German Industry Urges Swift Ratification of EU-US Customs Agreement

German industry leaders are calling for the rapid ratification of a customs agreement between the European Union and the United States, citing the need to reduce economic uncertainty. The calls come amid concerns about potential escalations in trade tensions between the two major economic blocs.

BDI and VDA Express Concerns

Peter Leibinger, President of the Federation of German Industries (BDI), emphasized the importance of swift action, stating, “If this is not ratified now, then we will create additional uncertainty on our part that we really don’t need.”[1] This statement was made on Deutschlandfunk, highlighting the urgency felt within German industrial circles.

Hildegard Müller, President of the Association of the Automotive Industry (VDA), echoed these sentiments, advocating for “quick and constructive talks between the USA and the EU in order to avoid further escalations and to provide urgent clarity.”

The Role of the BDI

The Federation of German Industries (BDI), established on July 1, 1949, serves as the umbrella organization for German industry and related service providers.[1] It represents 39 industry associations and over 100,000 companies, collectively employing approximately 8 million workers.[1] Membership in the BDI is voluntary.

The BDI maintains a presence both within Germany, with 15 agencies representing economic interests at the state level, and internationally through various offices abroad.[1] Peter Leibinger assumed the presidency of the BDI on January 1, 2025.[1]

Implications for German Economy

The agreement’s ratification is seen as crucial for maintaining stable trade relations between the EU and the US, key markets for German exports. Delays or failures in ratification could lead to increased tariffs and other trade barriers, negatively impacting German businesses and economic growth.