France vs Germany International Trade Flows Compared
This paper compares and contrasts the international trade flows of France and Germany as members of the European Union from 2010 to 2018. It examines the major export and import commodities for each country, their principal trading partners, and the role of EU integration in shaping trade patterns. Drawing on demand and supply theory, the paper explains why Germany maintains a trade surplus driven by automobile exports while France relies more heavily on imports, particularly petroleum products. The paper also considers GDP contributions, employment trends, currency standardization, and the implications of Brexit for EU trade relationships involving both countries.
- Introduction: EU context and headline trade figures for France and Germany
- Trade Patterns for France: France's export-import balance, aerospace, and petroleum
- Trade Patterns for Germany: Germany's automobile exports and import demand drivers
- Comparing France and Germany: GDP and Economic Divergence: GDP contributions, employment trends, and currency standardization
- Conclusion: Brexit and the Future of EU Trade: Brexit's effects on France-UK and Germany-UK trade
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What makes this paper effective
- It grounds empirical trade data — specific dollar values and partner shares from WITS — within economic theory, connecting real figures to demand-and-supply frameworks and free-trade principles.
- The country-by-country structure creates a natural compare-and-contrast arc, allowing readers to follow parallel analyses before the synthesis section draws direct comparisons.
- The conclusion extends the analysis beyond the data period by addressing Brexit's concrete trade consequences, demonstrating awareness of how policy shifts disrupt established trade flows.
Key academic technique demonstrated
The paper effectively uses a comparative case-study method: two economically prominent EU members are analyzed using the same evaluative criteria (top commodities, partner shares, import/export balance, GDP contribution), then directly contrasted. This parallel structure prevents the discussion from becoming a series of isolated descriptions and instead produces genuinely comparative insights, such as why Germany's trade surplus differs structurally from France's import-heavy profile.
Structure breakdown
The paper opens with a brief introduction establishing the EU context and summarizing headline trade figures for both countries. Two body sections then analyze France and Germany separately. A synthesis section compares GDP growth and employment divergence. The conclusion pivots to Brexit as a live policy case study illustrating how regulatory change disrupts the trade relationships analyzed throughout the paper. References follow in a consistent format.
Introduction
Multiple factors determine international trade flows; among them are demand, supply, trade costs, cultural connections, and government policies. The influence of these factors varies based on the groupings that different nations form. For the European Union (EU), the principal objective is the promotion and facilitation of cooperation among member states. EU members like France and Germany join the grouping with the shared objective of expanding their economic performance through enhancing both imports and exports.
For France, major exports from 2010 to 2018 went to Germany, with a value of US$82,989 million, representing a 16.22 percent partner share. Imports were equally dominated by Germany, worth US$103,434 million and a 17.26 percent partner share. The leading export for France during these years was aircraft, worth US$35,831,627.11 million, with a significant portion going to Germany and the United States. Major imports included petroleum and bituminous oil products worth US$35,319,187.35 million, with more than 20 percent originating from Saudi Arabia.
For Germany, major exports from 2010 to 2018 went to France, with a value of US$118,331 million, representing a 9.33 percent partner share. Imports came primarily from China, worth US$103,800 million and a 9.79 percent partner share. The leading export for Germany during these years was automobiles, worth US$44,860,010.53 million, with a significant portion going to the United States. Major imports included petroleum and bituminous oil products worth US$52,603,077.21 million, originating mainly from Norway, Russia, and the United Kingdom.
Trade Patterns for France
Most of France's international economic activity occurs within the European Union (WEDC, 2018). In particular, the growth in imports and exports within these regions has been accelerated by the liberalization that emanates from European integration. The economic theory of free trade — unlike mercantilism, which imposes restrictions to promote domestic industry — allows France to benefit from relaxed restrictions within the EU, thereby increasing its imports and exports. The average increase in exports to Germany has been driven by rising demand for aircraft and other aeronautical products, as well as European Commission policies that monitor economic developments among EU member states. Through these policies, France derived approximately 50 percent of its GDP (as of the 2015 report) from external engagements that include exports (WITS, n.d.). This figure was significantly higher than the gains attributable to incoming investments. France also imports energy in the form of petroleum products, which enables it to enhance its domestic production processes (WITS, n.d.). As per the 2014 report, 22 percent of France's GDP resulted from the contribution of foreign markets, with an average international orientation of 24 percent in that same year (WITS, n.d.).
In analyzing France's exports, it is essential to evaluate value addition, which constitutes a significant portion of the export basket. Chemicals and related products and transport equipment benefit from value-addition processes, thereby broadening demand among EU nations (Meunier & Nicolaïdis, 2017). In this context, inward investments are directed primarily toward the services sector. Value-addition implies greater demand for supplied products, responding directly to the theory of demand and supply. In line with technological dynamics within the EU grouping, the demand for increasingly modern equipment has continued to rise. Before 2010, international trade flows for France were constrained by financial crises, liquidity declines, and market contraction, resulting in a negative export trajectory. As illustrated by the trade data, the value of imports between 2010 and 2018 was significantly higher than exports, implying that despite the substantial revenue France generates from exports, it maintains considerable reliance on imports. It is important, however, to distinguish between export expenditure and import expenditure: the disparity between the two does not mean France gains little from exports. Rather, a portion of imports directly contributes to the domestic GDP, producing overall economic growth.
Conclusion: Brexit and the Future of EU Trade
Trade diversions are integral to EU trade dynamics. Regarding France, Germany, and their established trade patterns, the UK's departure from the EU on 31 January 2020 carries significant implications. The UK found certain EU terms — particularly those concerning immigration — unfavorable and chose to reassert control over its borders (Edgington, 2020). Brexit does not mean the termination of trading or economic cooperation between the UK and EU members, but it does introduce new rules of engagement. Under the exit deal, no new tariffs or trading limits were imposed between the EU and the UK from 1 January 2021. However, multiple border checks were introduced as safety measures and in line with customs declarations.
New regulations were introduced specifically regarding animal food products from the UK. For example, all uncooked meats, burgers, and sausages must be stored at −18°C before entering the EU (Edgington, 2020). These changes mean that some commodities have become more expensive and their supply has been significantly reduced. Procedures at ports to clear commodities have also become more complex. Businesses specializing in banking, accounting, and architecture have lost their automatic access to EU markets due to increased restrictions, and professional qualifications are no longer mutually recognized as they once were. This means that practitioners must now comply with the individual regulations of each member state. Germany–UK and France–UK economic engagements have been significantly affected. However, the EU and the UK have pledged to evaluate these implications and to relax some restrictions over time (Edgington, 2020), allowing for easier market accessibility in the future.
References
Stirböck, C. How strong is the impact of exports and other demand components on German import demand? Evidence from euro-area and non-euro-area imports. Available at: [Accessed April 24, 2021].
Anon, 2018. France's booming aerospace sector creates demand for parts. WEDC. Available at: [Accessed April 24, 2021].
Anon. Germany Trade Summary. WITS. Available at: https://wits.worldbank.org/CountryProfile/en/Country/DEU/Year/2010/Summarytext [Accessed April 23, 2021].
Edgington, T., 2020. Brexit: What are the key points of the deal? BBC News. Available at: https://www.bbc.com/news/explainers-55180293 [Accessed April 24, 2021].
Fernández, G. et al., 2019. Cruising at different speeds: Similarities and divergences between the German and the French economies. European Economy. Available at: https://ec.europa.eu/info/sites/default/files/economy-finance/dp103_en.pdf [Accessed April 25, 2021].
Meunier, S. & Nicolaïdis, K., 2017. The European Union as a trade power. International Relations and the European Union.
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