Germany: Market Overview
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Source: Statistics Canada
2015 Trade and Investment between Germany and Canada (C$, Millions)
|Trade and Investment||(C$, Millions)|
|Canadian Merchandise Exports to Germany||$3,630|
|Canadian Merchandise Imports from Germany||$17,341|
|Canadian Service Exports to Germany||$2,228|
|Canadian Service Imports from Germany||$2,771|
|German Direct Investment in Canada||$13,492|
|Canadian Direct Investment in Germany||$6,597|
Why Germany Matters
- Germany is Canada’s second largest destination in the European Union (ninth in the world) for merchandise exports. It is Canada’s fourth largest source for imports after the US, China, and Mexico (Source: Statistics Canada).
- Germany is the largest economy in Europe – at over 4 trillion dollars, its Gross Domestic Product (GDP) represents 21 percent of total European Union (EU) GDP (Source: Eurostat).
- Germany is the fourth largest EU source of direct investment into Canada and Canada’s seventh largest EU destination for direct investment (Source: Statistics Canada).
- The German economy is very open with imports and exports together totalling 86 percent of the GDP (Source: Federal Statistics Office of Germany).
- Germany is a manufacturing country with leading exports including vehicles and vehicle parts, machinery, chemical and pharmaceutical products, and computer/electrical equipment.
- The German government is fiscally conservative and maintains a balanced budget. The 2015 budget had a surplus of 0.6 percent of the country’s GDP (19.4 billion euros) (Source: Federal Statistics Office of Germany).
- Germany is expected to retain its strong influence within the Euro area and remains an anchor of regional stability.
Read the guide Exporting to the EU.
Sectoral Opportunities in Germany
Germany has a highly active aerospace industry with CAE, Bombardier, Pratt & Whitney Canada, and MDS Aero Support among the Canadian companies with a presence in the country. Aerospace touches all pillars of international commerce – trade, investment, and innovation – and Canadian companies in this sector could further benefit from investment in Germany.
Germany is the largest food importer in the EU. Canada has a market position in grains and oilseeds and branding and promotion work have boosted processed exports. CETA will also foster more exports of Canadian products such as fish and seafood, beef, and pork.
Opportunities exist in trade, investment and innovation. Canadian parts companies are well established in Germany - Magna, Linamar, Martinrea and others. German companies like Brose and Benteler have interests in Canada. Through promotional work with Original Equipment Manufacturer (OEMs), cooperation with Trade Commissioners in other markets, and cooperation with Export Development Canada (EDC), which has in-market representatives, increased sourcing of Canadian parts is expected. Investment and research and development (R&D) by the major OEMs strengthens Canadian capacity in this key manufacturing sector.
Germany enjoys a leadership position in sustainable technologies, renewable energy development and energy efficiency and technologies applied to water, air and soil. The trade commissioners support increased activity via trade events like the IFAT Trade Show in Munich, through R&D involving mining, energy storage technologies, through e-mobility, hydrogen fuel cells (Daimler, VW, Ballard, Universities, and Hydro Quebec).
Apparel/fashion (for women, men and children), sporting goods and supplies (including natural health supplements), toys & games, giftware, enjoy a strong market niche in Germany. Canadian companies regularly exhibit at renowned trade shows such as ISPO in Munich, Berlin Fashion Week, Ambiente in Frankfurt, FIBO in Cologne.
Machinery is an already existing export market for Canadian business in Germany. With EDC “pull financing,” and the intra-corporate trade of German and Canadian companies, there are opportunities to grow this sector through greater Canadian investments and trade.
Information and Communications Technology (ICT)
Companies such as CGI, Open Text, Blackberry, QNX, Redknee, have been successful in Germany’s ICT sector. Convergence of manufacturing and ICT, the “internet of things” or Industrie 4.0 will open up significant new opportunities for ICT companies. Gamescom, Europe’s leading trade fair for the gaming industry, and the biggest entertainment event in the world, is the most important opportunity for Canada’s Game Development industry in this market.
Many Canadian companies come annually to Medica with more than 140 companies either exhibited in or visiting Medica in 2014. There is an increasing amount of R&D cooperation covering a range of areas; for example, regenerative medicine, vaccines, neuro-degenerative diseases and allergies.
Germany will require strategic raw materials and R&D cooperation in the mining sector. This provides substantial opportunities for Canadian companies with world-renowned expertise in mining.
Themes, including the Arctic and mining permeate the ocean technologies sector. Opportunities exist for increased technological cooperation and new business in marine industries, the latter being connected to the National Shipbuilding Procurement Strategy (NSPS).
Germany is a priority tourism market, and with a weak Canadian dollar combined with Germany’s stable economy, it is a good time to promote Canada as a destination, reach out to consumers, business and media. This can provide ample opportunities for Canadian tourism enterprise to invest in Germany to promote tourism in Canada, such as at major annual events like ITB in Berlin (for consumers), and IMEX in Frankfurt (Conventions, Incentive travel).
For more information on trade and investment opportunities in Germany, contact your Trade Commissioner in Berlin, Germany.
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