IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Apr 2009 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 18 April 2009 the German legislature passed the Thirteenth Law Amending the Foreign Trade Law and Foreign Trade Regulation. According to the OECD: "Germany amended its Foreign Trade and Payments Act (Außenwirtschaftsgesetz). The law establishes a review procedure, administered by the Federal Ministry of Economic Affairs and Technology, for investments that threaten public policy or public security. The Ministry may prohibit acquisitions or subject them to mitigation measures. Reviews may be performed for investments by non-EU/non-EFTA investors that lead to a 25% or greater equity ownership. The procedure complements an existing review procedure that addresses only investments in certain military goods and cryptographic equipment; the new procedure is not limited to specific industries."
 
The stated purpose of this law is not to protect German commercial interests. Even so, the classification of a measure in the GTA database depends on whether the measure introduces or otherwise alters any asymmetric treatment between domestic and foreign commercial interests. This measure introduces an asymettry between certain foreign commercial interests and those of investors based in Germany, in the EU more generally, and in the EFTA states.

AFFECTED COUNTRIES

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