Huazhong University of Science and Technology Wuhan School of Economics

The WTO from a German perspective

Topics in WTO
14.05.2012 Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

Agenda

1. Introduction 2. Germany in the WTO 3. German commerce and foreign trade between China and Germany 4. Criticism about German trade policy 5. Conclusion

14.05.2012

Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

Introduction

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

14.05.2012

Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

Germany in the WTO

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 of trade 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

14.05.2012

Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

Germany in the WTO

Structure of negotiations from a German perspective Comission

instructions information mandates suggests negotiates

WTO rounds

Comittees

Other councils

Others (USA,Japan,)
Bilateral agreements

Council of foreign ministers France

Germany

European Council of heads of state

Other European states

14.05.2012

Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

German commerce Interesting Facts

14.05.2012

Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

German commerce Interesting Facts

Even though Germany is a leading exporter of services, mostly it creates trade 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 still focusing on production 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 jobs 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
Jeremias Pappert 7

2.

3.

14.05.2012

Huazhong University of Science and Technology Wuhan School of Economics

German Trade by comparison

Rank in world trade, 2010 Merchandise excluding intra-EU trade Commercial services excluding intra-EU trade Exports 1 2 4 3 Imports 2 3 3 3

Rank in world trade, 2010 Merchandise excluding intra-EU trade Commercial services excluding intra-EU trade

Exports 3 2 -

Imports 3 2 -

2010 Real GDP (2005=100) Exports of goods and services (volume, 2005=100) a Imports of goods and services (volume, 2005=100) a 106 107 110

Annual percentage change 20052010 2009 2010 1 2 2 -5 -14 -9 4 ... ... Real GDP (2005=100) Exports of goods and services (volume, 2005=100) Imports of goods and services (volume, 2005=100)

2010 170 180 168

Annual percentage change 20052010 2009 2010 11 12 11 9 -10 4 10 25 17

Merchandise trade Value 2010 Merchandise exports, f.o.b. (million US$) Merchandise imports, c.i.f. (million US$) 1 268 874 1 066 839 Annual percentage change 20052010 2009 2010 5 7 -23 -22 13 15

Merchandise trade Value 2010 Merchandise exports, f.o.b. (million US$) Merchandise imports, c.i.f. (million US$) 1 577 824 1 395 099

Annual percentage change 20052010 2009 2010 16 16 -16 -11 31 39

14.05.2012

Jeremias Pappert

Huazhong University of Science and Technology Wuhan School of Economics

Foreign trade between China & Germany

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
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Huazhong University of Science and Technology Wuhan School of Economics

Foreign trade between China & Germany

export to China in billion

Imports from China in billion

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Jeremias Pappert

10

Huazhong University of Science and Technology Wuhan School of Economics

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 from foreign 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 of reasons 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 the federal 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)
14.05.2012 Jeremias Pappert 11

Huazhong University of Science and Technology Wuhan School of Economics

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 German economy is probable

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Jeremias Pappert

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Huazhong University of Science and Technology Wuhan School of Economics

The End

Thank you for your attention!

Any questions?

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