tv Made in Germany - Game of Trade - playing global commerce Deutsche Welle March 28, 2018 10:30am-11:01am CEST
d.w. true diversity. of the world of science is at home in many languages. on a lot of programming go and they will be sure you can use your show and i pad our innovations magazine for. us from every week and always looking to the future fund d w dot com for science and research. it's a game of train welcome to the biggest gambling table known to man international trade relations if you have the bill then sure and tyed go and fight with. sar
a collaborative approach form an alliance with the e.u. and its right to mission to see the moms from all the luck in the background and pounds when the time is right with chinese president xi jinping employ tactical skills fight back with bob what's your x. forms. whatever you do choose your strategy wisely that's a lot at stake. welcome to made in germany. global trade policy is indeed a game of strategy so i understand that it's important to look at the different interests that all involved a pushing but all the really so different in the end everybody wants to sell their stuff to everyone else and while that is true it's anything but simple let's have a look at the key players and their different strategies and what is right now looking increasingly lied to prelude to a trade war. main protagonist in this drama is u.s.
president donald trump he's leading the charge aggressive and unpredictable strategy is to exert so much pressure that the other players make concessions. he announced tariffs on steel and alimony men ports then suspended them for the e.u. and a few others. has declared target is china which he accuses of technology theft and unfair trading practices trump intends to slap tariffs on sixty billion dollars of chinese imports a year it's a risky bet for many reasons trump claims the us is being cheated by other countries in the realm of global trade his mantras are america first and make america great again he's promised to revive manufacturing at home the u.s. has a significant rust belt regions where the steel and auto industries among others collapsed in the face of foreign competition. and chinese president xi jinping is the key
counterpart to the protagonists trump china wants to avert an all out trade war it wants to make money and enhance its global economic reach its presenting itself as a champion of free trade. but said it plans to impose duties on three billion dollars worth of imports from the u.s. including pork apples wine and steel pipes. but it's also indicated that it might consider targeting major players such as boeing apple and intel. china is the world's largest producer of steel if exports to the u.s. are hit with tariffs it will likely seek to boost sales elsewhere including europe . it's also possible that the u.s. might threaten to impose tariffs on clothes and high tech goods from china or even do so. if china wants to play hardball and launch a large scale retaliation it might. the slowing its purchases of u.s.
treasuries it already holds more u.s. debt than anyone else. player is a silly amount strome the european union's trade commissioner in tough talks with the us administration she got the tariffs on steel and alan minium suspended though only temporarily. trump a set a deadline of may the first to finalize a deal on trade and wants concessions. the e.u. is seeking to deescalate the crisis the last thing it wants is a trade war a lot is at stake especially for germany with its huge trade surpluses for example it sells a lot of cars in the united states. the european union says the deadline of may the first for a deal is unrealistic that's when a suspended tariffs are set to go into force the fight with trump is not over yet
and there is a fight against taxes. which actually means putting high tariffs on imports to make foreign products like chinese steel or german cars more expensive in the us even produces at home a better chance to compete in the end they are the ones who created jobs and paid taxes there and so what's so bad when politicians are trying to protect their country's businesses what is protectionism. protectionists want to shield their own country from foreign competition. so they establish barriers the domestic economy receives preferential treatment it's being protected . protectionists often subsidized domestic industries in the e.u. for example that could be meat or electric vehicles. tariffs are imposed on products manufactured in foreign countries to curtail imports. that makes foreign products televisions for example more expensive and therefore less attractive to
consumers at first it may seem to work domestic manufacturing gets a boost more workers are hired and foreign competitors that produce more cheaply are edged out by by free trade. but the products produced at home are more expensive and not always state of the art since there is no competition from abroad innovation begins to lag. growth also starts to stagnate companies produce almost exclusively for the domestic market neighboring countries respond by instituting protectionist measures of their own and introduce import tariffs. and this is what happened after the nine hundred twenty nine stock market crash in the u.s. within just a few years global trade declined by two thirds. once one country institutes protectionist measures others follow in a kind of domino effect over time protectionist countries tend to develop
self-sufficient economies whether it's carrots apples or bananas whatever doesn't grow at home is no longer sold goods become more scarce and growth suffers. and what about the protectionists they're left with a mountain of debt subsidies are expensive. history has shown that a wave of protectionism is often followed by a financial crisis and even government default that's usually followed by renewed support for free trade. well let's have a look at the current tariff situation according to the world trade organization the average tariff the u.s. slaps on imports is three point five percent while the e.u. charges five point two and the chinese nearly ten but for different categories of goods different rates apply for example when it comes to cars the u.s. turn to charges just two point five percent in duties while the u. demands ten percent it's
a similar picture with food imports eight percent in the u.s. but a whopping eight eighteen percent in the e.u. . so it may be a bit shortsighted supplant donald trump for threatening terrorists while there is a clear imbalance in trade relations favoring the e.u. or this trade dispute turns out one thing is it's not good for business and it will hit some communities harder than others hamburg's port for example is a gateway to the world the city lives and breathes free trade authorities here believe the only answer to the ongoing threat of terrorist washington is for the e.u. to take a united stand in support of free trade. sailing into the port of hamburg because cargo ships are getting bigger and bigger the navigation chairman of the elba river has been continually deepened over the past decades. hamburg depends on trade with countries all over the world and the threat of u.s.
tariffs and retaliatory measures from the e.u. could throttle hollywood its import export business. so i thought even in halfway it's like filling up your harbor with rocks to protect the economy from imports and then the other side does the same can't be intelligent policy that kind of it's a mistake to believe that protectionism is the answer to protectionism. right in france reacting to stupid or being with stupidity. it might not be a good idea to call your negotiations partner stupid especially if it's the us president. so how should you deal with someone like donald trump i put that to ralph brenner who teaches negotiating tactics to executives in hamburg.
i've never met trump so i don't know if he's like this but there is a type of negotiator who tries to push you into a corner he wants to see how you react he tests you and if you pass the test he'll go on talking with you otherwise you've lost and if you start looking down on him you've already lost that means you have to prepare your negotiation strategy in such a way that you encounter him on an equal footing. does that mean taking part in the exchange of threats and counter threats where would that lead. i have come to meet colin an inch that c.e.o. of the hamburg chamber of commerce its premises reflect the proud tradition of the city's merchant class. how do you think we should respond to trump. europe needs to take a clear stand we have to say that we won't accept this kind of thing if only to get trump to take this seriously and listen to us. but it's the same time we have to
take care to keep the conversation going we can't afford to get sucked into the spiral of protectionism from which we'll have trouble emerging. that would be the worst thing that for the economy. for now hamburg and germany are not in the line of fire at the moment the u.s. has china in its sights trying to sell for the e.u. has been exempted from the tariffs for now it seems only the chinese are going to be punished should we be happy about that. if we as europeans really have free trade as our goal then we can't be happy that donald trump has taken aim quote just at china unquote and reactivated tariffs. that goes against the fundamental idea of the world trade organization
and we europeans need to be very cautious particularly with regard to donald trump's behavior because the world trade organization provides protections for the week against the power of the strong. well. it's the shop we europeans need protection because compared to the us and china we're small. without. certainly small if we don't speak with one voice in economic terms however europe is indeed on a par with the u.s. and with china for trading hubs like hamburg the situation remains tense the exemption of the e.u. from u.s. tariffs is only temporary and trump is unlikely to let the europeans off the hook without getting something in return. the free trade we experience
and idealize today didn't fall from the sky wars have been fought over trade not with tariffs but with real armies with guns and swords people have actually died over trade disputes and history teaches us one thing free trade very often promotes peace. how did free trade develop. in the middle ages this was standard practice merchants paid tolls at bridges mountain passes and city gates when they moved goods from one principality to the next. in northern europe they founded the german hands you had a clique in new back in twelve eighty there was a great international alliance a confederation of merchants from large cities that soon began to grow first hamburg then rostock in cologne cities much farther away soon set up panzer trading posts to buy the fourteenth century the league included almost two hundred cities.
in one thousand thirty three the german customs union created a large tariff free area over a century later the foundation for free trade in europe was laid the european coal and steel community was the forerunner of the european union which today guarantees free trade among its member states. the motive was not just economic the idea was to create a system of shared values after all increasing trade also plays a role in promoting peace. one important player in the ongoing type of dispute is mexico german carmakers like audi have been manufacturing there for decades offering young women young mexicans rather a solis professional perspective today we meet a mexican trainee as she prepares to enter the industry which has been an uproar since the u.s. threatened to impose those high import tariffs on cars made in mexico.
today's lesson is focused on the bodywork every screw everyone or of a car needs to be in the right place eighteen year old gonzaga started training here seven months ago it's the superior in a road that audi mexico has taken on new apprentices. when we were in the first week was really exciting especially the first day to see where i'd be training and learning and then i saw the q five for the first time which we make here in mexico . yeah right is one of eighty doing a three year apprenticeship it's a two track training system structured the same way as in germany eighteen months suspended out his training center the rest is hands on training in the production plant. yaris mainly interested in automobile electronics she wants to be
a vehicle mechatronics technician. but i see over the beginning when i fell in love with cars as a child i think it's really fascinating to know how a car even drives on with the parts work together and why each individual screw is important when we want them. the instructor takes the students out to test the brakes. but yeah isn't good allowed to drive the test car hisself. as well doesn't it is as much universities teach mostly theory. that's not hands on enough for me here we work on the cars and learn a lot on the job and the practical training is what i need most if i want to get a job in a company. in the next it's time for lunch like most.
yeah learned about the audi course through social media the german car maker is keen to attract more women into engineering professions. in the open with a look at. what i mean is in the business owner money it's perfectly normal for me because i've always wanted this job easier and if i do a good job catholic counts going not that i'm a woman sure there are more men here than women. but i also feel as a woman that working here is a huge opportunity. that. the training center is only a short distance from the production line audi built the plant a few years ago to manufacture its q five s.u.v. this room for a second plant here but it will only be built if the location remains attractive to the company. the city probably depends on the auto industry this sector
generates a third of its economic output. but there's been uproar this since u.s. president donald trump threatened to impose high import tariffs on cars made in mexico. bought louis spinoza of the mexican chamber of industry isn't too worried about the u.s. stance. i think this is a whole lot of false. the structure of the auto industry of the auto parts is very dependent on what we do here and what they consume there and what they do wherever it's a it's a nice set up there has been working for last years but what i see more dangerous is our elections are common july because we don't know if we're going to get a president who understands this and doesn't come up with the same ideas as our neighbors and goes populist and says well enough that's what working that's
supposed to work borgerson that's being nationalists that. would be like killing ourselves but you never know. we're more afraid of that then then of the neighbor. that would be a grim scenario for the trainees here as well. yeah removed from the north especially for the course. she shares a small apartment with not the chinese. they don't have much free time so their families often come to visit. their. yaris parents are proud of fair. play but it was bad luck going to some pleasant anyway not me going in there right now all i want to do is finish my training and then start working in the plant a little less in the long term i'd like a secure job you know when i'd like to buy a house and a car with my wages and support my family especially my younger siblings in
reykjavik e.u. . is due to graduate in a little over to me is she hopes mexico will still be making enough cars then for her to get a job. the current u.s. administration complains about american firms losing out to unfair competition around the world at the same time the european union argues that huge and often very profitable u.s. internet companies are not paying their fair share of taxes in its member states the european commission has drafted new rules on taxation and has even produced a video to set out the issue of a look. taxes nobody likes to pay them but if we put it does but digital companies pay much less tax than traditional businesses under today's rooms a company can only be taxed on the profits it makes in the country if it is
physically present that this is not fair to other businesses. it's time to change the rules. time to change the rules this success of large online retailers like amazon has hit small businesses on the high street very hot in southern germany has now set up its own online marketplace with around fifty local retailers participating but is that enough to take on the internet giants. special offers everywhere but not a customer in sight a problem in shopping zones across germany even when it's not so cold today it's minus ten degrees celsius in the small bavarian town of sport you have to be pretty desperate to venture outside it all. it's got hello i need a ski helmet him here right you follow me i'll show you what we've got ok.
i plan to set off on my trip next week and. i'm already thinking a skiing holiday is bound to be expensive. for all i know it's out pain i'm in a j.v. . i want to check how much the competition is charging. and for what does it cost here what. cost it's on special offer at one hundred twenty nine euros right now. so we're not hundred twenty nine. hundred nineteen. hundred six. if you want to check things out on the internet there's never any guarantee that you'll get the right sides here you'll find just the right size and you'll even get advice thrown in for free as well. here are very good but if i order it online i can get it delivered and send it back if i want. that's no problem here either just go to our website you'll get the help and if you want to
buy for thirty well even deliver it today we're going to court to get you. to six months the view of indians bulldog d e websites fifty retailers have been offering foundations of articles. become attached set up the website is this going to books answer to amazon. honestly no one stands a chance against amazon the website is really only there to give us an online presence and that's it wasn't our customers come from all over germany far orders come from the other half from around the country. become that whole the drop in sales caused by sites like amazon in a bookshop which also offer school supplies like satchels i learn another shopping trip. and wonder what happens if someone photographs a barcode on. the bar hears nowadays you've got software which automatically shows
the product on the internet if you go through so you get customers who walk into your shop look for something then just take a picture of it if they like it it's quite cheeky is not very good. yeah yeah but that's just the way things are when retailer and goods berg said a woman tried on ten pairs of pants in his shop photographed the ones she wanted and then said she'd order them online. that's why herman hunter has been online for years where he markets the hundreds of thousands of articles in his store room he says people are going into town less and that has repercussions. from the start of seventy percent of all sales are made on impulse so if i don't go to town to buy that coat i also don't have the chance to snap up a book or opinion. on the other hand customers actually going into a shop a better informed than ever before thanks to the internet that's good for retailers
people who come into this wine shop for specific wines try them and then get them delivered to their homes. i only sell italian wines but i still have eight hundred different types from every region north to south and the island. reds whites rose a's and bubbly here in relatively small i can offer you a selection you'd normally only find in big cities. but that's only possible because i combine brick and mortar retail with online retail without the online operation behind me i could maintain such a wide range or offer such good prices. but what does that cost nine euros eighty many thousand if i want to order it in berlin where i live what i pay then end up with. absolutely no problem it be the same price you ordered on via d e and will ship it anywhere in germany for free.
fifteen minutes long d.w. . the fast pace of life in the digital. shift has the lowdown on the web it shows a new developments useful information and anything else worth knowing. presents the latest finds. looks over the shoulders of makers and choosers. should. be five minutes on the. climate change. waste. pollution. isn't it time for good news eco africa people and projects that are changing no one fire meant for the better it's up to us to make a difference let's inspire other. people let it go the
the storm. starting to pull something on t w. d w news live from bergland russia holds a national day of mourning for the victims of the deadly mall fire in siberia families hold some of the first funerals for the sixty four people killed in the blaze most of them children accusations fly over failures that led to the tragedy. also coming up.