Open markets and robust trade rules remain pillars of prosperity

An ambitious EU trade policy supporting German companies in their global business is what the DIHK demands from the European Union. Ten key guidelines outline essential aspects.

Geopolitical and technological shifts, sustainability demands, energy crises, growing protectionism, and the erosion of multilateral frameworks have fundamentally transformed the international division of labor, according to the "Guidelines for International Trade Policy." Adopted unanimously by the DIHK Presidium in January 2024, these guidelines were presented both in Berlin and Brussels.

DIHK calls on the EU to firmly counter the global trend towards isolationism, as protectionism does not create jobs. Germany's internationally interconnected economy is directly affected, given that one in four German jobs relies on foreign trade – in the industry, it’s even one in two.

Making EU trade strategy future-ready

Free trade and investment openness remain "key instruments for preserving and enhancing prosperity," as per the DIHK position paper. Open markets and robust trade rules should remain central to the political agenda "within and outside the EU." At the same time, Europe must prepare for an increasingly decoupled world economy and position itself more sovereignly.

"With regard to the European elections in 2024, it is vital to make the EU trade strategy fit for the new global landscape and to ensure it is prioritized at the top of the new EU Commission’s agenda," the paper’s authors emphasize. "Only with an EU that acts decisively and cohesively in this area can our businesses have a strong voice in international competition."

Grafik Handelspolitik 2023 Zunahme Hemmnisse

According to DIHK, securing trade and investments, opening up new markets through trade agreements, such as those with Mercosur, India, and Indonesia, are vital tools. Current geopolitical challenges urgently call for a realignment of international trade policy, with open markets and robust trade rules being crucial for prosperity and employment in Germany.

Strong commitment needed

DIHK calls for a strong EU commitment to competitiveness, multilateralism, and supply chain security. The EU must adapt its trade strategy to the new global economic realities and act as a sovereign player to protect businesses’ interests in international trade.

In 2021, only 44% of EU foreign trade was covered by trade agreements. New agreements are increasingly crucial, the paper argues. The paper also includes recommendations for the future EU trade policy concerning key areas like digital trade, customs, SME support, and economic security.