Germany is a major player in international trade, and its economy heavily depends on it. The country has been a part of many free trade agreements that provide mutual benefits to the countries involved. If you are interested in what these agreements are and what benefits they offer, read on as we bring you a list of German free trade agreements.
1. European Union (EU) Free Trade Agreement
As a member of the EU, Germany is a part of the biggest free trade bloc in the world. The EU has trade agreements with several other countries and regions, including Canada, Japan, and South Korea. Together with the other member states, Germany enjoys the benefits of these agreements, such as reduced tariffs and increased market access.
2. European Free Trade Association (EFTA) Free Trade Agreement
Germany is also a member of the EFTA, which is made up of Switzerland, Norway, Iceland, and Liechtenstein. The EFTA has free trade agreements with several countries outside the EU, such as Canada, Singapore, and Vietnam. These agreements facilitate trade by eliminating trade barriers and enabling easy movement of goods and services.
3. Central American Integration System (SICA) Free Trade Agreement
Germany has a free trade agreement with the SICA member states, which include Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. The agreement came into force in 2013 and aims to eliminate tariffs on goods traded between Germany and the SICA countries. It also facilitates investment and provides for the protection of intellectual property rights.
4. Southern Common Market (MERCOSUR) Free Trade Agreement
MERCOSUR is a regional trade bloc comprising Argentina, Brazil, Paraguay, and Uruguay. Germany has a free trade agreement with the bloc that came into force in 2019. The agreement aims to eliminate tariffs on most goods traded between Germany and the MERCOSUR countries. It also facilitates trade in services and provides for the protection of intellectual property rights.
5. Transatlantic Trade and Investment Partnership (TTIP)
TTIP was a free trade agreement being negotiated between the EU and the United States. Germany was one of the main proponents of the agreement, which aimed to eliminate tariffs on most goods traded between the two regions. However, negotiations were suspended in 2016, and the agreement was never signed.
In conclusion, Germany has been a part of several free trade agreements that facilitate trade and provide mutual benefits to the countries involved. These agreements eliminate trade barriers and provide for the protection of intellectual property rights, among other benefits. By being a member of these agreements, Germany has been able to boost its export sector and maintain its position as a major player in international trade.