wto from a german perspective

7/31/2019 WTO From a German Perspective

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The WTO from a German perspective

Topics in WTO

14.05.2012 Jeremias Pappert

Huazhong University of Science and Technology Wuhan

School of Economics


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Agenda

1. Introduction

2. Germany in the WTO

3. German commerce and foreign trade betweenChina and Germany

4. Criticism about German trade policy

5. Conclusion

14.05.2012 2Jeremias Pappert


School of Economics


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Why is this topic relevant?

What are the goals of todays presentation?

Learn something about:

German economy

European Union

Implications of a strong German economy



School of Economics Introduction


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Joined GATT in 1951

Germany has been a member of WTO since 1st of January 1995

Germany has paid 17,207,208 CHF contribution in 2011

Contribution in 2011: 8.856 % of the total WTO budget

According to WTO, Germany was the leading export country in terms of goods

between 2005-2009 (in terms of $-amounts) Sector oftrade policy since European community times a topic of EU

Germany does not represent an own policy anymore since

European Economic Community tariff union

German policy less explicit than others

(e.g. France) and somehow less transparent



School of Economics Germany in the WTO


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School of Economics Germany in the WTO

Comission WTO rounds

Comittees Other councils

European Council

of heads of state

Council of foreign

ministers

Others

(USA,Japan,)

France Germany

Other

European

states

information

suggests

mandates

instructions

negotiates

Bilateral agreements

Structure of negotiations from a German perspective


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School of Economics German commerce Interesting Facts


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Even though Germany is a leading exporter of services, mostly it

createstrade deficits in terms of services

This has 3 main reasons:

1. Although specific of German economy are well positioned, Germany

has to realize the potential of service trade as German export is stillfocusing on production

2. An important element of service is tourism and Germany is still one

of the world ranking tourism countries , Domestic and international

tourism accounts for 3,2 % of German GDP and provides 2,8 million

jobs3. Moreover, there are still barriers for trade of services who hinder

trade even within Europe as nowadays services as services account

for around 70 % of EUs GDP, but just for 20 % of European Trade



School of Economics German commerce Interesting Facts


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Trade volume of 144 billion between Germany and China in 2011

30 % of total Chinese EU-trade with Germany German exports to China are increasing again in the last two years and

have doubled since 2008

Especially car industry is very successful in China with a market share of

around 20 % and even more in premium segment

Moreover, Germany is exporting office machines, computers,

telecommunication devices, furniture, jewelry, music instruments and

sports equipment and toys

Expectations for German exports to China positive

German machinery still very popular in China

(accounts for around 29 % of all exports)

Wen Jiabao stated recently:

By 2015 we want to achieve a trade

volume of 280 billion Dollars



School of Economics Foreign trade between China & Germany


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School of Economics Foreign trade between China & Germany

export to China in billion Imports from China in billion


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Criticism about German trade policy

Germany has been criticized for its economical model by France and the US

Especially the amount of German exports and the small number of imports fromforeign countries have been criticized

WTO Director General Lamy defends Germany as

being a role model for other nations

Moreover, Lamy stated that he is happy about German exports and lists a

number ofreasons for this successful model like:

structural differences

Germanys ability to adapt to the demand and just being active in sectors where German

companies are competitive

continuous adjustment of its industry and welfare systems to stay competitive

Especially cooperation between government, labor unions, employers, and thefederal states in terms of economical decision-making is unique

System of consensus hard to transfer to other nations (only in small economies

like Norway or Chile)



School of Economics


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Conclusion

Germany became even more successful in trade since the

introduction of the

A new report by Citigroup shows that world trade will increase from

61% of global GDP to 86% in 2050

Germanys share of world trade will decrease to $6.37 trillion in 2030

and 3% in 2050 with $11.17 trillion

If Germany will also boost the trade of

services a bright future for Germaneconomy is probable



School of Economics


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The End

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Thank you for your attention!

Any questions?


School of Economics

wto from a german perspective

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