ANNOUNCEMENT 04 May 2016

In May 2016, the government of Germany announced a change in the required local inputs to serve domestic customers and a change in its trade finance instruments.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 04 May 2016 | Removal date: open ended
Still in force

Trade finance

On 4 May 2016, the German Eximbank KfW announced it arranged a deal with five other international banks to provide financing for the expansion of the Gold Coast light rail system in Queensland, Australia.
The Eximbank did not disclose the amount of export credit but it did reveal that the contract for the expansion was awarded to CPB contractors, a subsidiary of the CIMIC Group which is part of the German Hochtief Group. The bank also mentioned that "With this new financing, it is helping to promote the sale of German and European vehicle technology worldwide, while strengthening its position in the Australian market".
 
A later press release from KfW (see second source below) stated that:
"Design modified in Australia, the light rail vehicles of the "Flexity" series, of which 1,700 are already operational worldwide, are produced by Bombardier Transportation in the eastern German city of Bautzen. A special design feature of these light rail vehicles is that the luggage racks have been adapted to accommodate surf boards to suit the demand requirements on the Gold Coast (e.g. Surfers' Paradise). Further deliveries of Bombardier Transportation will stem from Great Britain and Switzerland.
"The overall debt financing volume is 366 million Australian dollars (approx. 270 million EUR).
"Bombardier Transportation has its headquarters in Berlin and several production sites in Germany. The group employs more than 9,000 people in Germany and 16,400 at other locations in Europe."
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED SECTORS