Trade: Increased Investment Stimulates Trade

Trade continues to grow between the United States and Germany, and the rapidly accelerating FDI between the two economies significantly fuels this growth. The tight linkages between parent companies and their affiliates are reflected in the fact that roughly 62% of U.S. imports from Germany consist of intra-firm trade. Over a third of U.S. exports to Germany similarly consists of intra-firm trade. In other words, the more we invest in each other's economies, the more we will trade and create the jobs and prosperity that benefit us both.

To put our level of trade into a broader context, the United States imported $94 billion in goods and services from Germany and exported nearly $50 billion, meaning Germany trades more with the United States than it does with China and India put together. After France, the United States is Germany's largest export market. The United States, in turn, is Germany's third largest supplier and its principal trading partner outside the EU. Germany's export success in the U.S. market is reflected in Germany's consistent trade surpluses with the United States for at least a quarter century.

Looking at the relationship at the state level, the United States ranks among the top five export markets for 13 German Länder. From the U.S. side, Germany is among the top five export markets for 21 of the 50 U.S. states. In total, U.S. exports to Germany have more than doubled while German exports to the United States have more than tripled since German reunification.

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