The export-oriented German economy has to deal with more and more trade barriers on the world market. According to a recent survey by the German Chamber of Industry and Commerce (DIHK), a total of 56 percent of German companies active abroad have noticed an increase in such hurdles in the past twelve months. This is the highest value ever measured, it said when the results were presented on Wednesday in Berlin.
“The year before, it was already 54 percent. We clearly see a sad tendency towards more protectionism here, ”said DIHK foreign trade chief Volker Treier. “Hopefully that’s the end of the road.” Almost a quarter of the companies expect worse foreign business this year.
Sanctions were mentioned most frequently as a barrier to trade, followed by local certification and security requirements and opaque legislation. The respondents saw hurdles in international business above all in Russia, which was hit by sanctions, in Great Britain, which was still struggling with the after-effects of leaving the EU, in China, which was shaken by the corona pandemic, but also in the countries with the common euro currency.
Supply chain law as a trade barrier
The German supply chain law, which has been in force since the beginning of the year, is an additional trade barrier, Treier complained. According to this, companies are responsible for ensuring that human rights are observed in their supply chains.
In view of the problems, more than half of the companies surveyed want to open up new markets. The euro currency area in particular is becoming more important.
The US investment program Inflation Reduction Act (IRA) offers many companies a business perspective, said Treier. It is about subsidies that would ultimately be converted into orders for German exports. Subsidies and tax credits are linked to companies using US products or producing them themselves in the US. In Europe there are concerns that this will result in competitive disadvantages. (dpa)