Nevertheless, governments sometimes find it difficult to reduce barriers to trade, as competition in their own markets has arised from the opening up of boarders. Overall, the macroeconomic impact of trade is generally positive. Many scientific studies show that trade liberalization and economic growth are positively correlated. More competition essentially means more supply, pressure on innovation and lower prices. However, trade can also have redistributive effects. Not all companies will be able to take an interest in the new environment. It is all the more important that states invest in training, research and development and that social systems are well equipped to reduce adaptation costs. Singapore: EU and Singapore signed a free trade agreement and investment protection agreement at the ASEM summit on 18-19 October 2018. The European Parliament approved both agreements in February 2019. Germany is very pleased with these agreements, as Singapore is one of Germany`s main trading partners in the ASEAN region, despite its small size. The ratification of the free trade agreement was concluded on 8 November by Council decision and the agreement entered into force on 21 November 2019. The Investment Protection Agreement sets high and clear standards for investment protection, which preserve the state`s right to regulation, and establishes a reformed dispute resolution procedure, modelled on CETA. To learn more about these two agreements, visit the European Commission`s website.
Today, value chains are highly internationalized. Intermediate products, components and sector services are subject to cross-border transactions to be processed or finalized by subsidiaries or industrial customers. In 2017, according to the World Trade Organization (WTO), 46.5% of German merchandise exports and 51.6% of imported goods were intermediaries. Malaysia: Discussions on the establishment of a free trade agreement between the EU and Malaysia began in October 2010. Negotiations have stalled since the end of round 7 in 2012. The European Commission is working to resume these discussions. Whenever a country is particularly good at a field, its products and services generally seek their way to customers across national borders (and find them). This is the birth of a new export success. The Swiss export their watches all over the world; China stands out in e-commerce; and the United States is particularly good at trade in services. Everyone does what they do best. That is how world trade works; That`s how everyone benefits.
A free trade agreement between the EU and India can help remove existing barriers and give new impetus to our bilateral cooperation. India`s population is the second largest in the world, making it a very important trading partner for German companies. However, the federal government and the European Commission insist that any agreement must be comprehensive and ambitious. While negotiations for a free trade agreement began as early as 2007, sharp differences in the expectations of both sides have brought the talks to a standstill since 2012. Take your business to the next level. With the help of our Trade Commissioner Service (TCS), discover opportunities to increase your footprint in Germany and learn more about trade relations between the two countries, market facts and other knowledge. In 2019, bilateral trade between Germany and Vietnam amounted to about 14 billion euros. The stock of German direct investment in Vietnam amounted to about 840 million euros in 2017. More than 300 German companies are currently active in the Vietnamese market. The EU-Vietnam trade agreement will make it easier and cheaper for them to do so. The content of trade agreements has changed over time: the European Union (EU) free trade agreements negotiated in the late 1990s with Mexico and Chile have mainly focused on reducing tariffs.Back to Blog