- Title: German automobile industry chief defends German trade surplus
- Date: 26th May 2017
- Summary: WOLFSBURG, GERMANY (FILE - OCTOBER 21, 2015) (REUTERS) VARIOUS OF VOLKSWAGEN CARS ON PRODUCTION LINE
- Embargoed: 9th June 2017 15:26
- Keywords: German Automobile Industry Donald Trump German trade surplus
- Location: BERLIN, WOLFSBURG, GERMANY / UNKNOWN LOCATION
- City: BERLIN, WOLFSBURG, GERMANY / UNKNOWN LOCATION
- Country: Germany
- Topics: Government/Politics,International Trade
- Reuters ID: LVA0036IH5UTJ
- Aspect Ratio: 16:9
- Story Text: The German Association of the Automotive Industry on Friday (May 26) defended Germany's trade surplus with the U.S., after a top adviser to Donald Trump confirmed that the U.S. president had criticised Germany as "very bad" on trade at a meeting with EU officials in Brussels on Thursday (May 25).
The association's managing director Kay Lindemann said the U.S. was free to make efforts to reduce the surplus by increasing its own productivity, but that protectionism was not a legitimate means for doing so.
He added that the German car industry was "optimistic and confident" that German manufacturers in the U.S. were not going to face barriers under the Trump administration, as the U.S. was also an export country dependent on good trade relations.
The German trade surplus, which reached a record 253 billion euros ($283 billion) in 2016, has also been a source of contention within Europe, with Berlin's partners encouraging it to do more to promote domestic demand.
Germany has pushed back, describing the surplus as a consequence of its competitive products, particularly cars, and the independent European Central Bank's loose monetary policy, which has pushed down the value of the euro, making German goods more attractive abroad. - Copyright Holder: FILE REUTERS (CAN SELL)
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