One-fifth of Germany's trade is with Indo-Pacific region

AS the Indo-Pacific region is the most dynamic growth region in the world, Germany now does one-fifth of its foreign trade with the countries in the area. For the first time last year, the German Federal Government issued Indo-Pacific policy guidelines stressing the region's importance in geo-economic and geopolitical terms for the country.

"To see those political guidelines being welcomed in such overwhelming way by our partners in Singapore and the region is a very encouraging signal and confirms that our approach very much matches expectations for Germany's role in the region," says the German ambassador to Singapore, Dr Norbert Riedel, in an interview with The Business Times on the occasion of the Day of German Unity on Oct 3, which is the country's national day.

"I would like to point out that the Indo-Pacific policy guidelines are not meant to be in opposition to someone or something. They demonstrate that we are taking a united stand: above all for multilateralism with strong political, economic and security policy networks that reduce unilateral dependencies and preserve both sovereignty and our ability to act with a free and active foreign policy," he adds.

An upcoming webinar jointly organised by the embassy with the Singaporean German Chamber of Commerce and Industry on Oct 5 titled "Holding on to and further strengthening global rules in the Indo-Pacific - what roles can businesses play?" will further discuss this diversification aspect.

"Among the various initiatives that are now under way and underline our long-term commitment, the deployment of a German frigate into the Indo-Pacific is currently probably the most visible. This voyage serves to demonstrate naval presence and to conduct military training in view of attempts to curtail the freedom of navigation and to assert territorial claims by force."

The sea routes traversing the Indo-Pacific are also very relevant to Germany because a sizeable portion of world trade is routed through them. Germany is also looking to expand its efforts to tackle piracy in the region. This is why it acceded to the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP) two months ago.

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"Germany now conducts one-fifth of its foreign trade with the countries of the Indo-Pacific. The familiar Asia of business - open, dynamic, interconnected, has never lost any of its importance nor attractiveness. Particularly in this context, Singapore remains an essential linchpin for a region, in which we must invest more," says Dr Riedel.

In the interests of future generations, the aim of an ambitious bilateral as well as regional trade agenda must be to ensure that growth in the region is environmentally friendly and socially compatible, he adds. By diversification, overdependence on a single market or source of essential goods or a single supplier can be avoided, and the significant potential of the entire region better harnessed.

"Let me provide you an example: in August, the Plastics Recycling Association Singapore has been set up. This German initiative provides the framework for a Centre of Excellence for recycling. This project is exemplary of what we want to achieve as part of the guidelines and will serve as a model for countries in the region. European experts and companies will work together with local counterparts and government institutions in the plastic recycling arena with the eventual goal of turning Singapore into a regional hub of excellence in plastics recycling," says Dr Riedel.

German companies also stand ready to work on solutions for resilient cities and smart infrastructure. "We also seek opportunities for cooperation in key technologies such as hydrogen as a source of energy as another promising way out of the climate crisis. We want Singapore to be a partner in developing such technologies and become part of the global network for carbon-free technologies," he adds.

In the field of security and defence policy, Germany likewise strives for a tangible deepening of bilateral cooperation with partners in the region and in this context also with Singapore.

"The recent deployment of the frigate Bayern (the German name for the federal state of Bavaria) into the Indo-Pacific is a clear sign of solidarity among our partners who share the same values. Our countries share a high degree of agreement, in particular the support for freedom of navigation and the goal to uphold an international rules-based order," says Dr Riedel.

"We are grateful that the Bayern may arrive and moor in Singapore at the end of this year. The Singapore stop includes an extended stay for our crew - another new avenue for Germany to make full use of the frigate's stay to further opportunities to collaborate and strengthen our bilateral relationship with Singapore."

Turning to the change in his country's political leadership after 16 years, he tells BT: "There is one historic element in this election: Angela Merkel is the first chancellor to step down voluntarily after this legislative period and not run for re-election. So, the race for her succession is as open as probably never before.

"However, whatever the results of elections and following coalition negotiations will be, the world does not have to brace for any sudden change. The challenges ahead and the way to tackle them are clearly laid out, so Germany will remain on a path of stability and predictability.

"Same goes for the fundamental consensus underlying the Federal Republic of Germany's foreign policy - the four pillars which are: European integration, multilateral responsibility, reliability as an ally and international solidarity - that is non-negotiable. Likewise, the Indo-Pacific policy guidelines are part of this long-term perspective of Germany's foreign policy.

"Therefore, both business and policy makers can count on Germany as in the past that it will remain committed in taking forward both bilateral ties as well as relations between the two most successful regional organisations - Asean and EU."