The United States and Germany are both open economies thathave improved each other’s over all well being over the past centuries. Germanyis the world’s fifth largest economy and the largest in Europe, producing onefifth of the European Union’s GDP. Not only this, but Germany has developed somuch over the years that it has made itself to be the largest European tradeand investment partner of the United States. The safety and functions of theGerman economy, as well as its methods of contributing to the internationaleconomic policy issues are of  high importanceto the United States as well as to the rest of Europe. Unfortunately, the US isby far the most protectionists when it comes to global trade. The US politicalsystem has gone through much turmoil the past years and is now threatening tobecome a single protectionist market, leaving all of its allies in danger. Thischange would cause tremendous disasters in international trade, resulting in extensivelosses in GDP for both the US and Germany.

            Theprotectionist trade policy limits the unfair competition from foreignindustries, with the hopeful results that imported products will be replaced bydomestic goods and services. The countries in favor of the protectionist UStrade policy are expecting an increase in domestic production, employment andincome in throughout the country. However, this is a wrong assumption to make,as the results of this theory will, reduce domestic GDP and employment.Protectionism include  two main elementsof trade – one being the discrimination of foreign economic operators and thesecond being the trade restrictiveness. Since the election of US presidentDonald Trump, the US trade policy is threatening to become more and moreprotectionist. As of 2009, the US has passed 1,297 economic or trade measureswhich are considered to be dangerous to the running  of global trade.

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            With thehelp of the United States to rebuild much of Germany after WWII, the tightbonds between the two countries came to be. Nevertheless, as years pass by, German-Americancollaboration in security matters international political, and economic iscritical in our countries’ continual wealth to the stabilization of the globalsystem. When looking at political aspects, Germany has many kep leadershiproles while being members of the G-7, G-20, and the North Atlantic Treaty Organization,also known as NATO, The European Union, the Organization on Security and theCooperation in Europe. One of the main tactics and goals both countries providetheir citizens includes the preservation of peace and freedom. The economicties between the two countries are based on the dynamic growth of trade andinvestment over the centuries.

Germany is the largest European economy. This inhand, assisted in the development over one million jobs n both sides of theAtlantic Ocean. It is very important to upkeep the robust trade relationshipbased on values.

            The UnitedStates and Germany have maintained a strong cultural tie, with thousands ofAmericans residing in Germany, and vice versa. In 2015, the United Statesbecame Germany’s fourth largest supplier of goods and the U.S. became Germanysleading export market.

Germany exported goods worth more than $125 billion tothe United States and the U.S. exports to Germany totaled $50 billion.  As Germany holds rotating presidency of theG-20 group of the world’s biggest developed an developing countries, advocatesan order of free and open trade based on the jointly agreed rules by the WorldTrade Organization.             Between theyears 2007 and 2010, the total GDP of Europe decreased, however, the main expectationto the GDP decline in Europe was Germany, who’s 3.6 percent growth rate outpacedall economies. German exports to the United States jumped 8 percent on the yearin the first quarter of 2017, which signals that bilateral trade isflourishing, even though U.

S. President Trump’s protectionist rhetoric. In2017, U.

S. trade in goods with Germany’s exports summed up to be 46,606..5million dollars compared to 38,183 million dollars in 2005. This shows us thatthe trade relationship between the two countries is striving yearly.

Whentaking a look at Germany’s history, post-war West Germany, up to the mid 1990sregistered an impressive economic performance. However, beginning in the mid1990s, until the year 2005, unemployment rose that have been exacerbated by asteep 5% decline in the German GDP growth. This makes the US raise questionsabout the long-term vitality and strength of the German economy. As German’sgenerous social security and welfare programs have been growing, the UnitedStates has been thinking of cutting Germany off.

  A prosperous German state remains critical toboth the U.S. and European economies.             Due tothese facts, the US is threatening with protectionism. Apart from thereplacement necessities of foreign goods, which Germany has been bringing in,the inflation rate will rise, with a decline of exports, GDP, employment andincome in the US. Apart from the negative impact on American competitiveness,rising inflation has another growth dampening effect – higher prices reduce thepurchasing power of American consumers, which therefor demand for goods andservices America decreases.  This willalso result in an additional reduction of employment and income.

            The one whowill suffer the most from the US protectionism depends on the extent ofprotectionism and the reactions of those countries who are affected by thehigher customs duties and other barriers to trade. Germany, as well as othercountries like the United Kingdom, will have an annual loss around $12billion.  It is unclear whether the USgovernment will implement the announced protectionist measures.

However, if theUS should increase trade barriers against goods and services from Germany, thenEuropean economies need new trading partners. This all in hand is a wake up call for promoting the European singlemarket and establishing the European union. 


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