Germany welcomes free world trade, opposes any form of protectionism, and is committed to further liberalization measures with regard to world trade under the proviso of adherence to more strictly ecological and social standards with regard to sustainable development. International negotiations and organizations are geared to devising rules for trading, making foreign markets more transparent and dismantling trade barriers. Furthermore, in order to overcome the alarming prosperity differential between wealthy and developing nations it is also necessary to integrate the latter into the world economy to a greater extent than at present.
By promoting foreign trade (for example by the governments Hermes coverage and guarantees for investment) the position of German companies, especially small and medium-sized businesses with limited human and financial resources in international competition, are strengthened. Support for this commitment abroad on the part of German companies is one of the most important tasks performed by the German Federal Foreign Office. The names of contacts at representative offices outside Germany can be found on the Federal Foreign Office Web site. These provide information on markets and conditions for investment and broker contacts with the governments of host nations. Whenever it appears to be necessary and sensible, concrete projects can be shored up with political arguments.
In order to balance out the economic and political risks from investments in developing countries and those still emerging as market economies, the Federal Government offers special promotional measures. To this end, it has signed treaties with 124 developing countries and emerging market economies in Central and Eastern Europe on the protection and promotion of investments. As a protection against political risks, the federal government pledges guarantees for investments deemed worthy of being promoted in said countries.
Deutsche Investitions- und Entwicklungsgesellschaft mbH), the German investment and development company founded by the federal government, promotes direct investments in the Third World and in emerging market economies. Small and medium-sized German companies are entitled to low-interest loans and grants from the Kreditanstalt fr Wiederaufbau.
In future, the support of German companies engaged in exporting new technologies such as renewable energy will become a focal point in the promotion of exports.
German Economic System
Infrastructure
Liberalization
Foreign trade
啕 Foreign economic policy
Taxes |
