economy began to caution of a
possible cooling of the recovery, largely due to a perception that the
firming Deutschmark would make German exports less competitive.
Pointing to declines in business confidence, industrial production and
orders, these observers expressed concern that German growth would be
slower than most recent forecasts had suggested. In response,
government commentators and others expressed confidence that the
Deutschmark strength was exaggerated and thus not likely to be a
permanent phenomenon, but moreover pointed to the relative price
inelasticity of demand for German capital goods on the world market.
Indeed, capacity utilization continued to increase and automobile sales
continued very strong to mid-year.
Persistent Structural Problems
Despite the German economy's continued optimistic prospects, there is a
consensus that Germany has structural problems that need to be addressed
over the longer term. Excessive regulation of business, conservative
financial services providers, and continued expansion of the country's
very generous social security system are said to be disincentives to
entrepreneurial activity and labor mobility. The associated increased
costs of production and potential drag on productivity and
competitiveness are matters of widespread concern. The economic
institutes continue to call for deregulation and accelerated
privatization of government enterprises, as well as a reduction in the
government expenditures as a share of GDP from the current level of just
over 50 percent to the pre-unification rate of 46 percent. This would
involve, inter alia, fundamental reform of Germany's social security
system, including pensions, health insurance, unemployment compensation,
and welfare. Although the private sector began a process of structural
change through downsizing, and labor responded by accepting real wage
cuts as a means of dealing with the last recession, a repeat of the
dramatically reduced unit labor costs achieved last year is not expected
for 1995. Labor demanded and won real wage gains in the latest wage
round, a factor which has contributed to those voices raising concerns
over German competitiveness.
The process underway in eastern Germany is the very quintessence of
structural change. Approaching the fifth year of German economic and
monetary union (effected in July 1990), the eastern German economy
elicits metaphors such as "shock treatment," "hothouse growth," and
"forced feeding." The unprecedented privatization of thousands of
formerly state-owned enterprises is nearly complete. A massive shift of
resources from basic industries to construction and other services is
well under way. Public investment has modernized telecommunications and
transportation very rapidly. An array of tax breaks and low-interest
loans have attracted investment, much of it that normally would have
gone to western Germany. The government has extended the bulk of the
incentives through 1997. On the other hand, eastern German wage rates
increased in excess of productivity in 1990-93, thereby eroding an
important element of competitiveness, greatly raising the incidence of
bankruptcy, and contributing directly to unemployment. However, current
job creation appears to be catching up with continuing job losses -
official unemployment is expected to level off at about 13 percent in
1995-96, while disguised unemployment (forced early retirement, short-
time work, retraining programs) would still likely double that rate.
Economic Objectives and Policies
The government's declared primary objective is to improve supply-side
factors which determine Germany's attractiveness as a place to invest
and to do business. Included under this rubric are fiscal
consolidation, the continuation of reasonable wage demands on the part
of labor, and ensuring the restructuring and integration of eastern
Germany into the overall German economy. The chosen approach on the
latter goal, although criticized by some as an excessive financial
burden on the west, is to support personal incomes and consumption in
the east at near western levels through massive transfer payments, while
promoting public and private investment. In addition, a reduction of
the state's participation in the economy, tax reform and further
liberalization of markets, both internally and in terms of access by
foreign competitors, are key objectives of German government economic
policy.
There is considerable consensus on these objectives but growing
disagreement on the appropriate policies to achieve them. Some outside
of government have questioned the appropriateness of strict budgetary
constraint in the midst of a budding recovery possibly threatened by a
strong DM, and have called for 1) additional monetary easing, and 2)
slower budgetary consolidation in the interest of reducing the tax
burden more rapidly.
The government, however, perceives financial and political constraints
on its ability to promote growth and to implement its ambitious agenda
of structural reform. Its plan for 1996 is to reduce the reliance on
tax receipts for budgetary consolidation, in favor of increased emphasis
on reducing expenditures. In this context, however, it will continue
large, although reduced from earlier levels, transfers to the east.
These transfers are hoped to focus increasingly on manufacturing as
opposed to income maintenance, in an attempt to increase the fledgling
industrial base so that the east may more quickly reach a level of self-
sufficiency.
3. Political Environment
Overview
The top priorities of the German government are to maintain economic
growth and to continue fostering the development of eastern Germany.
The new states are now an integral part of Germany, contain millions of
voters, and are being brought up to the economic standards of western
Germany as quickly as possible. Accordingly, a high priority continues
to be placed on financing eastern development, implying the likelihood
of a flow of major project opportunities for years to come.
In addition, Germany's political leadership also wants to promote
Germany's competitiveness and various proposals are being considered to
modernize the country's economic situation. Since unification on
October 3, 1990, Germany has placed a high priority on improving its
relations with its direct neighboring states as well as strengthening
trans-Atlantic relations. Recognizing that political stability is
nurtured by economic prosperity, Germany has been one of the major
sources of assistance to Central European and CIS states.
The country continues to emphasize close ties with the United States,
membership in NATO, progress toward further European integration, and
improved relations with Central Europe. German-American political,
economic, and security relationships regardless of which administration
has been in power in either country have been based on close
consultation and coordination at the most senior levels. High-level
visits take place frequently, and the United States and the FRG
cooperate actively in international forums. U.S. Government officials
enjoy good access to policy- and decision-makers, and are able to raise
issues directly affecting U.S. business active in Germany.
Basic Government Structure
Under the German Constitution, known as the Basic Law, the Federal
Republic of German (FRG) is a parliamentary democracy with a bicameral
legislature, an independent judiciary and executive power exercised by a
Prime Minister whose title is Chancellor.
The lower house of Parliament, The Bundestag, currently consists of 672
deputies elected a for 4-year term. Members are elected through a
mixture of direct constituency candidates and party lists. The Basic
Law and the Laender (state) constitutions stipulate that parties must
receive at least 5 percent of the national vote (or at least three
directly-elected seats in federal elections) in order to be represented
in the federal and state parliaments. The last national elections took
place on October 16, 1994. One must be 18-years old in Germany to vote.
The president may be elected to two 5-year terms and his duties as chief
of state are largely ceremonial. Executive power is exercised by the
Chancellor who is elected by and responsible to the Bundestag. The
Chancellor cannot be removed from office during a 4-year term unless the
Bundestag has agreed on a successor.
The upper house, the Bundesrat, is composed of delegations from the 16
state governments and has a proportional distribution of its 68 votes,
depending on the population of the state. The role of the Bundesrat is
limited but it can exercise substantial veto powers over legislation
passed in the Bundestag when the proposed legislation would affect the
numerous prerogatives of the Laender. Among these are matters relating
to tax reform, law enforcement and the courts, culture and education,
the environment, and social assistance.
The political parties represented in the Bundestag are:
-- The Christian Democratic Union and its Bavarian sister party, the
Christian Social Union (CDU/CSU). The CDU/CSU is generally conservative
on economic and social policy.
-- The Social Democratic Party (SPD), which abandoned the concept of a
class party in 1959 while continuing to stress social welfare programs.
-- The Free Democratic Party (FDP), which is composed of those who
consider themselves "independents" and heirs to the European liberal
tradition.
-- The Party of Democratic Socialism (PDS), which is the successor
party to the SED (the communist party of the former German Democratic
Republic).
-- The Alliance 90/The Greens (Bundnis 90/Die Gruenen), which has an
environmentalist, pacifist platform.
4. Marketing U.S. Products and Services
U.S. companies intending to export to Germany must take into account
German demography. To a far greater degree than its European neighbors,
Germany's population and industry are decentralized and evenly
distributed. Major cities and businesses dot the countryside in a
landscape which features no single business center. A U.S. supplier
seeking sales in Germany must be careful to ensure that its distributor,
or its own dealerships, have a country-wide capability. Too often U.S.
companies seem to seek to cover Europe from a single European base, or
even through periodic visits from the United States. The German
commercial customer expects to be able to pick up the telephone, talk to
his or her dealer, and have replacement parts or service work
immediately available. U.S. exporters should avoid appointing
distributors with impossibly large geographic areas, without firm
commitments regarding parts inventories or service capabilities, and
without agreements on dealer mark-ups.
Success in the German market, as elsewhere around the world, requires
long-term commitment to market development and sales back-up, especially
if U.S. companies are to overcome their natural geographic handicap with
respect to their European competitors. One of the most commonly voiced
complaints heard from the German business community is about the
American penchant for being here today and gone tomorrow. While this
approach can produce occasional one-time deals, it is not the way of the
competition, whether it be third-country or German, and is definitely
not the way to establish a solid position and reputation in the German
market.
Too often, U.S. suppliers are perceived by Germans as being unreliable:
too quick to defer processing an export order in favor of a subsequent
domestic order, too likely to bypass a successful distributor to deal
directly with his customer, and interested in export sales only when
domestic order books are unfilled or there is a fortuitous slip in the
exchange rate. Many U.S. companies are not seen as long-term players in
the market, and are not viewed as likely to provide adequate after-sales
support. Distance from the market is no excuse to a customer with a
problem.
No business visitor or company wishing to export to Germany can fail to
note that trade fairs play a crucial role in marketing in this country,
a role perhaps unique in the world. This is not too surprising when one
considers that the trade fair movement was born in Germany in the Middle
Ages and that -- even today -- a major portion of the truly world-class
vertical fairs take place within Germany's borders, attracting buyers
from around the world. During 1995, one or more major trade fairs will
be staged in Germany for almost any product or service Americans have to
sell. Trade fairs thrive in Germany because they are occasions on which
business is actively done, rather than serving simply as public
relations venues. U.S. exhibitors in German fairs should bring their
order books and be prepared to sell. While U.S. exhibitors and even
visitors can often conclude transactions, all attenders can use the
great German fairs to conduct market research, see what their worldwide
competition is doing, and test pricing strategies. The German fairs
should not be thought of as strictly venues for doing business in
Germany. The major shows attract buyers from throughout the world,
allowing U.S. exhibitors do business here with buyers from Europe, Asia,
Africa, Latin America and even with other U.S. companies.
There is a general consensus that Germany's extensive trade fairs are
the most effective vehicle for introducing new products or technologies.
A recent poll by a German market research firm showed that decision-
makers in Germany value trade fairs as by far the most important medium
on which they base their purchasing decisions. The large number of
foreign visitors to German shows often leads to sales to non-German
customers. Fair organizers expected some drop in attendance and in
numbers of exhibitors, as reflections of the slower economies in Germany
and neighboring countries, but these expectations did not materialize
overall. Both CeBIT 95, the world's largest computer and
telecommunications show, and the 1995 Hannover Trade Fair, the world's
largest industrial trade fair of any kind, saw record numbers of
visitors and exhibitors. This confirms the conviction that there is no
other venue where an American company can get so much product exposure
for its marketing dollar.
In order to enhance U.S. presence at German trade shows and promote
American business even more effectively through these unique vendors, a
trade fair initiative was developed under the Showcase Germany program,
developed by the U.S. Embassy and the U.S. Department of Commerce. The
Showcase Germany trade fair initiative not only aims at increasing
promotional efforts and assistance for U.S. companies at numerous German
trade fairs, but also at recruiting foreign buyers from other,
especially eastern European countries, and introducing these to U.S.
exhibitors. U.S. exhibitors at these fairs will have the advantage of
meeting with a number of such delegations in order to find potential
partners, not just in Germany, but throughout Europe.
The promotion of U.S. participation at German trade fairs is also an
essential part of "Showcase Europe," a field-driven initiative which is
designed to pay tribute to the ongoing integration of a single Europe.
At selected fairs, we will attempt to bring U.S. companies together not
only with potential German business partners, but also with visitors
from other European countries. Both "showcases" also focus on advocacy
on behalf of U.S. business interests, they especially concentrate on
further opening the energy and telecommunications fields to U.S.
companies, and include official U.S. government advocacy on behalf of
American firms bidding on German procurement projects.
Besides exhibiting at a German trade fair, in most cases advertising is
considered a suitable promotion method. Regulation of advertising in
Germany is a mix between judicial rules and voluntary guidelines
developed by the major industry associations. Legal rules were
established at the beginning of the 20th century by the "Law Against
Unfair Competition." This law continues to be valid today, although it
has been modified over time. In essence, this law allows competitors to
bring suit if advertising "violates good manners."
Many advertising practices that are common in the United States, such as
offering premiums, would not be allowed in Germany. Any planned
advertising campaigns should be thoroughly discussed with a potential
business partner or an advertising agency in Germany. Following is the
address of the German association of advertising agencies:
Gesamtverband Werbeagenturen e.V.
(German Association of Advertising Agencies)
Friedensstr. 11
60311 Frankfurt a.M. 1
Phone: (49-69) 235096
Fax: (49-69) 236883
There are numerous technical or specialized periodicals that deal with
all aspects of technology and doing business in Germany. In addition,
Germany has a well developed array of newspapers and magazines, which
offer the opportunity to gather information and advertize products and
services.
For nearly all facets of doing business, there appears to be an industry
or trade association that is active in a particular field and which can
often serve as a suitable point of contact when trying to establish a
partnership.
In any case, a U.S. company is advised to research its market and the
potential of its product properly before making a business decision.
Not all products can be easily sold and, even in a high-priced country
such as Germany, it is important to attach the right price tag to a
product.
Selling to German government entities is not always an easy process. As
a broad statement, German government procurement is non-discriminatory
and generally appears to comply with the GATT Agreement on Government
Procurement (the Procurement Code) and the European Community's
procurement directives. That said, it is undeniably difficult to
compete head-to-head with major German or other EU suppliers with long-
term ties to German government purchasing entities.
The exports of U.S. agricultural products are actively promoted by
associations cooperating with the U.S. Department of Agriculture (USDA).
COOPERATORS REPRESENTED IN GERMANY
The USDA Cooperators listed below either have an fully staffed field
office in Germany or have in some other way contracted personnel, e.g.,
a trade representative or PR-company in country to represent their
interests. They can be contacted through the:
U.S. Agricultural Trade Office
Alsterufer 28
20354 Hamburg, Germany
Tel: (49) (40) 4146-070
Fax: (49) (40) 4146-0720
- American Horticultural Marketing Council, Inc.
- American Plywood Association
- American Soybean Association
- Asparagus USA, Inc.
- California Pistachio Commission
- California Prune Board
- California Table Grape Commission
- California Walnut Commission
- The Catfish Institute
- Florida Department of Citrus
- National Peanut Council of America
- National Sunflower Association
- Northwest Cherry Growers
- Oregon-Washington-California Pear Bureau
- The Popcorn Institute
- Texas Grapefruit Commission
- U.S. Meat Export Federation
- USA Pears
- USA Poultry & Egg Export Council
- USA Rice Council
- Washington Apple Commission
- Wine Institute of California
COOPERATORS NOT REPRESENTED IN GERMANY
The USDA Cooperators listed below do not have a permanent presence, but
conduct active marketing programs in Germany.
- Alaska Seafood Marketing Institute
- Almond Board of California
- American Forest and Paper Association
- American Hardwood Export Council
- American Quarter Horse Association
- American Wool Council
- Appaloosa Horse Club, Inc.
- Blue Diamond Growers
- Brandy Export Association
- California Avocado Commission
- California Raisin Advisory Board (London)
- Cotton Council International
- Eastern U.S. Agricultural & Food Export Council (EUSAFEC)
- Hop Growers of America, Inc.
- Kentucky Distiller's Association
- Michigan Blueberry Growers
- Mid-American International Agri-Trade Council
- National Association of State
- National Dry Bean Council
- National Honey Board
- National Renderers Association Inc.
- Pacific Northwest Wine Coalition
- Southern Forest Products Association
- Southern Pine Marketing Council
- Southern U.S. Trade Association
- Tobacco Associates, Inc.
- Western U.S. Agricultural Trade Association
- Western Wood Products Association
5. Leading Sectors for U.S. Exports and Investment
Best Prospects for Non-agricultural Goods and Services
1 CSF - Computer Software
2 CPT - Computer/Peripherals
3 INF - Information Services
4 FRA - Franchising
5 ELC - Electronic Components
6 TEL - Telecommunications EQ
7 AIR - Aircraft/Parts
8 LAB - Laboratory Scientific Instruments
9 ICH - Industrial Chemicals
10 APS - Automotive Parts
11 DRG - Drugs and Pharmaceuticals
12 AUT - Automobiles
13 ELP - Electric Power Generating EQ
14 CSV - Computer Services
15 EIP - Electronics Industry Production and Test Equipment
Exchange rate used for non-agricultural best prospect goods and
services: $1 equals DM 1.45
1 - Computer Software - CSF
With a 28% share of the European software and services market (worth
35.3 billion ECU), Germany is the largest and one of the fastest growing
of all European markets. Software products remained among the strongest
drivers of market growth with revenues rising 6.7% in 1994 and set to
strengthen to 8% in 1995, and 10% in 1996. The systems software market
makes up 47.6% of the total packaged software market, and the
application software segment represents 52.4% of the total software
products market. Both the 1994 recovery and optimistic expectations for
1995 are grounded on the rapid growth of application tools and
application solutions of the systems software market. The system-level
software share of the total market is expected to grow less than other
sectors because of the instability of prices, the continual decrease in
demand for mainframe and minicomputer operating systems and low price
margins for "open" operating systems and new advanced operating systems.
The rapid growth of the application solutions market segment is based on
sustained demand for client/server and distributed packaged
applications, widespread new applications of workflow automation, by
increasing penetration UNIX platforms, information integration, new
multimedia features and the success of object-oriented programming and
relational databases. The twenty-five largest software products
suppliers control two-thirds of the German software market, among them
U.S. subsidiaries Microsoft, Novell, and Lotus. As in other industries,
the trend toward mergers and acquisitions is notable. As the majority
of the large U.S. software products manufacturers have facilities in
Germany, their contribution to the German market is accumulated under
production figures. All figures are estimates. Official statistics are
not available and figures supplied by trade sources vary to some extent,
due to the complexity of the market.
Total market size (U.S. $ millions)
-- 1994: 6,500
-- 1995 (estimated): 7,200
-- 1996 (projected): 8,000
Total local production (U.S. $ millions)
-- 1994: 5,300
-- 1995 (estimated): 5,900
-- 1996 (projected): 6,600
Total exports (U.S. $ millions)
-- 1994: 1,300
-- 1995 (estimated): 1,500
-- 1996 (projected): 1,700
Total imports (U.S. $ millions)
-- 1994: 2,500
-- 1995 (estimated): 2,800
-- 1996 (projected): 3,100
Imports from the United States (U.S. $ millions)
-- 1994 1,000
-- 1995 (estimated): 1,200
-- 1996 (projected): 1,500
2 - Computer & Peripheral Equipment - CPT
Although competition from the Eastern Asia and Europe increased, U.S.
computer products are viewed by German distributors, OEM's, VAR's and
end-users as innovative products of superior quality and leading edge
technology.
In 1994, sales of main frame and mini computers continued their downward
trend, microcomputers and peripherals, however, recorded an unexpectedly
high growth rate in unit terms of approximately 19%, which translates
into a 10% value growth. This high growth in volume is expected to
continue through 1995 and 1996. Projections vary between 12% and 21%;
18% growth is considered by many industry experts a realistic growth
forecast.
Germany is, and will remain for the foreseeable future, a country of
great opportunity for sales for American computer products. The United
States is expected to retain its 1994 import share of 26% at least until
1998.
Total Market Size (U.S. $ millions)
-- 1994: 16,500
-- 1995 (estimated): 18,200
-- 1996 (projected): 19,700
Total Local Production (U.S. $ millions)
-- 1994: 8,200
-- 1995 (estimated): 8,600
-- 1996 (projected): 8,700
Total Exports (U.S. $ millions)
-- 1994: 9,200
-- 1995 (estimated): 9,600
-- 1996 (projected): 10,100
Total Imports (U.S. $ millions)
-- 1994: 17,500
-- 1995 (estimated): 19,200
-- 1996 (projected): 21,100
Imports from the United States (U.S. $ millions)
-- 1994: 4,500
-- 1995 (estimated): 4,900
-- 1996 (projected): 5,400
3 - Information Services - INF
Information Services are among the fastest growing markets in Germany.
The total market (on-line realtime, on-line retrospective and off-line)
grew by 14.8 percent in 1994, and growth is expected to continue at
extraordinary high rates in 1995 and the near future. Especially the
market segment of multimedia/consumer services, in which where U.S.
suppliers/hosts traditionally hold a leading market position worldwide
is expected to show especially high growth rates.
Total sales (U.S. $ millions)
-- 1994: 900
-- 1995 (estimated): 1,220
-- 1996 (projected): 1,430
Sales by local firms (U.S. $ millions)
-- 1994: 450
-- 1995 (estimated): 600
-- 1996 (projected): 800
Sales by local firms abroad (U.S. $ millions)
-- 1994: na
-- 1995 (estimated): na
-- 1996 (projected): na
Sales by foreign-owned firms (U.S. $ millions)
-- 1994: 450
-- 1995 (estimated): 600
-- 1996 (projected): 800
Sales by U.S-owned firms (U.S. $ millions)
-- 1994: 135
-- 1995 (estimated): 240
-- 1996 (projected): 330
4 - Franchising - FRA
Franchise systems are at least equally as difficult to introduce in
Germany as in the neighboring, non-English speaking European countries
of France and Spain. U.S. franchisors must also be prepared to adapt to
required market norms and standards, invest in market research, test
market receptivity through pilot projects and adjust their franchise
concepts to German business practices and consumer tastes.
Nevertheless, U.S. companies are currently holding an import market
share of approximately 58%, a situtation which is expected to continue
in the near future.
Total sales (U.S. $ millions)
-- 1994 13,700
-- 1995 (estimated) 15,400
-- 1996 (projected) 16,900
Sales by local firms (U.S. $ millions)
-- 1994 11,700
-- 1995 (estimated) 13,100
-- 1996 (projected) 14,600
Sales by local firms abroad (U.S. $ millions)
-- 1994 140
-- 1995 (estimated) 160
-- 1996 (projected) 190
Sales by foreign-owned firms (U.S. $ millions)
-- 1994 2,000
-- 1995 (estimated) 2,300
-- 1996 (projected) 2,500
Sales by U.S-owned firms (U.S. $ millions)
-- 1994 1,200
-- 1995 (estimated) 1,300
-- 1996 (projected) 1,500
5 - Electronic Components - ELC
The German market for electronic components in 1994 gathered speed again
after experiencing a slump and then only modest growth in the two
preceding years. The total volume in 1994 represented an increase of 12
percent over the previous year in local currency terms. The German
Electrical and Electronic Manufacturers' Association (ZVEI) estimates
1995 growth will reach the same rate. Within the electronic components
sector, the greatest potential continues to be in the semiconductor
segment (1994 growth at 24 percent). American suppliers satisfy over 50
percent of the German demand for semiconductors.
Total market size (U.S. $ millions)
-- 1994: 11,800
-- 1995 (estimated): 13,100
-- 1996 (projected): 14,300
Total local production (U.S. $ millions)
-- 1994: 11,400
-- 1995 (estimated): 12,600
-- 1996 (projected): 13,600
Total exports (U.S. $ millions)
-- 1994: 10,700
-- 1995 (estimated): 11,900
-- 1996 (projected): 12,900
Total imports (U.S. $ millions)
-- 1994: 11,100
-- 1995 (estimated): 12,400
-- 1996 (projected): 13,600
Imports from the United States (U.S. $ millions)
-- 1994 2,100
-- 1995 (estimated): 2,350
-- 1996 (projected): 2,590
6 - Telecommunications - TEL
The telecommunications industry is widely regarded as one of the driving
forces behind future economic growth. Multi-media, mobile
communications, data highways, all these are catchwords that
characterize the majority of discussions about the potential for
economic development. Germany is not only one of the fastest growing
markets for mobile equipment, but is also very well prepared for any
future technology in this sector. Thousands of miles of high quality
fiber optical cable have been installed, especially in the new Laender,
and make the country ready for the applications of the future. The
immense changes in the legal infrastructure and the privatization of
network services will add momentum to the positive trend. U.S. exports
to Germany significantly exceed German exports to the United States, a
trend which is expected to continue.
Total Market (U.S $ in millions)
-- 1994: 9,000
-- 1995 (estimated): 9,700
-- 1996 (projected): 10,700
Local Production (U.S. $ in millions)
-- 1994: 11,400
-- 1995 (estimated): 12,000
-- 1996 (projected): 13,000
Local Exports (U.S. $ in millions)
-- 1994: 6,700
-- 1995 (estimated): 7,300
-- 1996 (projected): 8,000
Imports (U.S. $ in millions)
-- 1994: 4,300
-- 1995 (estimated): 5,000
-- 1996 (projected): 5,700
Imports from the U.S. (U.S. $ in millions)
-- 1994: 820
-- 1995 (estimated): 940
-- 1996 (projected): 1,100
7 - Aircraft and parts - AIR
Previous hopes for a stabilization of the German civil aerospace market
in 1994 proved unfounded. Rather than remaining at previous levels,
both the German market and volume of production further contracted. The
German aerospace industry is calling for a task force composed of
industry representatives and members of the economics, defense and
research ministries to discuss a new aerospace policy to ensure the
survival of the aerospace industry in Germany.
The industry has remained unprofitable despite continued growth in
German air traffic, which increases continually by about 5 percent per
year, thus creating demand for fleet renewals and replacement. The best
growth segments are short range commuter aircraft, aircraft sub-systems,
components and upgrading equipment, as well as avionics. The United
States is a major supplier of aerospace products to Germany and the
favorable dollar exchange rate versus the D-Mark will further spur
demand for equipment from U.S. sources.
Total market size (U.S. $ millions)
-- 1994: 8,200
-- 1995 (estimated): 8,600
-- 1996 (projected): 8,800
Total local production (U.S. $ millions)
-- 1994: 8,600
-- 1995 (estimated): 8,600
-- 1996 (projected): 9,000
Total exports (U.S. $ millions)
-- 1994: 11,100
-- 1995 (estimated): 11,000
-- 1996 (projected): 11,500
Total imports (U.S. $ millions)
-- 1994: 10,700
-- 1995 (estimated): 11,000
-- 1996 (projected): 11,300
Imports from the United States (U.S. $ millions)
-- 1994 2,170
-- 1995 (estimated): 2,580
-- 1996 (projected): 3,000
8 - Scientific & Laboratory Instruments - LAB
With a market size of more than $4 billion in 1994, the market for
scientific, analytical and laboratory instruments is one of the fastest
growing in Germany. By the year 2000, market volume in Germany is
predicted to reach as much as $6.0 billion.
U.S. analytical, laboratory and scientific instruments maintain
excellent reputations in Germany. Since German manufacturers cannot
satisfy the growing demand, significant opportunities exist for American
suppliers to market a great variety of instruments.
Total market size: (U.S. $ millions)
-- 1994 4,700
-- 1995 (estimated) 4,900
-- 1996 (projected) 5,200
Total local production (U.S. $ millions)
-- 1994 4,500
-- 1995 (estimated) 4,600
-- 1996 (projected) 4,800
Total exports (U.S. $ millions)
-- 1994 2,200
-- 1995 (estimated) 2,300
-- 1996 (projected) 2,400
Total imports (U.S. $ millions)
-- 1994 2,400
-- 1995 (estimated) 2,600
-- 1996 (projected) 2,800
Imports from the United States: (U.S. $ millions)
-- 1994 1,800
-- 1995 (estimated) 2,000
-- 1996 (projected 2,000
9 - Industrial chemicals - ICH
In 1994, the German chemicals market increased by more than 7 percent
over the previous year to almost $93 billion, of which imports held a
share of 41.6 percent. Germany leading suppliers were France with $5.5
billion, or 14.3 percent of the import market, and the Netherlands with
$5.2 billion, or 13.4 percent of the import market. The United States
ranked fifth, supplying chemicals worth $3.4 billion, or 8.9 percent of
the German import market. Germany's imports of photochemicals from the
United States totaled $282 million (plus 3 percent over 1993).
Total market size (U.S. $ millions)
-- 1994: 93,200
-- 1995 (estimated): 98,800
-- 1996 (projected): 102,600
Total local production (U.S. $ millions)
-- 1994: 120,000
-- 1995 (estimated): 125,800
-- 1996 (projected): 129,600
Total exports (U.S. $ millions)
-- 1994: 65,500
-- 1995 (estimated): 68,800
-- 1996 (projected): 70,900
Total imports (U.S. $ millions)
-- 1994: 38,700
-- 1995 (estimated): 41,800
-- 1996 (projected): 43,900
Imports from the United States (U.S. $ millions)
-- 1994: 3,500
-- 1995 (estimated): 3,700
-- 1996 (projected): 3,900
10 - Automobile Parts and Services - APS
German automobile manufacturers have forced their suppliers to reduce
costs dramatically over the last two years. Consequently, the total
value of the market for automotive parts has dropped considerably. In
order to reduce their own costs, German automobile manufacturers have
also turned to foreign suppliers. As a result almost 20% of domestic
suppliers had to cease their business and, at the same time, imports
have risen rapidly. In the long run, German automobile manufacturers
are expected to locate new production facilities outside Germany, a fact
that will lead to a decrease in the domestic demand for parts.
Production and sales of aftermarket parts and related services have also
dropped owing to the fact that vehicles and parts now last longer.
According to market experts, imports will not be affected as severely
from the overall downward trend, but may still show moderate increases.
Total market size (U.S. $ millions)
-- 1994 35,800
-- 1995 (estimated) 36,400
-- 1996 (projected) 33,700
Total local production (U.S. $ millions)
-- 1994 39,500
-- 1995 (estimated) 31,600
-- 1996 (projected) 25,300
Total exports (U.S. $ millions)
-- 1994 20,500
-- 1995 (estimated) 15,600
-- 1996 (projected) 13,800
Total imports (U.S. $ millions)
-- 1994 16,800
-- 1995 (estimated) 20,400
-- 1996 (projected) 22,200
Imports from the United States (U.S. $ millions)
-- 1994 860
-- 1995 (estimated) 950
-- 1996 (projected) 1,040
11 - Drugs & Pharmaceuticals - DRG
In 1994, the United States was Germany's second largest supplier of
pharmaceutical products. Total German imports in 1994 increased by 32.1%
to $6.8 billion and are expected to reach $7.1 billion in 1995.
Government cost containment legislation is encouraging sales of self-
medication drugs and generic medicines. Best sales prospects exist for
pharmaceuticals affecting the central nervous system, cardio-vascular
medication, analgesics, hormone and vitamin preparations and
diagnostics.
Access to the German pharmaceutical market is subject to strict national
and European Union legislation. Since January 1995, the market entry of
biotechnically derived or technologically advanced drugs has been eased.
The application procedure is now centralized through the European Drug
Agency (EMEA) in London, U.K.
Total market size (U.S. $ millions)
-- 1994: 18,700
-- 1995 (estimated): 19,100
-- 1996 (projected): 19,600
Total local production (U.S. $ millions)
-- 1994: 22,700
-- 1995 (estimated): 23,300
-- 1996 (projected): 24,000
Total exports (U.S. $ millions)
-- 1994: 10,800
-- 1995 (estimated): 11,300
-- 1996 (projected): 11,700
Total imports (U.S. $ millions)
-- 1994: 6,800
-- 1995 (estimated): 7,100
-- 1996 (projected): 7,300
Imports from the United States (U.S. $ millions)
-- 1994 800
-- 1995 (estimated): 890
-- 1996 (projected): 960
12 - Automobiles - AUT
Although it was generally expected that passenger vehicle purchases
would increase, the first months of 1995 have been disappointing for the
industry. New passenger vehicle registrations decreased by 1.97% in the
first quarter, sales of imports by 12.87% and sales of diesel passenger
vehicles by 13.65%. As profit margins for dealers are shrinking, it is
expected that 20-25% of automobile dealers will shut within the next two
years. Japanese imports have been hit the hardest, with a 50% decrease
in vehicle sales. A growing number German consumers now purchase their
vehicles directly in other European countries, where prices are up to
30% lower, (or even in the United States, where prices may be 50% lower
than in Germany.) German dealers also carry large stocks of good
quality used vehicles, which are increasingly difficult to sell. As a
result, used car prices have also dropped drastically. German
manufacturers have managed to cut their production costs over the last
two years, however, and are now managing to increase exports of
passenger vehicles to other regions, especially Asia. The sale of U.S.
cars was not severely affected by the overall negative climate, but even
could record a slight increase.
Total market size (U.S. $ millions)
-- 1994 61,500
-- 1995 (estimated) 59,100
-- 1996 (projected) 61,300
Total local production (U.S. $ millions)
-- 1994 94,500
-- 1995 (estimated) 99,300
-- 1996 (projected) 104,200
Total exports (U.S. $ millions)
-- 1994 51,000
-- 1995 (estimated) 56,000
-- 1996 (projected) 58,800
Total imports (U.S. $ millions)
-- 1994 18,000
-- 1995 (estimated) 15,800
-- 1996 (projected) 15,900
Imports from the United States (U.S. $ millions)
-- 1994 340
-- 1995 (estimated) 400
-- 1996 (projected) 440
13 - Electric Power Generating Systems
Despite economic growth, energy consumption has continued to show a
slight decrease. This is basically due to improvements in energy
efficiency measures. The driving force for the power generating market
is the far-reaching structural change in the energy supply sector in
Eastern Germany. However, this process is slowed down by an ongoing
dispute over which energy source to favor. While in western Germany the
energy supply structure has already shifted to the advantage of energy
sources with more favorable air emission profiles, resulting in an
increased use of natural gas, eastern Germany favors power generation
from fossil fuels because of the local lignite resources.
Total market size (U.S. $ millions)
-- 1994: 18,300
-- 1995 (estimated): 22,700
-- 1996 (projected): 34,000
Total local production (U.S. $ millions)
-- 1994: 13,400
-- 1995 (estimated): 16,700
-- 1996 (projected): 28,200
Total exports (U.S. $ millions)
-- 1994: 2,700
-- 1995 (estimated): 3,300
-- 1996 (projected): 4,100
Total imports (U.S. $ millions)
-- 1994: 7,600
-- 1995 (estimated): 9,300
-- 1996 (projected): 11,600
Imports from the United States (U.S. $ millions)
-- 1994 520
-- 1995 (estimated): 570
-- 1996 (projected): 630
14 - Computer Services - CSV
The software services market is characterized by trends specific to
individual segments, in particular the professional services, network,
and support services markets. The professional services segment showed
a growth of 7.8% in 1994, after three years of decline, and is expected
to grow another 8% in 1995. Network services, which include managed
network services such as EDI and electronic mail, are expected to remain
the fastest growing segment with a 12.3% increase in 1994, expected to
rise to 13.9% in 1995. The market for support services continued to
decline in 1994 by 1.2% but is expected to level out in 1995 and to
slightly increase by 0.5% in 1996. The sharp decline in this segment is
mainly due to increased product reliability; longer warranties;
increased competition; and lower margins as prices decrease.
In contrast, the trend towards open systems, downsizing, and migration
towards client/server architectures are generating high demand for
specific types of software-related services such as the
management/maintenance of different applications in a structurally
complex architecture. Opportunities for the custom services market
centered on packaged software and systems integration will also
increase, as demand for software implementation and adaptation grows.
NOTE: The majority of large U.S. software service providers have
facilities in Germany. Their contribution to the German market is
accumulated under sales by local firms. All figures are estimates.
Official statistics are not available and figures supplied by trade
sources vary or are fragmented due to the complexity of the market.
Total sales (U.S. $ millions)
-- 1994 3,750
-- 1995 (estimated) 4,150
-- 1996 (projected) 4,700
Sales by local firms (U.S. $ millions)
-- 1994 2,800
-- 1995 (estimated) 3,100
-- 1996 (projected) 3,500
Sales by local firms abroad (U.S. $ millions)
-- 1994 400
-- 1995 (estimated) 450
-- 1996 (projected) 500
Sales by foreign-owned firms (U.S. $ millions)
-- 1994 550
-- 1995 (estimated) 600
-- 1996 (projected) 700
Sales by U.S-based firms (U.S. $ millions)
-- 1994 370
-- 1995 (estimated) 410
-- 1996 (projected) 460
15 - Electronic industry production and test equipment - EIP
The United States continued to be the leading foreign supplier of
electronic production and test equipment to the German market, with an
import market share of over 22 percent. Japan was next with 17.5
percent, Switzerland ranked third with 15 percent, followed by Italy,
7.1 percent, and Great Britain, 5.4 percent.
Potential growth is expected because of numerous capital improvement and
investment projects underway to adapt to new technologies as well as
expand and update existing facilities. The best market potential is
expected for semiconductor production equipment.
Total market size (U.S. $ millions)
-- 1994: 2,080
-- 1995 (estimated): 2,337
-- 1996 (projected): 2,381
Total local production (U.S. $ millions)
-- 1994: 4,599
-- 1995 (estimated): 5,176
-- 1996 (projected): 5,279
Total exports (U.S. $ millions)
-- 1994: 4,428
-- 1995 (estimated): 5,008
-- 1996 (projected): 5,133
Total imports (U.S. $ millions)
-- 1994: 1,909
-- 1995 (estimated): 2,169
-- 1996 (projected): 2,235
Imports from the United States (U.S. $ millions)
-- 1994 421
-- 1995 (estimated): 488
-- 1996 (projected): 514
Best Prospects for Agricultural Products
1 Snack Foods
2 Lumber Products
3 Fats and Oils
4 Hilton-type Quality Red Beef
5 Catfish
6 Wine/Beer
7 Citrus, Fresh and Juice
8 Pet Foods and Supplies
9 Nursery Products
A. Rank of Sector: 1
B. Name of Sector: Snack Foods, Excluding Nuts
C. PS&D Code: HVP
D. Total market size (U.S. $ millions)
-- 1994: 6,000
-- 1995 (estimated) : 6,750
-- 1996 (projected) : 6,750
E. Total local production (U.S. $ millions)
-- 1994: 3,500
-- 1995 (estimated) : 4,250
-- 1996 (projected : 4,250
F. Total exports (U.S. $ millions)
-- 1994: 1,275
-- 1995 (estimated) : 1,750
-- 1996 (projected : 1,750
G. Total imports (U.S. $ millions)
-- 1994: 3,750
-- 1995 (estimated) : 4,250
-- 1996 (projected) : 4,250
H. Imports from the United States (U.S. $ millions)
-- 1994: 11
-- 1995 (estimated) : 14
-- 1996 (projected) : 14
I. Exchange rate used: U.S. $ = DM 1.4
Comments: The German snack food market cannot be accurately formulated
on a metric ton basis as may be the case for other agricultural products
in this report, nor can any guarantee be given for the above guesstimate
on market size, production and trade. Snack food, due to its inherently
broad scope and its rapidly evolving nature in this market, defies any
uniform, tangible definition. Nonetheless, this branch of consumer-
oriented food items has profited dramatically. Based on a USDA/FAS
trade definition, U.S. exports of snack foods to Germany zoomed from
$2.2 million in 1989 to over $10 million in 1993. Average consumer
habits and willingness to purchase convenience, between-meal snacking
products appears ripe for continued strong growth.
A. Rank of Sector: 2
B. Name of Sector: Lumber Products
C. PS&D Code: FP
D. Total market size (in cubic meters 1000)
-- 1994: 1,550
-- 1995 (estimated) : 1,650
-- 1996 (projected) : 1,700
E. Total local production (in cubic meters 1000)
-- 1994: 1,300
-- 1995 (estimated) : 1,300
-- 1996 (projected) : 1,350
F. Total exports (in cubic meters 1000)
-- 1994: 200
-- 1995 (estimated) : 225
-- 1996 (projected) : 250
G. Total imports (in cubic meters 1000)
-- 1994: 450
-- 1995 (estimated) : 500
-- 1996 (projected) : 500
H. Imports from the United States (in cubic meters 1000)
-- 1994: 140
-- 1995 (estimated) : 150
-- 1996 (projected) : 155
I. Exchange rate used: U.S. $ = DM 1.4
Comments: The above figures for lumber products are in terms of
thousand cubic meters and focus specifically on the hardwood lumber
sector, the primary and fastest-growing market for U.S. woods. The
German furniture, flooring and other wood-processing sectors continue to
grow and have excellent growth chances in meeting increased demand from
the eastern German economy and other nearby Central European countries.
The U.S. export opportunities have been favorably influenced by the
German market's increasing diversification from primarily oak species to
other types of hardwoods. In addition, panel products exports to
Germany have also grown strongly in past years from $80 million in 1989
to over $145 million last year.
A. Rank of Sector: 3
B. Name of Sector: Fats & Oils (Edible & Non-Edible) 1,000 MT
C. PS&D Code: OPD
D.Total market size ( 000 metric tons)
-- 1994: 3,500
-- 1995 (estimated) : 3,500
-- 1996 (projected) : 3,600
E. Total local production ( 000 metric tons)
-- 1994: 2,000
-- 1995 (estimated) : 1,800
-- 1996 (projected : 1,750
F. Total exports ( 000 metric tons)
-- 1994: 900
-- 1995 (estimated) : 800
-- 1996 (projected) : 750
G. Total imports ( 000 metric tons)
-- 1994: 2,500
-- 1995 (estimated) : 2,500
-- 1996 (projected) : 2,600
H. Imports from the United States ( 000 metric tons)
-- 1994: 30
-- 1995 (estimated) : 35
-- 1996 (projected) : 40
I. Exchange rate used: U.S. $ = DM 1.4
Comments: The U.S. currently exports significant quantities of fats and
oils to Germany and market shares vary for individual products between
less than 1 percent to over 90 percent. Particularly in the animal fats
sector, exports may increase as domestic animal production is generally
tending downwards under the new Common Agricultural Policy of the
European Union.
A. Rank of Sector: 4
B. Name of Sector: Hilton-Type Quality Red Beef
C. PS&D Code: DLP
D.Total market size (metric tons)
-- 1994: 50,000
-- 1995 (estimated) : 55,000
-- 1996 (projected) : 60,000
E. Total local production (metric tons)
-- 1994: 0
-- 1995 (estimated) : 0
-- 1996 (projected) : 0
F. Total exports (metric tons)
-- 1994: 0
-- 1995 (estimated) : 0
-- 1996 (projected) : 0
G. Total imports (metric tons)
-- 1994: na
-- 1995 (estimated) : na
-- 1996 (projected) : na
H. Imports from the United States (metric tons)
-- 1994: 750
-- 1995 (estimated) : 1,000
-- 1996 (projected) : 1,500
I. Exchange rate used: U.S. $ = DM 1.4
Comments: As the U.S. again started to deliver in vary limited
quantities of top-quality Hilton beef cuts in 1992/93, the strong demand
became quite clear. Excellent demand factors exist in the market. The
open question is more in the supply side (availability of hormone-free
cuts for export) and the eventual possibility that hormone beef may be
accepted by the European Union.
A. Rank of Sector: 5
B. Name of Sector: Catfish
C. PS&D Code: DLP
D.Total market size (metric tons)
-- 1994 110,000
-- 1995 (estimated) 125,000
-- 1996 (projected) 130,000
E. Total local production (metric tons)
-- 1994 60,000
-- 1995 (estimated) 70,000
-- 1996 (projected 75,000
F. Total exports (metric tons)
-- 1994 12,000
-- 1995 (estimated) 15,000
-- 1996 (projected 15,000
G. Total imports (metric tons)
-- 1994 62,000
-- 1995 (estimated) 70,000
-- 1996 (projected) 75,000
H. Imports from the United States (metric tons)
-- 1994 90
-- 1995 (estimated) 125
-- 1996 (projected) 135
I. Exchange rate used: U.S. $ = DM1.4
Comments: Catfish is a product relatively new to the German market. It
is not separately identified in trade statistics. German consumer
trends towards healthy food and declining meat consumption will
gradually increase per capita consumption of fish from the present 15
kg. Farm-raised fish counters potential future problems with over-
fishing or oceanic pollution. The Catfish Institute has embarked on a
well-balanced promotional program to make this type of fish known to the
consumer in Germany. The upcoming Olympic Games in Atlanta will further
increase the potential for "Southern" food products from the U.S. to
Germany.
A. Rank of Sector: 6
B. Name of Sector: Wine
C. PS&D Code: HTP
D.Total market size (1,000 hl)
-- 1994 22,000
-- 1995 (estimated) 22,000
-- 1996 (projected) 22,000
E. Total local production (1,000 hl)
-- 1994 12,000
-- 1995 (estimated) 12,000
-- 1996 (projected 12,000
F. Total exports (1,000 hl)
-- 1994 2,000
-- 1995 (estimated) 2,000
-- 1996 (projected 2,000
G. Total imports (1,000 hl)
-- 1994 12,000
-- 1995 (estimated) 12,000
-- 1996 (projected) 12,000
H. Imports from the United States (1,000 hl)
-- 1994 14
-- 1995 (estimated) 15
-- 1996 (projected) 16
I. Exchange rate used: U.S. $ = DM1.4
Comments: Wine from the U.S. holds a minimal share of the total German
market for wine. German consumer interest in new products, coupled with
events in the United States which merit USA food and beverage promotions
(Soccer Championship in 1994 and Olympic Games in 1996) will
considerably increase German consumption of U.S. wine and thus raise
German consumer knowledge of and interest in this product.
A. Rank of Sector: 7
B. Name of Sector: Citrus-Fresh and Juice
C. PS&D Code: HTP
D.Total market size (U.S. $ millions)
-- 1994 900
-- 1995 (estimated) 910
-- 1996 (projected) 920
E. Total local production (U.S. $ millions)
-- 1994 0
-- 1995 (estimated) 0
-- 1996 (projected 0
F. Total exports (U.S. $ millions)
-- 1994 0
-- 1995 (estimated) 0
-- 1996 (projected 0
G. Total imports (U.S. $ millions)
-- 1994 900,000
-- 1995 (estimated) 910,000
-- 1996 (projected) 920,000
H. Imports from the United States (U.S. $ millions)
-- 1994 20
-- 1995 (estimated) 22
-- 1996 (projected) 25
I. Exchange rate used: U.S. $ = DM1.4
Comments: Continuing German consumer demand for fresh and healthy (rich
in vitamins) products increases demand for citrus products throughout
the year. Willingness to pay premiums for healthy foods, especially if
they have an exotic flair, provides a market potential for U.S.
products.
A. Rank of Sector: 8
B. Name of Sector: Petfoods and Supplies
C. PS&D Code: HVP
D.Total market size (U.S. $ millions)
-- 1994 3,400
-- 1995 (estimated) 3,500
-- 1996 (projected) 3,750
E. Total local production (U.S. $ millions)
-- 1994 3,100
-- 1995 (estimated) 3,100
-- 1996 (projected 3,200
F. Total exports (U.S. $ millions)
-- 1994 --
-- 1995 (estimated) --
-- 1996 (projected --
G. Total imports (U.S. $ millions)
-- 1994 300
-- 1995 (estimated) 310
-- 1996 (projected) 320
H. Imports from the United States (U.S. $ millions)
-- 1994 23
-- 1995 (estimated) 26
-- 1996 (projected) 28
I. Exchange rate used: U.S. $ = DM1.4
Comments: Germany is the leading country for pet ownership in the
world. Even though the majority of pet foods is produced domestically
(market leader is a U.S. firm), interest in specialty, healthy foods for
pets is growing rapidly. German pet owners are willing to pay premiums
to properly feed their pets.
A. Rank of Sector: 9
B. Name of Sector: Nursery Products (US$ million)
PS&D Code: HTP
D.Total market size (U.S. $ millions)
-- 1994 3,000
-- 1995 (estimated) 3,050
-- 1996 (projected) 3,050
E. Total local production (U.S. $ millions)
-- 1994 1,800
-- 1995 (estimated) 1,800
-- 1996 (projected 1,800
F. Total exports (U.S. $ millions)
-- 1994 250
-- 1995 (estimated) 250
-- 1996 (projected 250
G. Total imports (U.S. $ millions)
-- 1994 1,450
-- 1995 (estimated) 1,500
-- 1996 (projected) 1,500
H. Imports from the United States (U.S. $ millions)
-- 1994 45
-- 1995 (estimated) 50
-- 1996 (projected) 50
I. Exchange rate used: U.S. $ = DM1.4
Comments: Nursery products, particularly exotic plants for interior
decoration, have enjoyed a slow but steady growth in the German market.
Rapidly growing German tourism to places like Florida and Hawaii and the
concomitant desire to enjoy tropical foliage at home will increase the
market for house plants from the U.S. In addition, construction of
malls and public buildings, especially in the eastern part of Germany,
will increase the demand for large decorative plants.
6. Trade Regulations and Standards
Germany's regulations and bureaucratic procedures can prove a baffling
maze, blunting the enthusiasm of U.S. exporters. Safety standards, not
normally discriminatory but sometimes zealously applied, complicate
access to the market for many U.S. products. American products
frequently run afoul of German standards due to their complexity. It
behooves U.S. suppliers to do their homework thoroughly and make sure
they know precisely which standards apply to their product, and that
they obtain timely testing and certification. This is doubly important
because, to the extent EU-wide standards are developed, there is a high
probability that the existing German standard will form the basis for
the eventual European standard.
One of the difficulties that U.S. firms can encounter when exporting to
Germany is the need to comply with product standards. The European
Union's (EU) attempts to harmonize the various product safety
requirements of its member states have complicated the issue. The EU
harmonization of safety requirements and related standards is being
implemented for industrial products through EU directives. During the
transition period national requirements must be met. (After the
transition period the european-wide "CE" mark supercedes all other
compliance certificates, provided the products in question are covered
by an EU-directive.)
German buyers, however, may require additional performance or quality
marks, which are not necessarily legally required, but greatly enhance a
product's chances to be marketed. Both EU requirements and the
standards for a German quality or performance mark will, in many cases,
require a product to be modified. Even if the product does not require
modification, it will require testing and certification before it can be
marketed. Important marks are the "gepruefte Sicherheit" (GS) mark for
mechanical products, and the "Verband Deutscher Elektrotechniker" (VDE)
mark for electrical components. It should be emphasized that neither
the "GS" license nor the "VDE" license are mandatory for products sold
in Germany. The only exception is for products for use in certain work
place applications, where either of these marks are required to meet
insurance eligibility requirements.
The German organization that compiles the standards laying down the
requirements for a "GS" mark is the "Deutscher Industrie Normenausschuss
- DIN" (German Standards Institute). The organization responsible for
testing is the "Technischer Ueberwachungsverein e.V. - TUV," (Technical
Inspection Association).
Although the "VDE" license deals with electrical products, instead of
mechanical products, the same process of certification can be followed.
A company can obtain the "VDE" literature from the VDE publisher, VDE
Verlag, GmbH, or from the VDE association directly (for contact
information please see below).
The TUV tests for both the "VDE" license and the "GS" license. The
process for "VDE" certification is the same as that of the "GS" mark.
TUV and Certification Process for the "GS" and the "VDE" Licenses:
TUVs are private companies set up by various German states to inspect
and test products for compliance with German safety standards.
Individual TUVs have also been authorized by the German Government to
test products for compliance with EU legislation, and many have
established representative offices in the United States.
Firms interested in certification should contact a U.S. TUV office.
Effect of EU Harmonization of Standards on the "GS" and "VDE" mark:
The effect of EU harmonization on the "GS" and "VDE" mark is difficult
to analyze. It is estimated that about 75 percent of all American
products sold in the EU must have the "CE" mark once all directives have
been passed and all transition periods have expired. Where EU
directives are in place the "CE" mark is mandatory by law for products
that are covered by the appropriate directive; the mark allows the
product to be marketed in all the EU member states. National
certificates such as the "GS" and the "VDE" marks, may not be legally
required, but enhance marketing chances. German consumers look for
these marks in much the same way as Americans look for the "UL" mark.
Currently, only 11 of the 22 proposed and planned EU directives are in
place: low voltage electrical safety, toys, simple pressure vessels,
construction projects, electro-magnetic capability, gas appliances,
personal protective equipment, machinery, active implantable medical
devices, non- automatic weighing machines, and type approval of
telecommunications terminal equipment. For products where there is as
yet no EU directive, national standards must be adhered to.
Who has the authority to actually affix the "CE" mark? For many
products, the mark may be affixed by the manufacturer, based on his or
her own testing to verify that the product meets EU requirements.
However, EU legislation may require that an independent third party be
involved in product assessment.
Who is qualified to be this third party? The EU establishes so-called
"notified bodies," i.e. testing or certification agencies. The majority
of the TUVs have already been approved - they will play an important
role as notified bodies.
Contact information for EU "CE" standards:
Single Internal Market Information Service
Office of European Community Affairs
Room H-3036
International Trade Administration
U.S. Department of Commerce
Washington, D.C. 20230
Tel: (202) 482-5823
Fax: (202) 482-2155
U.S. Contacts for Foreign Standards Information:
National Center for Foreign Standards Information
National Institute of Standards and Technology
TRF Room A163
Gaithersburg, MD 20899
Telephone: (301) 975-4040
Telefax: (301) 975-2128
Ms. Janice Price
Europe\Regional, Political, and Economic Affairs
Room 6519
U.S. Department of State
Washington, D.C. 20520
Telephone: (202) 647-2395
Mr. Chris Marcich
DAUSTR for Europe and Mediterranean
Office of the U.S. Trade Representative
600 17th St., NW
Washington, D.C. 20506
Telephone: (202) 395-3320
American National Standards Institute
11 West 42nd St.
13th Floor
New York, NY 10036
Telephone: (212) 642-4900
Telefax: (212) 302-1286
Information for DIN literature:
DIN Publisher
Beuth Verlag GmbH
Burggrafenstrasse 6
10787 Berlin
Germany
Telephone: 011-49-30-26010 or 26011
Telefax: 011-49-30-26011-231
Global Engineering Documents
2805 McGaw Avenue
Irvine, CA 92714
Telephone: (800) 854-7179
Global Engineering Documents
7730 Carondelet Avenue
Suite 407
Clayton, MO 63105
Telephone: (800) 854-7179
Global Engineering Documents
1990 M St. NW
Suite 400
Washington, D.C. 20036
Telephone: (800) 854-7179
VDE Standards and Literature:
VDE - Verband Deutscher Elektrotechniker e.V.
Stresemannallee 15
60596 Frankfurt am Main
Germany
Telephone: 011-49-69-630 80
Telefax: 011-49-69-6308 273
VDE Verlag GmbH
Bismarckstr. 33
10625 Berlin
Germany
Telephone: 011-49-30-348-00-10
Telefax: 011-49-30-3417093
VDE Verlag GmbH
Merianstr. 29
63069 Offenbach
Germany
Telephone: 011-49-69-8400 060
Telefax: 011-49-69-831 081
TUV offices in the United States:
Replication Technologies Inc. RTI
(A TUV Essen Affiliate)
1032 Elwell Ct., Suite 222
Palo Alto, CA 94303
Telephone: (415) 961-0521
Telefax: (415) 961-9634
Contact: Klaus Petersen, Compliance Engineer
Replication Technologies Inc. RTI
(A TUV Essen Affiliate)
901 King Street
Suite 501
Alexandria, Va 22314
Telephone: (703) 548-2087
Telefax: (703) 548-2029
TUV Essen Laboratories
6 Brighton Rd.
Cliffton, NJ 07012
Telephone: (201) 773-8880
Telefax: (201) 773-8834
Contact: Wayne Gruber, Technical Manager
TUV America, Inc.
Headquarters
5 Cherry Hill Dr.
Danvers, Ma 01923
Telephone: (508) 777-7999
Telefax: (508) 777-8441
Contact: Kurt Else, President
TUV America, Inc.
Northwest Office
1416 Northwest 9th St.
Corvallis, OR 97330
Telephone: (503) 753-4438
Telefax: (503) 753-4510
Contact: Burk Brandt, General Manager
TUV America, Inc.
West Coast Office
7554 Trade St.
San Diego, CA 92121
Telephone: (619) 578-7999
Telefax: (619) 578-3706
Contact: Konrad Kobel, General Engineer
Frank Hensel, Product Safety Manager
TUV Rheinland of North America
Headquarters
12 Commerce Rd.
Newtown, CT 06470
Telephone: (203) 426-0888
Telefax: (203) 270-8883
Contact: John Tyra
TUV Rheinland
5860 West Las Positas Boulevard, Suite 19
Pleasanton, CA 94588
Telephone: (510) 734-8100
Telefax: (510) 734-8455
Contact: Ewald Reichert, General Manager
TUV Rheinland
11995 El Camino Real, Suite 101
San Diego, CA 92130
Telephone: (619) 792-2770
Telefax: (619) 792-2774
Contact: Ed Spooner, Office Manager
TUV Rheinland
38701 Seven Mile Rd., Suite 100
Livonia, MI 48152
Telephone: (313) 464-8881
Telefax: (313) 464-8919
Contact: Jurgen Hover, Branch Manager
TUV Rheinland
165 Forest St., Suite 201
Marlborough, MA 01752
Telephone: (508) 460-0792
Telefax: (508) 460-9073
Contact: Gunter Steege, Branch Manager
TUV Rheinland
3420 Executive Center
Livingston Building, Suite 165
Austin, TX 78731
Telephone: (512) 343-6231
Telefax: (512) 343-6233
Contact: George Jurasich, Product Safety Manager
TUV Rheinland
Sanlando Center Office Park, Suite 422
2170 West State Rd. 434
Longwood, FL 32779
Telephone: (407) 774-1222
Telefax: (407) 774-1033
Contact: Eli Orsosf, Branch Manager
PCI - Precision Calibration Inc.
(A TUV Rheinland Company)
12714 O'Connor Rd.
San Antonio, TX 78233
Telephone: (210) 655-7002
Telefax: (210) 646-8013
TUV Rheinland
4236 Commercial Way
Glennview, IL 60025
Telephone: (708) 699-0310
Telefax: (708) 699-6898
TUV Rheinland
10260 SW Nimbus, Suite M11
Portland, OR 97223
Telephone: (503) 620-0418
Telefax: (503) 620-6490
TUV Rheinland
728A Diamond Cut Dr.
Corpus Christi, TX 78409
Telephone: (512) 289-5890
Telefax: (512) 289-5899
TUV Rheinland
16760 Hedgecroft #608
Houston, TX 77060
Telephone: (713) 931-6096
Telefax: (713) 931-9323
Trade regulations and standards for Agricultural Products in Germany
General Veterinary Requirements: All beef and pork exported to Germany
for human consumption must come from slaughterhouses, cutting plants and
cold stores that have been approved by the EU. Legislation was recently
adopted which transfers the authority for approving poultry slaughter
and processing facilities from Member States to the Union. Until this
legislation is fully implemented, however, Germany will continue to
maintain a separate list of approved poultry facilities in third
countries.
Since 1989, the EU has prohibited the importation of meat from cattle
treated with growth hormones. Soon after this ban went into effect, an
agreement was reached between the United States and the EU that allows
American producers of beef from animals not treated with hormones to
export to the EU. Under the terms of this agreement, the cattle must
come from an EU-approved source, and the animals must be slaughtered in
a slaughterhouse that has been approved by the EU for handling untreated
beef.
Beef: The EU beef market is largely insulated from the world market by
high import duties on most products. Import opportunities do exist,
however, for selected products that are covered by fixed relatively low
tariffs or special quota. Most notably, the EU grants levy-free access
for annual imports of up to 10,000 MT of beef from the U.S. and Canada
under its high-quality beef (HQB) quota. (Imports under this quota are
still charged a 20-percent ad valorem duty, which will be reduced
according to the Uruguay Round Agreement.)
Beef livers carry a flat ad valorem duty of seven percent, all other
beef offal is charged four percent on an ad valorem basis. Under the
Uruguay Round Agreement, the seven-percent duty on beef livers will be
eliminated in six equal annual installments, with the first reduction
effective on January 1, 1995.
Pork: Although imports of pork had been subject to a variable levy,
selected market opportunities exist for these products. Under the
Uruguay Round Agreement, the levy has been converted to a tariff
equivalent which, in the case of frozen loins, will be reduced to
$0.45/lb in the last year of the six-year implementation period
beginning July 1, 1995.
Market access within the EU will be improved through the creation of a
tariff-rate quota totalling 75,000 MT by the year 2000, including a
39,000 MT allocation for tenderloins, boneless loins and boneless hams.
Pork offal imports are charged at the same duty rate as beef offal, and
are treated similarly under the Uruguay Round Agreement.
Poultry: Import opportunities exist for poultry meat that has been
seasoned. The European Union defines seasoned meat to be "uncooked meat
that has been seasoned either in depth or over the whole surface of the
product, with seasoning either visible to the naked eye or clearly
distinguished by taste." Imports of seasoned poultry are charged a flat
ad valorem duty of 17 percent.
Under the Uruguay Round Agreement, the variable levy system has been
replaced by a fixed tariff. Access for poultry within the EU will be
increased through the creation of a tariff-rate quota of 19,000 MT in
1995, increasing to 29,000 MT in the year 2000. The EU also committed
to cut tariffs on processed turkey from 17 to 8.5 percent over the six-
year implementation period.
Dairy Products: Under the Uruguay Round Agreement, the varaiable levy
on dairy products has been replaced by a fixed tariff equivalent.
Legislation recently adopted by the EU will limit the countries and
establishments from which the Union will accept imports of milk-based
products to those that have provided guarantees that sanitary controls
equivalent to those required of the EU Member States are in place.
Until this legislation is implemented, Germany will retain authority
over imports of milk-based products.
Horticultural Products: Germany is an important market for United
States horticultural products with U.S. exports reaching almost $300
million in 1993. Principal products include citrus, raisins, prunes,
almonds and walnuts. Increasingly, dried vegetables have shown strong
sales.
Horticultural products entering Germany face a number of border
restrictions. In addition to considerable tariffs, which vary by
product, many horticultural imports face an additional price restriction
in the reference price system. This system is used to protect internal
EU prices which are generally well above world market levels. If
imports are priced below the reference price, an additional
countervailing duty is charged to bring the import price above an
internal administrative price. Since U.S. horticultural exports are
generally of high quality, and thereby command a premium price, the
reference price is rarely an obstacle.
The minimum import price (MIP) system used for raisins is similar to the
reference price system. Raisin imports valued below a fixed reference
price are charged an additional countervailing duty. Here again, U.S.
exports have not been subject to the countervailing charge because they
have been priced above the minimum import price.
Under the Uruguay Round Agreement, the reference and minimum import
prices, the countervailing charges, and the duties for horticultural
products will be reduced by an average of 36 percent. Increased export
opportunities will be created for single-strength orange juice because
the EU will reduce its tariff from 19 percent in 1995 to 12.2 percent by
the year 2000. Other significant tariff cuts include a 75 percent
reduction in the duty on fresh foliage; a 50-percent cut in the duty for
shelled almonds, in-shell walnuts, and apples from January through
March; and a 36-percent cut in the duty for fresh asparagus, shelled
walnuts, fresh grapes, apples from August through December, roasted
almonds, roasted pistachios and potato chips.
Plant Health: As part of the Single Market exercise, the plant health
regulations in the fifteen European Union Member States have been
harmonized. The new regulations went into effect on June 1, 1993. The
EU has been successful in reducing the number of phytosanitary
restrictions and new marketing opportunities have been created for U.S.
horticultural exports. Phytosanitary certificates are required for most
fresh products.
Pesticide Residue Requirements: European Union legislation dated from
1990, requires the establishment of mandatory, EU-wide maximum residue
levels (MRLs) for most commonly used pesticides. Given the large number
of commodities and pesticides involved, the European Commission is
working with experts in the Member States to establish lists of
compounds for which MRLs will be developed and recommended for final
approval. The Commission is working in stages, starting with the
pesticides most commonly used in the Union. The first tranche of
maximum residue levels was adopted and published in July of 1993. For
pesticides not included on that list, German regulations will remain in
effect until a harmonized MRL is established by the Commission.
Organic Products: There is a small but growing niche market within
Germany for certified organic products. Since July 1992, Union-wide
regulations on marketing organic products have been in effect. The
United States and the European Union are currently discussing an
approach which would allow organic products from the U.S. to be marketed
within the Union. Until an agreement is reached between the Union and
the U.S., importers must work through German authorities to submit
technical information on certified organic products on a case-by-case
basis.
Consumer-Ready Products: For consumer-ready food products, there are a
number of issues to consider when planning a market development activity
in Germany. These issues can be broadly divided into two areas: market
access restrictions and food laws. In addition to bound import duties,
the EU has established a complex system of border protection measures
for food products. Since prices for basic agricultural commodities such
as dairy products, sugar and cereals are considerably higher than world
market prices, the EU maintains a mechanism to protect European
consumer-ready food products from imports made with lower-price inputs.
Therefore, most processed products entering the Union are subject to
additional import charges based on the percentage of sugar, milk fat,
milk protein and starch in the product. These additional import charges
have made many imported processed products non-competitive in the
European market. The situation should improve over the next few years
because these charges will be converted to fixed tariff equivalents and
reduced under the Uruguay Round Agreement.
7. Investment Climate
Openness to Foreign Investment
Under the 1956 U.S.-FRG Treaty of Friendship, Commerce and Navigation,
international capital movements between the U.S. and Germany are in
principle free. Germany subscribes to the OECD Code on Capital
Movements and Invisible Transactions (CMIT). The provisions of
Germany's Foreign Economic Law provide that restrictions can be imposed
on private direct investment flows in either direction for reasons of
foreign policy, foreign exchange, or national security. Pertinent
decisions would be taken by the federal government through legal
ordinances after consultation with the Bundesbank and the governments of
the federal states. According to the Economics Ministry, to date, no
such restrictions have been imposed. There is no broad authority to
screen and block Foreign Direct Investment (FDI).
Right to Private Ownership and Establishment
Foreign and domestic entities have the right to establish and own
business enterprises and engage in all forms of remunerative activity
and to acquire and dispose of interests in business enterprises.
Germany does not distinguish between hostile and friendly takeover.
However, hostile takeovers, whether domestic or foreign, are rare,
difficult and time-consuming, given German corporate practice and
structure.
100 percent foreign ownership is permitted in almost all sectors open to
private investment. The major exception is the guideline in the Energy
Compact (the "Stromvertrag") that seventy percent of the ownership of
power generation operations in the former East Germany be controlled by
VEAG (owned principally by the three major western German power
companies). The remaining 30 percent can be contracted out by the
eastern German municipalities, including to foreign investors. In
addition, firms in certain sectors, such as the media, can only be owned
up to 49 percent by any one individual or company. This law is designed
to avoid biased opinion in the media and applies to German as well as to
foreign firms.
Treatment of Investment
Under the terms of the U.S-FRG 1956 Treaty of Friendship, Commerce and
Navigation, U.S. investors enjoy national treatment. Germany subscribes
to the OECD Committee on Investment and Multinational Enterprises'
(CIME) National Treatment Instrument. Under German law, foreign-owned
companies registered in the FRG as a GmbH (limited liability company) or
an AG (joint stock company) have domestic status. American companies
legally established in Germany are eligible for R&D/technology funds of
the German Federal Government, provided some criteria are fulfilled.
These criteria concern the legal establishment and maintenance of
substantive R&D capacities in Germany, predominant use of R&D results in
Germany, and compliance with the IPR policy precluding uncontrolled
transfer of R&D results abroad. American company representatives
confirm that existing formal requirements and handling by German
authorities do not constitute a barrier to access to German funding.
Demonstrating the openness of the German system, the Chairman of
Germany's prestigious business organization the Bundesverband der
Deutschen Industrie (BDI) comes from a U.S.-owned subsidiary.
Taxation of Foreign Investment
The taxation of American firms within the FRG is governed by the 1989
"Convention for the Avoidance of Double Taxation with Respect to Taxes
on Income." It is effective for tax years beginning after 1989
(effective January 1, 1991, for the area that was the German Democratic
Republic).
With respect to taxes on income, both countries agreed to grant credit
toward their respective federal income taxes for taxes paid on profits
by enterprises located in each other's territory.
While there are many similarities between the German and American tax
systems, there are a few basic differences in the concept of taxation of
businesses. Prospective investors would be well advised to seek
professional advice before beginning business in Germany.
Conversion and Transfer Policies
There are no restrictions on transferring funds associated with an
investment. There are no restrictions on currency convertibility at the
market rate and no queuing for foreign exchange. There are also no
restrictions on inflows and outflows of funds for remittances of profits
or other purposes.
Expropriation and Compensation
Private property is expropriated for public purposes only, in a non-
discriminatory manner, and in accordance with established principles of
international law. There is due process and transparency of purpose,
and investors and lenders to expropriated entities receive prompt,
adequate and effective compensation.
Dispute Settlement
Germany is a member of the International Center for the Settlement of
Investment Disputes (ICSID).
Political Violence
Although isolated cases against certain ethnic minorities have occurred,
it has not substantially impacted on U.S. investments or investors.
Performance Requirements/Incentives
Performance requirements were employed in some acquisition contracts by
the Treuhandanstalt which was responsible for the privatization of
state-owned firms in the former G.D.R. Embassy is aware of no other
performance requirements imposed on direct foreign investment.
The Federal Government of Germany has created a comprehensive package of
incentives to accelerate the pace of investment in the former German
Democratic Republic. In addition to federal incentives and support
programs, there are also numerous local and regional financial schemes.
The incentives available for a particular investment may include one or
more of the following programs depending upon size and location and type
of investment:
-- Tax-based investment allowances and special depreciation allowances
-- Capital assets tax-exemption
-- Investment grants under regional-development schemes
-- Research and development grants
-- Direct loan programs including equity capital assistance and liaison
start-up program
-- Environmental investment programs
-- Federal Guarantee programs for investment credits
These programs are continually revised to respond to the current
conditions in the new states. The most current information on
investment incentives available for a particular project may be obtained
from the Federal Ministry of Economics, Task Force "New Laender",
Villemomblerstrasse 76, D-53107 Bonn.
Protection of Property Rights
The German Government adheres to a policy of National Treatment, which
considers property owned by foreigners fully protected under German law.
There is no discrimination against foreign-investment and foreign
ownership of real property.
Regulatory System
For specific information on investment, see the "Rules and Regulations
Covering Investment". Germany has a modern financial market sector.
Credit is available at market-determined rates to both domestic and
foreign investors and a variety of credit instruments are available.
Legal, regulatory, and accounting systems are transparent and consistent
with international norms. Germany has a universal banking system that
is effectively regulated by federal authorities. At the beginning of
1995, Germany opened a federal office for securities oversight and
implemented a series of laws to improve its securities trading system,
including insider trading laws.
Bilateral Investment Agreements
The following is a list of the 70 countries with which Germany has a
ratified treaty, and the 8 countries with which Germany has signed, but
not yet ratified, a treaty.
Ratified Treaties
Country Signed Ratified
Argentina 04/09/91 11/98/93
Bangladesh 05/06/81 09/14/86
Benin 06/29/87 07/18/85
Bolivia 03/23/87 11/09/90
Bulgaria 04/12/86 03/10/88
Burundi 09/10/84 12/09/87
Cameroon 06/29/62 11/21/63
Cape Verde 01/18/90 12/15/93
Central African Republic
08/23/65 01/21/68
Chad 04/11/67 11/23/68
China 10/07/83 03/18/85
Congo 09/13/65 10/14/67
Czech Republic 10/02/90 08/02/92
Dominican Republic
10/01/84 05/11/86
Ecuador 06/28/65 11/30/66
Egypt 07/05/74 07/22/78
Gabon 05/16/69 03/29/71
Greece 03/21/61 07/15/63
Guinea 04/19/62 03/13/65
Guyana 12/06/89 03/08/94
Hungary 04/30/86 11/07/87
Haiti 08/14/73 12/01/75
India 10/15/64 10/15/64
Indonesia 11/08/68 04/19/71
Iran 11/11/65 04/06/68
Ivory Coast 10/27/66 06/10/68
Jordan 07/15/74 10/10/77
Kazakhstan 09/22/92 05/10/95
Korea (Republic of)
02/04/64 01/15/67
Lesotho 11/11/82 08/17/85
Liberia 12/12/61 10/22/67
Madagascar 09/21/62 03/21/66
Malaysia 12/22/60 07/06/63
Mali 06/28/77 05/16/80
Malta 09/17/74 12/14/75
Mauritania 12/08/82 04/26/86
Mauritius 05/25/71 08/27/73
Morocco 08/31/61 01/21/68
Nepal 10/20/86 07/07/88
Niger 10/29/64 01/10/66
Oman 06/25/79 02/04/86
Pakistan 11/25/59 04/28/62
Panama 11/02/83 03/10/89
Papua New Guinea 11/12/80 11/03/83
Poland 11/10/89 02/24/91
Portugal 09/76/80 04/23/82
Romania 10/12/79 01/10/81
Russia 06/13/89 08/05/91
Rwanda 05/18/67 02/28/69
Senegal 01/24/64 01/16/66
Sierra Leone 04/08/65 12/10/66
Singapore 10/03/73 10/01/75
Somalia 11/27/81 02/15/85
Sri Lanka 11/08/63 12/07/66
St/ Lucia 03/16/85 07/22/87
St/ Vincent 03/16/85 07/22/87
and the Grenadines
03/25/86 01/08/89
Sudan 02/07/63 11/24/67
Syria 08/02/77 04/20/80
Tanzania 01/30/65 07/12/68
Thailand 12/13/61 04/10/65
Togo 05/16/61 12/21/64
Tunesia 12/20/63 02/06/66
Turkey 06/20/62 12/16/65
Uganda 11/29/66 08/19/68
Uruguay 05/04/87 06/29/90
Yemen 06/21/74 12/19/78
Yugoslavia 07/10/89 10/25/90
Zaire 03/18/69 07/22/71
Zambia 12/10/66 08/25/72
Signed Treaties
Country Signed Temporarily Applicable
Israel 06/24/76 Yes
Swaziland 04/05/90 No
People's Republic
of Mongolia 06/26/91 No
Chile 10/19/91 No
Albania 10/31/91 Yes
Lithuania 02/28/92 Yes
Jamaica 09/24/92 No
Estonia 11/12/92 Yes
OPIC and other Investment Insurance Programs
OPIC programs are no longer operational in the new federal states.
Labor
While employers complain that wages and fringe benefits are high, thus
impairing international competitiveness, the German labor force is well-
educated, well-trained, and well-disciplined. Although unemployment is
a problem, some categories of skilled workers are in short supply in
certain regions of Germany. Generally, however, the highly-acclaimed
dual system of combined on-the-job and academic training for apprentices
produces the skills needed by employers. Legislation designed to
protect workers limits the ability of employers to lay off redundant
workers and therefore discourages flexible hiring practices.
Unionized (about 35% of the labor force) German labor is organized in a
few large unions. Traditionally union leaders have been able to come to
agreement with management with relatively little work stoppage. Co-
determination laws give labor significant voting representation in the
supervisory boards of larger companies. Management is legally limited
in its recourse to lockouts. Severance compensation is generous and
management latitude to alter its workforce is restricted. Overall
compensation in Germany is among the highest in the world. There is
also an ongoing contractually-agreed reduction in weekly working time,
which in the metal and electrical industries will decline to 35 hours in
late 1995.
Foreign Trade Zones/Free Ports
There exist free trade import zones in FRG harbors, the major ones being
in Hamburg, Bremen, and Bremerhaven. There are also free trade import
zones attached to all German airports with international air traffic.
They operate under the provisions of the German Customs Law of June 14,
1961, revised. Foreign-owned firms are entitled to equal treatment with
German companies.
Capital Outflow Policy
The German Government does not regulate capital outflows. It has in the
past attempted to encourage investment outflows to LDC's through: (1)
a series of bilateral investment treaties to assure the right of
transfer of profits and repatriation of capital or compensation in the
event of expropriation; and (2) a Developing Country Tax Law, which
provided certain tax privileges in return for investments in LDC's. The
effects of these actions on outflows were rather modest, and the second
program was scrapped in the face of budget pressures.
8.Trade and Project Financing
Germany has a basically non-discriminatory, well developed financial
services infrastructure. Germany's universal banking system allows the
country's more than 45,000 bank offices not only to take deposits and
make loans to customers, but also to trade in securities. The
traditional German system of cross-share holding among banks and
industry, as well as an undeveloped equity market and a high rate of
bank borrowing dictate that German banks exert substantial influence on
industry. There is current discussion on whether or not the banks'
influence should be diminished, but given the overall conservative
nature of the financial system and its successes in the past it is
unlikely that profound changes will result. Private banks control
roughly 30 percent of the market, while publicly-owned savings banks
controlled by state and local governments account for 50 percent of
banking turnover, and cooperative banks make up the balance. All three
types of banks offer essentially the same, full range of services to
their customers. An array of specialist banks finance homeowner
mortgages, provide guarantees to small and medium-sized businesses,
finance projects in disadvantaged regions in Germany and guarantee
exports to developing countries.
Practices regarding finance, availability of capital and schedules of
payment are comparable to those which prevail in the United States.
There are no restrictions or barriers on the movement of capital,
foreign exchange earnings or dividends. Virtually all major U.S. banks
are represented in the German market, principally but not exclusively in
the city of Frankfurt am Main, Germany's main financial center. A large
number of German banks, including some of the partially state-owned
regional banks, similarly maintain subsidiaries, branches and/or
representative offices in the United States. Germany's "big three"
private banks are Deutsche Bank, Dresdner Bank and Commerzbank.
9. Business Travel
Neither Germany's legal system or its fully developed infrastructure
present any obstacles for traveling to the country. Traveling by plane,
train or car meets international standards. After unification, the
number of in-country flights has been picking up and the train stations
that dot the country provide sufficient access to nearly all cities.
Nevertheless, cars are still the most popular means of transport and
Germany's famous highway system is extensive. The condition of roads in
eastern Germany may still not reach western German standards, but they
are no real barrier to traveling. Geographic distances are relatively
short, when compared to the United States, but as Germany is much more
densely populated than its European neighbors, it may take a little
longer to travel the same distance in the FRG than it may take in France
or Scandinavia. Especially the industrial and commercial centers in the
Rhine-Main (Frankfurt) and Rhine-Ruhr areas are densely populated and
heavily industrialized, and business travellers are well advised to plan
on timely departures to reach their destination in time.
There is sufficient hotel space in most major cities, unless there
happens to be a major trade fair or a similar event in a particular
city. Business class amenities and services can be found in all major
cities, including those in the eastern states.
10. Appendices
10a. Country Data
NOTE: Figures apply to unified Germany (eastern and western) unless
otherwise specified by endnote. *= projected
A. Population: 80.3 million (1991), including 15.8 million in eastern
Germany and 5.9 million foreigners (d).
B. Religion: 44.2% Protestant, 36% Catholic.
C. Government: Constitutional, parliamentary confederation
Head of State: Roman Herzog, President
Head of Government, Helmut Kohl, Chancellor
D. Language: German
10b. Domestic Economy
1993 1994 1995 End
notes
(ytd) Source
A. GDP (current DM bill) 3108.0 3256.0* n/a e
B. GDP (current, $ bill) 1883.1 1997.5* n/a a
C. Real GDP growth (%) -1.2 +2.9 n/a 1a
D. GDP per capita ($) 23,500 24,600* n/a a
E. Govt Expend. (% GNP) 14.9 14.7 n/a 5a
F. Public expend (% GNP) 54.3 54.1 n/a 5a
G. Inflation (% CPI) 4.2 3.0 2.2/May 5,2e
H. ForEx Res. ($ bill) 37.4 37.2 41.1/Mar 3a
I. Unemployment 8.8 9.6 9.3/Apr 8a
J. Exchange Rate ($/DM) 1.65 1.62 1.54/Apr 4a
K. Public Debt ($ bill) 307.4 324.0 n/a 3a
For the following data 1985 = 100
L. Wages and salaries 156.5 161.7 n/a 5,6a
M. Productivity 125.7 138.6 n/a 5,6a
N. Production 109.9 118.1 n/a 5,7a
10c. Trade
German
A. Exports (fob/$ bill) 380.9 423.0 73.4/Feb a
B. Imports (cif/$ bill) 344.0 377.2 63.8/Feb a
United States (to/from Germany)
C. Exports (fas/$ bill) 19.0 19.2 3.4/Feb b
D. Imports (fob/$ bill) 28.6 31.7 5.3/Feb b
E. Principal U.S. exports: computers & software, aircraft, motor
vehicles and parts, analytical/medical equipment, telecommunications
equipment, chemicals.
F. Principal U.S. imports: motor vehicles/parts, machine tools,
machinery, analytical/diagnostic equipment, chemicals.
G. Foreign supplier share of German imports (%):
1993 1994 1995 End-
notes
(ytd) Source
1. France 11.2 11.1 n/a a
2. Netherlands 8.3 8.2 n/a a
3. Italy 8.1 8.4 n/a a
4. United States 7.4 7.3 n/a a
5. Japan 6.3 5.6 n/a a
6. United Kingdom 6.1 6.2 n/a a
7. Belgium/Lux. 5.7 6.1 n/a a
8. Austria 4.6 4.8 n/a a
H. BOP, Current Account
($ bill) -15.6 -20.6 -2.3/Feb a
I. Trade balances with world and leading trading partners
(U.S. $ billions):
1993 1994 1995 End-
notes
(ytd) Source
** World ** +37.0 +45.8 +9.6/Feb a
1. United Kingdom +8.2 +10.3 n/a a
2. France +5.8 +8.9 n/a a
3. Belgium/Lux. +5.3 +5.2 n/a a
4. United States +4.1 +6.0 n/a a
5. Italy -0.0 +0.2 n/a a
6. Netherlands -0.7 +0.8 n/a a
7. Japan -11.1 -9.9 n/a a
8. Austria +6.6 +6.4 n/a a
J. Import policy:
1. Tariffs: EC Common External Tariff.
2. Taxes: Value Added Tax (VAT) of 15% on industrial goods.
3. Licensing: Few restrictions.
Sources:
a. German Bundesbank Monthly Reports
b. Official statistics of the U.S. Department of Commerce
c. Survey of Current Business, 6/1993
d. Statistisches Jahrbuch, Statistisches Bundesamt, 1992
c. German Federal Statistics Office
10d. Investment Statistics
Foreign Direct Investment (FDI) Statistics
The following data are the latest available from the Bundesbank.
Figures on investment refer to the book-value of investment as opposed
to the market value. These figures do not include foreign ownership
interests via third party investment. Information on flows is based on
market value.
The United States remains the single largest source of foreign
investment in Germany, providing some 26 percent of FDI in 1993. The
next largest investor was the Netherlands with 21 percent. In recent
years, the rate of non-U.S. investment in Germany has grown much more
quickly than that of U.S. investment, which has actually declined
slightly since 1991. The reason for the decrease in U.S., as contrasted
with non-U.S., investment is not entirely clear, but may have to do with
exchange rate movements and the implementation of the EU's common
internal market. U.S. companies have been among the most important
investors in the new German states.
Table I. FDI (in Germany) by country of origin (Million DM)
Country 1990 1991 1992 1993
All Countries 178,710 199,836 209,771 220,964
Industrialized
Countries 173,251 194,104 203,055 212,934
EU Countries 64,836 75,430 85,539 97,327
Belgium 2,645 2,759 3,904 5,116
Denmark 1,708 2,172 2,555 2,555
France 10,421 13,221 15,009 17,157
Greece 81 94 71 52
U. K. 13,979 15,003 16,308 17,814
Ireland 40 449 342 356
Italy 4,833 4,652 4,483 3,705
Luxemburg 1,097 1,515 1,825 2,788
Netherlands 29,240 34,440 39,813 46,554
Portugal 13 13 24 43
Spain 780 1,112 1,205 1,187
Other European Countries
Finland 1,091 1,328 1,322 1,396
Norway 502 649 744 770
Austria 2,725 3,847 4,765 4,885
Sweden 7,863 7,934 6,477 5,769
Switzerland 26,223 26,711 25,728 25,380
Turkey 100 153 176 191
Non-European Countries
Japan 11,910 14,454 15,262 15,221
Canada 1,640 2,779 2,748 2,861
U.S.A. 55,945 60,280 59,555 58,320
Australia 409 514 676 700
Other Countries 9 23 64 115
Developing Countries
4,037 4,096 4,569 5,819
Africa 152 78 127 174
South Africa 9 23 64 115
The Americas 2,170 2,112 2,005 2,326
Argentina 294 325 310 302
Bahamas 116 122 183 141
Bermuda 552 99 142 146
Brazil 135 134 125 147
Cayman Islands 282 560 105 220
Mexico 8 11 8 4
Dutch Antilles 645 715 720 809
Panama 45 51 259 266
Uruguay 22 25 28 50
Other Countries 63 48 62 50
Asia and Oceana 1,715 1,907 2,436 3,396
Hong Kong 113 80 92 119
India 52 52 59 56
Israel 72 152 183 277
Singapore 2 19 19 26
Pakistan 14 14 15 16
South Korea 518 528 458 973
Thailand 27 33 32 36
Other Countries 29 29 222 72
OPEC Countries
Indonesia 63 56 47 52
Iran 568 645 1,020 1,443
Kuwait 49 65 71 72
Saudi Arabia 12 13 15 14
Mid- and East
European Countries/
Reform Countries
1,422 1,637 2,147 2,211
Bulgaria 59 59 53 49
China 70 79 106 118
Poland 215 251 279 258
Romania 28 25 24 25
Former USSR - 405 892 1,022
Czech Republic 224 245 245 170
Hungary 121 112 116 88
Former Yugoslavia 366 461 410 442
Slovakia - - - 19
Other Countries 338 0 22 20
Table II. German direct and indirect investment abroad according
country and industry sector 1993 (Million DM.)
Country Industry Machinery Chemical Automotive
All Countries 319,448 18,883 51,095 26,201
Industrialized
Countries 279,387 15,665 45,314 20,214
EU Countries 153,245 7,520 20,272 13,803
Belgium 27,301 300 7,739 6,210
Denmark 1,903 324 257 64
France 26,302 2,274 3,852 1,695
U. K. 20,655 1,732 2,061 643
Ireland 16,864 111 565 843
Italy 13,250 1,099 2,018 864
Luxemburg 12,616 24 31 0
Netherlands 19,550 869 1,353 1,663
Portugal 2,285 83 235 340
Spain 11,348 656 2,037 1,474
Greece 1,171 47 124 0
Other European Countries
Norway 1,285 43 67 0
Austria 12,356 666 864 1,537
Sweden 2,348 111 298 79
Turkey 1,102 18 282 168
Switzerland 12,917 786 591 58
Non-European Countries
Australia and
New Zealand 3,301 394 547 378
Japan 8,011 318 3,056 1,584
Canada 7,755 379 1,999 148
U.S.A. 76,449 5,506 16,882 2,321
Developing Ctrs. 33,905 2,693 5,540 4,529
Africa 3,959 302 396 543
South Africa 2,408 234 290 539
The Americas 21,849 1,913 3,615 3,868
Argnt. 1,977 26 266 356
Brazil 10,582 1,798 1,468 2,508
Mexico 4,127 74 1,218 915
Asia and Oceania 8,097 478 1,529 118
Hong Kong 1,794 98 175 0
India 450 55 123 0
Singapore 1,925 228 65 36
South Korea 721 50 369 28
Malaysia 743 13 221 0
Reform Countries 6,155 525 241 1,457
Check Rpbl. 655 181 15 396
Hungary 2,210 146 37 468
Table III. German direct and indirect investment abroad according to
country and industry sector 1993 (Million DM).
Country Mining Electrical Commerce/Trade
All Countries 4,568 20,039 54,810
Industrialized
Countries 30,090 16,078 50,956
EU Countries
Belgium 985 7,299 27,314
Denmark - 987 2,991
France 5 1,011 7,053
Greece - 231 329
United Kingdom 660 1,555 5,612
Ireland - 397 159
Italy - 964 4,377
Luxemburg - - 108
Netherlands 214 356 3,150
Portugal - 563 372
Spain - 1,119 2,230
Other European Countries
Norway - 267 303
Austria - 1,220 3,083
Sweden - 338 741
Switzerland - 791 3,317
Turkey - 248 126
Non-European Countries
Australia and
New Zealand 96 244 898
Japan - 216 4,319
Canada 1,181 254 767
U.S.A. 90 5,071 9,884
Developing Countries - 3,613 2,980
Africa 744 294 432
South Africa 13 230 344
The Americas - 2,235 732
Argentina - 108 100
Brazil - 1,461 150
Mexico - 575 232
Asia and Oceania 445 1,084 1,816
Hong Kong - 49 738
India - 63 14
Singapore - 390 457
South Korea - 26 197
Malaysia - 268 55
Reform Countries - 348 873
Czech Republic - 177 288
Hungary - 59 344
10e. U.S. and Country Contacts
I. COUNTRY GOVERNMENT AGENCIES
Federal Ministry of Economics
Bundesministerium fuer Wirtschaft
Dr. Hans-Martin BURKHARDT, America Desk Officer
Villemombler Strasse 76
D-53123 BONN, Germany
TEL: [49] 228/615 2158
FAX: [49] 228/615 2652
Bundesministerium fuer Wirtschaft
Dr. Bernard VELTRUP, Head of Division - New States
Villemombler Strasse 76
D-53123 BONN, Germany
TEL: [49] 228/615 4414
FAX: [49] 228/615 4431
Federal Bureau for Foreign Trade Information
Bundestelle fuer Aussenhandelsinformation
Mr. Wolfgang POTTHAST, North American Desk Officer
Agrippastrasse 87-93
50676 COLOGNE, Germany
TEL: [49] 221/20 57-249
FAX: [49] 221/20 57-212
Federal Ministry of Finance
Bundesministerium fuer Finanzen
Graurheindorfer Strasse 108
53117 BONN, Germany
TEL: [49] 228/682-0
FAX: [49] 228/682 4420
II. COUNTRY TRADE ASSOCIATIONS/CHAMBERS OF COMMERCE
Bundesverband der Deutschen Industrie e.V. (BDI)
(Federation of German Industries)
Gustav-Heinemann-Ufer 84-88
50968 COLOGNE, Germany
TEL: [49] 221/3708-00
FAX: [49] 221/3708 730
Deutsche Industrie und Handelstag (DIHT)
(Federation of German Chambers of Industry and Commerce)
Adenauerallee 148
53113 BONN, Germany
TEL: [49] 228/104-0
FAX: [49] 228/104 158
Bundesverband des Deutschen Gross- und Aussenhandels e.V. (BGA)
(Federation of German Wholesale and Foreign Trade)
Kaiser-Friedrich Strasse 12
53133 BONN, Germany
TEL: [49] 228/26004-0
FAX: [49] 228/26004 55
Zentralverband Elektrotechnik- und Eletronikindustrie e.V. (ZVEI)
(German Electrical and Electronic Manufacturers Association)
Stresemannallee 19
60596 FRANKFURT, Germany
TEL: [49] 69/630 20
FAX: [49] 69/630 2317
Verband Deutscher Maschinen- und Anlagenbau e.V. (VDMA)
(German Association of Machinery and Plant Manufacturers)
Lyoner Strasse 18
60528 FRANKFURT, Germany
TEL: [49] 69/660 30
FAX: [49] 69/660 3511
Centralvereinigung Deutscher Handelsvertreter- und Handelsmakler-
Verbaende (CDH)
(General Association of Commercial Agents and Brokers)
Geleniusstrasse 1
50931 COLOGNE, Germany
TEL: [49] 221/5140 4344
FAX: [49] 221/5257 67
III. COUNTRY MARKET RESEARCH FIRMS
It would exceed the scope of this guide to list even only the major
market research or consultant companies. Most of these firms belong to
one or both of the following associations and can be contacted through
these.
Arbeitskreis Deutscher Marktforschungs-Institute e.V. (ADM)
(Federation of German Market Research Institutes)
Mr. Gerhard UNHOLZER, Member of the Board
Marktplatz 9
63065 OFFENBACH, Germany
TEL: [49] 69/8143 25
FAX: [49] 69/8143 88
Bundesverband Deutscher Unternehmensberater e.V. (BDU)
(Federal Association of German Consultants)
Mr. Norbert Kuester, Manager
Friedrich-Wilhelm-Strasse 2
53133 BONN, Germany
TEL: [49] 228/2380 55
FAX: [49] 228/2306 25
IV.COUNTRY COMMERCIAL BANKS
There are numerous domestic and foreign banks represented in Germany;
among the largest German and American institutions are:
Deutsche Bank AG
Taunusanlage 12
60262 FRANKFURT, Germany
TEL: [49] 69/9103-0
FAX: [49] 69/9103 4227
Dresdner Bank AG
Juergen-Ponto-Platz 1
60631 FRANKFURT, Germany
TEL: [49] 69/263-0
FAX: [49] 69/263 4004
Westdeutsche Landesbank
Herzogstrasse 15
40199 DÜSSELDORF, Germany
TEL: [49] 211/862 01
FAX: [49] 211/826 6120
Commerzbank AG
Neue Mainzer Strasse 32-36
60261 FRANKFURT, Germany
TEL: [49] 69/136 20
FAX: [49] 69/1262 4021
Citibank N.A.
Neue Mainzer Strasse 75
60311 FRANKFURT, Germany
TEL: [49] 69/1366-0
FAX: [49] 69/1366-1113
Salomon Brothers AG
Wiesinhuettenstrasse 10
60329 FRANKFURT, Germany
TEL: [49] 69/2607-0
FAX: [49] 69/232570
J.P. MORGAN GMBH
Mainzer Landstrasse 46
60325 FRANKFURT, Germany
TEL: [49] 69/712 40
FAX: [49] 69/712 4306
MERRILL LYNCH BANK AG
Neue Mainzer Strasse 75
60311 FRANKFURT, Germany
TEL: [49] 69/299 40
FAX: [49] 69/9711 7247
V. U.S. EMBASSY TRADE PERSONNEL
A. UNITED STATES EMBASSY, BONN, GERMANY
Mailing Address: American Embassy, Bonn
PSC 117, Box 370 (U.S. & Foreign Commercial Service)
APO, AE 09080
or
American Embassy, Bonn
PSC 117, Box 385
(Office of Agricultural Affairs)
APO AE 09080
Street Address: American Embassy
Deichmanns Aue 29
53170 BONN, Germany
TEL: [49] 228/339-1 (Switchboard)
FAX: [49] 228/339-2663
Ambassador
Charles Redman
Deputy Chief of Mission
James D. Bindenagel
Minister Counselor for Administration
Donald S. Hays
Minister Counselor for Commercial Affairs
Robert Kohn
TEL: [49] 228/339 2895
FAX: [49] 228/334649
Minister Counselor for Economic Affairs
Janice Bay
TEL: [49] 228/339 2202
FAX: [49] 228/339 2838
Minister Counselor for Agricultural Affairs
James Grueff
TEL: [49] 228/339 2133
FAX: [49] 228/334697
Financial Attache
Carl Lohmann
TEL: [49] 228/339 2120
FAX: [49] 228/334675
B. U.S. EMBASSY OFFICE BERLIN
U.S. & Foreign Commercial Service
James Joy, Principal Commercial Officer
Frank Carrico, Commercial Officer
Neustaedtische Kirchstrasse 4-5
10117 Berlin, Germany
TEL: [49] 30/238 5174
FAX: [49] 30/238 6296
C. U.S. Consulates
Dusseldorf
U.S. & Foreign Commercial Service
Thomas Lee Boam, Consul General
Kenneth Keefe, Commercial Officer
Kennedydamm 15-17
40547 DÜSSELDORF, Germany
TEL: [49] 211/4706128
FAX: [49] 211/431431
Frankfurt
U.S. & Foreign Commercial Service
Larry Eisenberg, Commercial Officer
Siesmayerstrasse 21
60323 FRANKFURT, Germany
TEL: [49] 69/7535 2453
FAX: [49] 69/7482 04
Hamburg
U.S. & Foreign Commercial Service
Hans Amrhein, Commercial Officer
Alsterufer 27/28
20354 HAMBURG, Germany
TEL: [49] 40/4117 1304
FAX: [49] 40/4106 598
Leipzig
U.S. & Foreign Commercial Service
Birgit Lehne, Commercial Assistant
Wilhelm-Seyfferth-Strasse 4
04107 LEIPZIG, Germany
TEL: [49] 341/2138 440
FAX: [49] 341/2138 841
Munich
U.S. & Foreign Commercial Service
Stephen Helgesen, Principal Commercial Officer
Koeniginstrasse 5
80539 MUNICH, Germany
TEL: [49] 89/288 8748
FAX: [49] 89/285 261
D. OTHER COUNTRY CONTACTS
U.S. Agricultural Trade Office
Alsterufer 27/28
20354 HAMBURG, Germany
TEL: [40] 4146070
FAX: [40] 41460720
VI. WASHINGTON-BASED USG COUNTRY CONTACTS
U.S. Department of Commerce
International Trade Administration
Brenda J. Fisher and John A. Larsen
Germany Desk Officers
Room 3043
Washington, DC 20230
TEL: (202) 482-2435 or (202) 482-2434
FAX: (202) 482-2897
U.S. Department of State
Germany Desk Officers
EUR/CE/Room 4228
Washington, DC 20520
TEL: (202) 647-2155
FAX: (202) 647-5117
U.S. Department of the Treasury
Oscar Mackour
Germany Desk Officer
Room 5050
15th and Pennsylvania Avenues, N.W.
Washington D.C. 20220
TEL: (202) 622-0145
FAX: (202) 622-0134
Office of the U.S. Trade Representative
Office of Europe and the Mediterranean
Executive Office of the President
Washington, DC 20506
TEL: (202) 395-3211
FAX: (202) 395-3911
VII. U.S.-BASED MULTIPLIERS
Embassy of the Federal Republic of Germany
4645 Reservoir Road, N.W.
Washington, D.C. 20007-4000
TEL: (202) 298-4000 (switchboard)
CMA - German Agricultural Marketing Board
North American Office
950 Third Avenue
9th Floor
New York, NY 10168-0072
TEL: (212) 753-5900
FAX: (212) 826-3278
German American Chamber of Commerce Inc.
40 West 57th Street
New York, NY 10019-4092
TEL: (212) 974-8830
FAX: (212) 974-8867
German Representative for Industry and Trade
Mr. Jakob Esser
1627 Eye Street, NW
Suite 550
Washington DC 20006
TEL: (212) 659-4777
FAX: (212) 659-4779
10f. Market Research
FCS Germany plans to report on the following non-agricultural industry
(sub-) sectors:
Business Equipment - Non-Computer (BUS)
Franchised Restaurant Chains (FRA)
Machining Centers (MTL)
Refrigeration Equipment (ACR)
Scientific Lasers (LAB)
Semiconductor Production Equipment (ELC)
Spectroscopy Instruments (LAB)
Toys and Games (TOY)
Packaged Software for the Small Office/Home Office (CSF)
Electromedical Equipment (MED)
Plastics (PMR)
Lingerie/Dessous (APP)
Information Services (FMS)
Man-Made Fibers (TXF)
Automotive Industries (AUT)
Textile Machinery (TXM)
Musical Instruments (MUS)
Power Transmission Equipment (GIE)
Vitamins and Food Supplements (DRG)
Alarms & Other Detection Equipment (SEC)
Diagnostic Products (BTC)
Multimedia (CPT)
Mobile Telecommunications (TEL)
Power Semiconductors (ELC)
Aircraft and Parts (AIR)
IMI reporting on all industry sectors will continue during the year.
Annual agricultural economic and administrative reporting
Date Report
When available Cotton Import Trade Data Quarterly
When Available Grain & Feed Export Trade Data Monthly
When Available Oilseeds Export Trade Data Monthly
When Available Oilseeds Import Trade Data Monthly
Monthly ATO Activities & Contacts
January 1 Fresh Deciduous Fruit, Semi-Annual
February 1 Livestock Semi-Annual
March 1 Grain & Feed Annual
March 15 Seafood Semi-Annual
April 10 Sugar Annual
May 15 Dairy Semi-Annual
June 1 Oilseeds and Products Annu