7 - American and German Trade Relations

Summary

The United States and the Federal Republic of Germany were leading players in world trade between 1945 and 1968. This article first analyzes the two countries' trade balances and a few other key trade figures. A discussion of bilateral trade relations is then followed by a brief overview of East-West trade, which took on a special significance in the context of the Cold War.

the “world exports champion” and the “runner-up”

The United States emerged from World War II not just as the dominant political and military force in the Western world but also as the world's foremost and, for the moment, unchallenged economic power. It dominated world trade consistently over the period 1950-70 even though it lost a little ground during the 1960s (see Table 1). Germany, defeated in war, began the postwar period in a comparatively weak position because of the destruction of much of its industry and the restrictions on economic policy imposed by the Allied occupation. Seen in this light, the Federal Republic's dazzling leap from 3 percent share of world trade in 1950 to 9 percent share in 1960 seems all the more remarkable (see Table 2). West Germany supplanted Great Britain, once the world's trade leader, in second place and, during the 1960s, closed in on the United States. Japan's ascent as an exporter also began during this period and, by 1970, it had, with a 6 percent market share, pulled even with Britain.