Germany benefits from a favourable position in the heart of Europe
Although Germany is benefiting from its geographical location and from the shift
in the flow of trade towards eastern Europe, the rise of competitors from major
emerging countries on the value chain (especially China) and the potential
acceleration in the pace of new trade agreements in the Asia-Pacific region
could present German exporters with a significant challenge. Countries not
involved in regional trade agreements are typically negatively impacted by the
diversionary effect on trade.