How strong are German companies in the U.S. market? Which branches are particularly active in the United States?
Approximately 4,700 companies in the United States benefit from German equity investment. At the end of 2015, German direct investment in the United States totalled about U.S.$ 255 billion. The United States imported goods from Germany with a total value of U.S.$ 114 billion. Around one-third of U.S. imports from Germany are from the automotive industry, followed by chemicals and mechanical engineering. German companies are drivers for jobs and growth in the United States. In total, German subsidiaries provide more than 670,000 jobs in the United States.
What challenges do companies in the U.S. market face and what changes will there be under the new U.S. President?
According to the “German American Business Outlook 2017”, 72 percent of U.S. subsidiaries of German companies believe that under the new administration, there will either be change for the better or no change at all. Firms would like for the new administration to tackle challenges related to tax reform and free trade agreements. Furthermore, they would also like to see improved investment conditions, the development of training programs, increased investment in infrastructure, and simplified visa requirements.
Will the work of RGIT change under the new U.S. administration? What does RGIT see as its work priorities?
RGIT in Washington will continue to promote open markets. The goal is to position the transatlantic market as an integral part of the global economy. This can only be achieved if transatlantic economic relations are further deepened. A business environment built on trust, a reliable framework, and open markets are the basis for those relations. RGIT will continue to strive for partnership, integration, cooperation, reliability, and openness – on both sides of the Atlantic.
Daniel Andrich is head of the joint representation of the Federation of German Industries (BDI) and the Association of German Chambers of Industry and Commerce (DIHK) in the United States – the Representative of German Industry and Trade (RGIT).