Hamburg eyeing opportunities in other global regions

Although the US topped the list of the 20 countries with the largest gross domestic product (GDP) followed by China last year, said the Hamburg-based Statista, experts believe the battle for economic supremacy broke out long ago. And while Germany ranks third on that list, it should not lose sight of the opportunities and potential that other global markets hold. And there is a plenty afoot, according to representatives of the German Chambers of Commerce Abroad (AHK).

China is a key trading partner for both Germany and Hamburg. "It will remain so, whether we like it or not," said Lars Anke, Chief Representative of the Hamburg Liaison Office in China. The "Made in China 2025" masterplan, launched in 2015, has enabled China to go from "extended workbench" to leading global high-tech nation. "China is competing with Germany in terms of renewable energies, battery technology and e-mobility on the global market and in Germany itself." At present, the world's second-largest economy is pushing ahead with its digital e-yuan currency to become less dependent on the US.

Vietnam, China's neighbour, is a relatively fledgling country with a voracious appetite for economic growth. The average age of just 32 means it avails of a large, young workforce. Annual GDP growth ranges from 5 to 7 per cent 5 to 7 per cent. "The government is eyeing double-digit growth in 2026, provided the US tariffs don't put a spanner in the works," says Björn Koslowski, Deputy Delegate of AHK Vietnam.

And then there's India, which is rubbing its hands gleefully along the lines of "when two quarrel, the third rejoices." Sameeha Pradeep Sule, Hamburg's Chief Representative in Mumbai, noted: "Given the aggressive US power grab and that of China, India is increasingly becoming a  reliable partner." The subcontinent has already surpassed China as the world's most populous country and is on course to overtake Japan economically and become the world's fourth largest economy. India's GDP is forecast to reach USD 4.187 billion by 2025. In June, the 11th India Week unfolded in Hamburg to celebrate centuries old Hanseatic links with India.

The United Arab Emirates relies on Comprehensive Economic Partnership Agreements (CEPAs) to boost trade relations."Meanwhile, 27 agreements have been signed, eight of which have been ratified,' said Kirsten Staab of the Hamburg Representative Office in Dubai. "Negotiations with the EU will be finalised by late 2025 and will open up great opportunities for Germany," she added. Africa also holds opportunities. While South Africa is Germany's most important trading partner on the continent, with a trade volume of over EUR 20 billion, East Africa is one of the world's fastest-growing regions. "Kenya has made a name for itself as a technology centre and is known as 'Silicon Savannah'," said Monika Erath, Delegate of German Business in East Africa.

Argentina, on the other hand, is relying on raw materials to invigorate its economy. The country has vast deposits of raw materials such as lithium and copper, which are crucial for key technologies and the energy transition. "The country is reinventing itself and making an impression with its rapid economic growth," said Günther Neubert, CEO of AHK Argentina. In fact, GDP is expected to reach 5.5 per cent in 2025 over -1.7 per cent last year, according to Statista. The agricultural sector is also performing well with exports of soya, maize and wheat, as well as its world-famous steaks. "The country is now a pioneer of smart farming technologies," said Neubert, indicating Argentina's future path

Farther north, Mexico remains focused on the neighbouring US. Bilateral trade of USD 840 billion dollars makes it the world's largest. "But 2,100 German companies do business in Mexico, and not just in the automotive industry," said Johannes Hauser, AHK Mexico. Meanwhile, Germany and Canada have had a particularly innovative partnership since last year. Both countries co-chaired Eureka, a global innovation network that promotes cross-border, market-oriented innovation projects. The German-Canadian Hydrogen Alliance is also central to their ties. Canada holds huge potential for wind, water and solar energy, making it one of the most promising global hydrogen centres and  is set to import green hydrogen, for instance, via the Port of Hamburg.

Europe is also attractive and France, for instance, is Germany's second most important foreign trade partner after the US and Hamburg's third most important trading partner. "We are talking about stable, intense Franco-German relations, which are to be deepened through research cooperation in e.g., digitalisation, Industry 4.0 and greentech," said Yvonne Zwiener,  a representative of the Franco-German Chamber of Industry and Commerce. Turn the gaze farther north to the Baltic countries, which are now pioneers of digitalisation. Estonia has set up a modern e-government infrastructure through e-estonia which is envied by many. "Ninety-nine per cent of all administrative procedures can be completed digitally," said Dominic Otto, a representative of the German-Baltic Chamber of Commerce in Estonia, Latvia and Lithuania.  Latvia's forte lies in the fintech sector while Lithuania specialises in the development of laser technologies. Europe can learn from their respective expertise. To this end, Germany and the Baltic states have founded an innovation club to work towards innovation-friendly and opportunity-centred European digital policy in Brussels.

Despite the theme of "Disruption in Foreign Trade", optimism prevailed on the Hamburg Foreign Trade Day. Collaboration was identified as a catalyst of innovation and a means of countering dominant partners such as China and the USA. "Donald Trump actually deserves the Charlemagne Prize. He is forcing Europe towards unity and sovereignty," said Braml. It remains to be seen whether everyone would agree.
ys/sb/pb