Trade Promotion: Adapting Instruments to Growing Importance of Foreign Trade

© Andi_Graf, Pixabay

Foreign markets are increasingly important for German businesses, making the government’s trade promotion instruments even more important.

The German export sector continues to grow. According to the Federal Statistical Office, exports grew by 6.4 percent in 2015 (compared to 2014). With growth of 3 percent exports to third countries outside the EU grew Yet, raw-material-exporting developing countries and emerging economies have had to postpone investments on account of falling prices for oil and other raw materials; the geopolitical situation in the Middle East remains volatile.

As a consequence, the instruments of trade promotion are more in demand than ever. The German government offers a multitude of instruments, from participation in trade fairs abroad to export credit insurance. In 2015, for example, the German government insured exports worth €25.8 billion. BDI would like to see the instruments of trade promotion continuously adapted to the needs of the companies. For example, BDI lobbied successfully for an increase in the permissible foreign share for German government export credit insurance. BDI and its member organisations also recommend geographical priorities for the Federal Ministry for Economic Affairs and Energy’s foreign trade fair program and foreign market development programme for small and medium-sized companies.