Germany’s foreign trade policy stands at a strategic crossroads. The global landscape is marked by geopolitical tensions, rising protectionism, and a fragmented world trade order. At the same time, Germany’s export-driven economy depends heavily on open markets, stable supply chains, and reliable partners. In this environment, the previous value-driven foreign policy has reached its limits. What is needed now is a pragmatic, interest-based approach that prioritizes economic strength, security capabilities, and strategic partnerships.
A key lever is trade policy. Trade agreements must be negotiated more swiftly and pragmatically – without excessive ESG requirements that stall negotiations and deter potential partners. The ongoing EU-India trade talks illustrate this clearly: those who seek geopolitical influence must be willing to show normative flexibility. A realpolitik-driven trade policy is not a step backward, but a sign of strategic maturity.
At the same time, Germany must reduce its strategic dependence on China. Rare earths, battery technologies, and critical raw materials should no longer come from a single source. Partnerships with resource-rich countries such as Namibia, Chile, or Brazil must be expanded and supported through.
investments in local value creation. The EU’s “Global Gateway” initiative can play a vital role here – if it is consistently developed as an infrastructure engine.
Germany’s defense industry also deserves a renewed foreign trade perspective. Its products are not only relevant for security policy but also globally competitive. Targeted export promotion, faster approval processes, and state-backed guarantees can help open international markets and strengthen strategic alliances.
Finally, foreign trade promotion must be more clearly structured. The current division between development cooperation and economic promotion leads to inefficient overlaps. Consolidating funding instruments under the Ministry for Economic Affairs and aligning development cooperation more closely with market-relevant conditions would make it easier for German companies to access new markets.
Ultimately, this is about more than economic interests – it’s about Germany’s ability to act independently in an unstable world. An interest-driven foreign trade policy is not a contradiction to responsible governance. It is a prerequisite for sustainable prosperity, resilient partnerships, and strategic autonomy – for Germany, Europe, and our global allies.
Read the entire publication "Vom Werteanspruch zur Wirklichkeit – Prioritäten einer interessengeleiteten deutschen Außenwirtschaftspolitik” here as a PDF. Please note, to date the analysis is only available in German.
