For decades, Germany has been among the world's leading exporting nations, driven by high-quality goods and services. Approximately one in four jobs relies on exports, and in manufacturing industries, every second position depends on export success. However, geopolitical shifts, trade barriers, and mounting bureaucratic challenges increasingly affect businesses. To ensure their continued prosperity, companies require effective support at home and internationally—solutions that are practical and minimise bureaucracy.
For decades, Germany has been among the world's leading exporting nations, driven by high-quality goods and services. Approximately one in four jobs relies on exports, and in manufacturing industries, every second position depends on export success. However, geopolitical shifts, trade barriers, and mounting bureaucratic challenges increasingly affect businesses. To ensure their continued prosperity, companies require effective support at home and internationally—solutions that are practical and minimise bureaucracy.
The following guidelines should determine economic policy action
The German economy can fundamentally rely on reliable federal guarantee instruments. To reflect the global interconnections of the German economy, the approved share of foreign value creation for projects and products should be made more flexible. Untied financial loans ensure the supply of necessary raw materials and access to input materials for low-emission technologies. To support the diversification of the German economy, the instrument should be used more flexibly – also for other critical input materials and with less stringent eligibility criteria. Particularly in international dealings in third countries, German businesses increasingly compete with financing practices of other states that threaten to distort competition. International standards, such as those of the OECD, for publicly supported export credits are often not adhered to. The German government should consistently counter measures that distort competition and advocate for the use and adherence to international standards and regulations.
In the area of goods with dual-use purposes (so-called "Dual-Use Goods"), the implementation level and processing times for approvals vary across the EU. In Germany, companies are increasingly complaining that decisions on approvals take months. For requests concerning export control certificates, and in general, regarding the design and application of export control laws in Germany, equal and fair competition conditions across the EU are necessary, otherwise, disadvantages arise in global markets. Furthermore, competent institutions should process applications more promptly and transparently, especially when federal ministries are involved in individual decisions. Instruments are needed that enable companies to navigate the plethora of regulations and minimize uncertainties as much as possible in advance. The German government and the EU should uphold the important "Wassenaar Agreement" and its development as well as further promote other international export control regimes within the broadest possible international community.
Global investment flows are critical for the internationally closely-knit German economy. State intervention in the freedom of capital movement and the fundamental right to property thus occurs within a field of economic/political tension. On matters of national security, the priority lies with politics; however, the standard measure of proportionality applies here as well. Overregulation and lengthy decision-making processes threaten investments, and thereby economic growth and jobs. State restrictions on selling companies in whole or in parts to foreign investors should therefore be well-justified and subject to judicial review. They should primarily serve to maintain public safety and order. The introduction of state audits of foreign investments (so-called "Outbound Investment Screening")—from the perspective of the majority of companies—would constitute an excessive intervention into entrepreneurial freedom and is therefore rejected.
The implementation of key objectives of the Union Customs Code (UCC), which entered into force in 2016, has so far been inadequately realized. Particularly with regard to the renewed reform of EU customs law proposed in May 2023, the timely EU-wide uniform implementation and application of already announced UCC simplifications, in conjunction with the necessary IT adjustments, is especially important. The overdue reduction of customs bureaucracy and the related change in import and export conditions should be consistently prepared in advance by several months following the Trade Facilitation Agreement.
The newly established European Customs Authority and the EU Customs Data Hub as part of the 2023 proposal for EU customs law reform should be practical and oriented to the requirements of businesses and the needs of goods traffic. Risk management should be improved in favor of companies that comply with market regulations. Any prohibitions and restrictions should not lead to additional bureaucracy for all market participants. Non-EU-compliant goods and market participants should therefore be effectively restricted through enhanced interaction between authorities and technology within the framework of existing data.
Within the framework of the EU customs reform, the long-overdue simplification of the EU customs tariff must urgently be carried out for all product groups and companies to alleviate both market participants and customs authorities. Moreover, EU initiatives concerning customs law and VAT law should be better synchronized.
In view of strategic dependencies of the EU, modernization of the EU mechanism to exempt economically harmful customs hurdles is required — for instance, in the raw materials sector. Furthermore, the digitization of customs procedures and documents should, according to the affected companies, be further advanced. Key elements here are sufficient technical and personnel resources within customs administrations. The goal should be to avoid EU-internal competitive disadvantages resulting from increased processing times at German seaports. Equally important is consistent and EU-wide optimization of existing processes and resources in coordination with the authorities.
In international political conflicts and wars, sanctions have increasingly become part of the EU's foreign policy toolkit. For German business, the primacy of politics applies here. EU regulations and German foreign trade law set the legal framework. The number of economic sanctions worldwide has increased in recent years. Sanctions are often not implemented internationally in harmony. It is particularly challenging when third countries include extraterritorial elements in their sanction regimes.
Before legislative measures such as resorting to sanctions are taken, the consequences for German business should be explicitly considered during decision-making. The regulations themselves should also be balanced, precisely formulated, and practically enforceable for both authorities and businesses. Furthermore, EU-imposed sanctions should regularly be reviewed for their effectiveness as well as their proportionality. At the international level, the EU and the German government should strive for close coordination in forums like the UN and with important partners, for example, the USA, and should also intensify efforts against extraterritorial sanctions measures. Differing interpretations of EU sanctions by individual EU member states must not lead to competitive disadvantages for German business. For exports and imports that remain permitted under German and European law, the processing of transportation, payment transactions, and other services should not only be possible but also practicable.
One of the bureaucratic obstacles in international business for years has been the issuance of visas for business travellers and tourists coming to Germany. Complaints persist from German companies and their foreign business contacts about impractical and lengthy procedures. The Federal Government should promote a smooth international business travel process. Visa issuance at German missions abroad should be conducted in a business-friendly manner. To ensure faster procedures, the Foreign Office should streamline lengthy processes and act pragmatically in the interests of companies, especially when companies take full responsibility for the entry and exit of their employees.
The network of German Chambers of Commerce Abroad (AHKs) with 150 locations in over 90 countries worldwide, as well as the regionally anchored 79 IHKs in Germany, create international connections and serve as competent contact points for the local economy. In this, DIHK and the Federal Ministry for Economic Affairs support the AHKs and companies. Additionally, this support is complemented by a variety of initiatives from various federal and state ministries (e.g., Energy Export Initiative, Environmental Protection Export Initiative). New initiatives by municipalities, federal states, and federal ministries, as well as new EU structures and instruments to support SMEs in internationalization, like European Chambers of Commerce, should meaningfully complement the established instruments and institutions of national foreign trade promotion.
No parallel structures should be created; instead, synergies must be utilized and offerings presented transparently. Institutions should rely on the proven structures of German foreign trade promotion, especially IHKs, AHKs, Germany Trade and Invest (GTAI), and the instruments of the federal states, ensuring consistent accessibility of offerings for SMEs. European economic diplomacy can make an important contribution to globally asserting European economic interests. In general: The EU Commission should uphold the principle of subsidiarity and involve national foreign trade promotion institutions promptly and transparently in its initiatives, like Global Gateway. Particularly new EU projects should complement and possibly expand existing structures, but not duplicate them.
Enhanced collaboration with the private sector can sustainably advance development policy efforts in various domains. Currently, German and European development cooperation lacks sufficient sustainable projects to support business in developing and emerging countries. Strengthening the private sector in development countries—in partnership with German companies—should take centre stage in national and European development cooperation.
Investments on the ground could be expanded by improving legal certainty and protective systems for businesses locally. It would be beneficial for the German government to actively involve the German economy in projects of national development cooperation, as well as incorporate the private sector in European development initiatives.
Proven instruments such as the EU Connectivity Initiative Global Gateway and Business Scouts for Development must be upheld and expanded rather than cut back. Bilateral development cooperation programmes negotiated at government level should consider the needs of the German economy, requiring stronger collaboration with locally based AHKs, delegations and representations.
In development cooperation tenders, the federal government should advocate for internationally accessible fair competition, a "Level Playing Field." Germany, like other OECD countries, should fully utilise options for "Tied Aid"—linking development cooperation with the origin of investments.
- Relevant in topic:
- International Trade and Market Access
- Key areas:
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- Foreign Trade
Released 13.11.2024
Modified 12.06.2026
Contact
Olga van Zijverden
Director Foreign Trade Policy
- vanzijverden.olga@dihk.de
- Telephone
- +49 30 20308 6113