Bavaria in export fever: opportunities and hurdles in international trade!

Bavaria in export fever: opportunities and hurdles in international trade!

The export business remains a central pillar of the Bavarian economy. In 2023, Bavarian industry earned every second euro abroad, which underlines the importance of the internationally oriented sector. The export quota of industrial companies with more than 20 employees was around 58 percent in 2024. Manfred Gößl highlights the global demand for products “Made in Bavaria” and emphasizes that the export business is essential for survival, but should no longer be taken for granted. Global conflicts and the trade hurdles that have existed since the financial crisis of 2008 are increasingly putting a strain on exports.

The USA continues to be considered the most important export market for Bavarian companies. But only one in seven Bavarian companies sees the USA as a reliable partner. In this context, the need to develop the EU internal market into a genuine internal market is becoming increasingly urgent. Current hurdles such as different regulations for food transport, different IT platforms and special national rules lead to significant challenges.

International framework conditions and their effects

The International Monetary Fund estimates that bureaucracy costs in the EU, comparable to tariffs, are 44% on goods and 110% on services. According to the Ifo Institute, reducing trade barriers in services could increase value added in the EU by 2% - which is equivalent to more than 350 billion euros. Bavarian companies also fear that impending tariffs from the new US government could cost around 200 billion euros by 2028.

A clear focus of Bavarian exports is on EU countries, especially on its partners Austria, France, Italy and Poland. In order to increase resilience, many companies are increasingly looking for partners within the EU. Economic cooperation with the Western Balkan region and the reduction of trade barriers represent a further important step. In addition, there are promising export opportunities in North Africa; German companies report a positive business situation in countries such as Morocco and Egypt, which are aiming for large projects in the field of renewable energy.

Influence of US policy and global strategies

Beyond the EU, Bavarian companies must increasingly take into account the effects of international politics on their business. The deadline for reciprocal tariffs on imports from the EU in the USA has been extended to August 1, 2025, while additional tariffs of 10% remain in place. There are ongoing negotiations to reach an agreement in the customs dispute between the EU and the USA. In view of these geopolitical challenges, Bavaria's foreign trade strategy must be future-oriented.

Chinese subsidy policy and possible bi-polarization in the global economy could also have negative effects on Europe, Germany and Bavaria. At the same time, markets in sub-Saharan Africa offer new growth potential for Bavarian companies through targeted approaches and unbureaucratic measures. In order to gain a foothold in Africa, special consulting vouchers are offered to make it easier for small and medium-sized companies to get started.

Overall, current developments show that the Bavarian export sector needs dynamic adjustment despite various challenges. With a clear strategy and the promotion of international cooperation, Bavaria can continue to play a leading role in the global market in the future. Given the current geopolitical risk perception, a realignment of value chains and business strategies will be essential.

Bavarian state newspaper reports about the challenges in the export business. You can also find more information on the website vbw Bavaria.