Bilateral trade between Germany and New Zealand is worth NZD 3.26 billion (2016). New Zealand exports food and agricultural products to Germany and imports machinery and components, pharmaceuticals and chemicals from Germany. There is great potential for even more cooperation between the two countries – now even more so because a free trade agreement between the European Union and New Zealand is backed by the German Chancellor.
In 2013 the two countries marked the 60thanniversary of the New Zealand-German bilateral relations. The German Chancellor, Dr. Angela Merkel, visited Auckland on 14 November 2014, ahead of the G20 Summit in Brisbane.
A year later, former Prime Minister John Key visited Germany. In 2016 the President of the German Bundestag, Prof. Dr Norbert Lammert, visited New Zealand. Prime Minister Bill English visited Germany in January 2017, where he met with Federal Chancellor Dr. Angela Merkel.
Facts about Germany
Federal Republic of Germany
Social market economy
Business and Innovation
With a population of 82 million, Germany is the largest economy in the European Union and the fourth largest economy in the world (after USA, China, and Japan). Germany’s GDP contributes 21 percent of Europe’s total GDP.
Germany is world-leading in renewable energies and sustainable technologies. The future lies inBig Data and technology driven innovations. In 2014, 2.9 % of Germany’s GDP was spent on research and development. In 2015, 90.3% of German household have an Internet access.
Germany offers access to a large domestic market and easy access to growing markest in the European Union. Germany’s economy is build on a free and social market economy.
Small and medium-sized enterprises (SMEs) “Mittelstand”
The vast majority of German businesses are small to medium-sized companies (i.e. 99.3 % of German businesses). SMEs are businesses with an annual turnover of less than 50 million euros and with fewer than 500 employees(or total assets of less than 43 million euros). Germany’s largest company by revenue and employees is Volkswagen (VW).
Around 2.1 million businesses are so-called “micro-enterprises” which employ less than nine employees and who have an annual turnover of less than two million euros.
Cost of labour in Germany
In 2015, the hourly cost of labour in the German private sector averaged 32.7 Euros (compared to the EU average of 29.50 euros). Germany has one of the highest labour productivity rates in Europe.The minimum wage in in Germany will be raised to 8.84 euros per hour from 1 January 2017. This increase is based on recommendations from the Minimum Wage Commission.
Germany shares borders with nine European countries making it a perfect logistic hub for foreign companies seeking access the European market. The country borders on Denmark, Poland, the Czech Republic, Austria, Switzerland, France, Luxembourg, Belgium and the Netherlands.
The state of the art transportation and network infrastructure facilitates access to both the domestic and international markets. The 2014-2015 Global Competitiveness Report of the World Economic Forum ranked Germany first in Europe, and third world wide for its high quality infrastructure.
Double tax agreement
A Double Tax Agreement(DTA) between New Zealand and Germany has been in force since 21 December 1980. The DTA prevents that people and businesses from being taxed twice.