German Review


Germany ranks third with the most exports worldwide in 2019
Message by His Excellency Eugen Wollfarth, Consul General, Consulate General of the
Federal Republic of Germany in Pakistan.

Germany enjoys the reputation of being a leading export nation. The Federal Republic is the biggest exporter of all European Union member states and ranking third on the list of countries with the most exports worldwide in 2019. This longstanding characteristic achieved by tradition successfully stands the test in modern times as well. What are the key factors for Germany’s export success, one might ask? Looking at which goods the country exports most may give us a clue.

In 2019, automobiles, trucks and car parts, machinery and data processing equipment were the top three export items. When focusing on German trade with Pakistan, one almost instantly notices the great significance of the textile sector. The Pakistan textile sector and the German manufacturers of textile machinery have a longstanding and fruitful relationship. Looking at it, it seems a simple arrangement with both sides profiting.


His Excellency Eugen Wollfarth, Consul General, Consulate General of the Federal Republic of Germany in Pakistan.

Pakistani textile mills import textile machinery from Germany and use it to fabricate cloth, home textile items and increasingly more garments that are then exported to markets all over Europe and North America. The numbers certainly reflect those dynamics. In 2018, Pakistani companies imported more than 500 million euros worth of German machinery. In return, the Pakistani exports of textiles and clothing to Germany that year amounted to over 800 million euros.

The textile machine engineering is one of the most important branches of engineering in Germany. Most of German textile manufacturers are usually not very big companies but stem from the German "Mittelstand", a term used for small and middle-sized enterprises which are often family-run and stand for trust and lasting quality. Almost all of them are organized within the VDMA textile machinery association. It serves the companies as a platform where both technical standards and reforms can be discussed and experiences in and information about markets around the world are exchanged in different forums. Apart from that, the association acts as a representative of their members’ interests towards political agents.

Although these firms may not be huge, their expertise in a specific area pushes them amongst international market leaders. In relation to the textile sector, German companies can offer production technologies along the entire textile value chain from spinning, knitting, weaving, nonwovens and finishing.

Those high-end technologies being in demand all around the world, textile manufacturing is a very export-oriented industry with about 95 per cent of their products going abroad. More than half of these exports go to Asia, with Pakistan ranking in the six top countries to which German textile machinery is exported.

The export success of German textile machinery has become a tradition for good reasons. Germany has been the country with the highest numbers in exported textile machinery for over fifty years.

Pakistani textile manufacturers, I had the pleasure to learn on different opportunities when visiting textile mills in Pakistan, value the first-class workmanship, the durability and the ongoing support that German machinery stands for.

How high the demand for new disruptive technology from Germany is was made clear to me once again during the visit of a delegation of different German textile machinery companies during November last year.


Montex 6500 by A. Monforts Textilmaschinen GmbH & Co. KG, Germany.

Many of the representatives had already been to Pakistan on several occasions and had the chance to discover not only the potential the Pakistani market poses but also to get to know their partners as reliable and welcoming.

In my view, the Pakistani-German trade relations regarding textile machinery on the one hand and textile products on the other hand can be called symbiotic and will continue to be a success. Pakistani producers can rely on the GSP+ regulations for an easier access to the huge European market.

Changing customer demands, the most prominent being a sustainable and fair production chain, present new challenges for textile producers. Naturally, they also look to the machine engineers for solutions in this regard.

In these times, we also realize how dependent we have become on a functioning global trade and shipping system. I am positive that the difficulties that we face today mainly due to Covid-19 will be overcome soon.

 

 
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