commerce germany OFFICIAL PUBLICATION OF THE AMERICAN CHAMBER OF COMMERCE IN GERMANY

July 2014 • VOL 12 • ISSUE 3 €7.70

Top Job: 111th Annual Membership Meeting

Cover Story: Food Policy – From Farm to Fork Investment Region: Northern Germany Member Point of View: Global Food Security Special Feature: US Students Arrive for Internships Interested? www.nrwinvest.com amcham germany viewpoint

A Case for Agricultural Free Trade

Aside from medical products, foodstuffs are arguably the most sensitive elements of a market that is as free as possible. In the US, as well as here in Europe and Germany, regional value chains in the agriculture and food sector form the basis of consumer trust. Regional products certainly have their benefi ts. They not only safeguard local jobs and cut transport costs; it is also easy for consumers to identify with them. However, regional products alone are not enough to satisfy market demand. For this reason, international agricultural trade constitutes a key component of the global economy.

Agricultural exports account for approximately one-quarter of EU member states’ revenues in © Bundesregierung/Kugler the agricultural sector; in 2013, exports to the US alone totaled around $2.1 billion. Agricultural Christian Schmidt, MdB exports comprise almost 10% of all US exports. This trade is creating business opportunities that Federal Minister of Food and Agriculture could be further developed with the support of export promotion programs on both sides. The resulting competition among providers means EU and US citizens alike can enjoy a wider array of products with consumer-friendly prices to boot. But providers also face competing cultures of consumer protection. As an export nation, Radically changing these cultures is unfeasible as this might provoke skepti- Germany has always cism and mistrust among market players. Should the precautionary principle benefi ted from free trade. or the principle of trust apply to products? The fundamental difference in approach must not be ignored given the risk the market could be disrupted. Instead, the difference must be understood and the two approaches made compatible in cases where, given the respective market regulations and safeguard clauses, this appears practicable and justifi ed. As an export nation, Germany has always benefi ted from free trade. For us, the EU is more than just a suc- cessful peace project. Its single market and the removal of trade barriers have brought trading partners closer together. This underlying principle should not be confi ned to Europe; it could be extended to include our North American friends by means of a transatlantic free trade agreement and the free trade deal already negotiated with Canada. Together with lifting customs duties and harmonizing administrative requirements, this agreement would create another bridge across the Atlantic that would promote economic growth and employment. The public debate that ensued last year clearly demonstrated this point: All those who view the free trade agreement as a unique opportunity to jointly position the North Atlantic region in the global digital race must do their utmost to ensure the true strength of our free societies is applied through transparency and democratic legitimacy: It is the people, and peoples, who create the rules. Germany has an interest in global trade. The country’s food sector helps make it the world’s third larg- est exporter and second largest importer. The German government supports free trade and its resulting stimulation of growth. We have a vested interest in the creation of the world’s largest economic area with 800 million consumers.

Just published: Corporate Responsibility 2014 Trend Study, Best Practices & Expert Knowledge

Corporate Responsibility 2014, jointly published by AmCham Germany and the F.A.Z.-Institut, gives insight into a wide range of CR activities by companies located in Germany and their role in the economic and social development in Germany, Europe and worldwide. Expert contributions and findings of this year’s trend study on CR supplement companies’ best-practice reports. Participating companies: 3M, AstraZeneca, Audi, Bayer, Bilfinger, Coca-Cola, Die Unternehmensgruppe Tengelmann, DuPont Sustainable Solutions, Ford, GIZ, McDonald's, Microsoft, Procter & Gamble, Roland Berger Strategy Consultants, Siemens, Strothoff International School, Telefónica, United Parcel Service.

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commerce germany – 2014 topics ❒ 4/2014 Industrial Location Germany – Industry 4.0 · Top 50 US Companies in Germany · Invest in: Baden-Württemberg Happy birthday commerce germany! Sixty years of solid information on transatlantic trade, Chamber events, networking, advocacy and much more. ❒ 5/2014 Eighth Transatlantic Business Conference · Corporate Responsibility: Doing Well by Doing Good · Invest in: Thuringia Yearbook 2015 Our membership directory and American-German business guide serves as a perfect platform for you to present your company. The Yearbook 2015 will be published on December 2014. The booking phase is going on now … AmCham Germany Newsletter Place a banner in our monthly newsletter! Your business partners are just one click away. For more information Call Sabine Karbowy at +49 6127 9993150, send an email to [email protected] or visit www.acc-verlag.de or ww.amcham.de contents

cover story

6 From Farm to Fork: Food Policy

from amcham germany members

9 executive member spotlight: UPS – Reliably Enabling Global Commerce for Businesses of All Sizes

11 member point of view: Policy Prescriptions for Global Food Security

23 member know-how: Free Trade for Food Security; Clean Labels – The Ingredient for Success

amcham germany member support

10 access your global network: Bulgaria – Back on the Business Track

18 investment region: Northern Germany – Leading the way

amcham germany events

14 special report: 'A Fantastic Project' – AmCham Germany's 111th Annual Membership Meeting

20 event report

chamber news

22 special feature: US Students Arrive – AmCham Germany's US-German Internship Program

24 amcham germany in the press

25 Merkel Interviewed at Annual Membership Meeting

26 new members 27 chamber calendar cover story

Agricultural innovation and the global food supply

Independent testing and the safety of food

A commitment to values and the food supply chain

We are what we eat. It's no wonder then that global agrifood trade is such a hot potato. AmCham Germany member companies tackle the tough topics.

FROM FARM TO FORK

6 commerce germany July 2014 Hampering Agricultural Innovation in Europe Impacts the World The world’s population continues to increase, but the world’s

natural resources – land and water – do not. Demand for agricultural products is steadily increasing

ising living standards in emerging coun- doubled between 2000 and Ursula Lüttmer-Ouazane tries are prompting dietary patterns to 2009. Corporate Affairs Lead emerge that are similar to those found in Germany & Other EU Countries Monsanto Agrar Deutschland GmbH REurope. A recent McKinsey & Company Releasing restraints on study has indicated that even if crop yields would innovation rise by 1% a year, the amount of land currently effects of political restrictions that prevent the being cultivated would have to expand by 175 This situation means a future-oriented, sus- development of innovation in Germany are not million to 220 million hectares in order to cover tainable approach to agriculture will need inno- only felt locally. The restrictions have an impact the burgeoning demand for food around the vative agricultural products and technologies to worldwide. In particular, countries lacking the world. overcome the challenges ahead. necessary economic strength become more and This is also true for Germany. Demand for The political and social climate for creating more dependent on the developed world for their agricultural products – be it for food, feed or innovation in agriculture has, however, deterio- food supply. biofuel – is steadily increasing there, too. In rated in many European countries, especially in By hampering innovation, Germany is not one reflection of this, figures from the Food and Germany. This has been triggered by the long- only endangering its own food supply and its for- Agriculture Organization of the United Nations standing, extremely emotional and rarely scien- eign trade power, it is also failing to live up to its show that German corn imports more than tific debate about genetic engineering. But the global social responsibilities. „

Food Safety Has No National Borders Grapes from Uganda, meat from Australia – the world is our supermarket.

s the traceability of food products able production. To meet all becomes increasingly difficult and food these requirements, producers supply chains grow longer and more must guarantee the safety of Even the simplest products may Acomplex, food safety is gaining sig- their products at every step in have traveled a long way before nificance. Given this, checks and analyses must the supply chain. Some com- they ended up on our plates extend across national borders while maintaining panies may find coping with

consistently high levels of quality and rigor. this responsibility takes mas- Murat Akcay sive effort or is actually impos- Global Vice President Food, Health & Beauty Food industry challenges sible. This is where third-party TÜV SÜD Product Service GmbH companies such as testing and Even the simplest products may have traveled certification bodies can assist. a long way before they ended up on our plates. Plain egg noodles may contain wheat from Global networking target markets and receive support to implement Ukraine and eggs from Italy, be packed in China these requirements. By taking this approach, pro- and sold in Germany. This poses a serious chal- TÜV SÜD, for example, maintains an inter- ducers minimize their risks while documenting lenge to the food industry, which has the job of national network of food testing laboratories the quality and safety of their products. Compa- ensuring food safety from farm to fork. To make to ensure identical tests and uniform standards nies that supply the food industry, retailers and matters even more difficult, diverse production at all locations. Extensive transfer of knowledge the catering industry also benefit from third-party facilities mean a variety of framework conditions, and technology provides experts throughout the laboratory analyses, hygiene controls and man- such as differing understandings of hygiene, world with the necessary know-how. In this way, agement-system certification as these suppliers exist. Food producers must comply with all legal manufacturers can obtain information on the also have to comply with legal requirements and standards while ensuring efficient and sustain- technical and legal requirements in the various meet the expectations of critical consumers. „

July 2014 commerce germany 7 cover story

Principles for Sustained Success As society becomes more engaged with the entire supply chain of the products its members purchase, food companies find Food companies also themselves trying to meet increasingly challenging demands. have to minimize their impact on the environment ood manufacturers experience constant children and teens are interested pressure to both do the right thing in the in cooking and healthy nutrition, Cyrille Balmes General Manager eyes of their customers and to conduct a according to a recent forsa (Insti- Mars Food Germany Fsuccessful business. On top of that, they tute for Social Research and Sta- www.mars.com/germany are increasingly in the spotlight for the ways tistical Analysis) survey conducted they impact health and nutrition, food security for IN FORM, Germany’s national and the environment. Similarly, consumers have initiative to promote healthy diets and physical ing in scientific research and promoting mutual become even more sensitized to food issues – activity. The study reports that more than four out benefits across their value chains. This could be adding to the pressure on food businesses. While of five children and teens say they try to maintain a done, for example, by investing in scientific re- recurring food scandals have eroded consumer healthy diet because they want to stay fit: 70% like search to improve the quality and sustainability confidence in food companies, brands are now cooking, 20% even say it is “cool,” and four out of the crops that are used. Or by funding research expected to offer all-in-one products: organic of five find it important to eat together with their on the potential environmental impact of meth- and sustainably manufactured food that is easy families on a regular basis. In the face of all these ane and nitrous oxide in flooded rice fields. And to prepare and still tastes like it was made by the factors, companies need to ask themselves “What what about the long-term? It might be worth rep- Italian or Chinese restaurant around the corner – do we stand for?” licating the work over several years and for differ- oh, and it needs to be affordable, too. ent growing areas, thereby providing a basis for Importance of being a role model developing standard ethical agricultural practices. Need to identify company values At a time when change is constant, concrete Food companies are expected to do more than principles offer a link to traditions and a bridge to Competitors do their best to gain market share just deliver quality products and services while the future, even when adhering to them proves and adapt their products as much as possible to consistently meeting standards of excellence. They challenging. The overall aim must be to promote fit in line with consumers’ changing way of life. also have to minimize their impact on the envi- a truly holistic relationship among all stakehold- Today’s daily routines do not leave enough time ronment. However, there is still more to be done. ers. As for Mars Food, our purpose is expressed in for cooking, and meals with the family are an Companies must become role models in terms of simple words: Better Food Today. A Better World exception rather than the rule. At the same time, sustainability, protecting the environment, engag- Tomorrow. „ THANK YOU AmCham Germany would like to extend a heartfelt thank-you to all of the companies and individuals who have made the US-German Internship Program such a success:

PARTICIPATING COMPANIES Hamburg Trust REIM Real Estate State of Indiana, Berlin Office Investment Management GmbH Tyco Electronics AMP GmbH, Accuracy Legal and Financial Language Services LLC Hitachi Data Systems GmbH a TE Connectivity Ltd. Company AGCO GmbH Intercontinental Frankfurt United Parcel Service Deutschland Amgen GmbH ITMS Marketing GmbH Inc. & Co. OHG. ARAG SE KPMG AG Wirtschaftsprüfungsgesellschaft Coca-Cola GmbH U.I. Lapp GmbH & Co. KG SPONSORS AND SUPPORTERS Commerzbank AG MSD SHARP & DOHME GMBH Fresenius SE & Co. KgaA DORMA Holding GmbH + Co. KgaA Pfizer Deutschland GmbH UPS Deutschland DuPont de Nemours (Deutschland) GmbH Roland Berger Strategy Consultants GmbH FrankfurtRheinMain GmbH Ernst & Young GmbH Smith Legal LLP International Marketing of the Region Wirtschaftsprüfungsgesellschaft Software AG BridgehouseLaw Atlanta Fresenius SE & Co. KgaA

executive member spotlight UPS: Reliably Enabling Global Commerce for Businesses of All Sizes

In 2013, UPS delivered an average of 16.9 million pieces per day worldwide.

Expanded operating capacity A lifeline to international customers Efficient logistics solutions

In an increasingly globalized facility helps companies of any size successfully to more than 220 countries and territories, UPS is carry out their business in the important Euro- ideally positioned to help SMEs grow. We will do world, providing reliable lifelines to pean trading lanes. It also links Europe to North this by reaching new customers and tapping new customers, partners and suppliers America and Asia at a time when the free-trade markets while saving time and money by drawing agreements on the horizon promise growth. from efficient logistics solutions. „ is crucial. UPS is there to help with Helping SMEs grow its newly expanded international logistics center in Germany. As the world becomes an increasingly interna- tional marketplace, businesses are facing stronger competition from every corner of the globe. Many Frank Sportolari ust three months ago, UPS officially opened businesses are engaged in or evaluating the President a $200 million expansion of its European export of their products to help them grow and UPS Germany Görlitzer Str. 1 flagship facility at the Cologne/Bonn Airport. remain competitive. Logistics provides a physical 41460 Neuss JThis marks the largest single facility invest- lifeline to international customers, partners and W www.ups.com ment outside of the US in the company’s history. suppliers. It is the pipeline network that allows goods to flow consistently and reliably. ▸ For more information about UPS Increasing capacity SMEs constitute the backbone of local econo- Germany, please contact: mies across Europe and elsewhere. Small-busi- Thomas Schlichting The expansion enlarged the hub’s operating ness owners able to identify growth opportuni- Manager External Communications area to more than 105,000 square meters, the ties and team up with the right partners will gain UPS Germany size of 15 football fields, and increased its sorting a foothold over the competition moving forward. T +49 2131 9149-2625 capacity by 70% to 190,000 packages per hour, With nearly 107 years of experience and access E [email protected] or around 53 packages per second. The facility serves as an international logistics hub for multi- ▸ ABOUT THE COMPANY nationals and SMEs in Germany and Europe that Founded in 1907 in Seattle, UPS is the world’s largest package delivery company and the premier want to tap into UPS’s world-class transportation provider of global supply-chain management solutions. Each business day, UPS delivers packages to network. 7.9 million consignees in more than 220 countries and territories on behalf of its 1.5 million shipping This expansion ensures our company can pro- customers. In 2013, UPS delivered an average of 16.9 million pieces per day worldwide or a total of vide customers a portal to the world of global 4.3 billion packages. Total revenue in 2013 was $55.4 billion. trade and export for years to come. The new

July 2014 commerce germany 9 access your global network

Bulgaria: Back on the Business Track

▿ Why is Bulgaria an interesting investment ▴ After bottoming out in 2009 when GDP fell by ing on our active membership base, we work to location for US investors? 5.8%, the Bulgarian economy has since recov- shape government policy in ways that, in particu- ered thanks, in part, to strict fiscal and monetary lar, promote the interests of the investment com- ▴ The country offers investors a number of ad- policies. These have ensured the deficit as well munity and our members. „ vantages. For one, Bulgaria has one of the most as inflation and borrowing costs have remained favorable tax systems in Europe, with a flat tax under control. The government projects annual rate of 10% on both corporate and personal in- growth of 1.0% to 2.1%, but the country can come as well as numerous incentives for inves- and should grow at a faster pace, especially Valentin Georgiev tors. The workforce is also well educated, highly given citizens’ desires to catch up with their Eu- Executive Director skilled and multilingual. In addition, Bulgaria’s ropean counterparts. Key sectors contributing a AmCham Bulgaria Business Park Sofia geographic location and transportation infrastruc- significant share to GDP include mining, manu- Building 2, floor 6 ture make the country a strategic logistics hub. facturing, trade, transport, education, health and 1766 Sofia T +359 2 9742-743 real estate. Analysts see room for further growth E [email protected] ▿ What are some key aspects of the US- in many of these sectors as well as in IT and W www.amcham.bg Bulgarian economic partnership? agriculture. ▸ ABOUT AMCHAM BULGARIA ▴More than 100 US companies operate in Bul- ▿ How does AmCham Bulgaria support its AmCham Bulgaria is a leading business garia. The largest foreign investor is a US compa- members? organization uniting more than 300 US, Bulgarian ny from the energy sector that has invested over and international companiesValentin operating Georgiev in the $1.3 billion in the AES Galabovo thermal power ▴ AmCham Bulgaria is regarded as the country’s country. Established in DecemberExecutive 1994,Director the plant. The IT, manufacturing, pharmaceuticals and most active foreign investor organization. We Chamber aims to promoteAmCham Bulgaria Bulgaria as an invest- ment and trade partner forT foreign +359 2 9742-743companies, to construction sectors also attract considerable inter- arrange meetings with key decisionmakers, or- E [email protected] est from US investors. For 2013, foreign direct in- ganize business and social networking events, strengthen economic relationsW www.amcham.bg between US and Bulgarian commercial enterprises within the vestment in the country totaled about €1.1 billion. and produce daily and monthly publications to framework of US-European transatlantic econom- keep members abreast of legislative changes and ic relations and to generally support measures ▿ How is the Bulgarian economy faring in the policy developments. In addition, we offer advice that improve the business climate in Bulgaria. face of the global economic crisis? on economic and investment matters. Draw-

10 commerce germany July 2014 member point of view

Policy Prescriptions for Global Food Security ▸ ▸ Demand for food increasing ▸ ▸ Government food policies crucial ▸ ▸ Food security improved with open markets

he world will add another 2 billion peo- standards, support international standards for side, this means offering temporary financial ple by 2050. The increase to our already risk assessment and ensure customs controls do assistance to consumers so they can make food burgeoning global population will mostly not unnecessarily block the movement of goods. purchases. On the supply side, this means assist- Ttake place in the developing world, urban Governments also need to help smallholder ing farmers who have suffered crop failures. environments and climates less conducive to farmers feed the hungry. The support required As we face the challenge of feeding 9 billion food production. This, coupled with the growing includes training in best practices, clarifying prop- people by 2050, governments will need to step in prosperity of people around the globe, will create erty rights and establishing policies and mecha- and play a more active role. At Cargill, we believe greater food demand. nisms that help manage risk. the policies that help increase global food secu- We believe the world’s farmers can produce Food security can also be bolstered through rity are best anchored in the productivity, adapt- enough calories to provide all people sufficient government-supported investments in agricul- ability and resilience of farmers and the power of nutrition to lead active, healthy lives. But govern- ture. Funding is currently needed for infrastruc- prices, fair markets and open trade. „ ments need to play a key role to achieve greater ture that supports agriculture, including trans- food security. Policies that improve food security portation and storage systems, and agricultural include enabling open markets, supporting small- research and development. holder farmers, investing in agriculture, harmo- Biofuel policies can also help improve food nizing food safety standards, reforming biofuel security by avoiding mandates that distort Ludger te Laak mandates and facilitating food aid. demand. Smarter policies include waivers that lift Country Representative Cargill Holding (Germany) GmbH Open trade improves food security by allow- mandates when feedstock supplies are short. Cerestarstr. 2 ing food to move from where it is produced to In times of crisis, governments can provide 47809 Krefeld T +49 2151 575-770 where it is needed. To help food move freely, food aid by helping minimize the distortion of E [email protected] governments need to harmonize food safety supply and demand dynamics. On the demand W www.cargill.com

July 2014 commerce germany 11 policy issues Social and Labor Affairs Committee Talks with Griese

Berlin, May 19. The Social and Labor Affairs Committee met with Kerstin Griese (SPD), Chair of the Parliamentary Committee on Social and Labor Affairs, in Germany’s capital. Among the topics discussed were the proposed exceptions to the minimum wage regulation, contract labor and temporary employment regulations, and the principle of collective bargaining.

TIM Committee Breakfast TTIP Committee and De Gucht

Berlin, June 3. The second Telecommunications, Internet and Media Com- Berlin, May 6. Members of the TTIP Committee and AmCham Germany’s mittee (TIM) Breakfast of the Access Your Global Network series was held Dialogue Forum hosted Board of Directors met with European Commissioner at the European School for Management. The event featured a fruitful panel for Trade Karel De Gucht. On the previous day, De Gucht had spoken at a discussion on providing support for innovation that included Arnulf Keese, TTIP Dialogue Forum hosted by the Ministry for Economic Affairs and Energy Managing Director of PayPal Deutschland (host of the event); Lars Kling- and its minister, Sigmar Gabriel. The TTIP Committee has summarized the lat- beil, MdB (SPD); Dieter Janecek, MdB (Alliance 90/The Greens); and est developments and facts in the second edition of its TTIP brochure, which Christoph Räthke, founder of the Berlin Startup Academy. focuses on the agreement’s possible sector-specific advantages.

Corporate Responsibility Book Launch Includes Panel Discussion

Berlin, June 5. AmCham Germany, the F.A.Z.-Institut and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH jointly hosted the event titled “Corporate Responsibility 2014: Trends, Best Practices and the Way Ahead” to mark the launch of the ninth edition of the corporate responsibility (CR) book jointly published each year by AmCham Germany and the F.A.Z.-Institut. The publication provides insights into a wide range of CR activities carried out by companies in Germany as well as the role these activities play in social and economic development. Contributions from experts supplement companies’ best-practice reports. Opening remarks at the event were made by US Ambassador to Germany John B. Emerson; Carsten Schmitz-Hoffmann, Executive Director of the Busi- ness Unit Private Sector Cooperation at GIZ; and AmCham Germany General GmbH; Leslie Johnston, Director of the C&A Foundation; and Schmitz- Manager Andreas Povel. Dr. Meghan Davis of the F.A.Z.-Institut presented Hoffmann focused on CR in a globalized world and explored prospects, chal- highlights from the publication, including major trends and practices as well lenges and opportunities. Panel participants and the audience discussed top- as developments in the field since 2005. In addition, she touched on findings ics such as sustainability in the supply chain, cross-sector cooperation and from this year’s trend study on CR, which are also included in the publication. informed consumer and customer decisions. The event’s panel discussion with Dr. Torsten Christen, Corporate Social Responsibility Division of the Ministry of Labor and Social Affairs; Uwe ▸ The publication (in German) and the trend study (in German Kleinert, Chair of the AmCham Germany Corporate Responsibility Commit- and English) are available online at: www.amcham.de/ tee and Head of Corporate Responsibility and Sustainability at Coca-Cola publications/corporate-responsibility/cr2014.html

12 commerce germany July 2014 German Members of Parliament Visit High-Tech Companies in the US

Seattle, Palo Alto and San Francisco, April 13-17. Members of the 18th German Parliament joined Telecommunications, Internet and Media (TIM) Committee members to visit high-tech companies to explore issues related to the digital agenda. At the Microsoft Cybercrime Center in Redmond, a city near Seattle, data privacy and competition were the focal points of a presentation made by the company. The tour also took the group to California, where US high-tech companies visited included Facebook Inc. and Hewlett-Packard in Palo Alto. There, Martin Risau, Senior Vice President of Analytics and Data Management at Hewlett- Packard, spoke to the group on the digitization of the German economy. At the IBM research lab in Almaden, Jeff Welser, Vice President and Lab Director, pro- vided insights into key science and technology research areas at the lab. These include nanotechnology, spin physics and photoresistance as well as human- The visiting members of parliament took a brief moment to enjoy San Francisco’s famous Golden Gate Bridge. computer interaction, text analytics and healthcare informatics. At eBay in San José, David London, Senior Director of US Government Relations and Political Strategy, and Dr. Nikolaus Lindner, Director of Government Relations for DACH, spoke to the group as did Rakesh Agrawal, Director of Strategy at PayPal. A visit to “Made in Germany” success stories in Silicon Valley was not to be missed either. At SAP, the group heard Katharina Rock, Vice President of SAP AG, explain how her company leverages the many valuable assets in the area and taps the expansive US market. At startup smaato, Hamburg natives Ragnar Kruse and Petra Vorsteher as well as Dirk Kanngiesser, CEO, and Oliver Hanisch, both of the German Silicon Valley Accelerator, discussed At Facebook, the group visited the company’s legendary Facebook Wall and met the future of digital business. with Elliot Schrage, Vice President for Global Communications and Public Policy; The German political leaders left the US with the perception that companies, Dr. Gunnar Bender, Director of Public Policy; Nicola Jackson Collaco, Trust and Safety Director; and Krista Kobeski, Associate Manager of Policy Programs. not goods, are produced in Silicon Valley. They also took away the sense that Germany needs to remove bureaucratic hurdles impeding the launch of start- ups, cultivate a greater entrepreneurial spirit and encourage venture capital.

Consul General Peter Rothen welcomed the group to the German Consulate General in San Francisco. A panel discussion titled "Germany's Digital Agenda At the Microsoft Cybercrime Center in Redmond, the group heard from Brad Smith, – Lessons Learned from Silicon Valley" was held with Dr. Joachim Pfeiffer, MdB Executive Vice President and General Counsel at the Microsoft Corporation. (CDU/CSU), and Dieter Janecek, MdB (Alliance 90/The Greens).

Corporate Responsibility Committee Holds Roundtable with Müller

Berlin, June 5. A corporate responsibility round- table with Minister for Economic Cooperation and Development, Dr. Gerd Müller, was the focal point of this committee event. A key point of the discussion was the Zukunftscharta, a dialogue- based project on defi ning the post-2015 develop- ment agenda initiated by Müller’s ministry.

▸ For more information, please visit www.zukunftscharta.de

July 2014 commerce germany 13 special report: annual membership meeting

An exceptional meeting of exceptional people: German Chancellor Angela Merkel (center) and US Ambassador to Germany John B. Emerson (second from left) with AmCham Germany President Bernhard Mattes (far right) and 2014 Annual Membership Meeting Co-Chairs Dr. Alexander Schröder-Frerkes (far left) and Reza Vaziri (second from right) ‘A Fantastic Project’

AmCham Germany is a steadfast supporter of transatlantic business projects. Its work to promote TTIP and foster ethical leadership found an exceptional platform at the 111th Annual Membership Meeting in Düsseldorf on May 22-23.

We are determined to conclude an agree- ment on a transatlantic trade and in- vestment partnership.” These words of “support spoken by Chancellor Angela Merkel in her keynote address were balm to the ears of business and trade representatives eager for a counterweight to protectionist sentiments gathering steam in Germany and Europe in the weeks leading up to EU parliamentary elections. A bevy of fringe-party candidates promising to take aim at TTIP from the European Parliament would indeed be elected two days later, but the clear signal that the German government would continue to press ahead for free trade would work to check momentum. TTIP would be “an especially cost-effective means to spur economic growth,” the Chancellor told the packed audi- ence of business leaders, government officials and Andrew N. Liveris, Dow Chemical Company Alan Mulally, Ford Motor Company President and members of the media. Shared standards would, President, CEO and Chairman, during his speech CEO, responding to audience questions for instance, help create “huge savings” by elimi-

14 commerce germany July 2014 WE SINCERELY THANK OUR EVENT PARTNERS FOR MAKING THE 111TH ANNUAL MEMBERSHIP MEETING POSSIBLE.

PLATINUM Bernhard Mattes introducing the Ethics and Dr. Friedrich Thelen, journalist and moderator of Leadership panel discussion the Ethics and Leadership panel discussion

GOLD Dr. Ingrid Hengster, member of the Managing Brother Paulus Terwitte from the Capuchin Board of the development bank KfW Monastery and Liebfrauen Church

Teri Plummer McClure, Chief Legal, Communi- Angelika Huber-Straßer, partner at the audit, tax cations and Compliance Offi cer at UPS and advisory company KPMG nating the need to “duplicate regulations, dupli- shooter Andrew N. Liveris lost no time in express- cate R&D and duplicate tests,” she said. ing his views on Germany’s Energiewende. Not SILVER The agreement would also “breathe new life a man to mince words, the Dow Chemical Com- into all aspects of [the transatlantic] partner- pany President, CEO and Chairman termed it “an ship,” Merkel stated. “Despite all the differences energy policy that went strange” – one governed we have had and continue to have in discussions by “the politics of fear” – and appealed to the about data security and the NSA, the US remains country to remember its pragmatic nature and to an important and very good partner for us and not lose its competitive edge, particularly with re- all of Europe because we share the same values.” spect to engineering, chemistry and energy prices. The Chancellor also drew attention to the 111 His comments were not lost on the Chancel- years of Chamber work to further transatlantic lor, who would later quip: "But when I see the relations. She thanked the organization for its head of Dow, I know immediately what's going unfl agging efforts on behalf of TTIP, calling it an through his head about this topic. We know we “exceptionally important bridge between the face heavy competition ... that is why we will German and US business communities.” focus even more attention on the issue of afford- able domestic energy prices." Exchanging words The plaintalking dynamic Australian Liveris had his contradistinction in the plain-talking Members of the business community also low-key Midwesterner Alan Mulally. The Ford had a few points of their own to make. Straight Motor Company President and CEO fi elded

July 2014 commerce germany 15 special report: annual membership meeting

myriad questions in an interactive session that brought Mulally out from behind the lectern to front and square of the audience. The seasoned MEMBERSHIP executive, who is credited with the turnarounds CERTIFICATES AWARDED of such manufacturing icons as Boeing and Ford, addressed topics ranging from leadership Corporate Members: ("There's never been a time when leadership is Fom left: Andreas Povel, Armin Slotta, Bernhard more needed than now.") to connectivity and 40 years Claus Hommer Mattes and Dr. Lutz R. Raettig at the business mobility ("The car is the all-time mobile applica- meeting Johnson & Johnson GmbH tion.") to Europe ("I'm bullish on Europe – it's a great market."). Dr. Torsten van Jeger When it came to weighing in on TTIP, Taylor Wessing Mulally didn't waste words in his answer: "I think Partnerschaftsgesellschaft mbB we should have one." And when pressed about obstacles to an agreement in the area of agricul- 30 years Dagmar Carola Schnelle ture and cars, Mulally didn't skip a beat: "I really Audi AG think we should have a free trade agreement."

Dr. Christian Zschocke Reza Vaziri (left) and Dr. Alexander Schröder-Frerkes Ethical leadership Morgan, Lewis & Bockius LLP In a context-shaping initial session, Annual 25 years Christian Büscher Membership Meeting attendees heard a rich HOCHTIEF Aktiengesellschaft dialogue on ethical leadership moderated by jour- nalist Dr. Friedrich Thelen. Panel participant Teri Peter Coenen Plummer McClure of UPS asserted that "values HOCHTIEF Aktiengesellschaft have to be incorporated into the metrics of how people are evaluated" while Dr. Ingrid Hengster 10 years William J. Hood of the development bank KfW argued that "eth- Commpanions From left: Ralf Brinkmann, David Knower, Nicolas ics must be lived" in an organization in order for Teller and Frank Sportolari listening intently Werbeagentur GmbH it to be successful. Angelika Huber-Straßer of the international auditing company KPMG observed Ernst Martin Walsken that board members of international companies CONCILIUS AG experience huge pressure because corporations are driven by quarterly results: "Analysts ask about Dr. Chiara Palazzi profits but not about ethical behavior," she stated. Kelly Services GmbH Brother Paulus Terwitte, a Capuchin monk and keen observer of the business world, shifted his Reinhold Kern focus to the customer who, in his view, would ulti- Kroll Ontrack GmbH Dr. Marijn E. Dekkers posing a question to mately determine a company's success. "Unethical Chancellor Merkel companies will be less successful," he said. „ Joachim Specht S.Audit GmbH

Chee Hau Man SprintLink Germany GmbH

Individual Members:

10 years Carl-Rainer Stetter Klaus Tornow

Recipients of certificates for long-term membership on stage with David Knower (back, far left) and Andreas Povel (back, far right)

16 commerce germany July 2014 Sustained Success: North Rhine-Westphalia Minister President Kraft Addresses Business Community

Hannelore Kraft, Minister President of North Rhine-Westphalia, outlined the need for Germany to sustain excellence and its top international position in remarks she made at the 111th Annual Membership Meeting. “Each and every day we have to work on maintaining our lead and our strengths or others will pull ahead of us,” the guest of honor and keynote speaker at the event’s gala dinner warned. The Minister President also hosted an evening reception sponsored by North Rhine-Westphalia where she stressed the need for the business community to be involved in TTIP discussions. In other statements, Kraft urged the business community to actively contribute to improving education and training in Germany. She also called for business leaders to take a long-term perspective in arriving at decisions and to continuously ask themselves what would ensure success. “The question applies to everyone who has the opportunity to actively shape the future of our country and our companies,” she stated.

North Rhine-Westphalia Minister President Hannelore Kraft welcoming From left: Dr. Alexander Schröder-Frerkes, Hannelore Kraft, Bernhard Mattes guests to the evening reception and Andreas Povel

Debald Honored with Service Müller Recognized by NRW Excellence Award Regional Committee

On May 22, the eve of the Annual Membership Meeting, event part- As the general manager of AmCham Germany, Dr. Dierk Müller contrib- ners and special guests joined Chamber officials at the AmCham uted to making the Chamber a strong voice for international free trade Germany Recognition Dinner where former AmCham Germany Vice Pres- and an organization dedicated to supporting the business community in ident Otmar Debald was presented with the Service Exellence Award. Germany and beyond. Müller, who served the Chamber for more than 20 In his warmly worded laudation, AmCham Germany President Bernhard years, also worked tiredlessly on behalf of the organization's individual Mattes praised Debald for his many years of inspiring dedication to the chapters. For his active support of the North Rhine-Westphalia Regional transatlantic relationship as well as his active participation in committees. Committee, Müller was recognized by the committee's chair, Dr. Alexander Mattes also drew attention to Debald's significant contribution in pro- Schröder-Frerkes, on the eve before the Annual Membership Meeting viding leadership in helping to shape the Chamber's strategic direction. with the award of a Düsseldorf Radschläger (cartwheel figure).

Former AmCham Germany Vice President Otmar Debald (right) with Former AmCham Germany General Manager Dierk Müller (left) with Bernhard Mattes Dr. Alexander Schröder-Frerkes

July 2014 commerce germany 17 investment region Northern Germany: Leading the Way

From maritime trade along inner coastal waterways to automotive manufacturing inland, northern Germany is an economically diverse region that offers much to potential investors.

Prof. Ulrich von Jeinsen of AmCham Germany Lower Saxony Regional Committee; Michael Sturm, Managing Director of Invest in Mecklenburg-Vorpommern GmbH; Ralf Pospich of Lower Saxony’s Ministry of Economic Affairs, Labor and Transportation; and Dr. Henning C. Schneider of AmCham Germany Northern Germany Regional Com- mittee, get down to business about what’s up in the north.

▿ Which industries are particularly strong in ▴ Sturm: The food industry in Mecklenburg- highly skilled workforce, excellent universities northern Germany? Western Pomerania is particularly strong. Nestlé’s and the its proximity to the metropolitan region selection of Schwerin as a location and investing of Hamburg. The investment-friendly government ▴ Jeinsen: The region is known for its automo- €220 million is a current highlight. deals with construction permits in record time. tive industry, with international giants like Volks- Invest in Mecklenburg-Western Pomerania brings wagen and Continental headquartered here. The ▴ Schneider: In Schleswig-Holstein and Meck- companies into contact with local partners. steel and maritime sectors are also extremely lenburg-Western Pomerania, the healthcare in- active in Lower Saxony. dustry as well as the renewable energy sector ▴ Pospich: Lower Saxony also has a rich are well-represented. We also have impressive diversity of universities and research institutions ▴ Pospich: Lower Saxony is also Germany’s biotechnology, food and agricultural sectors. as well as support networks and regional busi- leader in renewable energy and home to the ness-development agencies that make the region world’s third-largest wind turbine manufacturer, ▿ How can companies tap into this infrastruc- ideal for developing market potential. Enercon. Our coastal facilities in the North Sea open ture with their investments in the region? up enormous potential for German offshore wind ▴ Jeinsen: Our state has a strategic deep-water power, and the state’s seaports and geographic ▴ Sturm: Companies like Liebherr, Nordex, Nor- port in Wilhelmshaven with lots of untapped location make it a key logistics hub in Europe. dic Yards, and Caterpillar benefit from the region’s potential. It is certainly a great investment.

18 commerce germany July 2014 ▴ Schneider: The majority of local players are infection control, neurology, stem cell biology, with local companies. In addition, we regularly typical Mittelstand companies and therefore not medical technology, bioeconomics and veterinary provide our members with information on local very visible. Potential investors need to involve a medicine. Europe’s leaders in lightweight design business topics that also focus on selected trends local network like banks and advisers located in are also concentrated here. In CFK Valley, almost and industry sectors. northern Germany. 100 companies and research facilities work on carbon-fi ber-reinforced plastics, which are used ▴ Pospich: Through its strong networks with ▿ Are there any exciting up-and-coming eco- in manufacturing aircraft, ships and wind tur- industry and government, AmCham Germany nomic sectors in northern Germany that investors bines as well as increasingly in areas like auto makes it possible for US companies to benefi t might not yet associate with the region? manufacturing. from the knowledge of US fi rms already estab- lished here, to plan investments, to analyze poten- ▴ Sturm: The amount of energy produced by ▴ Schneider: My two favorites are the wind tial risks and to quickly put their plans into action. renewable sources cover more than 100% of sector and the biotechnology sector. Both have Mecklenburg-Western Pomerania’s needs. Stor- their challenges, but they offer very promising ▴ Jeinsan: We have strong connections with age technologies such as those from WEMAG business opportunities as well. industry, the insurance sector, trade fairs and and the commercial offshore wind farm Baltic 1 other associations, including the Chamber of are turning the region into an energy-producing ▿ How does the AmCham Germany network in Commerce and Industry, and we do our best to state. northern Germany assist companies to take full provide companies with contacts that help them advantage of the region? develop their businesses. ▴ Pospich: The health and life sciences industries also play a central role in Lower ▴ Schneider: We do our best to assist com- For more information on doing Saxony. We’re one of Germany’s top biotech- panies and connect people and players. Our business in northern Germany and nology regions thanks to research institutions Northern Germany Regional Committee organ- about AmCham Germany committees of international standing, and we have excep- izes meetings, panel discussions, speeches and active in the area, please visit tional strength in pharmaceutical biotechnology, conferences to connect international players www.amcham.de event report

SIMPLIFYING CORPORATE TAXES

Düsseldorf, May 8. As part of the joint AmCham Germany-PricewaterhouseCoopers (PwC) Expert Briefing series on international taxes, Petra Wingendorf and Marion Gohr, both partners in international and corporate tax law at PwC US PERSPECTIVE ON GERMANY AND TRANSATLANTIC RELATIONS Düsseldorf, addressed how German subsidiar- ies can efficiently manage withholding tax to Stuttgart, April 8. Attendees at this Business the importance of transatlantic relations and avoid or minimize a tax impact. Pictured here are Luncheon heard Consul General Kevin C. Milas bilateral cooperation as Asia assumes increas- Wingendorf (left) and Gohr. from the US Consulate General in Frankfurt/M ing importance on the global stage. Pictured speak about the future of transatlantic eco- here are (from left): Spiridon Sarantopoulos, nomic cooperation in a fast-changing global Hotel Steigenberger Graf Zeppelin; Prof. Gerhard COGNITIVE COMPUTING market. While Milas touched on the importance Wegen, Baden-Württemberg Regional Com- of TTIP, he especially focused on the attitudes mittee Chair; Milas; and Rüdiger Möhler, Price- Böblingen, April 29. Dirk Wittkopp, Managing of Americans toward Germany and emphasized waterhouseCoopers AG. Director of IBM Germany Research & Develop- ment GmbH, spoke about cognitive computing at this Business After Hours event held at the THE FUTURE OF AGRICULTURE IBM Lab in Böblingen. A captivated audience heard his company’s views on the future and the Frankfurt/M, May 5. Agricultural issues are emerg- advancements users and the IT software indus- ing to the foreground against the backdrop of try can expect to see. Participants also enjoyed a TTIP. Martin Richenhagen, Chairman, President tour of the company museum. and CEO of the AGCO Corporation, talked about the future of global agriculture and the challenges facing transatlantic companies. Pictured here are (from left): David Knower, AmCham Germany Director; Dr. Mark C. Hilgard, Rhein-Main Regional Committee Chair; Richenhagen; and Dr. Lutz Raettig, AmCham Germany Vice President.

A LOOK AT NORTH RHINE- CORPORATE GOVERNANCE BEST WESTPHALIA'S FUTURE GROWTH PRACTICES

Düsseldorf, April 8. At this Business After Hours Munich, May 13. Chairman of the Supervisory INNOVATION IN BUSINESS event, Dr. Jürgen Schröder, Director and Man- Board at Deutsche Post AG, Dr. Wulff von ager of McKinsey & Company’s Düsseldorf office, Schimmelmann, was the keynote speaker at Düsseldorf, April 30. AmCham Germany members addressed the topic of future growth in North this AmCham Germany Forum also attended by who attended this Business Luncheon got to hear Rhine-Westphalia. Highlighting various local Christian von Sydow, Bavaria Regional Commit- Dr. Marijn Dekkers, Chairman of the Board of business cases, Schröder gave a picture of what tee Co-Chair; Marko Maschen, PINOVA Capital; Management at Bayer AG, speak on the impor- to expect from the region in 2020. Participants Andreas Würtenberger, Bavaria Regional Com- tance of recognizing innovation in business. Pic- also enjoyed dinner, discussion and networking mittee Co-Chair; and Burkhard Linke, AmCham tured here following his speech are Dekkers (left) while taking in the view from the top floor of the Germany Bavaria Representative. Schimmelmann and Dr. Alexander Schröder-Frerkes, North Rhine- SkyOffice in Düsseldorf. spoke about corporate governance in Germany Westphalia Regional Committee Chair. and the US.

20 commerce germany July 2014 SMART IT SOLUTIONS

Frankfurt/M, May 15. Boards today are under more scrutiny than ever before: from regula- INSIGHTS ON THE TRANSATLANTIC ECONOMY FROM US AMBASSADOR tors, stakeholders, shareholders and manage- ment. Technology can help. At this Expert Brief- Dresden, May 7. John B. Emerson, US Am- Economy: Built to Last,” was well received. Pic- ing, Charlie Horrell, Managing Director for bassador to Germany, discussed the enduring tured here are (from left): Prof. Heribert Heck- EMEA at Diligent Boardbooks Limited, and nature of the transatlantic trade relationship schen, Saxony (Dresden) Regional Committee Dr. Joachim Schrey, Partner at Noerr LLP, for participants at this Business Luncheon. With Chair; Kimberly Marteau Emerson; Emerson; and explored how electronic board papers enable TTIP the major focus of the business community, Dr. Ekkehard Nolting, Battke Grünberg Rechtsan- better communication and help achieve a higher his engaging speech, titled “The Transatlantic wälte PartGmbB. standard of corporate governance. Pictured here are: Schrey (left) and Horrell.

TRANSATLANTIC TAX LAWS

Frankfurt/M, May 12. This Expert Briefing provid- ed insights into making US investments in Ger- many as well as current tax developments and tax planning. Christian Athanasoulas, Princi- pal at KPMG Boston, and Marko Gründig, Part- ner at KPMG New York, addressed the impact of new changes to US tax law on investments made by US multinationals in Germany. Dr. Oliver Heinsen, Partner at KPMG Frankfurt/M, cov- ered developments in German tax law and their implications for German-based group companies of US multinationals. Pictured here is Heinsen ASSESSMENT OF EU PARLIAMENT explaining a point during his presentation. Stuttgart, June 2. Just one week following the eighth European parliamentary elections, Rainer Wieland, Vice President of the European Parlia- ment, was welcomed to this Business Luncheon DISRUPTIVE CHANGE IN MEDIA to provide an initial examination of the results. His speech included a broad historical over- Berlin, May 5. It is no secret that the Internet view of the EU political landscape as well as a has turned the media world upside down. At this nuanced analysis of the current balance of AmCham Germany Forum, Christoph Keese, power between the various parliamentary fac- Executive Vice President of Axel Springer SE, tions. Pictured here are (from left): Prof. Gerhard spoke about the successful management of dis- Wegen, Baden-Württemberg Regional Com- ruptive change in media and value creation in a mittee Chair; Wieland; Klaus Tornow, AmCham media landscape vastly different from the past. Germany Baden-Württemberg Representative; Pictured here is Keese addressing the audience. and Matthias Kopka, Ebner Stolz Mönning Bachem.

July 2014 commerce germany 21 special feature: us-german internship program

US Students Arrive to Start Internships

n mid-May, AmCham Germany welcomed ture US leaders and expects program participants For more information about how you the fifth group of US university students to will serve as ambassadors of German-American and your company can get involved, Frankfurt/M for the annual US-German Intern- friendship. Established in 2009 with Bridgehou- please contact Katrin Utzinger: Iship Program. This year, a total of 29 interns seLaw Atlanta, the highly successful program has will take part in the three-month internship had more than 130 participants and continues T +49 69 929104-50 program at 24 companies across Germany. A re- to grow steadily under the patronage of Han- E [email protected] ception was held at FrankfurtRheinMain GmbH nelore Kraft, Minister President of North Rhine- W www.amchaminternship.org to welcome the students and give them the op- Westphalia. „ W www.amcham.de portunity to meet their host companies and to prepare themselves for the exciting time ahead. Participants heard welcoming remarks from a number of prominent leaders, including Eric Menges, Executive Vice President, Frankfur- tRheinMain GmbH; Andreas Povel, AmCham Germany General Manager; Dr. Christoph Rückel, BridgehouseLaw Atlanta; Kevin C. Milas, US Con- sul General; and Thomas Schlichting, External Communications Manager, UPS Deutschland. The US-German Internship Program aims to cultivate a positive view of Germany among fu-

Q amcham germany asks

▿ What aspects of transatlantic relations work book with all the surreal storytelling and pro- and a river – a special combination. I love tak- best? tagonists you would expect from him. ing in a view of the city from the John Hancock  Observatory, walking around the historic build- ▴ In addition to close economic relations, the ▿ What is your favorite German or American ings in the old North Side and riding a boat on strong foundation of our transatlantic part- food or dish? the Chicago River. „ nership is built on our countries shared beliefs and values concerning freedom, democracy and ▴ Not sure if I can call it my absolute favorite, the rule of law. This common ground unites us but I really enjoy the fried food at the annual despite the current challenges we are facing due Indiana State Fair – like fried strawberries and Simone Thomsen to differences on the issue of cybersecurity. fried corn on the cob. I also have a weakness for General Manager Lilly Deutschland GmbH macaroni and cheese. Werner-Reimers-Str. 2-4 ▿ What changes to the transatlantic relationship 61352 Bad Homburg v.d.H. ▿ T +49 6172 273-2401 are necessary? Who, living or dead, do you admire most? E [email protected] W www.lilly-pharma.de ▴ Far-reaching changes to the security agenda, ▴ My parents. Everything I believe in and value I highlighted by situations like Ukraine as well as learned from them. From a business perspective, challenges concerning the energy policy agenda I admire Ernesto Bertarelli whose Swiss Alinghi ▸ ABOUT THE COMPANY highlight just how important it is to revitalize team became the first-ever European team to Lilly is a global healthcare leader that unites our transatlantic partnership and to focus on the win the prestigious America’s Cup in 2003. It’s caring with discovery to make life better for long list of shared interests and values. Moving amazing that a nation famous for its mountains people around the world. The company was forward, a strong transatlantic partnership will won one of the oldest sailing competitions in the founded more than a century ago by a man become increasingly important to both countries. world. committed to creating high-quality pharma- ceuticals that meet real needs, and today Lilly remains true to that mission in all its work. ▿ ▿ What was the last book you read? What is your favorite place in the US or Lilly employees across the globe work to dis- Germany and why? cover and bring life-changing pharmaceuticals ▴ I am interested in Japanese literature and to those who need them, improve the under- one of my favorite writers is Haruki Murakami. I ▴ My husband and I are very interested in archi- standing and management of disease, and give finally finished “IQ84” and, like all his books I’ve tecture and Chicago has a lot of great buildings back to communities through philanthropy and volunteerism. read, I enjoyed it a lot. It’s a typical Murakami to appreciate. It’s so vibrant and has both the lake

22 commerce germany July 2014 Kolumnemember know-how

Free Trade for Food Security

acilitating the global trade of centers. Currently, half the global popu- small part due to the recalcitrance of food and agricultural products is lation lives in urban areas, but this fig- both agricultural producers and food critical to achieving global food ure will rise to 70% by 2050. We must consumers to reduce subsidies and to Fsecurity. More open markets, bet- enlist regions with a food surplus to open markets. ter transport infrastructure and stronger meet the needs of these urban centers trade policies coupled with increased where food demand will increase most Key role of trade productivity will form the foundation for rapidly. needed expansion in agriculture and its Despite the clear urgency to facili- Still, there are glimmers of hope value chain over the next four decades. tate agricultural and food trade across for significant progress in the future. Mark von Pentz broad regions, it has become politi- Major regional free trade negotiations President Increased food demand in cities cally attractive in many countries to are underway, negotiations like TTIP. Agriculture & Turf Division demonize trade liberalization. More- The successful conclusion of such 21st Europe, CIS, North Africa, Near & Middle East, Asia Population growth and the enor- over, protectionism is growing. This century agreements would serve as a John Deere GmbH & Co. KG mous dietary improvements has prompted standard for helping achieve global John-Deere-Str. 70 Food demand will 68163 Mannheim sparked by rising affluence the increased goals. More robust multilateral efforts T +49 621 829-01 will cause food demand to in- increase 70% by 2050 levying of tolls, addressing food trade will be essential E [email protected] crease by 70% by 2050. That impacting the to achieve global food security. Future W www.deere.com is well known. Less appreciated is the availability and cost of food. Multilat- food needs will strain our systems, but impact of rapid global urbanization – eral efforts to liberalize trade, such as they can be met if we maintain our the concentration of people in urban the Doha Round, have stalled in no focus on the role of trade. „

Clean Labels: The Ingredient for Success

hen it comes to labels way in Europe, with 16,865 and 15,635 nicating that all-important clean-label on food packaging, to- new products launched respectively status on packaging. Consumer insight day’s consumers believe over a five-year period. And one out studies around the world help us moni- W“the simpler, the better.” of every three products now features a tor and track developments in demand This has led to a growing trend known clean label. for clean label products. within the food industry as Yet, despite its popularity, “clean label.” Increased One-third of all there is still no industry-wide More consumer attention customer scrutiny has products have a accepted definition of the term prompted manufacturers clean label. As pioneers in this Our latest study asked more than clean label Cathrin Kurz to create new or alter ex- arena, our group of companies 1,800 participants in western Europe Marketing Manager isting recipes by replacing food additives has developed a definition of clean label about messaging and claims on pack- Wholesome and Bakery, Europe Ingredion Germany GmbH with e-number-free alternatives. to help customers understand this impor- aging. Today’s consumers are clearly Grüner Deich 110 tant trend and align their product devel- paying more attention: 74% rated the 20097 Hamburg A growing trend opment accordingly. Our definition draws ingredients list an important considera- T +49 40 239151-50 E [email protected] from three simple guidelines: foods must tion, while 68% usually or always read W www.ingredion.com/emea The number of clean-label products be free of additives, feature a simple in- front-of-packaging messaging when launched between 2008 and 2013 has gredient list and be minimally processed. making a purchasing decision. jumped 107% – and there’s no sign of After identifying ingredients to re- We believe adopting a clean-label this growth abating. A study by Mintel move, manufacturers should also think strategy is a key ingredient for suc- indicates the UK and Germany led the about product positioning and commu- cess. „

July 2014 commerce germany 23 chamber news Board of Directors Meets at Annual Membership Meeting

Düsseldorf, May 22. AmCham Germany’s fi rst Board of Directors’ Meeting in 2014 was held in conjunction with the 111th Annual Membership Meeting. AmCham Germany President Bernhard Mattes (pictured addressing the audience) provided insights into the main points covered in the XI Business Barometer and reported on the activities of the policy committees, the Wash- ington Dialogue and the successful AmCham Germany Transatlantic Partner- Focus on Women in Leadership ship Award ceremony held on Jan. 28, 2014. Andreas Povel recounted his fi rst months as general manager, emphasizing activities related to TTIP. Frankfurt/M, May 27. AmCham Germany co-hosted their third Women in Dr. Clemens Doepgen, Chair of the TTIP Committee, reported on the Leadership Event together with Deutsche Bank, introducing an exciting activities of the policy committees and presented the second edition of initiative aimed at increasing the number of women in top management in AmCham Germany’s TTIP brochure, while Treasurer Armin Slotta presented Germany: the Cross-Company Mentoring Program by Praesta Deutschland. a detailed fi nancial report. Participants learned about the program as well as results that have been achieved so far.

Business Law Magazine Launched

Frankfurt/M, June 26. The fi rst No. 1 – June 26, 2014 www.businesslaw-magazine.com edition of the English-language Business Law Magazine, a joint publication of the F.A.Z.-Institut Made in Germany and German Law Publishers, is In this Issue International joint ventures – The revival of delisting – Patent law – Cartel investigations now available online. The free Data protection in the European Union – Localization in a globalized economy quarterly magazine explores all key questions related to German corporate, commercial, tax, labor, compliance and IP/IT law.

▸ To subscribe, please visit www.businesslaw-magazine.com

The value of free trade TTIP will be the fi rst trade agree- What Germany should not miss SMEs are the engine of the Euro- ment [between the US and EU] to out on pean and US economies. […] include a special chapter for SMEs. […] Germany is in a strong position Right now, a number of barriers are This chapter will be designed to today. But it cannot afford to rest blocking SME trade between Europe ensure the agreement’s terms are on its laurels. A successful business and the US: The various systems implemented in a manner that helps location is not a season in the sun. of certifi cation and import inspection SMEs. As a result, TTIP is not just an It involves a continuous process on both sides of the Atlantic fre- agreement for big multinationals. that requires a good feel for future quently drive up costs and waste too […] For SMEs, TTIP is a must-have! trends. […] much time. […] The US and Ger- (Translated from the original German editorial Where should Germany as a business many share historical, cultural and written by Dr. Eric Schweitzer, President of the location start making improvements? Association of German Chambers of Commerce economic bonds unlike virtually any AmCham Germany has identifi ed three and Industry, and Bernhard Mattes, President of other country outside Europe. For AmCham Germany, as it appeared in Die Welt key areas that should be addressed: this reason, the US holds tremen- on May 5, 2014) TTIP, the systematic digitization of dous appeal for Germany’s SMEs. the German economy and improved […] exchanges of skilled workers. […]

24 commerce germany July 2014 Select Germany Publication Released

Germany has one of the most sophisti- cated, innovative and dynamic economies in the world – and has the leading economy in Europe. To help spread this message to potential investors, AmCham Germany and Roland Berger released a new publication titled “Select Germany: Europe’s Top Invest- ment Region.” The six-page brochure highlights the top 10 reasons to invest in the country, including industrial competence, a highly qualifi ed workforce, innovative power and customer access as well as Germany’s competitive tax Merkel Interviewed at rates, exceptional growth potential and reliable legal system. ▸ For more information about the publication, please visit: Annual Membership Meeting www.amcham.de/publications

At the 111th Annual Membership meeting, Chancellor Angela Merkel received much media attention, including in an n-tv interview on transatlan- AmCham Germany tic trade topics. Handelsblatt would cover this in an article titled “Progress in Free Trade Talks” that appeared on May 23, 2014. Here are the excerpts: Dialogues in DC […] Chancellor Angela Merkel (CDU) has expressed her strong support for a proposed free trade agreement in spite of the strong criticism being directed Washington, DC, May 18-20. A delegation of AmCham Germany Patron at the plan. “It is a fantastic project and it is worth fi ghting for,” Merkel said at Members, as well as AmCham Germany President Bernhard Mattes and [the Annual Membership Meeting of] AmCham Germany in Düsseldorf. Executive Vice President Frank Riemensperger, met with political leaders She called on the US and the EU to settle their differences on TTIP. The in the US capital. AmCham Germany participants discussed TTIP with such Chancellor said people’s fears about the agreement could be addressed by important leaders as Reince Priebus, Chairman of the Republican National drawing up a list containing all of the points that the compact would not Committee, Peter Wittig, newly appointed German Ambassador to the US; address. […] Merkel said the US was to blame in part for skepticism about Tom Donohue, President and CEO of the US Chamber of Commerce; mem- the agreement. “The lack of transparency related to the NSA has not helped bers of the US Senate Jeff Sessions (R-AL), Chris Murphy (D-CT) and Erik the debate about the trade agreement,” she noted. Paulsen (R-MN), who also chairs the Senate Foreign Relations Subcommit- […] She added that there were good reasons to think that the agree- tee on European Affairs. The meetings concluded with one clear message: ment would be completed in 2015. “It is one of the most cost-effective TTIP is of fundamental geopolitical and economic importance to the US and growth generators you can imagine,” she said. currently takes higher precedence than the Transpacifi c Partnership.

Business location improvements will investing in education and in the Germany, Christian Flisek, MdB primarily thinking about the major not stop with TTIP. To ensure that German success model. […] The (SPD), had a chance to spend a few capital collection pools that we have Germany continues to prosper, digi- exchange of skilled workers must be days in Silicon Valley near San Fran- in Germany, companies like big in- tization must make its way into the simplifi ed by creating more modern cisco before Easter. During visits to surers. Executives here should think economy. […] The German govern- laws governing resident aliens. […] such companies as Facebook, eBay about the idea of systematically ment must step in here to create We need enthusiasm, economic and IBM, Flisek heard some sugges- making a small percentage of this business conditions that promote foresight and the courage to reform. tions about business conditions for capital available for such invest- innovation and growth. (Translated from the original German editorial start-up companies. ments. […] To fully tap the opportunities written by AmCham Germany President […] During an interview afterward, […] The days of big industrial parks Bernhard Mattes as it appeared in the Börsen- offered by the digital economy, mar- he noted that “it would defi nitely are probably over. We will have to Zeitung on May 23, 2014) kets must remain open around the make sense to facilitate and pro- start thinking smaller in the future. world. ‘I call for a “start-up era” at mote a ‘start-up era’ while students (Translated from the original German interview […] Germany’s dwindling number universities’ are still in college.” […] that Sebastian Fleischmann conducted with Christian Flisek as it appeared in the Passauer of highly skilled employees is As part of a trip by the German Par- [In other points made during the in- Neue Presse on April 24, 2014) already a serious problem. For this liament’s Digital Agenda Committee terview, Flisek said:] reason, it is necessary to continue taken in conjunction with AmCham In addition to tax incentives, I am

July 2014 commerce germany 25 new members imprint

May to June 2014 commerce germany „ACC Verlag & Services GmbH EXECUTIVE MEMBERS komdat.com GmbH CSC Dipl.-Kfm. Andreas L.J. Povel, General Manager Holger Neckenbuerger Dr. Philipp S. Müller Börsenplatz 7-11, 60313 Frankfurt/M Head of Board TÜV SÜD AG „ Editorial and business offices Munich Karsten Xander Deutsche Bank AG Anna Katharina Wambach, Ines Ceylan Member of the Board of Matthias Buck T +49 69 929104-41, +49 69 929104-43 Management mileworks automotive F +49 69 929104-11 Munich systems GmbH Deutsche Messe AG E [email protected], [email protected] Steffen Borngräber, CEO Hannover Fairs USA, Inc. W www.amcham.de Wiesbaden Ulrike Hammer CORPORATE MEMBERS Larry Turner „ Editor Niemeyer & Partner Heidi Roecks BPM – Berlin Portfolio Benedikt Niemeyer CEO EMC Deutschland GmbH Representing F.A.Z.-Institut für Management-, Management GmbH Düsseldorf Heiko Wächtersbach Markt- und Medieninformationen GmbH, Frankfurt/M Harald Mau Graphic designer Director PWM GmbH & Co. KG Manpower GmbH & Co. KG „ Giulia Schneck Berlin Dr. Max F. Krawinkel Personaldienstleistungen Managing Director Volkmar Knaup Representing F.A.Z.-Institut für Management-, Markt- und Medieninformationen GmbH, Frankfurt/M DTO Consulting GmbH Bergneustadt Michael Di Figlia NRW.INVEST GmbH Vita-Mix GmbH „ Advertising administration General Manager Rainer Hornig Sabine Karbowy Patrick Lauer Düsseldorf Stephan Jungen Wilrijkplatz 3, 65527 Niedernhausen Managing Director Michael Kordus Berlin Frankfurt School of Finance „ Communications Committee & Management gGmbH United Technologies Carl Graf von Hohenthal, Chair Ingolf Jungmann Wolfgang Kalaehne Brunswick Group GmbH Vice President & DELEGATED MEMBERS Peter Hecker Managing Director Franz-Josef Beermann „ Photo credits Frankfurt/M American Appraisal Thinkstock: pp. 6, 8, 10, 11, 18 and 27 Germany GmbH Jumeirah Frankfurt Henryk Ciesielski INDIVIDUAL MEMBERS commerce germany is the official periodical of the Dr. Matthias Dhom Isabella Owen American Chamber of Commerce in Germany e.V. Klaus Kassing Director of Sales & Marketing Sabine Chmielewski It is published for the Chamber by ACC Verlag & Frankfurt/M Elisa-Marie Kemper Services GmbH. Opinions expressed in articles are Barclays Till Prinz not necessarily those of the Chamber or of ACC Verlag Alexander Doll Dr. Annika Rabaa & Services GmbH or of F.A.Z.-Institut für Management-, Ralf Goehringer Markt- und Medieninformationen GmbH. Contributor opinions are not necessarily shared by the editor. All members of the American Chamber of Commerce in Germany e.V. receive one free copy of the publica- For more information about your membership or to become tion. Copyright by American Chamber of Commerce in a member of AmCham Germany, please contact: Germany e.V. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the copyright owner. Sibylle Wagner Janine Horlacher T +49 69 929104-31 T +49 929104-52 Alle Rechte vorbehalten. Nachdruck, auch auszugs- E [email protected] E [email protected] weise, nur mit ausdrücklicher Genehmigung des Verlags.

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NEXT ISSUE OF COMMERCE GERMANY: Sept. 25, 2014 ISSN 0010-2857 ADVERTISING CLOSING DATE: Aug. 28, 2014 Our topics will include: „Index of companies Cargill Holding (Germany) GmbH 11 Industrial Location Germany – Industry 4.0: The Future Factory Ingredion Germany GmbH 23 John Deere GmbH & Co. KG 23 Special Report: Top 50 US Companies in Germany Lilly Deutschland GmbH 22 Mars Food Germany 8 Sixty Years of commerce germany Monsanto Agrar Deutschland GmbH 7 TÜV SÜD Product Service GmbH 7 Contact: Contact: UPS Germany 9 Sabine Karbowy Barbara Böhnke T +49 6127 9993150 T +49 33398 679725 „Advertiser’s index M +49 171 7579768 M +49 178 7988882 3M 28 F +49 6127 9993151 F +49 33398 679724 Bayer Pharma AG 19 E [email protected] E [email protected] NRW.INVEST GmbH 2

26 commerce germany July 2014 chamber calendar

AmCham Germany Aug. 29 Sept. 10 Sept. 12 2014 event highlights Summer Barbecue International Summer Business Luncheon Please see Business Barbecue www.amcham.de International Chambers of Heike van de Kerkhof for the latest updates Commerce Aufsichtsratsvorsitzende DuPont Deutschland GmbH

Light blue = events wholly or partially in English Berlin Dresden Frankfurt/M

Sept. 16 Sept. 18 Sept. 24

AmCham Germany Forum Board of Directors Meeting Business Luncheon

Ingo Kramer (Board, Patron and Götz W. Werner Präsident & Haupt- Executive Members only) Gründer und Aufsichts- geschäftsführer ratsmitglied BDA – Bundesvereinigung dm drogerie-markt der Deutschen Arbeitgeberverbände

Munich Berlin Stuttgart

Oct. 6 Oct. 9 Oct. 14 Oct. 28

AmCham Germany Forum AmCham Germany Forum Expert Briefi ng AmCham Germany Forum

Dr. Ulf Mark Schneider Roland Koch Christof K. Letzgus Martin Bachmann CEO & President Chairman of the Partner Vorstand Fresenius SE & Co. KGaA Executive Board PricewaterhouseCoopers AG Exploration Bilfi nger SE Wintershall AG Topic: International Tax Highlights

Hamburg Munich Frankfurt/M Stuttgart © Fresenius SE & Co. KGaA SE & Co. © Fresenius © Wintershall Holding GmbH 2014 ©

Nov. 11-12 Nov. 14 Nov. 27 Dec. 4

Eight Annual Transatlantic Business Conference: AmCham Germany Forum Thanksgiving Dinners Board of Directors Meeting The Transatlantic Marketplace – Challenges and Opportunities Beyond 2014 Prof. Roland Berger (Board, Patron and Vorsitzender des Executive Members only) Frankfurt/M Aufsichtsrates Roland Berger Topic: Europas Rolle in der Weltwirtschaft

Munich Düsseldorf, Frankfurt/M and Hannover Berlin

Dec. 4 Dec. 5 Dec. 7

Goose Dinner Business Luncheon Swinging Christmas

Tarek Al-Wazir Wolfgang Dauner Trio Hessischer Minister für Wirtschaft, Energie, Verkehr und Landesent- wicklung

Berlin Frankfurt/M Stuttgart

July 2014 commerce germany 27 Wir könnten an dieser Stelle sehr viele beein- druckende Zahlen und Fakten aneinanderreihen, die zum Ausdruck bringen, was 3M für ein geniales Unternehmen ist. Machen wir aber nicht. Warum? Weil wir vieles anders machen als andere Unternehmen. Unsere Entwickler zum Beispiel können 15 % ihrer Arbeitszeit frei nutzen – egal wie. Willkommen bei 3M.

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