Germany is a global trade superstar. Offering high-quality engineering solutions, Germany has surpassed the U.S. as the world's top exporting nation for 4 straight years.

Deutschland is the largest economy in the European Union and the third-largest in the world.

According to the World Trade Organization (WTO), Germany is the world's top exporter. In 2005, Germany's trade surplus of $197 billion led all countries.

Germany is also the world leader in mechanical engineering, holding about 20% of this global market. Core German exports include such engineering products as vehicles, machinery, chemical goods, electronics, shipbuilding and optics. The "land of ideas" is also among the world's largest and most technologically advanced producers of iron, steel, coal, cement, food and beverages and textiles. In recent years, traditional German industries like steel-making and textiles have shrunk considerably.

German brands including DalmerChrysler, BMW, SAP, Siemens, Volkswagen, Adidas-Salomon and Porsche are among the highest-valued in the world. In Business Week's list of top 100 global trademarks in 2005, German companies place 9 times, second only to the U.S.

Also key to Germany's success in international trade is the fact that "Made in Germany" is a global seal of quality. In the minds of trade partners, German products are synonymous with quality, innovation and cutting-edge technology. For example, German-made machine tools are in high demand in fast-growing economies like China.

Below is a list of Germany's top 15 export customers, based on WTO statistics for 2005. Total German exports for 2005 amounted to US$971 billion. These 15 countries account for some three-quarters of total German exports.

Top 15 Countries for German Exports in 2005

1. France ... US$99 billion (10.2% of total German exports)
2. U.S. ... $85.5 billion (8.8%)
3. U.K. ... $76.7 billion (7.9%)
4. Italy ... $67 billion (6.9%)
5. Netherlands ... $59.2 billion (6.1%)
6. Belgium ... $54.4 billion (5.6%)
7. Austria ... $52.4 billion (5.4%)
8. Spain ... $49.5 billion (5.1%)
9. Switzerland ... $36.9 billion (3.8%)
10. China ... $31.1 billion (3.2%)
11. Poland ... $25.3 billion (2.6%)
12. Czech Republic ... $23.3 billion (2.4%)
13. Sweden ... $21.4 billion (2.2%)
14. Russia ... $19.4 billion (2.0%)
15. Japan ... $16.5 billion (1.7%)

Germany imported $774 billion worth of goods from its trading partners in 2005. The 15 countries listed below were responsible for over 70% of goods imported into Germany.

Top 15 Countries German Imports From in 2005

1. France ... US$67.3 billion (8.7% of total German imports)
2. Netherlands ... $65.8 billion (8.5%)
3. U.S. ... $51.1 billion (6.6%)
4. China ... $49.5 billion (6.4%)
5. U.K. ... $48.8 billion (6.3%)
6. Italy ... $44.1 billion (5.7%)
7. Belgium ... $38.7 billion (5%)
8. Austria ... $31 billion (4%)
9. Spain ... $28.6 billion (3.7%)
10. Switzerland ... $27.9 billion (3.6%)
11. Japan ... $23.2 billion (3%)
12. Czech Republic ... $22.5 billion (2.9%)
13. Russia ... $21.7 billion (2.8%)
14. Poland ... $20.9 billion (2.7%)
15. Ireland ... $20.1 billion (2.6%)

Germany enjoys trade surpluses with most of its trade partners, with only 4 deficit trade scenarios in the above lists. In 2005, Germany had trade deficits with China ($18.5 billion), Japan ($6.7 billion), Netherlands ($6.6 billion) and Russia ($2.3 billion).

And The Winners Are ...

In 2006, Germany's stellar performance in international trade has gotten even brighter. A 23% export surge in October 2006 powered Germany's trade surplus to US$23 billion, the largest monthly balance for Europe's largest economy since the 1990 unification of East & West Germany.

After rising 40% in the first 8 months of this year, German trade with fast-growing India is expected to double to more than $12 billion by the end of 2006.

Imports into Germany from another emerging Asian powerhouse, China, rose about 26% from 2005 from 2004. German exports to China surged 15% over the same period.

Furthermore, since the European Union's expansion in May 2004, Germany continues to enjoy a pronounced increase in trade with the following eastern EU countries: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

While Germany continues to be a top performer in world trade, domestically the German economy has become one of the slowest growing economies in the euro zone. One reason is because the integration of the backward eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $70 billion. Also, Germany's aging population and high unemployment rate causes government spending on social security to exceed worker contributions.

Yet from the point of view of foreign companies, Germany remains the most attractive European country for research and development. In 2005, a poll of international companies conducted by Ernst & Young revealed that Germany was the clear favorite in terms of research and development facilities. Moreover, about two thirds of all the world’s keynote trade fairs take place in Germany which also makes Deutschland a strong magnet for international business.

Sources: Hindu Business Line, WTO statistics, Industry Week Feb 9, 2006 edition