Index of "1996 Country Commercial Guides"
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U.S. Department of State
Germany Country Commercial Guide
Office of the Coordinator for Business Affairs




                            COUNTRY COMMERCIAL GUIDE 
                                 FOR GERMANY
                                    FY 96

This Country Commercial Guide (CCG) presents a comprehensive look at 
Germany's commercial environment through economic, political and market 
analyses.  

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.  


TABLE OF CONTENTS

1. EXECUTIVE SUMMARY
2. ECONOMIC TRENDS AND OUTLOOK
3. POLITICAL ENVIRONMENT
4. MARKETING U.S. PRODUCTS AND SERVICES
5. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
6. TRADE REGULATIONS AND STANDARDS
7. INVESTMENT CLIMATE
8. TRADE AND PROJECT FINANCING
9. BUSINESS TRAVEL
10. APPENDICES

a) Country Data
b) Domestic Economy
c) Trade
d) Investment Statistics
e) U.S. and Country contacts 
f) Market Research
g) Trade Event Schedule


1.  Executive Summary

Germany remains the largest economy in Europe and one which U.S. 
companies must address.  Unification made the united Germany all the 
more important for U.S. exporters - Germany is the fifth largest export 
market for U.S. products worldwide (exports to Germany reached $19.4 
billion in 1994).  What was the eastern border of western Europe is now 
an economic powerhouse in the center of Europe with an estimated current 
GDP for 1994 reaching $2,000 billion. 

The western German market is a wealthy one, whose population enjoys a 
very high standard of living. The market is normally distinguished by 
high savings and low inflation rates, and a remarkably strong and stable 
currency.  To develop the market, U.S. exporters must take into account 
German perceptions of American suppliers and the quality of U.S. 
products, as well as features of the German market which may constitute 
hurdles to doing business.  

U.S. firms find Germany a good market for innovative, high quality 
products in the high technology area.  The country is also a good market 
for high quality food products.  New solutions in the multi-media area, 
and technologies and services connected with data-highway projects offer 
potential for U.S. exports.  High-technology products made in the United 
States are highly regarded, and in all high-tech sectors the American 
talent for innovation is considered unsurpassed.  U.S. products are 
especially well regarded where cutting-edge technology is required:  
computer software and peripherals, electronic components, health care 
and medical devices, synthetics, and aerospace technology.  Often such 
sales are for intermediate stages of production.  Since the customer's 
own product depends on the quality and reliability of the inputs to the 
production process, the importance of price is somewhat outweighed by 
product dependability and supplier reliability.

Success in the German market requires long-term commitment to market 
development and sales support.  One of the most commonly voiced 
complaints heard from the German business community is about the 
American penchant for being "here today and gone tomorrow."  While this 
approach can produce occasional one-time deals, it will not establish a 
solid position and reputation in the German market.

U.S. exporters must consider German demography.  To a far greater degree 
than its European neighbors, Germany's population and industry are 
decentralized and evenly distributed.  Major cities and businesses dot 
the countryside in a landscape which features no single business center.  
A U.S. supplier seeking sales in Germany must ensure that its 
distributor, or its own dealerships, have a country-wide capability.  
Too often U.S. companies seek to cover Europe from a single European 
base, or even through periodic visits from the United States.  The 
German commercial customer expects to be able to pick up the telephone, 
talk to his or her dealer, and have replacement parts or service work 
immediately available.  Consequently, we advise U.S. exporters to avoid 
appointing distributors with impossibly large geographic areas, without 
firm commitments regarding parts inventories or service capabilities, 
and without agreements on dealer mark-ups.

The strongest competition is, and will remain, from German domestic 
enterprises or their eventual trans-European successors.  This is due 
not only to geographic advantage and their role as traditional suppliers 
to the market, but also to the average citizen's conviction that German 
products are simply the best.  However, there is a growing perception 
that U.S. quality is improving and that prices of U.S. products are more 
competitive than in the past.  

Conditions in the eastern states are neither as bad as often portrayed 
nor as good as the governing coalition would like.  While long-term 
prospects are bright, the road to prosperity will be both rocky and 
tardy in reaching some corners of the region.  Unquestionably, positive 
things are happening, and people and goods are on the move.  Frequent 
travellers cannot fail to see that progress has been made, nor be blind 
to the fact that there is much to be done.  The traveller knows too well 
that the transport system cannot completely cope with the volume.  
Business visitors, only partly tongue in cheek, say that finding a hotel 
room may be harder than finding a customer.  Despite these difficulties, 
the estimated $3 billion invested in eastern Germany, since 1989, by 
American companies is clear evidence of confidence in the region.

Trade fairs play a crucial role in marketing in this country, a role 
perhaps unique in the world.  This is not too surprising when one 
considers that the trade fair movement was born in Germany in the Middle 
Ages and that -- even today -- a major portion of the truly world-class 
vertical fairs take place within Germany's borders, attracting buyers 
from around the world.  During 1996, one or more major trade fairs will 
be staged in Germany for almost any product or service Americans have to 
sell.  

Germany's extensive trade fairs are the most effective vehicle for 
introducing new products or technologies.  A recent poll by a German 
market research firm showed that decision-makers in Germany value trade 
fairs as, by far, the most important medium on which they base their 
purchasing decisions.  The large number of foreign visitors to German 
shows often leads to sales to non-German customers.  
 
Germany has one of the world's strongest market economies, and  one 
which poses few formal barriers to U.S. trade or investment interests 
(with the exception of the EU Common Agricultural Policy).  Germany's 
regulations and bureaucratic procedures, however, can prove a baffling 
maze, blunting the enthusiasm of U.S. exporters.  While not 
"protectionist" in the classic sense, government regulation is a high 
art in Germany and does offer a degree of protection to local suppliers.  
Safety standards, not normally discriminatory but sometimes zealously 
applied, complicate access to the market for many U.S. products.  
American companies interested in exporting to Germany should do their 
homework thoroughly and make sure they know precisely which standards 
apply to their product, and that they obtain timely testing and 
certification.  This is doubly important because, to the extent EU-wide 
standards are developed, there is a high probability that the existing 
German standard will form the basis for the eventual European standard. 

The emergence of new trading rules in the European Community will have a 
huge, but usually benign, impact on how U.S. companies operate in this 
country.  While Germans, quite naturally, focused on events to the east 
during the past years, the single Europe evolution has been steadily 
underway and will be of vast importance in this market.  The movement 
toward a Single European Market ("der Binnenmarkt") has now grabbed the 
attention of Germany's producers, particularly those that have survived 
in the eastern states and can no longer depend on customers in eastern 
Europe or the former Soviet Union.  The growth of the Single Market will 
intensify the already strong competition from third-country suppliers, 
especially from members of the European Union.

Country Commercial Guides are available on the National Trade Data Bank 
CD-rom or through the Internet.  Please contact STAT-USA at 1-800-STAT-
USA for more information.  To locate Country Commercial Guides via the 
Internet, please use the following worldwide WEB address: ww.stat-
usa.gov.  CCGs can also be ordered in hard copy or on diskette from the 
National Technical Information Service (NTIS) at 1-800-553-NTIS.


2.  Economic Trends and Outlook

Introduction and Summary

The German economy is the world's third largest, and  accounts for 
somewhat more than one-fourth of the European Union's GDP.  Among 
European countries, Germany is the United States's second largest 
trading partner.  Germany's broadly diversified economy affords its 
citizenry one of the highest standards of living in the world.  The 
German "social market" economy is organized on free market principles 
and provides what some view as the industrialized world's most 
comprehensive set of unemployment, health and educational insurances and 
guarantees.  As one of the world's foremost trading nations, Germany 
traditionally has enjoyed  substantial trade and current account 
surpluses, although the financing demands of reunification have driven 
the current account into the red.  A strong currency and continued 
international confidence in the management of Germany's monetary policy 
ensure full access to external financing.

Despite some 5 percent appreciation of the trade-weighted value of the 
DM in the first quarter of this year, Germany appears poised to record 
moderate, non-inflationary growth in both 1995 and 1996.  The German 
economy grew substantially more rapidly in 1994 than had been assumed 
initially when it expanded nearly three percent after having suffered a 
decline of 1.2 percent in 1993.  The main reason behind the German 
turnaround was export growth, which was stimulated by healthy foreign 
demand, particularly from recovery in Europe.  Although export growth is 
expected to slow down somewhat in the latter half of 1995 because of DM 
strength, the consensus remains that in 1995 and 1996 real growth should 
be around 2.5 to 3.0 percent.  Unemployment nonetheless is expected to 
remain high and the jobless rate likely will hover at the nine-percent 
mark in 1995, and drop perhaps one-half percentage point the following 
year.  Easing inflation in 1995 gave central bank officials the 
necessary scope for lowering interest rates at the end of March, 1995 
when the discount rate was set at four percent, the first decline in 
this key rate since mid-May 1994. 

Moderate Recovery to Continue

Expected all German growth rates are a function of continued 8 to 9 
percent growth in eastern Germany, combined with two percent-plus growth 
in the former West Germany.  Eastern Germany will continue to record 
rapid growth as a result of the large social transfers from the west, 
which exceeded USD 130 billion annually and supported personal incomes 
as un- and underemployment persists at 25 to 30 percent owing to the 
transformation of the former GDR to a market economy. Although growth in 
private consumption spending throughout Germany will continue to be 
rather weak in 1995, as it has been since 1992, this all-important GDP 
component is expected to expand more robustly in 1996 as employment 
expansion and tax cuts contribute to an increase in real incomes. This 
notwithstanding, taxes and social security contributions will remain 
among the highest in Europe.

The official German government forecast and those of private economists 
are in agreement that overall economic growth throughout Germany in 1995 
will continue to be led by exports and investment, with private 
consumption taking a more important role in 1996.  Investment spending 
is expected to increase by nearly 6 percent in 1995, led by sharply 
higher investment in machinery and equipment.  Growth in public 
consumption is projected at well below the growth in overall GDP for 
both years.  In 1996, the increase in equipment investment should ease 
somewhat.

Employment in western and eastern Germany will rise only moderately 
despite overall economic growth.  In 1995, average employment is 
forecast to rise by around one-quarter million and the annual average 
unemployment rate to drop to around 9 percent (there are sharp regional 
differences, as the rate in western Germany is expected to average 
around 8 percent, while the eastern German unemployment rate should be 
roughly 13 percent).  The inflation rate is forecast to abate throughout 
Germany, declining from 3.0 percent in 1994 to just above 2.0 percent in 
1995. In 1996, inflation may rise moderately due to the pick-up in 
private consumption and rising wage costs.

In mid-1995, observers of the German economy began to caution of a 
possible cooling of the recovery, largely due to a perception that the 
firming Deutschmark would make German exports less competitive.  
Pointing to declines in business confidence, industrial production and 
orders, these observers expressed concern that German growth would be 
slower than most recent forecasts had suggested.  In response, 
government commentators and others expressed confidence that the 
Deutschmark strength was exaggerated and thus not likely to be a 
permanent phenomenon, but moreover pointed to the relative price 
inelasticity of demand for German capital goods on the world market.  
Indeed, capacity utilization continued to increase and automobile sales 
continued very strong to mid-year.


Persistent Structural Problems

Despite the German economy's continued optimistic prospects, there is a 
consensus that Germany has structural problems that need to be addressed 
over the longer term.  Excessive regulation of business, conservative 
financial services providers, and continued expansion of the country's 
very generous social security system are said to be disincentives to 
entrepreneurial activity and labor mobility.  The associated increased 
costs of production and potential drag on productivity and 
competitiveness are matters of widespread concern.  The economic 
institutes continue to call for deregulation and accelerated 
privatization of government enterprises, as well as a reduction in the 
government expenditures as a share of GDP from the current level of just 
over 50 percent to the pre-unification rate of 46 percent.  This would 
involve, inter alia, fundamental reform of Germany's social security 
system, including pensions, health insurance, unemployment compensation, 
and welfare. Although the private sector began a process of structural 
change through downsizing, and labor responded by accepting real wage 
cuts as a means of dealing with the last recession, a repeat of the 
dramatically reduced unit labor costs achieved last year is not expected 
for 1995.  Labor demanded and won real wage gains in the latest wage 
round, a factor which has contributed to those voices raising concerns 
over German competitiveness.

The process underway in eastern Germany is the very quintessence of 
structural change.  Approaching the fifth year of German economic and 
monetary union (effected in July 1990), the eastern German economy 
elicits metaphors such as "shock treatment," "hothouse growth," and 
"forced feeding."  The unprecedented privatization of thousands of 
formerly state-owned enterprises is nearly complete.  A massive shift of 
resources from basic industries to construction and other services is 
well under way.  Public investment has modernized telecommunications and 
transportation very rapidly.  An array of tax breaks and low-interest 
loans have attracted investment, much of it that normally would have 
gone to western Germany.  The government has extended the bulk of the 
incentives through 1997.  On the other hand, eastern German wage rates 
increased in excess of productivity in 1990-93, thereby eroding an 
important element of competitiveness, greatly raising the incidence of 
bankruptcy, and contributing directly to unemployment.  However, current 
job creation appears to be catching up with continuing job losses - 
official unemployment is expected to level off at about 13 percent in 
1995-96, while disguised unemployment (forced early retirement, short-
time work, retraining programs) would still likely double that rate.


Economic Objectives and Policies

The government's declared primary objective is to improve supply-side 
factors which determine Germany's attractiveness as a place to invest 
and to do business.  Included under this rubric are fiscal 
consolidation, the continuation of reasonable wage demands on the part 
of labor, and ensuring the restructuring and integration of eastern 
Germany into the overall German economy.  The chosen approach on the 
latter goal, although criticized by some as an excessive financial 
burden on the west, is to support personal incomes and consumption in 
the east at near western levels through massive transfer payments, while 
promoting public and private investment.   In addition, a reduction of 
the state's participation in the economy, tax reform and further 
liberalization of markets, both internally and in terms of access by 
foreign competitors, are key objectives of German government economic 
policy.   

There is considerable consensus on these objectives but growing 
disagreement on the appropriate policies to achieve them.  Some outside 
of government have questioned the appropriateness of strict budgetary 
constraint in the midst of a budding recovery possibly threatened by a 
strong DM, and have called for 1) additional monetary easing, and 2) 
slower budgetary consolidation in the interest of reducing the tax 
burden more rapidly.

The government, however, perceives financial and political constraints 
on its ability to promote growth and to implement its ambitious agenda 
of structural reform.  Its plan for 1996 is to reduce the reliance on 
tax receipts for budgetary consolidation, in favor of increased emphasis 
on reducing expenditures.  In this context, however, it will continue 
large, although reduced from earlier levels, transfers to the east.  
These transfers are hoped to focus increasingly on manufacturing as 
opposed to income maintenance, in an attempt to increase the fledgling 
industrial base so that the east may more quickly reach a level of self-
sufficiency.


3.  Political Environment

Overview

The top priorities of the German government are to maintain economic 
growth and to continue fostering the development of eastern Germany.  
The new states are now an integral part of Germany, contain millions of 
voters, and are being brought up to the economic standards of western 
Germany as quickly as possible.  Accordingly, a high priority continues 
to be placed on financing eastern development, implying the likelihood 
of a flow of major project opportunities for years to come.

In addition, Germany's political leadership also wants to promote 
Germany's competitiveness and various proposals are being considered to 
modernize the country's economic situation.  Since unification on 
October 3, 1990, Germany has placed a high priority on improving its 
relations with its direct neighboring states as well as strengthening 
trans-Atlantic relations.  Recognizing that political stability is 
nurtured by economic prosperity, Germany has been one of the major 
sources of assistance to Central European and CIS states.
  
The country continues to emphasize close ties with the United States, 
membership in NATO, progress toward further European integration, and 
improved relations with Central Europe.  German-American political, 
economic, and security relationships regardless of which administration 
has been in power in either country have been based on close 
consultation and coordination at the most senior levels.  High-level 
visits take place frequently, and the United States and the FRG 
cooperate actively in international forums.  U.S. Government officials 
enjoy good access to policy- and decision-makers, and are able to raise 
issues directly affecting U.S. business active in Germany.

Basic Government Structure

Under the German Constitution, known as the Basic Law, the Federal 
Republic of German (FRG) is a parliamentary democracy with a bicameral 
legislature, an independent judiciary and executive power exercised by a 
Prime Minister whose title is Chancellor.

The lower house of Parliament, The Bundestag, currently consists of 672 
deputies elected a for 4-year term.  Members are elected through a 
mixture of direct constituency candidates and party lists.  The Basic 
Law and the Laender (state) constitutions stipulate that parties must 
receive at least 5 percent of the national vote (or at least three 
directly-elected seats in federal elections) in order to be represented 
in the federal and state parliaments.  The last national elections took 
place on October 16, 1994.  One must be 18-years old in Germany to vote.

The president may be elected to two 5-year terms and his duties as chief 
of state are largely ceremonial.  Executive power is exercised by the 
Chancellor who is elected by and responsible to the Bundestag.  The 
Chancellor cannot be removed from office during a 4-year term unless the 
Bundestag has agreed on a successor.

The upper house, the Bundesrat, is composed of delegations from the 16 
state governments and has a proportional distribution of its 68 votes, 
depending on the population of the state.  The role of the Bundesrat is 
limited but it can exercise substantial veto powers over legislation 
passed in the Bundestag when the proposed legislation would affect the 
numerous prerogatives of the Laender.  Among these are matters relating 
to tax reform, law enforcement and the courts, culture and education, 
the environment, and social assistance.

The political parties represented in the Bundestag are: 

--  The Christian Democratic Union and its Bavarian sister party, the 
Christian Social Union (CDU/CSU).  The CDU/CSU is generally conservative 
on economic and social policy.

--  The Social Democratic Party (SPD), which abandoned the concept of a 
class party in 1959 while continuing to stress social welfare programs.

--  The Free Democratic Party (FDP), which is composed of those who 
consider themselves "independents" and heirs to the European liberal 
tradition.

--  The Party of Democratic Socialism (PDS), which is the successor 
party to the SED (the communist party of the former German Democratic 
Republic).

--  The Alliance 90/The Greens (Bundnis 90/Die Gruenen), which has an 
environmentalist, pacifist platform. 


4.  Marketing U.S. Products and Services

U.S. companies intending to export to Germany must take into account 
German demography.  To a far greater degree than its European neighbors, 
Germany's population and industry are decentralized and evenly 
distributed.  Major cities and businesses dot the countryside in a 
landscape which features no single business center.  A U.S. supplier 
seeking sales in Germany must be careful to ensure that its distributor, 
or its own dealerships, have a country-wide capability.  Too often U.S. 
companies seem to seek to cover Europe from a single European base, or 
even through periodic visits from the United States.  The German 
commercial customer expects to be able to pick up the telephone, talk to 
his or her dealer, and have replacement parts or service work 
immediately available.  U.S. exporters should avoid appointing 
distributors with impossibly large geographic areas, without firm 
commitments regarding parts inventories or service capabilities, and 
without agreements on dealer mark-ups.

Success in the German market, as elsewhere around the world, requires 
long-term commitment to market development and sales back-up, especially 
if U.S. companies are to overcome their natural geographic handicap with 
respect to their European competitors.  One of the most commonly voiced 
complaints heard from the German business community is about the 
American penchant for being here today and gone tomorrow.  While this 
approach can produce occasional one-time deals, it is not the way of the 
competition, whether it be third-country or German, and is definitely 
not the way to establish a solid position and reputation in the German 
market.

Too often, U.S. suppliers are perceived by Germans as being unreliable: 
too quick to defer processing an export order in favor of a subsequent 
domestic order, too likely to bypass a successful distributor to deal 
directly with his customer, and interested in export sales only when 
domestic order books are unfilled or there is a fortuitous slip in the 
exchange rate.  Many U.S. companies are not seen as long-term players in 
the market, and are not viewed as likely to provide adequate after-sales 
support.  Distance from the market is no excuse to a customer with a 
problem.  

No business visitor or company wishing to export to Germany can fail to 
note that trade fairs play a crucial role in marketing in this country, 
a role perhaps unique in the world.  This is not too surprising when one 
considers that the trade fair movement was born in Germany in the Middle 
Ages and that -- even today -- a major portion of the truly world-class 
vertical fairs take place within Germany's borders, attracting buyers 
from around the world.  During 1995, one or more major trade fairs will 
be staged in Germany for almost any product or service Americans have to 
sell.  Trade fairs thrive in Germany because they are occasions on which 
business is actively done, rather than serving simply as public 
relations venues.  U.S. exhibitors in German fairs should bring their 
order books and be prepared to sell.  While U.S. exhibitors and even 
visitors can often conclude transactions, all attenders can use the 
great German fairs to conduct market research, see what their worldwide 
competition is doing, and test pricing strategies.  The German fairs 
should not be thought of as strictly venues for doing business in 
Germany.  The major shows attract buyers from throughout the world, 
allowing U.S. exhibitors do business here with buyers from Europe, Asia, 
Africa, Latin America and even with other U.S. companies.

There is a general consensus that Germany's extensive trade fairs are 
the most effective vehicle for introducing new products or technologies.  
A recent poll by a German market research firm showed that decision-
makers in Germany value trade fairs as by far the most important medium 
on which they base their purchasing decisions.  The large number of 
foreign visitors to German shows often leads to sales to non-German 
customers.  Fair organizers expected some drop in attendance and in 
numbers of exhibitors, as reflections of the slower economies in Germany 
and neighboring countries, but these expectations did not materialize 
overall.  Both CeBIT 95, the world's largest computer and 
telecommunications show, and the 1995 Hannover Trade Fair, the world's 
largest industrial trade fair of any kind, saw record numbers of 
visitors and exhibitors.  This confirms the conviction that there is no 
other venue where an American company can get so much product exposure 
for its marketing dollar.

In order to enhance U.S. presence at German trade shows and promote 
American business even more effectively through these unique vendors, a 
trade fair initiative was developed under the Showcase Germany program, 
developed by the U.S. Embassy and the U.S. Department of Commerce.  The 
Showcase Germany trade fair initiative not only aims at increasing 
promotional efforts and assistance for U.S. companies at numerous German 
trade fairs, but also at recruiting foreign buyers from other, 
especially eastern European countries, and introducing these to U.S. 
exhibitors.  U.S. exhibitors at these fairs will have the advantage of 
meeting with a number of such delegations in order to find potential 
partners, not just in Germany, but throughout Europe.

The promotion of U.S. participation at German trade fairs is also an 
essential part of "Showcase Europe," a field-driven initiative which is 
designed to pay tribute to the ongoing integration of a single Europe.  
At selected fairs, we will attempt to bring U.S. companies together not 
only with potential German business partners, but also with visitors 
from other European countries.   Both "showcases" also focus on advocacy 
on behalf of U.S. business interests, they especially concentrate on 
further opening the energy and telecommunications fields to U.S. 
companies, and include official U.S. government advocacy on behalf of 
American firms bidding on German procurement projects.  

Besides exhibiting at a German trade fair, in most cases advertising is 
considered a suitable promotion method.  Regulation of advertising in 
Germany is a mix between judicial rules and voluntary guidelines 
developed by the major industry associations.  Legal rules were 
established at the beginning of the 20th century by the "Law Against 
Unfair Competition."  This law continues to be valid today, although it 
has been modified over time.  In essence, this law allows competitors to 
bring suit if advertising "violates good manners."

Many advertising practices that are common in the United States, such as 
offering premiums, would not be allowed in Germany.  Any planned 
advertising campaigns should be thoroughly discussed with a potential 
business partner or an advertising agency in Germany.  Following is the 
address of the German association of advertising agencies:

Gesamtverband Werbeagenturen e.V.
(German Association of Advertising Agencies)
Friedensstr. 11
60311 Frankfurt a.M. 1
Phone: (49-69) 235096
Fax: (49-69) 236883

There are numerous technical or specialized periodicals that deal with 
all aspects of technology and doing business in Germany.  In addition, 
Germany has a well developed array of newspapers and magazines, which 
offer the opportunity to gather information and advertize products and 
services. 

For nearly all facets of doing business, there appears to be an industry 
or trade association that is active in a particular field and which can 
often serve as a suitable point of contact when trying to establish a 
partnership. 

In any case, a U.S. company is advised to research its market and the 
potential of its product properly before making a business decision.  
Not all products can be easily sold and, even in a high-priced country 
such as Germany, it is important to attach the right price tag to a 
product. 

Selling to German government entities is not always an easy process.  As 
a broad statement, German government procurement is non-discriminatory 
and generally appears to comply with the GATT Agreement on Government 
Procurement (the Procurement Code) and the European Community's 
procurement directives.  That said, it is undeniably difficult to 
compete head-to-head with major German or other EU suppliers with long-
term ties to German government purchasing entities. 


The exports of U.S. agricultural products are actively promoted by 
associations cooperating with the U.S. Department of Agriculture (USDA). 

COOPERATORS REPRESENTED IN GERMANY

The USDA Cooperators listed below either have an fully staffed field 
office in Germany or have in some other way contracted personnel, e.g., 
a trade representative or PR-company in country to represent their 
interests.   They can be contacted through the:

    U.S. Agricultural Trade Office
    Alsterufer 28
    20354 Hamburg, Germany
    Tel: (49) (40) 4146-070
    Fax: (49) (40) 4146-0720

  -  American Horticultural Marketing Council, Inc.
  -  American Plywood Association
  -  American Soybean Association
  -  Asparagus USA, Inc.
  -  California Pistachio Commission
  -  California Prune Board
  -  California Table Grape Commission
  -  California Walnut Commission
  -  The Catfish Institute
  -  Florida Department of Citrus
  -  National Peanut Council of America
  -  National Sunflower Association
  -  Northwest Cherry Growers
  -  Oregon-Washington-California Pear Bureau
  -  The Popcorn Institute
  -  Texas Grapefruit Commission
  -  U.S. Meat Export Federation
  -  USA Pears
  -  USA Poultry & Egg Export Council
  -  USA Rice Council
  -  Washington Apple Commission
  -  Wine Institute of California



COOPERATORS NOT REPRESENTED IN GERMANY
                            
The USDA Cooperators listed below do not have a permanent presence, but 
conduct active marketing programs in Germany. 

  -  Alaska Seafood Marketing Institute
  -  Almond Board of California
  -  American Forest and Paper Association
  -  American Hardwood Export Council
  -  American Quarter Horse Association
  -  American Wool Council
  -  Appaloosa Horse Club, Inc.
  -  Blue Diamond Growers
  -  Brandy Export Association
  -  California Avocado Commission
  -  California Raisin Advisory Board (London)
  -  Cotton Council International
  -  Eastern U.S. Agricultural & Food Export Council (EUSAFEC)
  -  Hop Growers of America, Inc.
  -  Kentucky Distiller's Association
  -  Michigan Blueberry Growers
  -  Mid-American International Agri-Trade Council
  -  National Association of State
  -  National Dry Bean Council
  -  National Honey Board
  -  National Renderers Association Inc.
  -  Pacific Northwest Wine Coalition
  -  Southern Forest Products Association
  -  Southern Pine Marketing Council
  -  Southern U.S. Trade Association
  -  Tobacco Associates, Inc.
  -  Western U.S. Agricultural Trade Association
  -  Western Wood Products Association


5.  Leading Sectors for U.S. Exports and Investment

Best Prospects for Non-agricultural Goods and Services 

 1  CSF - Computer Software    
 2  CPT - Computer/Peripherals
 3  INF - Information Services
 4  FRA - Franchising
 5  ELC - Electronic Components
 6  TEL - Telecommunications EQ
 7  AIR - Aircraft/Parts
 8  LAB - Laboratory Scientific Instruments
 9  ICH - Industrial Chemicals
10  APS - Automotive Parts
11  DRG - Drugs and Pharmaceuticals
12  AUT - Automobiles
13  ELP - Electric Power Generating EQ
14  CSV - Computer Services  
15  EIP - Electronics Industry Production and Test Equipment

Exchange rate used for non-agricultural best prospect goods and 
services: $1 equals DM 1.45



 1 -  Computer Software -  CSF

With a 28% share of the European software and services market (worth 
35.3 billion ECU), Germany is the largest and one of the fastest growing 
of all European markets.  Software products remained among the strongest 
drivers of market growth with revenues rising 6.7% in 1994 and set to 
strengthen to 8% in 1995, and 10% in 1996.  The systems software market 
makes up 47.6% of the total packaged software market, and the 
application software segment represents 52.4% of the total software 
products market.  Both the 1994 recovery and optimistic expectations for 
1995 are grounded on the rapid growth of application tools and 
application solutions of the systems software market.  The system-level 
software share of the total market is expected to grow less than other 
sectors because of the instability of prices, the continual decrease in 
demand for mainframe and minicomputer operating systems and low price 
margins for "open" operating systems and new advanced operating systems.  
The rapid growth of the application solutions market segment is based on 
sustained demand for client/server and distributed packaged 
applications, widespread new applications of workflow automation, by 
increasing penetration UNIX platforms, information integration, new 
multimedia features and the success of object-oriented programming and 
relational databases.  The twenty-five largest software products 
suppliers control two-thirds of the German software market, among them 
U.S. subsidiaries Microsoft, Novell, and Lotus.  As in other industries, 
the trend toward mergers and acquisitions is notable.  As the majority 
of the large U.S. software products manufacturers have facilities in 
Germany, their contribution to the German market is accumulated under 
production figures. All figures are estimates.  Official statistics are 
not available and figures supplied by trade sources vary to some extent, 
due to the complexity of the market.

Total market size (U.S. $ millions)
  -- 1994:                    6,500
  -- 1995 (estimated):        7,200
  -- 1996 (projected):        8,000
Total local production (U.S. $ millions)
  -- 1994:                    5,300
  -- 1995 (estimated):        5,900
  -- 1996 (projected):        6,600          
Total exports (U.S. $ millions)
  -- 1994:                    1,300          
  -- 1995 (estimated):        1,500          
  -- 1996 (projected):        1,700          
Total imports (U.S. $ millions)
  -- 1994:                    2,500          
  -- 1995 (estimated):        2,800        
  -- 1996 (projected):        3,100        
Imports from the United States (U.S. $ millions)
  -- 1994                     1,000          
  -- 1995 (estimated):        1,200        
  -- 1996 (projected):        1,500          


 2 - Computer & Peripheral Equipment - CPT

Although competition from the Eastern Asia and Europe increased, U.S. 
computer products are viewed by German distributors, OEM's, VAR's and 
end-users as innovative products of superior quality and leading edge 
technology.  

In 1994, sales of main frame and mini computers continued their downward 
trend, microcomputers and peripherals, however, recorded an unexpectedly 
high growth rate in unit terms of approximately 19%, which translates 
into a 10% value growth.  This high growth in volume is expected to 
continue through 1995 and 1996.  Projections vary between 12% and 21%; 
18% growth is considered by many industry experts a realistic growth 
forecast. 

Germany is, and will remain for the foreseeable future, a country of 
great opportunity for sales for American computer products.  The United 
States is expected to retain its 1994 import share of 26% at least until 
1998.
 
   
Total Market Size (U.S. $ millions)
  -- 1994:                  16,500
  -- 1995 (estimated):      18,200
  -- 1996 (projected):      19,700
Total Local Production (U.S. $ millions)
  -- 1994:                   8,200
   -- 1995 (estimated):      8,600
  -- 1996 (projected):       8,700
Total Exports (U.S. $ millions)
  -- 1994:                   9,200
  -- 1995 (estimated):       9,600
  -- 1996 (projected):      10,100
Total Imports (U.S. $ millions)
  -- 1994:                  17,500
  -- 1995 (estimated):      19,200
  -- 1996 (projected):      21,100
Imports from the United States (U.S. $ millions)
  -- 1994:           4,500
  -- 1995 (estimated):       4,900
  -- 1996 (projected):       5,400


 3 - Information Services - INF

Information Services are among the fastest growing markets in Germany.  
The total market (on-line realtime, on-line retrospective and off-line) 
grew by 14.8 percent in 1994, and growth is expected to continue at 
extraordinary high rates in 1995 and the near future.  Especially the 
market segment of multimedia/consumer services, in which where U.S. 
suppliers/hosts traditionally hold a leading market position worldwide 
is expected to show especially high growth rates.

Total sales (U.S. $ millions)
  -- 1994:                      900
  -- 1995 (estimated):        1,220
  -- 1996 (projected):        1,430

Sales by local firms (U.S. $ millions)
  -- 1994:                      450
  -- 1995 (estimated):          600
  -- 1996 (projected):          800

Sales by local firms abroad (U.S. $ millions)
  -- 1994:                      na
  -- 1995 (estimated):          na
  -- 1996 (projected):          na

Sales by foreign-owned firms (U.S. $ millions)
  -- 1994:                      450
  -- 1995 (estimated):          600
  -- 1996 (projected):          800

Sales by U.S-owned firms (U.S. $ millions)
  -- 1994:                      135
  -- 1995 (estimated):          240
  -- 1996 (projected):          330


 4 - Franchising - FRA

Franchise systems are at least equally as difficult to introduce in 
Germany as in the neighboring, non-English speaking European countries 
of France and Spain. U.S. franchisors must also be prepared to adapt to 
required market norms and standards, invest in market research, test 
market receptivity through pilot projects and adjust their franchise 
concepts to German business practices and consumer tastes.  
Nevertheless, U.S. companies are currently holding an import market 
share of approximately 58%, a situtation which is expected to continue 
in the near future.  

Total sales (U.S. $ millions)
  -- 1994                  13,700
  -- 1995 (estimated)      15,400
  -- 1996 (projected)      16,900
Sales by local firms (U.S. $ millions)
  -- 1994                  11,700
  -- 1995 (estimated)      13,100
  -- 1996 (projected)      14,600
Sales by local firms abroad (U.S. $ millions)
  -- 1994                     140
  -- 1995 (estimated)         160
  -- 1996 (projected)         190
Sales by foreign-owned firms (U.S. $ millions)
  -- 1994                    2,000
  -- 1995 (estimated)        2,300
  -- 1996 (projected)        2,500
Sales by U.S-owned firms (U.S. $ millions)
  -- 1994                    1,200
  -- 1995 (estimated)        1,300
  -- 1996 (projected)        1,500


 5 - Electronic Components - ELC

The German market for electronic components in 1994 gathered speed again 
after experiencing a slump and then only modest growth in the two 
preceding years.  The total volume in 1994 represented an increase of 12 
percent over the previous year in local currency terms. The German 
Electrical and Electronic Manufacturers' Association (ZVEI) estimates 
1995 growth will reach the same rate.  Within the electronic components 
sector, the greatest potential continues to be in the semiconductor 
segment (1994 growth at 24 percent).  American suppliers satisfy over 50 
percent of the German demand for semiconductors.

Total market size (U.S. $ millions)
  -- 1994:                  11,800
  -- 1995 (estimated):      13,100
  -- 1996 (projected):      14,300
Total local production (U.S. $ millions)
  -- 1994:                  11,400
  -- 1995 (estimated):      12,600
  -- 1996 (projected):      13,600  
Total exports (U.S. $ millions)
  -- 1994:                  10,700
  -- 1995 (estimated):      11,900
  -- 1996 (projected):      12,900
Total imports (U.S. $ millions)
  -- 1994:                  11,100
  -- 1995 (estimated):      12,400
  -- 1996 (projected):      13,600
Imports from the United States (U.S. $ millions)
  -- 1994                    2,100
  -- 1995 (estimated):       2,350
  -- 1996 (projected):       2,590


 6 - Telecommunications - TEL

The telecommunications industry is widely regarded as one of the driving 
forces behind future economic growth.  Multi-media, mobile 
communications, data highways, all these are catchwords that 
characterize the majority of discussions about the potential for 
economic development.  Germany is not only one of the fastest growing 
markets for mobile equipment, but is also very well prepared for any 
future technology in this sector.  Thousands of miles of high quality 
fiber optical cable have been installed, especially in the new Laender, 
and make the country ready for the applications of the future.  The 
immense changes in the legal infrastructure and the privatization of 
network services will add momentum to the positive trend.  U.S. exports 
to Germany significantly exceed German exports to the United States, a 
trend which is expected to continue.

Total Market (U.S $ in millions)        
  -- 1994:                    9,000
  -- 1995 (estimated):        9,700
  -- 1996 (projected):       10,700
Local Production (U.S. $ in millions)          
  -- 1994:                   11,400
  -- 1995 (estimated):       12,000
  -- 1996 (projected):       13,000
Local Exports (U.S. $ in millions)
  -- 1994:                    6,700
  -- 1995 (estimated):        7,300
  -- 1996 (projected):        8,000
Imports (U.S. $ in millions)            
  -- 1994:                    4,300
  -- 1995 (estimated):        5,000
  -- 1996 (projected):        5,700
Imports from the U.S. (U.S. $ in millions)
  -- 1994:                      820
  -- 1995 (estimated):          940
  -- 1996 (projected):        1,100     


 7 - Aircraft and parts - AIR

Previous hopes for a stabilization of the German civil aerospace market 
in 1994 proved unfounded.  Rather than remaining at previous levels, 
both the German market and volume of production further contracted.  The 
German aerospace industry is calling for a task force composed of 
industry representatives and members of the economics, defense and 
research ministries to discuss a new aerospace policy to ensure the 
survival of the aerospace industry in Germany.  
 
The industry has remained unprofitable despite continued growth in 
German air traffic, which increases continually by about 5 percent per 
year, thus creating demand for fleet renewals and replacement.  The best 
growth segments are short range commuter aircraft, aircraft sub-systems, 
components and upgrading equipment, as well as avionics.  The United 
States is a major supplier of aerospace products to Germany and the 
favorable dollar exchange rate versus the D-Mark will further spur 
demand for equipment from U.S. sources.

Total market size (U.S. $ millions)
  -- 1994:                     8,200
  -- 1995 (estimated):         8,600
  -- 1996 (projected):         8,800
Total local production (U.S. $ millions)
  -- 1994:                     8,600
  -- 1995 (estimated):         8,600
  -- 1996 (projected):         9,000  
Total exports (U.S. $ millions)
  -- 1994:                    11,100
  -- 1995 (estimated):        11,000
  -- 1996 (projected):        11,500
Total imports (U.S. $ millions)
  -- 1994:                    10,700
  -- 1995 (estimated):        11,000
  -- 1996 (projected):        11,300
Imports from the United States (U.S. $ millions)
  -- 1994              2,170
  -- 1995 (estimated):         2,580
  -- 1996 (projected):         3,000


 8 - Scientific & Laboratory Instruments - LAB

With a market size of more than $4 billion in 1994, the market for 
scientific, analytical and laboratory instruments is one of the fastest 
growing in Germany. By the year 2000, market volume in Germany is 
predicted to reach as much as $6.0 billion.

U.S. analytical, laboratory and scientific instruments maintain 
excellent reputations in Germany. Since German manufacturers cannot 
satisfy the growing demand, significant opportunities exist for American 
suppliers to market a great variety of instruments.

Total market size: (U.S. $ millions)
   -- 1994                        4,700 
   -- 1995 (estimated)            4,900 
   -- 1996 (projected)            5,200  
Total local production (U.S. $ millions)
   -- 1994                       4,500 
   -- 1995 (estimated)           4,600  
   -- 1996 (projected)           4,800  
Total exports (U.S. $ millions)
   -- 1994                2,200 
   -- 1995 (estimated)          2,300  
   -- 1996 (projected)          2,400  
Total imports (U.S. $ millions)
   -- 1994                      2,400  
   -- 1995 (estimated)          2,600  
   -- 1996 (projected)          2,800  
Imports from the United States: (U.S. $ millions)
   -- 1994                      1,800
   -- 1995 (estimated)          2,000
   -- 1996 (projected          2,000 


 9 - Industrial chemicals - ICH

In 1994, the German chemicals market increased by more than 7 percent 
over the previous year to almost $93 billion, of which imports held a 
share of 41.6 percent.  Germany leading suppliers were France with $5.5 
billion, or 14.3 percent of the import market, and the Netherlands with 
$5.2 billion, or 13.4 percent of the import market. The United States 
ranked fifth, supplying chemicals worth $3.4 billion, or 8.9 percent of 
the German import market.  Germany's imports of photochemicals from the 
United States totaled $282 million (plus 3 percent over 1993).  

Total market size (U.S. $ millions)
      -- 1994:                     93,200
      -- 1995 (estimated):         98,800
      -- 1996 (projected):        102,600
Total local production (U.S. $ millions)
      -- 1994:                    120,000
      -- 1995 (estimated):        125,800
      -- 1996 (projected):        129,600
Total exports (U.S. $ millions)
      -- 1994:                     65,500
      -- 1995 (estimated):         68,800
      -- 1996 (projected):         70,900
Total imports (U.S. $ millions)
      -- 1994:             38,700
      -- 1995 (estimated):         41,800
      -- 1996 (projected):         43,900
Imports from the United States (U.S. $ millions)
      -- 1994:                      3,500
      -- 1995 (estimated):          3,700
      -- 1996 (projected):          3,900


10 - Automobile Parts and Services - APS

German automobile manufacturers have forced their suppliers to reduce 
costs dramatically over the last two years.  Consequently, the total 
value of the market for automotive parts has dropped considerably.  In 
order to reduce their own costs, German automobile manufacturers have 
also turned to foreign suppliers.  As a result almost 20% of domestic 
suppliers had to cease their business and, at the same time, imports 
have risen rapidly.  In the long run, German automobile manufacturers 
are expected to locate new production facilities outside Germany, a fact 
that will lead to a decrease in the domestic demand for parts. 
Production and sales of aftermarket parts and related services have also 
dropped owing to the fact that vehicles and parts now last longer.  
According to market experts, imports will not be affected as severely 
from the overall downward trend, but may still show moderate increases.

Total market size (U.S. $ millions)
     -- 1994                    35,800
     -- 1995 (estimated)        36,400
     -- 1996 (projected)        33,700
Total local production (U.S. $ millions)
     -- 1994                    39,500
     -- 1995 (estimated)        31,600
     -- 1996 (projected)        25,300
Total exports (U.S. $ millions)
     -- 1994                    20,500
     -- 1995 (estimated)        15,600
     -- 1996 (projected)        13,800
Total imports (U.S. $ millions)
     -- 1994                    16,800
     -- 1995 (estimated)        20,400
     -- 1996 (projected)        22,200
Imports from the United States (U.S. $ millions)
     -- 1994                       860
     -- 1995 (estimated)           950
     -- 1996 (projected)         1,040


11 - Drugs & Pharmaceuticals - DRG

In 1994, the United States was Germany's second largest supplier of 
pharmaceutical products. Total German imports in 1994 increased by 32.1% 
to $6.8 billion and are expected to reach $7.1 billion in 1995.  
Government cost containment legislation is encouraging sales of self-
medication drugs and generic medicines.  Best sales prospects exist for 
pharmaceuticals affecting the central nervous system, cardio-vascular 
medication, analgesics, hormone and vitamin preparations and 
diagnostics.

Access to the German pharmaceutical market is subject to strict national 
and European Union legislation.  Since January 1995, the market entry of 
biotechnically derived or technologically advanced drugs has been eased. 
The application procedure is now centralized through the European Drug 
Agency (EMEA) in London, U.K.

Total market size (U.S. $ millions)
  -- 1994:                    18,700
  -- 1995 (estimated):        19,100
  -- 1996 (projected):        19,600
Total local production (U.S. $ millions)
  -- 1994:                    22,700
  -- 1995 (estimated):        23,300
  -- 1996 (projected):        24,000  
Total exports (U.S. $ millions)
  -- 1994:                    10,800
  -- 1995 (estimated):        11,300
  -- 1996 (projected):        11,700
Total imports (U.S. $ millions)
  -- 1994:                     6,800
  -- 1995 (estimated):         7,100
  -- 1996 (projected):         7,300
Imports from the United States (U.S. $ millions)
  -- 1994                800
  -- 1995 (estimated):           890
  -- 1996 (projected):           960


12 - Automobiles - AUT 

Although it was generally expected that passenger vehicle purchases 
would increase, the first months of 1995 have been disappointing for the 
industry. New passenger vehicle registrations decreased by 1.97% in the 
first quarter, sales of imports by 12.87% and sales of diesel passenger 
vehicles by 13.65%.  As profit margins for dealers are shrinking, it is 
expected that 20-25% of automobile dealers will shut within the next two 
years.  Japanese imports have been hit the hardest, with a 50% decrease 
in vehicle sales.  A growing number German consumers now purchase their 
vehicles directly in other European countries, where prices are up to 
30% lower, (or even in the United States, where prices may be 50% lower 
than in Germany.)  German dealers also carry large stocks of good 
quality used vehicles, which are increasingly difficult to sell.  As a 
result, used car prices have also dropped drastically.  German 
manufacturers have managed to cut their production costs over the last 
two years, however, and are now managing to increase exports of 
passenger vehicles to other regions, especially Asia.  The sale of U.S. 
cars was not severely affected by the overall negative climate, but even 
could record a slight increase.            

Total market size (U.S. $ millions)
     -- 1994                     61,500
     -- 1995 (estimated)         59,100
     -- 1996 (projected)         61,300
Total local production (U.S. $ millions)
     -- 1994                     94,500
     -- 1995 (estimated)         99,300
     -- 1996 (projected)        104,200
Total exports (U.S. $ millions)
     -- 1994                     51,000
     -- 1995 (estimated)         56,000
     -- 1996 (projected)         58,800
Total imports (U.S. $ millions)
     -- 1994             18,000
     -- 1995 (estimated)         15,800
     -- 1996 (projected)         15,900
Imports from the United States (U.S. $ millions)
     -- 1994                        340
     -- 1995 (estimated)            400
     -- 1996 (projected)            440


13 - Electric Power Generating Systems

Despite economic growth, energy consumption has continued to show a 
slight decrease. This is basically due to improvements in energy 
efficiency measures. The driving force for the power generating market 
is the far-reaching structural change in the energy supply sector in 
Eastern Germany. However, this process is slowed down by an ongoing 
dispute over which energy source to favor. While in western Germany the 
energy supply structure has already shifted to the advantage of energy 
sources with more favorable air emission profiles, resulting in an 
increased use of natural gas, eastern Germany favors power generation 
from fossil fuels because of the local lignite resources.


Total market size (U.S. $ millions)
  -- 1994:                    18,300
  -- 1995 (estimated):        22,700
  -- 1996 (projected):        34,000
Total local production (U.S. $ millions)
  -- 1994:                    13,400
  -- 1995 (estimated):        16,700
  -- 1996 (projected):        28,200  
Total exports (U.S. $ millions)
  -- 1994:                     2,700
  -- 1995 (estimated):         3,300
  -- 1996 (projected):         4,100
Total imports (U.S. $ millions)
  -- 1994:                     7,600
  -- 1995 (estimated):         9,300
  -- 1996 (projected):        11,600
Imports from the United States (U.S. $ millions)
  -- 1994                        520
  -- 1995 (estimated):           570
  -- 1996 (projected):           630


14 - Computer Services - CSV

The software services market is characterized by trends specific to 
individual segments, in particular the professional services, network, 
and support services markets.  The professional services segment showed 
a growth of 7.8% in 1994, after three years of decline, and is expected 
to grow another 8% in 1995.  Network services, which include managed 
network services such as EDI and electronic mail, are expected to remain 
the fastest growing segment with a 12.3% increase in 1994, expected to 
rise to 13.9% in 1995.  The market for support services continued to 
decline in 1994 by 1.2% but is expected to level out in 1995 and to 
slightly increase by 0.5% in 1996.  The sharp decline in this segment is 
mainly due to increased product reliability; longer warranties; 
increased competition; and lower margins as prices decrease.

In contrast, the trend towards open systems, downsizing, and migration 
towards client/server architectures are generating high demand for 
specific types of software-related services such as the 
management/maintenance of different applications in a structurally 
complex architecture.  Opportunities for the custom services market 
centered on packaged software and systems integration will also 
increase, as demand for software implementation and adaptation grows.  

NOTE:  The majority of large U.S. software service providers have 
facilities in Germany.  Their contribution to the German market is 
accumulated under sales by local firms.  All figures are estimates.  
Official statistics are not available and figures supplied by trade 
sources vary or are fragmented due to the complexity of the market.

Total sales (U.S. $ millions)
  -- 1994                    3,750
  -- 1995 (estimated)        4,150
  -- 1996 (projected)        4,700
Sales by local firms (U.S. $ millions)
  -- 1994                    2,800
  -- 1995 (estimated)        3,100
  -- 1996 (projected)        3,500
Sales by local firms abroad (U.S. $ millions)
  -- 1994                      400  
  -- 1995 (estimated)          450
  -- 1996 (projected)          500
Sales by foreign-owned firms (U.S. $ millions)
  -- 1994                      550
  -- 1995 (estimated)          600
  -- 1996 (projected)          700
Sales by U.S-based firms (U.S. $ millions)
  -- 1994                      370
  -- 1995 (estimated)          410
  -- 1996 (projected)          460


15 - Electronic industry production and test equipment - EIP

The United States continued to be the leading foreign supplier of 
electronic production and test equipment to the German market, with an 
import market share of over 22 percent.  Japan was next with 17.5 
percent, Switzerland ranked third with 15 percent, followed by Italy, 
7.1 percent, and Great Britain, 5.4 percent.

Potential growth is expected because of numerous capital improvement and 
investment projects underway to adapt to new technologies as well as 
expand and update existing facilities.  The best market potential is 
expected for semiconductor production equipment.

Total market size (U.S. $ millions)
  -- 1994:                     2,080
  -- 1995 (estimated):         2,337
  -- 1996 (projected):         2,381
Total local production (U.S. $ millions)
  -- 1994:                     4,599
  -- 1995 (estimated):         5,176
  -- 1996 (projected):         5,279
Total exports (U.S. $ millions)
  -- 1994:                     4,428
  -- 1995 (estimated):         5,008
  -- 1996 (projected):         5,133
Total imports (U.S. $ millions)
  -- 1994:                     1,909
  -- 1995 (estimated):         2,169
  -- 1996 (projected):         2,235
Imports from the United States (U.S. $ millions)
  -- 1994                        421
  -- 1995 (estimated):           488
  -- 1996 (projected):           514



Best Prospects for Agricultural Products

1  Snack Foods
2  Lumber Products
3  Fats and Oils
4  Hilton-type Quality Red Beef
5  Catfish
6  Wine/Beer
7  Citrus, Fresh and Juice
8  Pet Foods and Supplies
9  Nursery Products



A.  Rank of Sector:   1
B.  Name of Sector:    Snack Foods, Excluding Nuts
C.  PS&D Code:     HVP
D.  Total market size (U.S. $ millions)
    -- 1994:                       6,000
    -- 1995 (estimated) :          6,750
    -- 1996 (projected) :          6,750
E.  Total local production (U.S. $ millions)
    -- 1994:                       3,500
    -- 1995 (estimated) :          4,250
    -- 1996 (projected  :          4,250
F.  Total exports (U.S. $ millions)
    -- 1994:                       1,275
    -- 1995 (estimated) :          1,750
    -- 1996 (projected  :          1,750
G.  Total imports (U.S. $ millions)
    -- 1994:                       3,750
    -- 1995 (estimated) :          4,250
    -- 1996 (projected) :          4,250
H.  Imports from the United States (U.S. $ millions)
    -- 1994:                          11
    -- 1995 (estimated) :             14
    -- 1996 (projected) :             14
I.  Exchange rate used: U.S. $ = DM 1.4

Comments:  The German snack food market cannot be accurately formulated 
on a metric ton basis as may be the case for other agricultural products 
in this report, nor can any guarantee be given for the above guesstimate 
on market size, production and trade.  Snack food, due to its inherently 
broad scope and its rapidly evolving nature in this market, defies any 
uniform, tangible definition.  Nonetheless, this branch of consumer-
oriented food items has profited dramatically.  Based on a USDA/FAS 
trade definition, U.S. exports of snack foods to Germany zoomed from 
$2.2 million in 1989 to over $10 million in 1993.  Average consumer 
habits and willingness to purchase convenience, between-meal snacking 
products appears ripe for continued strong growth.


A.    Rank of Sector:   2
B.  Name of Sector:    Lumber Products
C.  PS&D Code:     FP
D.  Total market size (in cubic meters 1000)
    -- 1994:                       1,550
    -- 1995 (estimated) :          1,650
    -- 1996 (projected) :          1,700
E.  Total local production (in cubic meters 1000)
    -- 1994:                       1,300
    -- 1995 (estimated) :          1,300
    -- 1996 (projected) :          1,350
F.  Total exports (in cubic meters 1000)
    -- 1994:                         200
    -- 1995 (estimated) :            225
    -- 1996 (projected) :            250
G.  Total imports (in cubic meters 1000)
    -- 1994:                         450
    -- 1995 (estimated) :            500
    -- 1996 (projected) :            500
H.  Imports from the United States (in cubic meters 1000)
    -- 1994:                140
    -- 1995 (estimated) :             150
    -- 1996 (projected) :            155
I.  Exchange rate used: U.S. $ = DM 1.4
    

Comments:  The above figures for lumber products are in terms of 
thousand cubic meters and focus specifically on the hardwood lumber 
sector, the primary and fastest-growing market for U.S. woods.  The 
German furniture, flooring and other wood-processing sectors continue to 
grow and have excellent growth chances in meeting increased demand from 
the eastern German economy and other nearby Central European countries.  
The U.S. export opportunities have been favorably influenced by the 
German market's increasing diversification from primarily oak species to 
other types of hardwoods.  In addition, panel products exports to 
Germany have also grown strongly in past years from $80 million in 1989 
to over $145 million last year.


A.  Rank of Sector:   3
B.  Name of Sector:    Fats & Oils (Edible & Non-Edible) 1,000 MT
C.  PS&D Code:     OPD
D.Total market size ( 000 metric tons)
    -- 1994:                       3,500
    -- 1995 (estimated) :          3,500
    -- 1996 (projected) :          3,600
E.  Total local production ( 000 metric tons)
    -- 1994:                       2,000
    -- 1995 (estimated) :          1,800
    -- 1996 (projected  :          1,750
F.  Total exports ( 000 metric tons)
    -- 1994:                         900
    -- 1995 (estimated) :            800
    -- 1996 (projected) :            750
G.  Total imports ( 000 metric tons)
    -- 1994:                       2,500
    -- 1995 (estimated) :          2,500
    -- 1996 (projected) :          2,600
H.  Imports from the United States ( 000 metric tons)
    -- 1994:                          30
    -- 1995 (estimated) :             35
    -- 1996 (projected) :             40
I.  Exchange rate used: U.S. $ = DM 1.4
    
Comments:  The U.S. currently exports significant quantities of fats and 
oils to Germany and market shares vary for individual products between 
less than 1 percent to over 90 percent.  Particularly in the animal fats 
sector, exports may increase as domestic animal production is generally 
tending downwards under the new Common Agricultural Policy of the 
European Union.


A.  Rank of Sector:   4
B.  Name of Sector:  Hilton-Type Quality Red Beef
C.  PS&D Code:     DLP
D.Total market size (metric tons)
    -- 1994:                      50,000
    -- 1995 (estimated) :         55,000
    -- 1996 (projected) :         60,000
E.  Total local production (metric tons)
    -- 1994:                           0
    -- 1995 (estimated) :              0
    -- 1996 (projected) :              0
F.  Total exports (metric tons)
    -- 1994:                           0
    -- 1995 (estimated) :              0
    -- 1996 (projected) :              0
G.  Total imports (metric tons)
    -- 1994:                          na
    -- 1995 (estimated) :             na
    -- 1996 (projected) :             na
H.  Imports from the United States (metric tons)
    -- 1994:                         750 
    -- 1995 (estimated) :          1,000
    -- 1996 (projected) :          1,500   
I.  Exchange rate used: U.S. $ = DM 1.4

Comments:  As the U.S. again started to deliver in vary limited 
quantities of top-quality Hilton beef cuts in 1992/93, the strong demand 
became quite clear.  Excellent demand factors exist in the market.  The 
open question is more in the supply side (availability of hormone-free 
cuts for export) and the eventual possibility that hormone beef may be 
accepted by the European Union.


A.  Rank of Sector:   5
B.  Name of Sector:    Catfish 
C.  PS&D Code:     DLP
D.Total market size (metric tons)
    -- 1994                    110,000
    -- 1995 (estimated)        125,000
    -- 1996 (projected)        130,000
E.  Total local production (metric tons)
    -- 1994                     60,000
    -- 1995 (estimated)         70,000
    -- 1996 (projected         75,000
F.  Total exports (metric tons)
    -- 1994                     12,000
    -- 1995 (estimated)         15,000
    -- 1996 (projected          15,000 
G.  Total imports (metric tons)
    -- 1994                     62,000
    -- 1995 (estimated)         70,000
    -- 1996 (projected)         75,000
H.  Imports from the United States (metric tons)
    -- 1994                         90 
    -- 1995 (estimated)            125
    -- 1996 (projected)            135
I.  Exchange rate used: U.S. $ = DM1.4
    
Comments:  Catfish is a product relatively new to the German market.  It 
is not separately identified in trade statistics.  German consumer 
trends towards healthy food and declining meat consumption will 
gradually increase per capita consumption of fish from the present 15 
kg.  Farm-raised fish counters potential future problems with over-
fishing or oceanic pollution.  The Catfish Institute has embarked on a 
well-balanced promotional program to make this type of fish known to the 
consumer in Germany.  The upcoming Olympic Games in Atlanta will further 
increase the potential for "Southern" food products from the U.S. to 
Germany.


A.  Rank of Sector:   6
B.  Name of Sector:    Wine 
C.  PS&D Code:     HTP
D.Total market size (1,000 hl)
    -- 1994                    22,000
    -- 1995 (estimated)        22,000
    -- 1996 (projected)        22,000
E.  Total local production (1,000 hl)
    -- 1994                   12,000 
    -- 1995 (estimated)       12,000 
    -- 1996 (projected        12,000
F.  Total exports (1,000 hl)
    -- 1994                    2,000
    -- 1995 (estimated)        2,000
    -- 1996 (projected         2,000 
G.  Total imports (1,000 hl)
    -- 1994            12,000
    -- 1995 (estimated)       12,000
    -- 1996 (projected)       12,000
H.  Imports from the United States (1,000 hl)
    -- 1994                       14 
    -- 1995 (estimated)           15
    -- 1996 (projected)           16
I.  Exchange rate used: U.S. $ = DM1.4
    
Comments:  Wine from the U.S. holds a minimal share of the total German 
market for wine.  German consumer interest in new products, coupled with 
events in the United States which merit USA food and beverage promotions 
(Soccer Championship in 1994 and Olympic Games in 1996) will 
considerably increase German consumption of U.S. wine and thus raise 
German consumer knowledge of and interest in this product.


A.  Rank of Sector:   7
B.  Name of Sector:    Citrus-Fresh and Juice 
C.  PS&D Code:     HTP
D.Total market size (U.S. $ millions)
    -- 1994                        900
    -- 1995 (estimated)            910
    -- 1996 (projected)            920
E.  Total local production (U.S. $ millions)
    -- 1994                          0
    -- 1995 (estimated)              0 
    -- 1996 (projected               0
F.  Total exports (U.S. $ millions)
    -- 1994                          0
    -- 1995 (estimated)              0
    -- 1996 (projected               0   
G.  Total imports (U.S. $ millions)
    -- 1994                     900,000
    -- 1995 (estimated)         910,000
    -- 1996 (projected)         920,000
H.  Imports from the United States (U.S. $ millions)
    -- 1994                          20 
    -- 1995 (estimated)              22
    -- 1996 (projected)              25
I.  Exchange rate used: U.S. $ = DM1.4

Comments:  Continuing German consumer demand for fresh and healthy (rich 
in vitamins) products increases demand for citrus products throughout 
the year.  Willingness to pay premiums for healthy foods, especially if 
they have an exotic flair, provides a market potential for U.S. 
products.  


A.  Rank of Sector:   8
B.  Name of Sector:    Petfoods and Supplies 
C.  PS&D Code:     HVP
D.Total market size (U.S. $ millions)
    -- 1994                    3,400
    -- 1995 (estimated)        3,500
    -- 1996 (projected)        3,750
E.  Total local production (U.S. $ millions)
    -- 1994                    3,100
    -- 1995 (estimated)        3,100 
    -- 1996 (projected         3,200
F.  Total exports (U.S. $ millions)
    -- 1994                     --
    -- 1995 (estimated)         --
    -- 1996 (projected          --
G.  Total imports (U.S. $ millions)
    -- 1994                      300
    -- 1995 (estimated)          310
    -- 1996 (projected)          320
H.  Imports from the United States (U.S. $ millions)
    -- 1994                       23 
    -- 1995 (estimated)           26
    -- 1996 (projected)           28 
I.  Exchange rate used: U.S. $ = DM1.4

Comments:  Germany is the leading country for pet ownership in the 
world.  Even though the majority of pet foods is produced domestically 
(market leader is a U.S. firm), interest in specialty, healthy foods for 
pets is growing rapidly.  German pet owners are willing to pay premiums 
to properly feed their pets.


A.  Rank of Sector:   9
B.  Name of Sector:    Nursery Products (US$ million)  
PS&D Code:       HTP
D.Total market size (U.S. $ millions)
    -- 1994                    3,000
    -- 1995 (estimated)        3,050
    -- 1996 (projected)        3,050
E.  Total local production (U.S. $ millions)
    -- 1994                    1,800
    -- 1995 (estimated)        1,800 
    -- 1996 (projected         1,800
F.  Total exports (U.S. $ millions)
    -- 1994                      250
    -- 1995 (estimated)          250
    -- 1996 (projected           250
G.  Total imports (U.S. $ millions)
    -- 1994                    1,450
    -- 1995 (estimated)        1,500  
    -- 1996 (projected)        1,500
H.  Imports from the United States (U.S. $ millions)
    -- 1994                       45 
    -- 1995 (estimated)           50
    -- 1996 (projected)           50 
I.  Exchange rate used: U.S. $ = DM1.4

Comments:  Nursery products, particularly exotic plants for interior 
decoration, have enjoyed a slow but steady growth in the German market.  
Rapidly growing German tourism to places like Florida and Hawaii and the 
concomitant desire to enjoy tropical foliage at home will increase the 
market for house plants from the U.S.  In addition, construction of 
malls and public buildings, especially in the eastern part of Germany, 
will increase the demand for large decorative plants.

6.  Trade Regulations and Standards

Germany's regulations and bureaucratic procedures can prove a baffling 
maze, blunting the enthusiasm of U.S. exporters.  Safety standards, not 
normally discriminatory but sometimes zealously applied, complicate 
access to the market for many U.S. products.  American products 
frequently run afoul of German standards due to their complexity.  It 
behooves U.S. suppliers to do their homework thoroughly and make sure 
they know precisely which standards apply to their product, and that 
they obtain timely testing and certification.  This is doubly important 
because, to the extent EU-wide standards are developed, there is a high 
probability that the existing German standard will form the basis for 
the eventual European standard.

One of the difficulties that U.S. firms can encounter when exporting to 
Germany is the need to comply with product standards.  The European 
Union's (EU) attempts to harmonize the various product safety 
requirements of its member states have complicated the issue.  The EU 
harmonization of safety requirements and related standards is being 
implemented for industrial products through EU directives.  During the 
transition period national requirements must be met.  (After the 
transition period the european-wide "CE" mark supercedes all other 
compliance certificates, provided the products in question are covered 
by an EU-directive.)
   
German buyers, however, may require additional performance or quality 
marks, which are not necessarily legally required, but greatly enhance a 
product's chances to be marketed.  Both EU requirements and the 
standards for a German quality or performance mark will, in many cases, 
require a product to be modified.  Even if the product does not require 
modification, it will require testing and certification before it can be 
marketed.  Important marks are the "gepruefte Sicherheit" (GS) mark for 
mechanical products, and the "Verband Deutscher Elektrotechniker" (VDE) 
mark for electrical components.  It should be emphasized that neither 
the "GS" license nor the "VDE" license are mandatory for products sold 
in Germany.  The only exception is for products for use in certain work 
place applications, where either of these marks are required to meet 
insurance eligibility requirements.  

The German organization that compiles the standards laying down the 
requirements for a "GS" mark is the "Deutscher Industrie Normenausschuss 
- DIN" (German Standards Institute).  The organization responsible for 
testing is the "Technischer Ueberwachungsverein e.V. - TUV," (Technical 
Inspection Association).
 
Although the "VDE" license deals with electrical products, instead of 
mechanical products, the same process of certification can be followed.  
A company can obtain the "VDE" literature from the VDE publisher, VDE 
Verlag, GmbH, or from the VDE association directly (for contact 
information please see below). 

The TUV tests for both the "VDE" license and the "GS" license.  The 
process for "VDE" certification is the same as that of the "GS" mark.
 
TUV and Certification Process for the "GS" and the "VDE" Licenses:

TUVs are private companies set up by various German states to inspect 
and test products for compliance with German safety standards.  
Individual TUVs have also been authorized by the German Government to 
test products for compliance with EU legislation, and many have 
established representative offices in the United States.

Firms interested in certification should contact a U.S. TUV office. 

Effect of EU Harmonization of Standards on the "GS" and "VDE" mark:

The effect of EU harmonization on the "GS" and "VDE" mark is difficult 
to analyze.  It is estimated that about 75 percent of all American 
products sold in the EU must have the "CE" mark once all directives have 
been passed and all transition periods have expired.  Where EU 
directives are in place the "CE" mark is mandatory by law for products 
that are covered by the appropriate directive; the mark allows the 
product to be marketed in all the EU member states.  National 
certificates such as the "GS" and the "VDE" marks, may not be legally 
required, but enhance marketing chances.  German consumers look for 
these marks in much the same way as Americans look for the "UL" mark.

Currently, only 11 of the 22 proposed and planned EU directives are in 
place: low voltage electrical safety, toys, simple pressure vessels, 
construction projects, electro-magnetic capability, gas appliances, 
personal protective equipment, machinery, active implantable medical 
devices, non- automatic weighing machines, and type approval of 
telecommunications terminal equipment. For products where there is as 
yet no EU directive, national standards must be adhered to.

Who has the authority to actually affix the "CE" mark?  For many 
products, the mark may be affixed by the manufacturer, based on his or 
her own testing to verify that the product meets EU requirements.  
However, EU legislation may require that an independent third party be 
involved in product assessment. 

Who is qualified to be this third party?  The EU establishes so-called 
"notified bodies," i.e. testing or certification agencies.  The majority 
of the TUVs have already been approved - they will play an important 
role as notified bodies. 


Contact information for EU "CE" standards:

Single Internal Market Information Service
Office of European Community Affairs
Room H-3036
International Trade Administration
U.S. Department of Commerce
Washington, D.C.  20230
Tel: (202) 482-5823
Fax: (202) 482-2155

U.S. Contacts for Foreign Standards Information:

National Center for Foreign Standards Information
National Institute of Standards and Technology
TRF Room A163
Gaithersburg, MD  20899
Telephone: (301) 975-4040
Telefax: (301) 975-2128

Ms. Janice Price
Europe\Regional, Political, and Economic Affairs
Room 6519
U.S. Department of State
Washington, D.C. 20520
Telephone: (202) 647-2395

Mr. Chris Marcich
DAUSTR for Europe and Mediterranean
Office of the U.S. Trade Representative
600 17th St., NW
Washington, D.C. 20506
Telephone: (202) 395-3320

American National Standards Institute
11 West 42nd St.
13th Floor
New York, NY  10036
Telephone: (212) 642-4900
Telefax: (212) 302-1286

Information for DIN literature:

DIN Publisher
Beuth Verlag GmbH
Burggrafenstrasse 6
10787 Berlin 
Germany
Telephone: 011-49-30-26010 or 26011
Telefax: 011-49-30-26011-231

Global Engineering Documents
2805 McGaw Avenue
Irvine, CA  92714
Telephone: (800) 854-7179

Global Engineering Documents
7730 Carondelet Avenue
Suite 407
Clayton, MO  63105
Telephone: (800) 854-7179

Global Engineering Documents
1990 M St. NW
Suite 400
Washington, D.C.  20036
Telephone: (800) 854-7179

VDE Standards and Literature:

VDE - Verband Deutscher Elektrotechniker e.V.
Stresemannallee 15
60596 Frankfurt am Main
Germany
Telephone: 011-49-69-630 80
Telefax: 011-49-69-6308 273

VDE Verlag GmbH
Bismarckstr. 33
10625 Berlin
Germany
Telephone: 011-49-30-348-00-10
Telefax: 011-49-30-3417093

VDE Verlag GmbH
Merianstr. 29
63069 Offenbach
Germany
Telephone: 011-49-69-8400 060
Telefax: 011-49-69-831 081

TUV offices in the United States:

Replication Technologies Inc. RTI
(A TUV Essen Affiliate)
1032 Elwell Ct., Suite 222
Palo Alto, CA  94303
Telephone: (415) 961-0521
Telefax: (415) 961-9634
Contact: Klaus Petersen, Compliance Engineer

Replication Technologies Inc. RTI
(A TUV Essen Affiliate)
901 King Street
Suite 501
Alexandria, Va 22314
Telephone: (703) 548-2087
Telefax: (703) 548-2029

TUV Essen Laboratories
6 Brighton Rd.
Cliffton, NJ  07012
Telephone: (201) 773-8880
Telefax: (201) 773-8834
Contact: Wayne Gruber, Technical Manager

TUV America, Inc.
Headquarters
5 Cherry Hill Dr.
Danvers, Ma  01923
Telephone: (508) 777-7999
Telefax: (508) 777-8441
Contact: Kurt Else, President

TUV America, Inc.
Northwest Office
1416 Northwest 9th St.
Corvallis, OR  97330
Telephone: (503) 753-4438
Telefax: (503) 753-4510
Contact: Burk Brandt, General Manager

TUV America, Inc.
West Coast Office
7554 Trade St.
San Diego, CA  92121
Telephone: (619) 578-7999
Telefax: (619) 578-3706
Contact: Konrad Kobel, General Engineer
      Frank Hensel, Product Safety Manager

TUV Rheinland of North America
Headquarters
12 Commerce Rd.
Newtown, CT  06470
Telephone: (203) 426-0888
Telefax: (203) 270-8883
Contact: John Tyra

TUV Rheinland
5860 West Las Positas Boulevard, Suite 19
Pleasanton, CA  94588
Telephone: (510) 734-8100
Telefax: (510) 734-8455
Contact: Ewald Reichert, General Manager

TUV Rheinland
11995 El Camino Real, Suite 101
San Diego, CA  92130
Telephone: (619) 792-2770
Telefax: (619) 792-2774
Contact: Ed Spooner, Office Manager

TUV Rheinland
38701 Seven Mile Rd., Suite 100
Livonia, MI  48152
Telephone: (313) 464-8881
Telefax: (313) 464-8919
Contact: Jurgen Hover, Branch Manager

TUV Rheinland
165 Forest St., Suite 201
Marlborough, MA  01752
Telephone: (508) 460-0792
Telefax: (508) 460-9073
Contact: Gunter Steege, Branch Manager

TUV Rheinland
3420 Executive Center
Livingston Building, Suite 165
Austin, TX  78731
Telephone: (512) 343-6231
Telefax: (512) 343-6233
Contact: George Jurasich, Product Safety Manager

TUV Rheinland
Sanlando Center Office Park, Suite 422
2170 West State Rd. 434
Longwood, FL  32779
Telephone: (407) 774-1222
Telefax:  (407) 774-1033
Contact: Eli Orsosf, Branch Manager

PCI - Precision Calibration Inc.
(A TUV Rheinland Company)
12714 O'Connor Rd.
San Antonio, TX  78233
Telephone: (210) 655-7002
Telefax: (210) 646-8013

TUV Rheinland
4236 Commercial Way
Glennview, IL  60025
Telephone: (708) 699-0310
Telefax: (708) 699-6898

TUV Rheinland
10260 SW Nimbus, Suite M11
Portland, OR  97223
Telephone: (503) 620-0418
Telefax: (503) 620-6490

TUV Rheinland
728A Diamond Cut Dr.
Corpus Christi, TX  78409
Telephone: (512) 289-5890
Telefax: (512) 289-5899

TUV Rheinland
16760 Hedgecroft #608
Houston, TX  77060
Telephone: (713) 931-6096
Telefax: (713) 931-9323


Trade regulations and standards for  Agricultural Products in Germany

General Veterinary Requirements:  All beef and pork exported to Germany 
for human consumption must come from slaughterhouses, cutting plants and 
cold stores that have been approved by the EU.  Legislation was recently 
adopted which transfers the authority for approving poultry slaughter 
and processing facilities from Member States to the Union.  Until this 
legislation is fully implemented, however, Germany will continue to 
maintain a separate list of approved poultry facilities in third 
countries.

Since 1989, the EU has prohibited the importation of meat from cattle 
treated with growth hormones.  Soon after this ban went into effect, an 
agreement was reached between the United States and the EU that allows 
American producers of beef from animals not treated with hormones to 
export to the EU.  Under the terms of this agreement, the cattle must 
come from an EU-approved source, and the animals must be slaughtered in 
a slaughterhouse that has been approved by the EU for handling untreated 
beef.

Beef:  The EU beef market is largely insulated from the world market by 
high import duties on most products.  Import opportunities do exist, 
however, for selected products that are covered by fixed relatively low 
tariffs or special quota.  Most notably, the EU grants levy-free access 
for annual imports of up to 10,000  MT of beef from the U.S. and Canada 
under its high-quality beef (HQB) quota.  (Imports under this quota are 
still charged a 20-percent ad valorem duty, which will be reduced 
according to the Uruguay Round Agreement.)  

Beef livers carry a flat ad valorem duty of seven percent, all other 
beef offal is charged four percent on an ad valorem basis.  Under the 
Uruguay Round Agreement, the seven-percent duty on beef livers will be 
eliminated in six equal annual installments,  with the first reduction 
effective on January 1, 1995.

Pork:  Although imports of pork had been subject to a variable levy, 
selected market opportunities exist for these products.  Under the 
Uruguay Round Agreement, the levy has been converted to a tariff 
equivalent which, in the case of frozen loins, will be reduced to 
$0.45/lb in the last year of the six-year implementation period 
beginning July 1, 1995.

Market access within the EU will be improved through the creation of a 
tariff-rate quota totalling 75,000 MT by the year 2000, including a 
39,000 MT allocation for tenderloins, boneless loins and boneless hams.  
Pork offal imports are charged at the same duty rate as beef offal, and 
are treated similarly under the Uruguay Round Agreement.

Poultry: Import opportunities exist for poultry meat that has been 
seasoned.  The European Union defines seasoned meat to be "uncooked meat 
that has been seasoned either in depth or over the whole surface of the 
product, with seasoning either visible to the naked eye or clearly 
distinguished by taste."  Imports of seasoned poultry are charged a flat 
ad valorem duty of 17 percent.

Under the Uruguay Round Agreement, the variable levy system has been 
replaced by a fixed tariff.  Access for poultry within the EU will be 
increased through the creation of a tariff-rate quota of 19,000 MT in 
1995, increasing to 29,000 MT in the year 2000.  The EU also committed 
to cut tariffs on processed turkey from 17 to 8.5 percent over the six-
year implementation period.

Dairy Products:  Under the Uruguay Round Agreement, the varaiable levy 
on dairy products has been replaced by a fixed tariff equivalent.

Legislation recently adopted by the EU will limit the countries and 
establishments from which the Union will accept imports of milk-based 
products to those that have provided guarantees that sanitary controls 
equivalent to those required of the EU Member States are in place.  
Until this legislation is implemented, Germany will retain authority 
over imports of milk-based products.

Horticultural Products:  Germany is an important market for United 
States horticultural products with U.S. exports reaching almost $300 
million in 1993.  Principal products include citrus, raisins, prunes, 
almonds and walnuts.  Increasingly, dried vegetables have shown strong 
sales.

Horticultural products entering Germany face a number of border 
restrictions.  In addition to considerable tariffs, which vary by 
product, many horticultural imports face an additional price restriction 
in the reference price system.  This system is used to protect internal 
EU prices which are generally well above world market levels.  If 
imports are priced below the reference price, an additional 
countervailing duty is charged to bring the import price above an 
internal administrative price.  Since U.S. horticultural exports are 
generally of high quality, and thereby command a premium price, the 
reference price is rarely an obstacle.

The minimum import price (MIP) system used for raisins is similar to the 
reference price system.  Raisin imports valued below a fixed reference 
price are charged an additional countervailing duty.  Here again, U.S. 
exports have not been subject to the countervailing charge because they 
have been priced above the minimum import price.

Under the Uruguay Round Agreement, the reference and minimum import 
prices, the countervailing charges, and the duties for horticultural 
products will be reduced by an average of 36 percent.  Increased export 
opportunities will be created for single-strength orange juice because 
the EU will reduce its tariff from 19 percent in 1995 to 12.2 percent by 
the year 2000.  Other significant tariff cuts include a 75 percent 
reduction in the duty on fresh foliage; a 50-percent cut in the duty for 
shelled almonds, in-shell walnuts, and apples from January through 
March; and a 36-percent cut in the duty for fresh asparagus, shelled 
walnuts, fresh grapes, apples from August through December, roasted 
almonds, roasted pistachios and potato chips.

Plant Health:  As part of the Single Market exercise, the plant health 
regulations in the fifteen European Union Member States have been 
harmonized.  The new regulations went into effect on June 1, 1993.  The 
EU has been successful in reducing the number of phytosanitary 
restrictions and new marketing opportunities have been created for U.S. 
horticultural exports.  Phytosanitary certificates are required for most 
fresh products.

Pesticide Residue Requirements:  European Union legislation dated from 
1990, requires the establishment of mandatory, EU-wide maximum residue 
levels (MRLs) for most commonly used pesticides.  Given the large number 
of commodities and pesticides involved, the European Commission is 
working with experts in the Member States to establish lists of 
compounds for which MRLs will be developed and recommended for final 
approval.  The Commission is working in stages, starting with the 
pesticides most commonly used in the Union.  The first tranche of 
maximum residue levels was adopted and published in July of 1993.  For 
pesticides not included on that list, German regulations will remain in 
effect until a harmonized MRL is established by the Commission.

Organic Products:  There is a small but growing niche market within 
Germany for certified organic products.  Since July 1992, Union-wide 
regulations on marketing organic products have been in effect.  The 
United States and the European Union are currently discussing an 
approach which would allow organic products from the U.S. to be marketed 
within the Union.  Until an agreement is reached between the Union and 
the U.S., importers must work through German authorities to submit 
technical information on certified organic products on a case-by-case 
basis.

Consumer-Ready Products:  For consumer-ready food products, there are a 
number of issues to consider when planning a market development activity 
in Germany.  These issues can be broadly divided into two areas:  market 
access restrictions and food laws.  In addition to bound import duties, 
the EU has established a complex system of border protection measures 
for food products.  Since prices for basic agricultural commodities such 
as dairy products, sugar and cereals are considerably higher than world 
market prices, the EU maintains a mechanism to protect European 
consumer-ready food products from imports made with lower-price inputs.

Therefore, most processed products entering the Union are subject to 
additional import charges based on the percentage of sugar, milk fat, 
milk protein and starch in the product.  These additional import charges 
have made many imported processed products non-competitive in the 
European market.  The situation should improve over the next few years 
because these charges will be converted to fixed tariff equivalents and 
reduced under the Uruguay Round Agreement.


7.  Investment Climate

Openness to Foreign Investment 

Under the 1956 U.S.-FRG Treaty of Friendship, Commerce and Navigation, 
international capital movements between the U.S. and Germany are in 
principle free.  Germany subscribes to the OECD Code on Capital 
Movements and Invisible Transactions (CMIT).  The provisions of 
Germany's Foreign Economic Law provide that restrictions can be imposed 
on private direct investment flows in either direction for reasons of 
foreign policy, foreign exchange, or national security.  Pertinent 
decisions would be taken by the federal government through legal 
ordinances after consultation with the Bundesbank and the governments of 
the federal states.  According to the Economics Ministry, to date, no 
such restrictions have been imposed.  There is no broad authority to 
screen and block Foreign Direct Investment (FDI). 

Right to Private Ownership and Establishment

Foreign and domestic entities have the right to establish and own 
business enterprises and engage in all forms of remunerative activity 
and to acquire and dispose of interests in business enterprises.  
Germany does not distinguish between hostile and friendly takeover.  
However, hostile takeovers, whether domestic or foreign, are rare, 
difficult and time-consuming, given German corporate practice and 
structure.  

100 percent foreign ownership is permitted in almost all sectors open to 
private investment.  The major exception is the guideline in the Energy 
Compact (the "Stromvertrag") that seventy percent of the ownership of 
power generation operations in the former East Germany be controlled by 
VEAG (owned principally by the three major western German power 
companies).  The remaining 30 percent can be contracted out by the 
eastern German municipalities, including to foreign investors.  In 
addition, firms in certain sectors, such as the media, can only be owned 
up to 49 percent by any one individual or company.  This law is designed 
to avoid biased opinion in the media and applies to German as well as to 
foreign firms.

Treatment of Investment

Under the terms of the U.S-FRG 1956 Treaty of Friendship, Commerce and 
Navigation, U.S. investors enjoy national treatment.  Germany subscribes 
to the OECD Committee on Investment and Multinational Enterprises' 
(CIME) National Treatment Instrument.  Under German law, foreign-owned 
companies registered in the FRG as a GmbH (limited liability company) or 
an AG (joint stock company) have domestic status.  American companies 
legally established in Germany are eligible for R&D/technology funds of 
the German Federal Government, provided some criteria are fulfilled.  
These criteria concern the legal establishment and maintenance of 
substantive R&D capacities in Germany, predominant use of R&D results in 
Germany, and compliance with the IPR policy precluding uncontrolled 
transfer of R&D results abroad.  American company representatives 
confirm that existing formal requirements and handling by German 
authorities do not constitute a barrier to access to German funding.  
Demonstrating the openness of the German system, the Chairman of 
Germany's prestigious business organization the Bundesverband der 
Deutschen Industrie (BDI) comes from a U.S.-owned subsidiary. 

Taxation of Foreign Investment

The taxation of American firms within the FRG is governed by the 1989 
"Convention for the Avoidance of Double Taxation with Respect to Taxes 
on Income."  It is effective for tax years beginning after 1989 
(effective January 1, 1991, for the area that was the German Democratic 
Republic).

With respect to taxes on income, both countries agreed to grant credit 
toward their respective federal income taxes for taxes paid on profits 
by enterprises located in each other's territory.

While there are many similarities between the German and American tax 
systems, there are a few basic differences in the concept of taxation of 
businesses.  Prospective investors would be well advised to seek 
professional advice before beginning business in Germany.

Conversion and Transfer Policies

There are no restrictions on transferring funds associated with an 
investment.  There are no restrictions on currency convertibility at the 
market rate and no queuing for foreign exchange.  There are also no 
restrictions on inflows and outflows of funds for remittances of profits 
or other purposes.

Expropriation and Compensation

Private property is expropriated for public purposes only, in a non-
discriminatory manner, and in accordance with established principles of 
international law.  There is due process and transparency of purpose, 
and investors and lenders to expropriated entities receive prompt, 
adequate and effective compensation.

Dispute Settlement

Germany is a member of the International Center for the Settlement of 
Investment Disputes (ICSID).

Political Violence

Although isolated cases against certain ethnic minorities have occurred, 
it has not substantially impacted on U.S. investments or investors.

Performance Requirements/Incentives

Performance requirements were employed in some acquisition contracts by 
the Treuhandanstalt which was responsible for the privatization of 
state-owned firms in the former G.D.R.  Embassy is aware of no other 
performance requirements imposed on direct foreign investment.
 
The Federal Government of Germany has created a comprehensive package of 
incentives to accelerate the pace of investment in the former German 
Democratic Republic.  In addition to federal incentives and support 
programs, there are also numerous local and regional financial schemes.  
The incentives available for a particular investment may include one or 
more of the following programs depending upon size and location and type 
of investment:

--  Tax-based investment allowances and special depreciation allowances
--  Capital assets tax-exemption
--  Investment grants under regional-development schemes
--  Research and development grants
--  Direct loan programs including equity capital assistance and liaison
    start-up program
--  Environmental investment programs
--  Federal Guarantee programs for investment credits

These programs are continually revised to respond to the current 
conditions in the new states.  The most current information on 
investment incentives available for a particular project may be obtained 
from the Federal Ministry of Economics, Task Force "New Laender", 
Villemomblerstrasse 76, D-53107 Bonn.

Protection of Property Rights

The German Government adheres to a policy of National Treatment, which 
considers property owned by foreigners fully protected under German law.  
There is no discrimination against foreign-investment and foreign 
ownership of real property.  

Regulatory System

For specific information on investment, see the "Rules and Regulations 
Covering Investment".  Germany has a modern financial market sector.  
Credit is available at market-determined rates to both domestic and 
foreign investors and a variety of credit instruments are available.  
Legal, regulatory, and accounting systems are transparent and consistent 
with international norms.  Germany has a universal banking system that 
is effectively regulated by federal authorities.  At the beginning of 
1995, Germany opened a federal office for securities oversight and 
implemented a series of laws to improve its securities trading system, 
including insider trading laws.

Bilateral Investment Agreements

The following is a list of the 70 countries with which Germany has a 
ratified treaty, and the 8 countries with which Germany has signed, but 
not yet ratified, a treaty.

Ratified Treaties

Country           Signed  Ratified

Argentina         04/09/91  11/98/93
Bangladesh        05/06/81  09/14/86
Benin             06/29/87  07/18/85
Bolivia           03/23/87  11/09/90
Bulgaria          04/12/86  03/10/88
Burundi           09/10/84  12/09/87
Cameroon          06/29/62  11/21/63
Cape Verde        01/18/90  12/15/93
Central African Republic  
                  08/23/65  01/21/68
Chad              04/11/67  11/23/68
China             10/07/83  03/18/85
Congo             09/13/65  10/14/67
Czech Republic    10/02/90  08/02/92
Dominican Republic    
                  10/01/84  05/11/86
Ecuador           06/28/65  11/30/66
Egypt             07/05/74  07/22/78
Gabon             05/16/69  03/29/71
Greece            03/21/61  07/15/63
Guinea            04/19/62  03/13/65
Guyana            12/06/89  03/08/94
Hungary           04/30/86  11/07/87
Haiti             08/14/73  12/01/75
India             10/15/64  10/15/64
Indonesia         11/08/68  04/19/71
Iran              11/11/65  04/06/68
Ivory Coast       10/27/66  06/10/68
Jordan            07/15/74  10/10/77
Kazakhstan        09/22/92  05/10/95
Korea (Republic of)    
                  02/04/64  01/15/67
Lesotho           11/11/82  08/17/85
Liberia           12/12/61  10/22/67
Madagascar        09/21/62  03/21/66
Malaysia          12/22/60  07/06/63
Mali              06/28/77  05/16/80
Malta             09/17/74  12/14/75
Mauritania        12/08/82  04/26/86
Mauritius         05/25/71  08/27/73
Morocco           08/31/61  01/21/68
Nepal             10/20/86  07/07/88
Niger             10/29/64  01/10/66
Oman              06/25/79  02/04/86
Pakistan          11/25/59  04/28/62
Panama            11/02/83  03/10/89
Papua New Guinea  11/12/80  11/03/83
Poland            11/10/89  02/24/91
Portugal          09/76/80  04/23/82
Romania           10/12/79  01/10/81
Russia            06/13/89  08/05/91
Rwanda            05/18/67  02/28/69
Senegal           01/24/64  01/16/66
Sierra Leone      04/08/65  12/10/66
Singapore         10/03/73  10/01/75
Somalia           11/27/81  02/15/85
Sri Lanka         11/08/63  12/07/66
St/ Lucia         03/16/85  07/22/87
St/ Vincent       03/16/85  07/22/87
  and the Grenadines    
                  03/25/86  01/08/89
Sudan             02/07/63  11/24/67
Syria             08/02/77  04/20/80
Tanzania          01/30/65  07/12/68
Thailand          12/13/61  04/10/65
Togo              05/16/61  12/21/64
Tunesia           12/20/63  02/06/66
Turkey            06/20/62  12/16/65
Uganda            11/29/66  08/19/68
Uruguay           05/04/87  06/29/90
Yemen             06/21/74  12/19/78
Yugoslavia        07/10/89  10/25/90
Zaire             03/18/69  07/22/71
Zambia            12/10/66  08/25/72


Signed Treaties
Country            Signed  Temporarily Applicable
Israel             06/24/76  Yes  
Swaziland          04/05/90  No  
People's Republic  
  of Mongolia      06/26/91  No  
Chile              10/19/91  No
Albania            10/31/91  Yes
Lithuania          02/28/92  Yes
Jamaica            09/24/92  No
Estonia            11/12/92  Yes


OPIC and other Investment Insurance Programs

OPIC programs are no longer operational in the new federal states.

Labor 

While employers complain that wages and fringe benefits are high, thus 
impairing international competitiveness, the German labor force is well-
educated, well-trained, and well-disciplined.  Although unemployment is 
a problem, some categories of skilled workers are in short supply in 
certain regions of Germany.  Generally, however, the highly-acclaimed 
dual system of combined on-the-job and academic training for apprentices 
produces the skills needed by employers.  Legislation designed to 
protect workers limits the ability of employers to lay off redundant 
workers and therefore discourages flexible hiring practices.

Unionized (about 35% of the labor force) German labor is organized in a 
few large unions.  Traditionally union leaders have been able to come to 
agreement with management with relatively little work stoppage.  Co-
determination laws give labor significant voting representation in the 
supervisory boards of larger companies.  Management is legally limited 
in its recourse to lockouts.  Severance compensation is generous and 
management latitude to alter its workforce is restricted.  Overall 
compensation in Germany is among the highest in the world.  There is 
also an ongoing contractually-agreed reduction in weekly working time, 
which in the metal and electrical industries will decline to 35 hours in 
late 1995.

Foreign Trade Zones/Free Ports

There exist free trade import zones in FRG harbors, the major ones being 
in Hamburg, Bremen, and Bremerhaven.  There are also free trade import 
zones attached to all German airports with international air traffic.  
They operate under the provisions of the German Customs Law of June 14, 
1961, revised.  Foreign-owned firms are entitled to equal treatment with 
German companies.

Capital Outflow Policy

The German Government does not regulate capital outflows.  It has in the 
past attempted to encourage investment outflows to LDC's through:  (1)  
a series of bilateral investment treaties to assure the right of 
transfer of profits and repatriation of capital or compensation in the 
event of expropriation; and (2) a Developing Country Tax Law, which 
provided certain tax privileges in return for investments in LDC's.  The 
effects of these actions on outflows were rather modest, and the second 
program was scrapped in the face of budget pressures.

 
8.Trade and Project Financing

Germany has a basically non-discriminatory, well developed financial 
services infrastructure.  Germany's universal banking system allows the 
country's more than 45,000 bank offices not only to take deposits and 
make loans to customers, but also to trade in securities.  The 
traditional German system of cross-share holding among banks and 
industry, as well as an undeveloped equity market and a high rate of 
bank borrowing dictate that German banks exert substantial influence on 
industry.  There is current discussion on whether or not the banks' 
influence should be diminished, but given the overall conservative 
nature of the financial system and its successes in the past it is 
unlikely that profound changes will result.  Private banks control 
roughly 30 percent of the market, while publicly-owned savings banks 
controlled by state and local governments account for 50 percent of 
banking turnover, and cooperative banks make up the balance.  All three 
types of banks offer essentially the same, full range of services to 
their customers.  An array of specialist banks finance homeowner 
mortgages, provide guarantees to small and medium-sized businesses, 
finance projects in disadvantaged regions in Germany and guarantee 
exports to developing countries.

Practices regarding finance, availability of capital and schedules of 
payment are comparable to those which prevail in the United States.  
There are no restrictions or barriers on the movement of capital, 
foreign exchange earnings or dividends.  Virtually all major U.S. banks 
are represented in the German market, principally but not exclusively in 
the city of Frankfurt am Main, Germany's main financial center.  A large 
number of German banks, including some of the partially state-owned 
regional banks, similarly maintain subsidiaries, branches and/or 
representative offices in the United States.  Germany's "big three" 
private banks are Deutsche Bank, Dresdner Bank and Commerzbank.


9.  Business Travel

Neither Germany's legal system or its fully developed infrastructure 
present any obstacles for traveling to the country.  Traveling by plane, 
train or car meets international standards.  After unification, the 
number of in-country flights has been picking up and the train stations 
that dot the country provide sufficient access to nearly all cities.

Nevertheless, cars are still the most popular means of transport and 
Germany's famous highway system is extensive.  The condition of roads in 
eastern Germany may still not reach western German standards, but they 
are no real barrier to traveling.  Geographic distances are relatively 
short, when compared to the United States, but as Germany is much more 
densely populated than its European neighbors, it may take a little 
longer to travel the same distance in the FRG than it may take in France 
or Scandinavia.  Especially the industrial and commercial centers in the 
Rhine-Main (Frankfurt) and Rhine-Ruhr areas are densely populated and 
heavily industrialized, and business travellers are well advised to plan 
on timely departures to reach their destination in time. 

There is sufficient hotel space in most major cities, unless there 
happens to be a major trade fair or a similar event in a particular 
city.  Business class amenities and services can be found in all major 
cities, including those in the eastern states.

10.  Appendices

  10a.  Country Data

   
NOTE:  Figures apply to unified Germany (eastern and western) unless 
otherwise specified by endnote.  *= projected


A. Population: 80.3 million (1991), including 15.8 million in eastern 
Germany   and 5.9 million foreigners (d).  
B. Religion: 44.2% Protestant, 36% Catholic.
C. Government: Constitutional, parliamentary confederation 
   Head of State: Roman Herzog, President
   Head of Government, Helmut Kohl, Chancellor
D. Language: German



  10b.   Domestic Economy

                           1993    1994    1995    End
                          notes
                          (ytd)    Source

A. GDP (current DM bill)  3108.0  3256.0*  n/a        e    
B. GDP (current, $ bill)  1883.1  1997.5*  n/a        a    
C. Real GDP growth (%)      -1.2    +2.9   n/a       1a
D. GDP per capita ($)     23,500  24,600*  n/a        a    
E. Govt Expend. (% GNP)     14.9    14.7   n/a       5a    
F. Public expend (% GNP)    54.3    54.1   n/a       5a    
G. Inflation (% CPI)        4.2      3.0   2.2/May   5,2e    
H. ForEx Res. ($ bill)     37.4     37.2   41.1/Mar  3a    
I. Unemployment             8.8      9.6   9.3/Apr   8a    
J. Exchange Rate ($/DM)    1.65      1.62  1.54/Apr  4a    
K. Public Debt ($ bill)   307.4    324.0   n/a       3a    
      
For the following data 1985 = 100
L. Wages and salaries    156.5     161.7   n/a    5,6a    
M. Productivity          125.7     138.6   n/a    5,6a    
N. Production            109.9     118.1   n/a    5,7a

  10c.  Trade

German
A. Exports (fob/$ bill)    380.9    423.0    73.4/Feb   a    
B. Imports (cif/$ bill)    344.0    377.2    63.8/Feb   a    
    
United States (to/from Germany)
C. Exports (fas/$ bill)    19.0    19.2    3.4/Feb  b    
D. Imports (fob/$ bill)    28.6    31.7    5.3/Feb  b

E.  Principal U.S. exports: computers & software, aircraft, motor 
vehicles and parts, analytical/medical equipment, telecommunications 
equipment, chemicals.

F. Principal U.S. imports: motor vehicles/parts, machine tools, 
machinery, analytical/diagnostic equipment, chemicals.

G. Foreign supplier share of German imports (%):
         
                        1993     1994    1995       End-
                        notes
                        (ytd)       Source
1. France              11.2    11.1      n/a    a    
2. Netherlands          8.3     8.2      n/a    a  
3. Italy                8.1     8.4      n/a    a  
4. United States        7.4     7.3      n/a    a    
5. Japan                6.3     5.6      n/a    a
6. United Kingdom       6.1     6.2      n/a    a    
7. Belgium/Lux.         5.7     6.1      n/a    a  
8. Austria              4.6     4.8      n/a    a


H. BOP, Current Account
   ($ bill)        -15.6    -20.6    -2.3/Feb  a


I. Trade balances with world and leading trading partners   
   (U.S. $ billions):

                       1993    1994    1995    End-
                      notes
                     (ytd)    Source
** World **           +37.0    +45.8    +9.6/Feb  a    

1. United Kingdom      +8.2    +10.3      n/a    a  
2. France              +5.8     +8.9      n/a    a    
3. Belgium/Lux.        +5.3     +5.2      n/a    a  
4. United States       +4.1     +6.0      n/a    a  
5. Italy               -0.0     +0.2      n/a    a    
6. Netherlands         -0.7     +0.8      n/a    a    
7. Japan              -11.1     -9.9      n/a    a    
8. Austria             +6.6     +6.4      n/a    a

J. Import policy:
1. Tariffs: EC Common External Tariff.
2. Taxes: Value Added Tax (VAT) of 15% on industrial goods.
3. Licensing: Few restrictions.

Sources:

  a.  German Bundesbank Monthly Reports
  b.  Official statistics of the U.S. Department of Commerce
  c.  Survey of Current Business, 6/1993
  d.  Statistisches Jahrbuch, Statistisches Bundesamt, 1992
  c.  German Federal Statistics Office


  10d.  Investment Statistics

Foreign Direct Investment (FDI) Statistics

The following data are the latest available from the Bundesbank.  
Figures on investment refer to the book-value of investment as opposed 
to the market value.  These figures do not include foreign ownership 
interests via third party investment.  Information on flows is based on 
market value.  

The United States remains the single largest source of foreign 
investment in Germany, providing some 26 percent of FDI in 1993.  The 
next largest investor was the Netherlands with 21 percent.  In recent 
years, the rate of non-U.S. investment in Germany has grown much more 
quickly than that of U.S. investment, which has actually declined 
slightly since 1991.  The reason for the decrease in U.S., as contrasted 
with non-U.S., investment is not entirely clear, but may have to do with 
exchange rate movements and the implementation of the EU's common 
internal market.  U.S. companies have been among the most important 
investors in the new German states.

Table I.  FDI (in Germany) by country of origin (Million DM)

Country             1990    1991    1992    1993

All Countries    178,710  199,836  209,771  220,964
Industrialized  
   Countries     173,251  194,104  203,055  212,934
EU Countries      64,836   75,430   85,539   97,327
  Belgium          2,645    2,759    3,904    5,116
  Denmark          1,708    2,172    2,555    2,555
  France          10,421   13,221   15,009   17,157
  Greece              81       94       71       52
  U. K.           13,979   15,003   16,308   17,814  
  Ireland             40      449      342      356
  Italy            4,833    4,652    4,483    3,705
  Luxemburg        1,097    1,515    1,825    2,788
  Netherlands     29,240   34,440   39,813   46,554
  Portugal            13       13       24       43
  Spain              780    1,112    1,205    1,187

Other European Countries  
  Finland          1,091    1,328    1,322    1,396
  Norway             502      649      744      770
  Austria          2,725    3,847    4,765    4,885
  Sweden           7,863    7,934    6,477    5,769
  Switzerland     26,223   26,711   25,728   25,380
  Turkey            100       153      176      191

Non-European Countries
  Japan          11,910   14,454   15,262   15,221
  Canada          1,640    2,779    2,748    2,861
  U.S.A.         55,945   60,280   59,555   58,320
  Australia         409      514      676      700
  Other Countries     9       23       64      115

Developing Countries 
                 4,037    4,096     4,569    5,819
  Africa           152       78       127      174
    South Africa     9       23        64      115
  The Americas   2,170    2,112     2,005    2,326
    Argentina      294      325       310      302
    Bahamas        116      122       183      141
    Bermuda        552       99       142      146
    Brazil         135      134       125      147
    Cayman Islands 282      560       105      220
    Mexico           8       11         8        4
    Dutch Antilles 645      715       720      809  
    Panama          45       51       259      266
    Uruguay         22       25        28       50
    Other Countries 63       48        62       50

Asia and Oceana  1,715    1,907     2,436    3,396
  Hong Kong        113       80        92      119
  India             52       52        59       56
  Israel            72      152       183      277
  Singapore          2       19        19       26  
  Pakistan          14       14        15       16
  South Korea      518      528       458      973
  Thailand          27       33        32       36
  Other Countries   29       29       222       72

OPEC Countries
  Indonesia         63       56        47       52
  Iran             568      645     1,020    1,443
  Kuwait            49       65        71       72
  Saudi Arabia      12       13        15       14
  
Mid- and East
  European Countries/
   Reform Countries    
                 1,422    1,637     2,147    2,211
  Bulgaria          59       59        53       49
  China             70       79       106      118
  Poland           215      251       279      258
  Romania           28       25        24       25
  Former USSR        -      405       892    1,022
  Czech Republic   224      245       245      170
  Hungary          121      112       116       88
  Former Yugoslavia 366      461       410      442
  Slovakia           -       -        -       19
  Other Countries  338        0        22       20


Table II.      German direct and indirect investment abroad according 
country and industry sector 1993 (Million DM.)

Country    Industry  Machinery  Chemical  Automotive

All Countries  319,448  18,883  51,095  26,201
Industrialized
  Countries    279,387  15,665  45,314  20,214
EU Countries   153,245   7,520  20,272  13,803
  Belgium       27,301     300   7,739   6,210
  Denmark        1,903     324     257      64
  France        26,302   2,274   3,852   1,695
  U. K.         20,655   1,732   2,061     643
  Ireland       16,864     111     565     843
  Italy         13,250   1,099   2,018     864
  Luxemburg     12,616      24      31       0
  Netherlands   19,550     869   1,353   1,663
  Portugal       2,285      83     235     340
  Spain         11,348     656   2,037   1,474
  Greece         1,171      47     124       0  
Other European Countries  
  Norway         1,285      43      67       0
  Austria       12,356     666     864   1,537
  Sweden         2,348     111     298      79
  Turkey         1,102      18     282     168
  Switzerland   12,917     786     591      58

Non-European Countries
  Australia and
    New Zealand  3,301     394     547     378
  Japan          8,011     318   3,056   1,584
  Canada         7,755     379   1,999     148
  U.S.A.        76,449   5,506  16,882   2,321

Developing Ctrs. 33,905   2,693   5,540   4,529
  Africa         3,959     302     396     543
  South Africa   2,408     234     290     539
  The Americas  21,849   1,913   3,615   3,868
    Argnt.       1,977      26     266     356
    Brazil      10,582   1,798   1,468   2,508
    Mexico       4,127      74   1,218     915

Asia and Oceania 8,097     478   1,529     118
  Hong Kong      1,794      98     175       0
  India            450      55     123       0
  Singapore      1,925     228      65      36
  South Korea      721      50     369      28
  Malaysia         743      13     221       0    
Reform Countries 6,155     525     241   1,457
  Check Rpbl.      655     181      15     396
  Hungary        2,210     146      37     468


Table III.     German direct and indirect investment abroad according to 
country and industry sector 1993 (Million DM).

Country     Mining  Electrical  Commerce/Trade

All Countries    4,568  20,039  54,810
Industrialized  
  Countries     30,090  16,078  50,956
EU Countries  
  Belgium          985   7,299  27,314
  Denmark            -     987   2,991
  France             5   1,011   7,053
  Greece             -     231     329
  United Kingdom   660   1,555   5,612
  Ireland            -     397     159
  Italy              -     964   4,377
  Luxemburg          -       -     108
  Netherlands      214     356   3,150
  Portugal           -     563     372
  Spain              -   1,119   2,230

Other European Countries
  Norway             -     267     303
  Austria            -   1,220   3,083
  Sweden             -     338     741
  Switzerland        -     791   3,317
  Turkey             -     248     126

Non-European Countries  
  Australia and
  New Zealand       96     244     898
  Japan              -     216   4,319
  Canada         1,181     254     767
  U.S.A.            90   5,071   9,884

Developing Countries -   3,613   2,980
  Africa           744     294     432
    South Africa    13     230     344
  The Americas      -    2,235     732
    Argentina       -      108     100
    Brazil          -    1,461     150
    Mexico          -      575     232

Asia and Oceania  445    1,084   1,816
  Hong Kong         -       49     738
  India             -       63      14
  Singapore         -      390     457
  South Korea       -       26     197
  Malaysia          -      268      55
  
Reform Countries    -      348     873
  Czech Republic    -      177     288
  Hungary           -       59     344


  10e.  U.S. and Country Contacts

I. COUNTRY GOVERNMENT AGENCIES

Federal Ministry of Economics
Bundesministerium fuer Wirtschaft
Dr. Hans-Martin BURKHARDT, America Desk Officer
Villemombler Strasse 76
D-53123 BONN, Germany
TEL: [49] 228/615 2158
FAX: [49] 228/615 2652

Bundesministerium fuer Wirtschaft
Dr. Bernard VELTRUP, Head of Division - New States
Villemombler Strasse 76
D-53123 BONN, Germany
TEL: [49] 228/615 4414
FAX: [49] 228/615 4431

Federal Bureau for Foreign Trade Information
Bundestelle fuer Aussenhandelsinformation
Mr. Wolfgang POTTHAST, North American Desk Officer
Agrippastrasse 87-93
50676 COLOGNE, Germany
TEL: [49] 221/20 57-249
FAX: [49] 221/20 57-212

Federal Ministry of Finance
Bundesministerium fuer Finanzen
Graurheindorfer Strasse 108
53117 BONN, Germany
TEL: [49] 228/682-0
FAX: [49] 228/682 4420


II. COUNTRY TRADE ASSOCIATIONS/CHAMBERS OF COMMERCE

Bundesverband der Deutschen Industrie e.V. (BDI)
(Federation of German Industries)
Gustav-Heinemann-Ufer 84-88
50968 COLOGNE, Germany
TEL: [49] 221/3708-00
FAX: [49] 221/3708 730

Deutsche Industrie und Handelstag (DIHT)
(Federation of German Chambers of Industry and Commerce)
Adenauerallee 148
53113 BONN, Germany
TEL: [49] 228/104-0
FAX: [49] 228/104 158

Bundesverband des Deutschen Gross- und Aussenhandels e.V.  (BGA)
(Federation of German Wholesale and Foreign Trade)
Kaiser-Friedrich Strasse 12
53133 BONN, Germany
TEL: [49] 228/26004-0
FAX: [49] 228/26004 55

Zentralverband Elektrotechnik- und Eletronikindustrie e.V. (ZVEI)
(German Electrical and Electronic Manufacturers Association)
Stresemannallee 19
60596 FRANKFURT, Germany
TEL: [49] 69/630 20
FAX: [49] 69/630 2317

Verband Deutscher Maschinen- und Anlagenbau e.V. (VDMA)
(German Association of Machinery and Plant Manufacturers)
Lyoner Strasse 18
60528 FRANKFURT, Germany
TEL: [49] 69/660 30
FAX: [49] 69/660 3511

Centralvereinigung Deutscher Handelsvertreter- und Handelsmakler-
Verbaende (CDH)
(General Association of Commercial Agents and Brokers)
Geleniusstrasse 1
50931 COLOGNE, Germany
TEL: [49] 221/5140 4344
FAX: [49] 221/5257 67


III. COUNTRY MARKET RESEARCH FIRMS

It would exceed the scope of this guide to list even only the major 
market research or consultant companies.  Most of these firms belong to 
one or both of the following associations and can be contacted through 
these. 

Arbeitskreis Deutscher Marktforschungs-Institute e.V. (ADM)
(Federation of German Market Research Institutes)
Mr. Gerhard UNHOLZER, Member of the Board
Marktplatz 9
63065 OFFENBACH, Germany
TEL: [49] 69/8143 25
FAX: [49] 69/8143 88

Bundesverband Deutscher Unternehmensberater e.V. (BDU)
(Federal Association of German Consultants)
Mr. Norbert Kuester, Manager
Friedrich-Wilhelm-Strasse 2
53133 BONN, Germany
TEL: [49] 228/2380 55
FAX: [49] 228/2306 25


IV.COUNTRY COMMERCIAL BANKS

There are numerous domestic and foreign banks represented in Germany; 
among the largest German and American institutions are:

Deutsche Bank AG
Taunusanlage 12
60262 FRANKFURT, Germany
TEL: [49] 69/9103-0
FAX: [49] 69/9103 4227

Dresdner Bank AG
Juergen-Ponto-Platz 1
60631 FRANKFURT, Germany
TEL: [49] 69/263-0
FAX: [49] 69/263 4004

Westdeutsche Landesbank
Herzogstrasse 15
40199 D?SSELDORF, Germany
TEL: [49] 211/862 01
FAX: [49] 211/826 6120

Commerzbank AG
Neue Mainzer Strasse 32-36
60261 FRANKFURT, Germany
TEL: [49] 69/136 20
FAX: [49] 69/1262 4021

Citibank N.A.
Neue Mainzer Strasse 75
60311 FRANKFURT, Germany
TEL: [49] 69/1366-0
FAX: [49] 69/1366-1113

Salomon Brothers AG
Wiesinhuettenstrasse 10
60329 FRANKFURT, Germany
TEL: [49] 69/2607-0
FAX: [49] 69/232570

J.P. MORGAN GMBH
Mainzer Landstrasse 46
60325 FRANKFURT, Germany
TEL: [49] 69/712 40
FAX: [49] 69/712 4306

MERRILL LYNCH BANK AG
Neue Mainzer Strasse 75
60311 FRANKFURT, Germany

TEL: [49] 69/299 40
FAX: [49] 69/9711 7247


V. U.S. EMBASSY TRADE PERSONNEL

A.  UNITED STATES EMBASSY, BONN, GERMANY

Mailing Address:  American Embassy, Bonn
      PSC 117, Box 370 (U.S. & Foreign Commercial Service)
      APO, AE 09080

      or
        
      American Embassy, Bonn
      PSC 117, Box 385
      (Office of Agricultural Affairs)
      APO AE 09080

Street Address:  American Embassy
      Deichmanns Aue 29
      53170 BONN, Germany
      TEL: [49] 228/339-1 (Switchboard)
      FAX: [49] 228/339-2663

Ambassador 
Charles Redman

Deputy Chief of Mission
James D. Bindenagel

Minister Counselor for Administration
Donald S. Hays

Minister Counselor for Commercial Affairs
Robert Kohn
TEL: [49] 228/339 2895
FAX: [49] 228/334649

Minister Counselor for Economic Affairs
Janice Bay
TEL: [49] 228/339 2202
FAX: [49] 228/339 2838

Minister Counselor for Agricultural Affairs
James Grueff
TEL: [49] 228/339 2133
FAX: [49] 228/334697

Financial Attache
Carl Lohmann
TEL: [49] 228/339 2120
FAX: [49] 228/334675


B. U.S. EMBASSY OFFICE BERLIN

U.S. & Foreign Commercial Service
James Joy, Principal Commercial Officer
Frank Carrico, Commercial Officer
Neustaedtische Kirchstrasse 4-5
10117 Berlin, Germany
TEL: [49] 30/238 5174
FAX: [49] 30/238 6296


C. U.S. Consulates

Dusseldorf

U.S. & Foreign Commercial Service
Thomas Lee Boam, Consul General
Kenneth Keefe, Commercial Officer
Kennedydamm 15-17 
40547 D?SSELDORF, Germany
TEL: [49] 211/4706128
FAX: [49] 211/431431

Frankfurt

U.S. & Foreign Commercial Service
Larry Eisenberg, Commercial Officer
Siesmayerstrasse 21
60323 FRANKFURT, Germany
TEL: [49] 69/7535 2453
FAX: [49] 69/7482 04

Hamburg

U.S. & Foreign Commercial Service
Hans Amrhein, Commercial Officer
Alsterufer 27/28
20354 HAMBURG, Germany
TEL: [49] 40/4117 1304
FAX: [49] 40/4106 598

Leipzig

U.S. & Foreign Commercial Service
Birgit Lehne, Commercial Assistant
Wilhelm-Seyfferth-Strasse 4
04107 LEIPZIG, Germany
TEL: [49] 341/2138 440
FAX: [49] 341/2138 841

Munich 

U.S. & Foreign Commercial Service
Stephen Helgesen, Principal Commercial Officer
Koeniginstrasse 5
80539 MUNICH, Germany
TEL: [49] 89/288 8748
FAX: [49] 89/285 261


D. OTHER COUNTRY CONTACTS


U.S. Agricultural Trade Office
Alsterufer 27/28 
20354 HAMBURG, Germany
TEL: [40] 4146070 
FAX: [40] 41460720 


VI. WASHINGTON-BASED USG COUNTRY CONTACTS

U.S. Department of Commerce
International Trade Administration
Brenda J. Fisher and John A. Larsen
Germany Desk Officers
Room 3043 
Washington, DC 20230
TEL: (202) 482-2435 or (202) 482-2434
FAX: (202) 482-2897

U.S. Department of State
Germany Desk Officers
EUR/CE/Room 4228
Washington, DC 20520
TEL: (202) 647-2155
FAX: (202) 647-5117

U.S. Department of the Treasury
Oscar Mackour
Germany Desk Officer
Room 5050
15th and Pennsylvania Avenues, N.W.
Washington D.C. 20220
TEL: (202) 622-0145
FAX: (202) 622-0134

Office of the U.S. Trade Representative
Office of Europe and the Mediterranean
Executive Office of the President
Washington, DC 20506
TEL: (202) 395-3211
FAX: (202) 395-3911


VII. U.S.-BASED MULTIPLIERS

Embassy of the Federal Republic of Germany
4645 Reservoir Road, N.W.
Washington, D.C. 20007-4000
TEL: (202) 298-4000 (switchboard)

CMA - German Agricultural Marketing Board
North American Office
950 Third Avenue
9th Floor
New York, NY 10168-0072
TEL: (212) 753-5900
FAX: (212) 826-3278

German American Chamber of Commerce Inc.
40 West 57th Street
New York, NY 10019-4092
TEL: (212) 974-8830
FAX: (212) 974-8867

German Representative for Industry and Trade
Mr. Jakob Esser
1627 Eye Street, NW
Suite 550
Washington DC  20006
TEL: (212) 659-4777
FAX: (212) 659-4779

  10f.  Market Research

FCS Germany plans to report on the following non-agricultural industry 
(sub-) sectors:

Business Equipment - Non-Computer  (BUS)
Franchised Restaurant Chains  (FRA)
Machining Centers  (MTL)
Refrigeration Equipment  (ACR)
Scientific Lasers  (LAB)
Semiconductor Production Equipment  (ELC)
Spectroscopy Instruments  (LAB)
Toys and Games  (TOY)
Packaged Software for the Small Office/Home Office  (CSF)
Electromedical Equipment  (MED)
Plastics  (PMR)
Lingerie/Dessous  (APP)
Information Services  (FMS)
Man-Made Fibers  (TXF)
Automotive Industries  (AUT)
Textile Machinery  (TXM)
Musical Instruments  (MUS)
Power Transmission Equipment  (GIE)
Vitamins and Food Supplements  (DRG)
Alarms & Other Detection Equipment  (SEC)
Diagnostic Products  (BTC)
Multimedia  (CPT)
Mobile Telecommunications  (TEL)
Power Semiconductors  (ELC)
Aircraft and Parts  (AIR)
  
IMI reporting on all industry sectors will continue during the year.


Annual agricultural economic and administrative reporting 

Date             Report
  
When available  Cotton Import Trade Data Quarterly
When Available  Grain & Feed Export Trade Data Monthly
When Available  Oilseeds Export Trade Data Monthly
When Available  Oilseeds Import Trade Data Monthly
Monthly         ATO Activities & Contacts
January 1       Fresh Deciduous Fruit, Semi-Annual

February 1      Livestock Semi-Annual 

March 1         Grain & Feed Annual 
March 15        Seafood Semi-Annual 

April 10        Sugar Annual 

May 15          Dairy Semi-Annual

June 1          Oilseeds and Products Annual
June 1          Tobacco Annual  
June 15         Asparagus Annual
June 20         Cotton Annual  
June 20         Poultry Annual  

August 1        Livestock Annual 
August 25       Honey Annual

September 10    Fresh Deciduous Fruit Annual
September 15    Seafood Annual
September 30    Annual Agricultural Situation Report

October 1       Sugar Semi-Annual 
October 15      Processed Sweet Corn Annual
October 31      Seeds Annual 

November 30     Dairy Annual 

December 12     Wine Marketing Annual
December 15     Citrus Annual 
December 15     Forest Products Annual


  10g. Trade Event Schedule


10/1, 95         EVENT  CITY  POST  POST
9/30, 96                            SUPPORT

1995
          
10/05-12   K-International  Dusseldorf  Dusseldorf  SR/EE/EC
10/10-12   Biotechnica   Hannover  Dus/Ham  SR/EE/EC
10/11-16   Book Fair  Frankfurt  Leipzig  SR/EE/EC
10/16-20  Systems '95  Munich  Munich  BIO
10/19-21  IKK (ACR)  Essen  Munich  SR/EE/EC
10/30-11/04  Interkama  Dusseldorf  Dusseldorf  SR/EE/EC
11/07-10  A+A Industrial Safety  Dusseldorf  Dusseldorf  SR/EE/EC
11/07-10  Productronica  Munich  Munich  SR/EE/EC
11/16-18  BRAU Nuernberg   Nuremberg  Munich    BIO/CTF
11/22-25  MEDICA (MED, BTC, DRG)  Dusseldorf  Dus/Ham  BIO/TFW /CTF/CEO 
        
1996

01/10-13  Heimtextil (TXF)   Frankfurt  Frankfurt  SR/EE/EC   
01/16-21  Int'l M?belmesse (FUR)  Cologne  Dusseldorf  SR/EE/EC
01/19-28  Int' Green Week  Berlin  Berlin  SR/EE/EC
01/20-28  Boot (Int'l Boat Show)  Dusseldorf  Dusseldorf  SR/EE/EC
01/27-31  Premiere (HCG)  Frankfurt  Fra/Duss  BIO/CTF
02/  Fashion Fair (Menswear)  Cologne  Dusseldorf  SR/EE/EC
02/  (Inf & Child Apparel)  Cologne  Dusseldorf    SR/EE/EC
02/01-07  Int'l Toy Fair  Nuremberg  Munich  SR/EE/EC
02/04-07  CPD (Igedo Dessous)  Dusseldorf  Dusseldorf  SR/EE/EC
02/06-09  ISPO-Spring (SPT)  Munich  Munich    BIO/TFW
02/11-13  Mode-Woche (Fashion)  Munich  Dusseldorf    SR/EE/EC      
02/14-18  Bautec (BLD, CON)   Berlin  Berlin  SR/EE/EC  
02/24-27  Int'l Leather Fair  Offenbach  Frankfurt    SR/EE/EC
03/03-06  Int'l Hardware Fair  Cologne  Dusseldorf  SR/EE/EC
03/08-11  IWA-Hunting & Sporting  Nuremberg  Munich    BIO
03/08-13  InternorGa (HTL)  Hamburg  Hamburg  SR/EE/EC
03/10-12  Igedo (Spring)  Dusseldorf  Dusseldorf  SR/EE/EC
03/19-23  Entsorga '96  Cologne  Dusseldorf  BIO/CTF
03/20-27  CeBit  Hannover   Bn/Dus/Ham  CEO/BIO/CTF
03/22-25  GDS (Shoe Fair)  Dusseldorf  Dusseldorf    BIO
03/27-04/01  International Dental  Cologne  Dusseldorf    SR/EE/EC
03/28-31  Fur & Fashion   Frankfurt  Dusseldorf    SR/EE/EC
03/  Terratec (POL)  Leipzig  Leipzig  SR/EE/EC
04/  Automobile Int'L.   Leipzig  Leipzig      SR/EE/EC
04/15-19  Wire   Dusseldorf  Dusseldorf  SR/EE/EC
04/15-19  Tube   Dusseldorf  Dusseldorf  SR/EE/EC
04/22-27  HANNOVER FAIR  Hannover  Ham/Bn/St  CEO/BIO
04/23-26  Analytica  Munich  Munich  SR/EE/EC  
04/  Interstoff (TXF)   Frankfurt   Frankfurt    SR/EE/EC
05/dns  CAT (CSF)   Stuttgart  Stuttgart    SR/EE/EC
05/09-12  Interzoo (Pet Supplies)  Nuremberg  Munich  SR/EE/EC
05/09-15  Interpack (PKG)  Dusseldorf  Dusseldorf  SR/EE/EC
06/  SMT (ELC/EIP)  Nuremberg  Munich  BIO/CTF
08/  Fashion Fair (Menswear)  Cologne  Dusseldorf    SR/EE/EC
08/04-07  CPD (Fashion)   Dusseldorf  Dusseldorf    SR/EE/EC  
08/18-20  Mode-Woche (Fashion)  Munich  Dusseldorf    SR/EE/EC      
08/20-23  ISPO-Fall (SPT)  Munich  Munich    BIO/TFW
08/  Inf.& Child Apparel  Cologne  Dusseldorf    SR/EE/EC
08/24-27  Intl. Leather Fair  Offenbach  Frankfurt    SR/EE/EC
08/24-28  Herbst Messe (HCG)  Frankfurt  Frankfurt/Duss BIO/CTF
09/01-03   SPOGA (SPT)   Cologne  Munich/Duss    SR/EE/EC
09/08-10  Igedo Fall  Dusseldorf  Dusseldorf    SR/EE/EC 
09/10-15  Automechanika  Frankfurt  Frankfurt  SR/EE/EC
09/21-29  Int'l Caravan-Saloon  Dusseldorf  Frankfurt    SR/EE/EC
09/13-16  GDS (Shoe Fair)  Dusseldorf  Dusseldorf    BIO
09/  Interboot  F'hafen  Dusseldorf  SR/EE/EC
09/  Photokina  Cologne  Dusseldorf  SR/EE/EC

KEY:

BIO  Business Information Office
CAT  Catalog Show
CEO  Corporate Executive Office (Used only at Trade Fairs)
CTF  Certified Trade Fair
DNS  Date not set
FAS  Foreign Agricultural Service
SR/EE/EC  Sectoral Research/Event Evaluation/Exhibitor Counseling
TFW  Trade Fair Washington (USDOC organized)
TM  Trade Mission



AGRICULTURAL  TRADE  SHOW  CALENDAR

A.  ANUGA, Cologne, Germany
  September 30-October 5, 1995
  F&B, HRI

B.  FRUIT LOGISTICA, Berlin, Germany
  January, 1996
  Produce

C.  ISM, Cologne, Germany
  January 28-February 1, 1996
  Sweets, Confectionery

D.  FISCH INTERNATIONAL, Bremen, Germany
  June, 1996
  Seafood

E.  IMEGA, Munich, Germany
  September 22-26, 1996
  F&B, HRI
```

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