A Report on

GERMANY:
Trade Bodies
By:

Shrey Shah

[PGP-IBM 09-11]

Institutional Framework
of Global Trade
 INDEX

Germany – The country at a glance 1

1) The German Chamber of commerce 2

2) Germany Trade and Invest 5

3) The German Chambers of Industry and Commerce 7

4) The German Association of the Automotive Industry 9

Germany:
 Germany is the largest national economy in Europe, the fourth-largest by nominal GDP in
the world, and fifth by GDP (PPP) in 2008.

 Since the age of industrialization, the country has been a driver, innovator, and beneficiary
of an ever more globalised economy. Germany is the world's second largest exporter with
$1.120 trillion exported in 2009 (Eurozone countries are included). Exports account for
more than one-third of national output.

 Germany has a social market economy characterized by a highly qualified labor force, a
developed infrastructure, a large capital stock, a low level of corruption, and a high level of
innovation.

 The service sector contributes around 70% of the total GDP, industry contributes 29.1%,
and agriculture 0.9%.

 Most of the country's export products are in engineering, especially in machinery,

automobiles, chemical goods and metals. Germany is the leading producer of wind turbines
and solar power technology in the world. The largest annual international trade fairs and
congresses are held in several German cities such as Hanover, Frankfurt, and Berlin.

 The major trade bodies of Germany are as follows:

1) The German Chamber of commerce

2) Germany Trade and Invest

3) The German Chambers of Industry and Commerce

4) The German Association of the Automotive Industry

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(1) Deutsche Auslandshandelskammern (AHK)
(The German Chamber of commerce):
 Role:
 The members of the German Chamber Network, the AHKs, are located in all countries
of particular interest for German industry and commerce.

 AHKs unite three functions in their locations. AHKs are:

 Official representation of the German industry and commerce

 Member organizations

 Service providers to companies

 The AHKs are the most important partners abroad of the Federal German Ministry for
Economics and Technology in terms of promotion of business in other
countries. Together with Germany’s missions abroad (i.e. embassies and consulates) the
AHKs officially represent the interests of Germany’s industry and commerce in respect
of political and administration authorities in their host countries. This function obliges
the AHKs to neutrality and objectivity.

 The AHKs have 40,000 member companies all over the world. These both German and
local companies put a lot of effort in intensifying and improving the whole spectrum of
foreign business relations, specifically those between Germany and the respective host
country.

 AHKs support the market interests of German companies in the host country. At the
same time they provide services to local companies which are involved in bilateral
business. They are increasingly active in the marketing of Germany as a business
location for interested companies in the host country.

 Under the service brand “DEinternational” the AHKs provide so-called basic services

which are globally harmonized and so-called special services according to special
requirements of the very location.

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 Organization:
 AHKs have existed for more than 100 years. The first AHK was established as far back as
1894 in Belgium. Further AHKs were set up as the German economy and the global
business relations developed during the last century.

 Beyond the boundaries of changing history, the AHKs have always fulfilled their role in
successfully representing, promoting and developing the interests of German business
at the same time as the respective bilateral economic interests.

 These days there are AHKs in 80 countries with 120 locations worldwide. There is an
AHK in all countries of particular interest to German business.

 There are AHKs in three basic forms of organization and designation, according to the
legal framework prevailing in the respective host country:

 Bilateral Chambers of Industry and Commerce

 Delegations of German Industry and Commerce

 Representations of German Industry and Commerce

 Bilateral Chambers of Industry and Commerce are facilities in other countries funded by
companies with their registered headquarters either in the host country or in Germany.

 Delegations and Representations of German Industry and Commerce as a rule are the
stage prior to a bilateral Chamber. They can be found in countries where it is not (yet)
possible to set up a bilateral chamber according to the German understanding of an
autonomous body or where they are busy preparing the establishment of such a
bilateral chamber.

 The AHKs all over the world are closely linked to the Chambers of Industry and
Commerce (IHKs) in Germany. Jointly IHKs and AHKs support companies in building up
and consolidating their business relations in other countries.

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 Via the IHK-AHK Intranet, all client enquiries received by IHKs are immediately
forwarded to the appropriate AHK location(s) and answered accordingly - and vice
versa.

 Specific country or regional events in IHKs are organized and carried out in close

cooperation with the respective AHKs. In other words: export oriented German
companies are under the joint care of both IHKs and AHKs.

 The close cooperation with all German business associations is a characteristic of the
market-oriented networking of the AHKs. Jointly they serve and represent the needs of
companies of all branches.

 In view of the ever increasing global business activities of the German skilled craft
companies, the AHKs also work in close cooperation with the German Chambers for the
Skilled Crafts.

 Other partners – with certain differences specific to the markets in various countries
where the AHKs are located are:

 The German trade fairs

 The Federal States in Germany

 Other institutions in Germany involved in foreign trade promotion

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(2) Germany Trade and Invest:

 Germany Trade and Invest is the foreign trade and inward investment agency of the
Federal Republic of Germany. Formed following the merger of the German Office for
Foreign Trade and the Invest in Germany GmbH, Germany Trade and Invest officially
came into being on January 1, 2009.

 Germany Trade and Invest’s mission is to promote Germany as a location for industrial
and technological investments and to identify investors for the German market. The
organization advises foreign companies looking to expand their business activities in the
German market. It provides information on foreign trade to german companies that
seek to tap into foreign markets.

 Germany Trade and Invest provides comprehensive and client-oriented economic and
industry data as well as information about calls for proposals in foreign countries,
investment and development projects, and legal and customs regulations. The
promotion of economic activity in Germany’s new federal states, including Berlin, also
forms an integral part of the agency’s external trade and business location marketing
remit.

 Germany Trade and Invest can count upon an international network of industry analysts
who perform on-site research into foreign markets and supports foreign businesses
looking to establish a company in Germany. An International team of experts works
closely together with the German Chamber Network (AHK) abroad.

 This growing partnership allows German exporters and potential foreign investors alike
to benefit from a centralized first point of contact overseas, with client-specific
information and consultancy services all provided under one roof. Germany Trade and
Invest is headquartered in Berlin with an additional office in Cologne.

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 Germany Trade and Invest operates the websites iXPOS, e-trade-center, and the
German Business Portal. It performs this task together with other actors promoting
foreign trade in Germany and the Federal Ministry for Economics and Technology.

 iXPOS combines the diverse offerings of foreign trade promotion in Germany into a
central internet platform.

 The e-trade-center is the central internet forum for the promotion of foreign trade
in Germany to search for international business contacts.

 The German Business Portal is the central information point about the German
market for international entrepreneurs.

 Promoted by the Federal Ministry of Economics and Technology and the Federal
Government Commissioner for the New Federal States in accordance with a German
Parliament resolution.

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(3) The German Chambers of Industry and Commerce:

 All German companies registered in Germany, with the exception of handicraft

businesses, the free professions and farms, are required by law to join one of the 80
German Chambers of Industry and Commerce. Thus, the Association of German
Chamber of Industry and Commerce (DIHK), the umbrella organization, speaks for more
than three million entrepreneurs. They include not only big companies but also retailers
and innkeepers. This gives the association considerable political influence. It does not
represent any specific corporate group but all commercial enterprises in Germany.

 All main activities of the DIHKs are divided into six business segments. These business
segments are subdivided in several activities concerning every important aspect of
business life and economic policy in Germany:

a) Regional Development (Policy):

 Economic Policy
 Tax and Finance Policy
 Business information & situation reports
 Facts and Figures
 Regional & Urban Development
 Industrial & Trade access
 Regional Cooperation
 Traffic & Other networks

b) Startup & Business Promotion:

 Business Startup & Management

 Succession of Companies
 Expert & Factual Knowledge central

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c) Vocational & Professional Training:

 Examinations
 Training Consultancies
 Examinations/Certificates
 FT-Offer
 FT-Consultancy
 Educational Policy
 Online-Learning

d) Innovation & Environment:

 Environmental Consultancy
 Energy Issues
 Innovation & Technology Consultancy
 E-business/IT-business

e) International:

 Export
 Import
 Foreign Investment
 Trade Fairs
 Cooperation

f) Legal Matters Fairplay

 Trade & Business Law

 Competition Law
 General Legal Consultancy
 Experts/Mediation
 Tax Laws

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(4) Verband Der Automobilindustrie (VDA)
(The German Association of the Automotive Industry):

 It consists of about 600 member companies, who have come together to research and

produce clean and safe auto-mobility for the future. In the country that is known for its
successful invention of both automobiles and trucks, the VDA represents the
automotive manufactures and supply companies to ensure the continued competitive
utilization of their experience and skills. The cooperation between manufactures and
suppliers in the VDA is unique in the world of motoring.

 Sustainable and modern mobility are the main objectives of the VDA. The VDA
nationally and internationally promotes the interests of the entire German automotive
industry.

 It can bank on a strong power base of members consisting of automobile

manufacturers, suppliers and manufacturers of trailers, special bodies and containers.
Unlike in many other countries, they are organized under one association, resulting in
decisive advantages for the German automotive industry through direct dialogue and
rapid decision-making.

 The VDA lends a powerful voice to the positions of its members, both nationally and
internationally. The promotion of our interests currently centers on the following core
topics:

 Economic and transport policy

 Environmental policy
 Research policy and technology policy
 Industrial policy
 Trade policy
 Taxation policy
 Promotion for small and medium-sized enterprises (SMEs)
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 The VDA represents its members in Berlin and Brussels both in direct dialog and through
its participation in national and international consultation bodies.

 In addition to promoting interests on the political level, the VDA also provides support
for its members in other felds. In particular, the association is a forum for balancing
differing interests in its Manufacturer Groups and the development of common
standards to strengthen the automotive value chain. It is also active in the following
major subject areas:

 Technology and the environment

 Research and technical regulations
 Quality assurance
 Active and passive safety in vehicle construction
 Market, statistics and the economy
 Trade shows and participation at trade shows
 Export issues
 Law and taxation
 Press and publicity
 Promoting young people in the automotive industry

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