The Top 50 U.S. Companies in Germany

commerce germany OFFICIAL PUBLICATION OF THE AMERICAN CHAMBER OF COMMERCE IN GERMANY October 2008 · VOL 6 · ISSUE 4 1 7,70

Full Speed Ahead: The Top 50 U.S. Companies in Germany

Quality of Life: Better Living with High-Tech Medical Equipment

Also in This Issue: Fun Festivities: AmCham Germany’s July 4 and Summer Celebrations

amcham viewpoint Top of the List: U.S. Companies Invest in Germany

he annual presentation of AmCham U.S. businesses also value the high fleshes out plans on how to Germany’s top companies in Germany with standards of university-level educa- accomplish this. TU.S. capital again shows Ford-Werke, Adam tion and nonuniversity research facil- Although the planned lowering Opel and ExxonMobil as the top-selling compa- ities in Germany. Other important of the minimum earnings level for nies. The top three companies alone account for factors include the close interaction highly qualified employees from out- nearly 30 percent of total sales of the top 50 between the private and public sec- side of the EU to 163,000 is companies (1172 billion) and more than 26 per- tor, an outstanding infrastructure progress, it is not sufficient. The cent of the total sales of the top 100 companies and Germany’s geographic position Netherlands, for example, has a min- (1192 billion) in this year’s ranking. in the heart of Europe. For trans- Dr. Jürgen W. Gromer imum earnings level of 145,000, More than 10,000 people work for each of forming knowledge into innovation, which allows foreign employees to the top 10 employers in the ranking. These 10 a decisive factor for U.S. investors is Germany’s receive an unrestricted residency permit right companies together employ more than 208,000 supply of well-qualified employees, who are val- away and is at a level far more appropriate to people in Germany or roughly 25 percent of all ued for their competence, professionalism and meeting the needs of our economy. jobs created by U.S. companies. Nearly every sec- goal orientation. In general, job-market restrictions keep qual- ond U.S. company in Germany hired new Companies investing in Germany may, how- ified workers away. Employees want calculable employees over the last 12 months, surpassing ever, soon face the challenge of finding enough employment prospects with legal working rela- even their own forecasts from early 2007. Most skilled employees to fill their current and future tionships, and companies want to ensure a com- of the new jobs were in marketing and sales, but positions. To encourage relocation of highly petitive future in Germany. some were also in R&D – another area in which skilled employees from non-EU countries, the U.S. companies plan to invest more. German Federal Government submitted a draft Dr. Jürgen W. Gromer U.S. companies consider Germany a good or of the Job Migration Governance Act (Arbeits- Member of the Board even very good location for their R&D activities. migrationssteuerungsgesetz) in August, which Tyco Electronics Ltd.

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page 6 page 14 page 18 Strong Performance Alive and Kicking Fun in the Summer Sun

AmCham Germany presents its annual survey Technological innovation plays a leading role AmCham Germany chapters across the country of the top 50 companies in Germany with U.S. for the medical-technology industry. The latest celebrated Independence Day and the golden parentage. Executives from the leading firms in high-tech advancements can improve and days of summer with a host of summer events. tell commerce germany what strategies they save people’s lives. Three AmCham Germany From family barbecues, elegant evening affairs employed to remain on top and how they member companies in this industry reveal to to military flag ceremonies: members observed attract and retain skilled employees to continue commerce germany how their products can the summer season in style. their companies’ success. improve everyone’s quality of life.

member point of view top-level meetings policy issues

Motorola celebrates Bavarian Minister President Financial Services two important Dr. Günther Beckstein was the Committee Co-Chair milestones this year: honored guest at an AmCham Germany Volker Sach on the the company’s 80th top-level meeting in Munich. 25 importance of sovereign birthday and 40 years wealth funds. 29 in Germany. 13 chamber news

AmCham Germany, member spotlight the Federation of German new members 33 Industries (BDI) and the AmCham Germany exec- F.A.Z.-Institut will host advertisers’ index 34 utive member Romaco, the second Transatlantic a leading supplier of Business Conference processing and packing on Nov. 6 and 7, 2008. 26 imprint 34 technology, unites seven innovative brands amcham calendar 35 under one roof. 21 amcham asks ...

Andrea Ludy on why event report education is key for the United States AmCham Germany awards this and Germany to face year’s “Silver Award“ to retired the challenges of the German Ambassador to the 21st century. 26 United States Wolfgang Ischinger and honors Prof. Dr. Hans Thümmel. 22

October 2008 commerce germany 5 special report Full Speed Ahead Top 50 U.S. Companies in Germany

right business environment. Today IBM is a glob- What makes IBM a popular employer and IBM ally integrated enterprise and one of the leading what programs is your company implementing to companies in information technology and B2B. retain highly skilled employees? 2. The previous basic computing model has been IBM again ranks among the top five U.S. replaced by a new paradigm, one based on open As a globally integrated enterprise, we offer companies in Germany this year. What are the standards and powerful technologies for the inte- unique job and career opportunities across the primary factors contributing to IBM’s ongoing gration of digital intelligence into the fabric of globe. IBM has a strong focus on employability of success? work and life. We developed many components its workforce – skill development is key to our for our IT architecture and technologies based on success. IBM is investing in a high-performance In IBM, we saw fundamental changes during these open standards. Our portfolio today is built culture with innovative HR programs like the skill the last decade impacting our business environ- around networked, modularized and ment and bringing about new challenges: global embedded technologies, including integration, a new computing model and new service-oriented architecture (SOA), ways for businesses and institutions to apply information on demand, virtualiza- Martin Jetter, technology to create value. tion and open, modular systems for General Manager and Chairman of the Board, IBM in Germany / businesses of all sizes. IBM Deutschland GmbH How did IBM meet these challenges? 3. IBM changed its own processes and organization to push decision 1. We have been globally integrating IBM’s making and delegation closer to the ‘Skill development is key operations at a rapid pace, locating our work and marketplace. Today, we are in a very to our success’ functions wherever it makes the most sense, good position to create higher value based on the right cost, the right skills and the for our clients around the globe.

6 commerce germany October 2008 As the global economy faces the winds of change, Germany remains a beacon as a place to do business for U.S. companies on the rough waters of globalization. Germany’s large consumer base and its standing as the world’s export champion ensured that once again U.S. companies remained loyal to “Standort Deutschland.” And their success speaks for itself: U.S. companies are among the largest employers in Germany. commerce germany spoke to three executives from the top five U.S. companies in Germany about the secrets of their companies’ success.

engagement between management and the ExxonMobil workforce. Furthermore we support schools and universities in the communities where we operate in Germany and thus help to build a ExxonMobil again ranks among the top skilled workforce for tomorrow. five U.S. companies in Germany this year. What are the primary factors contributing to As the largest nongovernmental energy ExxonMobil’s ongoing success? corporation in the world, ExxonMobil is active ExxonMobil has a consistent and straight- in countries all around the globe. How does forward business model that combines our the company’s business in Germany differ from long-term perspective, disciplined approach to other parts of the world? What are some of capital investment and focus on operational the company’s primary areas of focus in excellence to grow shareholder value.We iden- Germany? tify, develop and execute projects using best Our company has a global model to pro- practices that ensure project returns will be vide reliable, affordable energy supplies in a resilient over a range of economic scenarios. responsible manner to enable economic We operate our facilities using proven man- progress worldwide. Thus I see more similari- agement systems to achieve operational excel- ties in the values described above than differ- lence. As a result, we are able to generate ences in how we do our business here com- more income from a highly efficient capital pared to other parts of the world. base, as demonstrated by our development initiative, which looks at future skill superior return on capital demand, current skill levels and development employed. Our successful exe- needs, offering, among a host of other things, job cution of this model delivers Gregg A. Wechsler, rotations into other functions and the possibility industry-leading financial and Member of the Board, ExxonMobil Central Europe to work in international and virtual project operating results that grow Holding GmbH teams. We also invest $800 million every year in shareholder value. professional training using the newest technologies like e-learning to make knowledge accessi- What makes ExxonMobil a ‘We value the exceptional ble wherever it is needed. popular employer and what qualities of our employees’ programs is your company Where is IBM in Germany headed in the near implementing to retain good future and how will IBM address new trends in employees? the market? ExxonMobil is committed to providing a positive, productive, and support- What makes Germany special within the In July 2008, we introduced a new corporate ive work environment throughout our global company is the fact that we have all three structure for IBM in Germany. Together with our operations. We value the exceptional qualities business functions present in the country: a new sales structure, we established conditions and diverse perspectives of our employees, strong upstream business that produces three- that enable us to respond more flexibly to con- strive to treat all employees with respect and quarters of Germany’s domestic gas, a down- stantly changing markets and create higher value encourage individual growth and achieve- stream business with 1,200 Esso service sta- for our clients.We aligned our business along our ments. We think that open-door communications and a chemical function that markets our value chain in accordance with the following four tion helps promote fairness and respect for the products for central and eastern Europe out of (continued on page 9) dignity of all employees, as well as effective Cologne.

October 2008 commerce germany 7 Die Idee ist das eine. Auf welchen Boden sie fällt, entscheidend.

Dass unsere Forscher 15 Prozent ihrer Arbeitszeit für eigene Ideen nutzen, ist Teil unserer innovationsfördernden Unternehmenskultur. 20.000 Patente, 6.500 Forscher: Was können wir für Sie erfinden? +49213114-3030 www.die-erfinder.de special report

lion every year in training and education pro- GE grams for the employees of GE around the world – ranging from entry-level employees to top executives. A good example is a course GE again ranks among the top five U.S. called Leadership, Innovation and Growth. The companies in Germany this year. What are the course takes leadership teams through a col- primary factors contributing to GE’s success? lective learning approach to driving innovation As the third-largest economy, Germany is and growth in the company. The goal of the naturally a very important growth market for course is to help leaders understand the cul- our infrastructure, finance and media busi- tural changes needed to spot trends earlier, get nesses. In addition, we see Germany as a products to market faster and accelerate leader in R&D and the development of new growth in new geographies. technologies. Since innovation core competencies: Research & Development, was always a key element in our Sales & Consulting, Solutions & Services and success, we believe that Ger- Georg Knoth, Management & Business Support. We bundled many, with its highly qualified CEO & Regional Executive, GE in Central Europe these core competencies into globally integrated scientists and engineers, is an and specialized IBM companies, which all oper- excellent location for one of our ate under the IBM brand name. five global research centers. ‘We see Germany as a To address new trends in the market and to Another important reason for leader in R&D and develop innovative solutions for our clients, we GE’s success in Germany is “eco- new technologies’ also use collaboration technologies.This autumn, magination,” our worldwide a new worldwide “InnovationJam” will take growth strategy. We launched place, where we develop ideas together with our ecomagination in 2005 to meet clients and key influencers like politicians or our customers’ demands for more energy-effi- In 2004, GE opened its Global Research researchers to realize the “enterprise of the cient low-emission products. With its strong Center – Europe in the Munich area. What is future.” IBM sees innovation at the crossing of focus on environmental protection, Germany is the research center doing to address global invention and the knowledge of how and where not only a market for these products but also issues? these inventions can be used. an important development location. The GE Global Research Center in Garching During IBM’s 2006 InnovationJam – the near Munich highlights GE’s commitment to largest IBM online brainstorming session ever What makes GE a popular employer and the high-tech location Germany. It focuses held – IBM brought together more than 150,000 what programs is GE implementing to retain especially on environmentally friendly tech- people from 104 countries and 67 companies. good employees at the company? nologies and renewable energy sources such as As a result, 10 new IBM businesses were We are indeed very proud of the fact that in wind, solar and geothermal energy. In addition, launched with seed investment totaling $100 2008 GE was named one of the top 20 our over 120 scientists and engineers are million. employers in Germany for the second year in a researching new materials such as composites. row by “Junge Karriere” and leader in an inde- Being much lighter and more durable, compos- Where do you see opportunities for “location pendent survey “Top Employers for Engineers ites can help in the battle against climate Germany”? 2008.” GE was placed first in the category of change as they are increasingly being used as “Career Development” and second in the over- an alternative to steel and aluminum in air- Germany, as the global export champion and all rankings.Worldwide, we invest about $1 bil- craft, wind turbines and other applications. with global players from important industries like automotive, engineering, banking and insurance, is a key market for IBM. IBM in Germany has unique expertise in these business areas and is best positioned to build “centers of excellence” Ihre Brücke in die USA with global reach. It is up to us now to use these Consulting: Market Research, Sales Representation, Investment Strategies, strengths and fully exploit our expertise – Strategic Partner Search, Event Planning & Execution because work moves to where it is best being Tax Services: Cross-border Corporate & Individual Income Tax Planning, done. While Germany does not score best in Estate Tax Planning, Avoidance of Double Taxation, Compliance, Back terms of labor cost, the elaborated skill levels Office Services and general security and collaborative openness Legal Issues: Incorporation, Immigration & Collection Services. of the business environment make up for that European-American Business Organization, Inc. (EABO) disadvantage. Wisely choosing the areas we Sven C. Oehme, CEO want to excel in and directing investments 405 Lexington Avenue, The Chrysler Building, 37th Fl. accordingly – both in terms of education as well New York, NY 10174 Telephone: +1 212 972 3035 – Facsimile: +1 212 972 3026 as in terms of business – is an important prereq- Email: [email protected] – Website: www.eabo.biz uisite for success.

October 2008 commerce germany 9 top 50 u.s. companies in germany

Company Top Executive(s)** Address Sales in 2007 (1) U.S. Parent Company Branch/Industry 1. Ford-Werke GmbH Dr. Hermann H. Hollmann Henry-Ford-Str. 1 19,600,000,000 Ford Motor Company Automotive www.ford.com Bernhard Mattes 50725 Cologne Dearborn, MI 2. Adam Opel* Hans H. Demant Friedrich-Lutzmann-Ring 1 16,300,000,000 General Motors Corporation Automotive www.opel.de 65423 Rüsselsheim (estimate) Detroit, MI 3. ExxonMobil Central Europe Holding Dr. Manfred G. Bullinger Kapstadtring 2 14,200,000,000 Exxon Mobil Corporation Oil and Gas GmbH Dr. Gernot Kalkoffen 22297 Hamburg (incl. petroleum tax) Irving, TX (upstream and www.exxonmobil.de Gregg A. Wechsler downstream), Chemicals 4. GE Deutschland* Georg Knoth Leopoldstr. 8 9,500,000,000 General Electric Company Technology, Service, www.ge.com 80802 Munich (estimate) Fairfield, CT Financial Services 5. IBM Gruppe* Christian Diedrich Pascalstr. 100 9,100,000,000 IBM Corporation IT www.ibm.de 70569 Stuttgart (estimate) Armonk, NY 6. ConocoPhillips Germany* Barry Quinn Überseering 27 7,000,000,000 ConocoPhillips Petroleum www.jet-tankstellen.de 22297 Hamburg (incl. petroleum tax) Houston, TX (estimate) 7. Hewlett-Packard GmbH Hans-Ulrich Holdenried Herrenberger Str. 140 6,500,000,000 Hewlett-Packard Co. IT Equipment www.hp.com 71034 Böblingen Palo Alto, CA and Services 8. Philip Morris GmbH Jacek Olczak Fallstr. 40 6,356,141,000 Philip Morris International Tobacco www.philipmorrisinternational.com 81369 Munich (incl. tobacco tax) New York, NY 9. Dow Gruppe Deutschland* Manfred Aumann Am Kronberger Hang 4 4,890,000,000 The Dow Chemical Company Chemicals, Plastics www.dow.com Joachim Thalacker 65824 Schwalbach Midland, MI Markus Wildi 10. Procter & Gamble* Otmar W. Debald Sulzbacher Str. 40-50 4,650,000,000 The Procter & Gamble Co. Consumer Goods www.de.pg.com Gerhard Ritter 65824 Schwalbach (estimate) Cincinnati, OH Willi Schwerdtle Pirjo Valiaho 11. Ingram Micro Holding Gerhard Schulz Heisenbergbogen 3 4,189,000,000 Ingram Micro Inc. IT Distribution www.ingrammicro.de 85609 Dornach near Munich Santa Ana, CA 12. TRW Automotive (Gruppe)* Reinhard Lechner Mergenthalerallee 45-47 2,850,000,000 TRW Automotive Inc. Automotive Supplies www.trw.com Rob Smith 65760 Eschborn Livonia, MI and Systems 13. McDonald’s Deutschland Inc. Joachim Kellner Drygalski-Allee 51 2,698,000,000 McDonald’s Corporation Quickservice www.mcdonalds.de Bane Knezevic 81477 Munich Oak Brook, IL Restaurants 14. Motorola GmbH Ralf Gerbershagen Heinrich-Hertz-Str. 1 2,622,000,000 Motorola Inc. Telecommunications www.motorola.de 65232 Taunusstein Schaumburg, IL Equipment 15. MTU Aero Engines Holding AG Dr. Rainer Martens Dachauer Str. 665 2,575,000,000 Kohlberg Kravis Roberts & Co. Aerospace www.mtu.de 80995 Munich (estimate) New York, NY 16. Goodyear Dunlop Tires Germany GmbH Dr. Rainer Landwehr Dunlopstr. 2 2,515,000,000 The Goodyear Tire & Rubber Co. Tire Industry www.goodyear.de Luca Crepaccioli63450 Hanau Akron, OH 17. Microsoft Deutschland GmbH Achim Berg Konrad-Zuse-Str. 1 2,500,000,000 Microsoft Corporation IT, Software www.microsoft.de 85716 Unterschleißheim (estimate) Redmond, WA 18. Deere & Company – European Office* Markwart von Pentz John-Deere-Str. 70 2,440,000,000 Deere & Company Farm Equipment www.deere.de 68163 Mannheim Moline, IL 19. Intel* Hannes Schwaderer Dornacher Str. 1 2,300,000.,000 Intel Corporation Computer Components www.intel.com 85622 Feldkirchen (estimate) Santa Clara, CA 20. Abbott GmbH & Co. KG Wulff-Erik von Borcke Max-Planck-Ring 2 2,285,000,000 Abbott Laboratories Inc. Healthcare and www.abbott.de Rainer Filzinger 65205 Wiesbaden Abbott Park, IL Social Assistance Dr. Friedrich Richter Luc Ruysen 21. Johnson Controls GmbH Dr. Beda Bolzenius Industriestr. 20-30 2,220,000,000 Johnson Controls Inc. Automotive www.johnsoncontrols.com Johannes Roters 51399 Burscheid Milwaukee, WI 22. Celanese GmbH Dr. Eckart von Haefen Frankfurter Str. 111 2,100,000,000 Celanese Corporation Chemical www.celanese.com 61476 Kronberg im Taunus Dallas, TX Manufacturing 23. Kraft Foods Deutschland GmbH Gerald Neumair Langemarckstr. 4-20 2,100,000,000 Kraft Foods Inc. Food Manufacturing www.kraftfoods.de 28199 Bremen (estimate) Northfield, IL 24. Du Pont de Nemours Hans-Jürgen Huber Du Pont-Str. 1 2,000,000,000 E.I. du Pont de Nemours Polymers, Chemicals, (Deutschland) GmbH Holger Lassen 61352 Bad Homburg (estimate) & Co., Inc. Specialties www.dupont.com Doug Moore v.d.Höhe Wilmington, DE 25. 3M Deutschland* Kurt-Henning Wiethoff Carl-Schurz-Str. 1 1,900,000,000 3M Corp. Chemical, Industrial, www.3m.com 41453 Neuss St. Paul, MN Healthcare and Consumer Products

10 commerce germany October 2008 Company Top Executive(s)** Address Sales in 2007 (1) U.S. Parent Company Branch/Industry 26. Coca-Cola Deutschland* Béatrice Guillaume- Quartier 205, Friedrichstr. 68 1,900,000,000 The Coca-Cola Company Beverages www.coca-cola-gmbh.de Grabisch 10117 Berlin (estimate) Atlanta, GA 27. Tyco Electronics* Dirk Bartels Ampèrestr. 12-14 1,780,000,000 Tyco Electronics Inc. Electronics www.tycoelectronics.com Henning Eskild Jensen 64625 Bensheim (estimate) Berwyn, PA 28. Pfizer Deutschland GmbH Dr. Andreas Penk Pfizerstr. 1 1,600,000,000 Pfizer, Inc. Phamaceutical and www.pfizer.de 76139 Karlsruhe New York, NY Medical Manufacturing 29. Honeywell Deutschland* Reiner Turban Strahlenbergerstr. 110-112 1,500,000,000 Honeywell International Inc. Control Technologies, www.honeywell.de 63067 Offenbach (estimate) Morristown, NJ Aerospace, Specialty Chemicals 30. United Parcel Service Michael Mensing Görlitzer Str. 1 1,450,000,000 United Parcel Service, Inc. Parcel and Express Deutschland Inc. & Co. OHG Jörns Reineke 41460 Neuss (estimate) Atlanta, GA Delivery, Logistics www.ups.com Services 31. Mars GmbH Thomas Bittinger Industriering 17 1,300,000,000 Mars, Inc. Food and Petfood www.mars.com Philippe Metzger41751 Viersen McLean, VA Loic Moutault 32. Delphi Deutschland GmbH Michael Gassen Delphiplatz 1 1,300,000,000 Delphi Corporation Automotive Supply www.delphi.com 42119 Wuppertal (estimate) Troy, MI 33. Ball Packaging Europe* Michael Herdman Kaiserswerther Str. 115 1,200,000,000 Ball Corporation Metal Product www.ball-europe.com 40880 Ratingen Broomfield, CO Manufacturing 34. Dell GmbH Alain D. Bandle Main Airport Center 1,200,000,000 Dell Computer Corporation Computers and www.dell.de Unterschweinstiege 10 (estimate) Round Rock, TX IT Services/Hardware 60549 Frankfurt/M 35. AMD Saxony* Dr. Hans Deppe Wilschdorfer Landstr. 101 1,200,000,000 Advanced Micro Devices, Inc. Semiconductor Machin- www.amd-dresden.de 01109 Dresden (estimate) Sunnyvale, CA ery Manufacturing 36. Nike Deutschland GmbH Michaela Stitz Otto-Fleck-Schneise 7 1,100,000,000 Nike, Inc. Sports Equipment www.nike.com 60528 Frankfurt/M (estimate) Beaverton, OR 37. Johnson & Johnson Gruppe* Peter Feld Kaiserwerther Str. 270 1,100,000,000 Johnson & Johnson, Inc. Healthcare Products www.jnjgermany.de 40474 Düsseldorf (estimate) New Brunswick, NJ 38. ExxonMobil Dr. Jörg K. Kühne Neusser Landstr. 16 1,000,000,000 Exxon Mobil Corp. Chemicals Chemical Central Europe GmbH 50735 Cologne (estimate) Irving, TX www.exxonmobil.de 39. Amazon.de GmbH Ralf Kleber Moosacher Str. 51 1,000,000,000 Amazon.com, Inc. Internet Retail www.amazon.de 80809 Munich (estimate) Seattle, WA 40. Texas Instruments Deutschland* Dr. Wolfram Tietscher Haggertystr. 1 963,000,000 Texas Instruments Inc. Electronic Equipment www.ti.com 85350 Freising Dallas, TX 41. Parker Hannifin GmbH & Co. KG Kees Veraart Am Metallwerk 9 959,000,000 Parker Hannifin Corporation Motion and Control www.parker.com Hans Wolfs 33659 Bielefeld Cleveland, OH Technologies and Systems 42. Cisco Systems* Michael Ganser Am Söldnermoos 17 900,000,000 Cisco Systems, Inc. IT www.cisco.com 85399 Hallbergmoos (estimate) San Jose, CA 43. EDS Deutschland GmbH Jens-Uwe Holz Eisenstr. 56 900,000,000 Electronic Data Systems Corp. IT Services www.eds.de Wendelin Quadt 65428 Rüsselsheim (estimate) Plano, TX Dr. Friedrich Voss 44. Apple Computer GmbH Freddie Geier Dornacher Str. 3 d 850,000.000 Apple Computer, Inc. IT www.apple.de 85622 Feldkirchen (estimate) Cupertino, CA 45. AGCO-Fendt GmbH Hermann Merschroth Johann-Georg-Fendt-Str. 4 850,000,000 AGCO Corporation Farm Equipment www.agcocorp.com 87616 Marktoberdorf (estimate) Duluth, GA 46. Kronos International, Inc. Dr. Ulfert Fiand Peschstr. 5 800,000,000 Simmons, Harold C. Family Trust Chemicals www.kronos.com Volker Roth 51373 Leverkusen (estimate) Dallas, TX 47. Avaya GmbH & Co. KG Jürgen Gallmann Kleyerstr. 94 728,000,000 Avaya Inc. Telecommunications www.avaya.de 60326 Frankfurt/M Basking Ridge, NJ 48. Burger King GmbH Thomas Berger Werner-Eckert-Str. 16-18 710,000,000 Burger King Corporation Quickservice www.burgerking.de 81829 Munich-Riem (estimate) Miami, FL Restaurants 49. AFL/Alcoa Deutschland GmbH Martin Freiberger Mainzer Str. 185 700,000,000 Alcoa, Inc. Machinery www.alcoa.com 67547 Worms (estimate) Ptittsburgh, PA Manufacturing 50. Caterpillar Gruppe* Oswald R. Schöffel Falckensteiner Str. 2 683,046,000 Caterpillar, Inc. Machinery www.deutschland.cat.com Hans E. Timm 24159 Kiel Peoria, IL Manufacturing

* In cases where no corporate entity is given (e.g., GmbH, AG or KG), the sales are generally combined from multiple sources; that is, from various associated companies. ** If more than one top executive is given, names are listed alphabetically.

October 2008 commerce germany 11 Gemeinsam können wir innovative Produkte und Services entwickeln. Und machen damit unsere Welt noch lebenswerter.

Parker Hanniﬁn zählt zu den weltweit führenden Anbietern von Komponenten und Systemen zum Steuern hydraulischer, pneumatischer und elektronischer Prozesse. Mehr als 61.000 Mitarbeiter in über 300 Fertigungsstätten entwickeln, produzieren und verkaufen mehr als 800 Erzeugnisfamilien für circa 1200 Industriezweige. Mit steigender Tendenz.

In Europa ist Deutschland ein Schwerpunkt der Parker-Aktivitäten. Hier arbeiten fast 4.000 Mitarbeiter an verschiedenen Standorten an einem breiten Spektrum hochwertiger Produkte. Neben dem hohen Qualitätsstandard ist die Nähe zum Kunden für Parker sehr bedeutsam! Nur so kann Parker gemeinsam mit seinen Kunden Ideen verwirklichen, die der Markt wirklich braucht. Die Devise „Global denken – lokal handeln“ ist daher ein aerospace wichtiger Bestandteil der Unternehmens-Philosophie. climate control electromechanical Dabei sorgt die internationale Kommunikation innerhalb Parker für Synergie-Effekte und filtration fluid & gas handling Innovationen, die ein Unternehmen langfristig erfolgreich machen. hydraulics pneumatics Parker notiert an der New Yorker Börse unter PH. Zentrale Deutschland: process control sealing & shielding Parker Hanniﬁn GmbH & Co. KG, Am Metallwerk 9, 33659 Bielefeld

www.parker.com 00800 27 27 5374 member point of view

40 Years of Motorola in Germany – A Success Story

Motorola has influenced the development of radio and mobile communications like virtually no other company. In September, the U.S. corporation turned 80. At the same time, the German subsidiary celebrated 40 years of doing business. Since its foundation, Motorola GmbH has remained closely linked with the American Chamber of Commerce in Germany.

orldwide, the name Motorola 1990s, the company’s plant in Flens- stands for innovation, quality and burg, which it had recently acquired, Motorola continues design in communications. As became the pilot factory for the to place great importance early as 1940, the company had company’s first GSM-capable mobile W on the objectives of developed a portable two-way radio, the phone. High-quality mobile phones “Handie Talkie,” which was the original form of were manufactured and shipped AmCham Germany today’s mobile telephone. In 1969, a Motorola worldwide from here through 2006. transponder transmitted Neil Armstrong’s first Located in Berlin since 1997, words from the moon, and in 1983 Motorola Motorola Deutschland’s latest Ralf Gerbershagen introduced the DynaTAC 8000, the first commer- branch in Germany has a worldwide cial mobile telephone worldwide. competence center for the digital radio standard broadband Internet access in areas where cable Motorola’s success story in Germany began in TETRA (terrestrial trunked radio). TETRA offers use is not possible. A current project in this September 1968 with the opening of the com- public authorities and security organizations as respect is currently underway in Ulm.The Canopy pany’s German branch in well as companies in the private sector a safe broadband platform is suitable for wireless video Wiesbaden. The newly and reliable communication platform. The com- surveillance and has been used successfully at founded Motorola GmbH pany’s know-how in this sector has already events such as the 2006 Football World Cup in joined the American Kaiserslautern. The company’s range of products Chamber of Commerce in and services is rounded off by complete solutions Germany the following Motorola has been actively for enterprise mobility as well as IPTV solutions year. Since then, the com- for a completely new type of television experi- pany has been actively involved in promoting an open ence with more choice, comfort and control for involved in promoting an and productive business the viewer. open and productive business Motorola continues to place great impor- climate between the United climate between the United tance on the objectives of AmCham Germany. States and Germany, unre- States and Germany This is why the company will continue to involve stricted trade and investment itself in the future in furthering the understand- and the transatlantic partner- ing between Germany and the United States as ship. Represented on numerous well as promoting bilateral trade and industrial AmCham Germany committees, been proven in a number of projects relationships. Motorola also promotes the with German airports, energy sup- interests and objectives of the pliers and at the G8 Summit in CONTACT Chamber by participating in and Heiligendamm. Ralf Gerbershagen organizing discussions, workshops, With its comprehensive VP and Chairman networking activities and other product portfolio, Motorola Motorola GmbH events. today guarantees media Heinrich-Hertz-Str. 1 In 1975, the company relocated to mobility, such as with its 65232 Taunusstein Taunusstein, the current headquarters of WiMAX solutions that T +49 06128 70-0 Motorola Deutschland. At the start of the provide high-quality W www.motorola.com

October 2008 commerce germany 13 cover story Quality of Life

Medical equipment is a fast-growing industry. The global market for medical devices has annual Johnson & Johnson sales of more then 1200 billion. As a single market, Germany is the third-largest after the United States ohnson & Johnson Medical, one of Johnson & Johnson’s largest subsidiaries, has concentrated its German operations in three locations in Norderstedt, near Ham- 1 and Japan with annual sales totaling 21 billion. Jburg. In 2008, over 2,000 people were employed in the various business units and This high-tech industry relies heavily on cutting-edge operating areas. Norderstedt became J&J’s first site in Germany in 1956. The production and sales of sutures began in 1962. The European Surgical Institute opened in technology, making Germany with its wealth 1993. The product range was expanded by adding various business units, which of highly trained engineers and broad network of merged to form Ethicon GmbH in 1999, which then became Johnson & Johnson Med- ical in 2008. Research and development has been a long-term focus. In comparison leading hospitals an obvious choice for companies with other industries, R&D in medical technology requires above-average investment, in this field. commerce germany introduces three but it ensures both competitiveness and continuing employment. member companies whose innovative products help improve the quality of life. Monitoring Blood Glucose

For more than two decades, Johnson & Johnson’s LifeScan blood glucose monitoring system has been committed to improving the quality of life for people with diabetes. The goal of diabetes treatment is to keep blood glucose in a healthy range, which means it shouldn’t be too high or too low. Testing with a blood glucose meter provides an immediate blood glucose reading. This result can help patients make life-style deci-

14 commerce germany October 2008 Becton, Dickinson and Company

ecton Dickinson (BD), a leading medical- Protection Against “Super Bugs“ technology company based in Franklin BLakes, New Jersey, started in Germany in With its GeneOhm product line, BD expands 1972 by setting up shop in Heidelberg. BD in its offerings in molecular diagnostics with a Germany employs approximately 450 employ- growing list of assays for the rapid detection of ees, of which approximately 130 work in the bacterial microorganisms, including those manufacturing of microbiology products, known to cause healthcare-associated infec- including prepared, plated, tubed and bottled tions (HAI). HAIs have become a serious culture media. Consistent with the company’s healthcare issue globally, with nearly 6 million stated purpose of “Helping all people live infections occurring annually in the United healthy lives,” BD is committed to improving States, Japan and Europe alone. These HAIs both patient and healthcare worker safety lead to an estimated 90,000 patient deaths in through the development of advanced, life- the United States each year. Of major concern enhancing technologies. is the increasing prevalence of the organisms known as “super bugs” such as MRSA (methi- cillin-resistant Staphylococcus aureus).They are Outstanding Design resistant to common antibiotics. HAIs are pre- ventable, if proper hygiene protocols are fol- Occupational exposure to potentially fatal lowed, and if screening and surveillance meth- blood-borne pathogens is a major concern for ods are in place for early detection of the pres- healthcare workers around the world. An esti- ence of these super bugs. The new molecular- mated 1 million accidental needlesticks occur based GeneOhm array of rapid assays offers every year in healthcare institutions across important tools to address the diagnostic chal- Europe, potentially leading to exposure to lenge of providing almost immediate detection diseases such as HIV and hepatitis. The BD of these harmful organisms. The BD GeneOhm Venflon™ Pro Safety IV Catheter, which is part MRSA assay won the Medical Design Excel- of BD’s wide product range of safety-engi- lence Award in 2006. The test produces results neered devices, is designed to help protect in less than two hours and serves as a valuable healthcare workers from needlestick injuries tool to help prevent the spread of potentially and exposure to blood-borne pathogens. It deadly healthcare-associated infections. also includes a unique feature that helps sions that matter in their day-to-day life, such as guard against blood splatters that can occur food or medication choices, to help keep their during the IV (intravenous) cannulation CONTACT glucose in a healthy range. And regular testing process. The BD Venflon™ Pro Safety IV Matthias Borst allows patients to compare results to see what’s Catheter earned the prestigious Red Dot Prod- Managing Director working for them and what they need to adjust. uct Design Award Best of the Best 2008 for Becton Dickinson GmbH outstanding design quality. W www.bd.com

A New Era

LifeScan pioneered the modern era of blood glucose monitoring with the introduction of OneTouch technology which eliminated wiping and timing procedures. OneTouch offers the full range of blood glucose meters, test strips, lancing devices and diabetes-management software.

CONTACT Cornelia Groehl Chairman of Johnson & Johnson Medical Germany and President of Ethicon Germany W www.jnjgermany.de Leading the Way to a Healthier World.

Für die Rheumatherapie ist derKursklar.Undder Weg dorthin auch. DRAFTFCB HEALTHCARE DRAFTFCB

Biotechnologie gegen Bewegungslosigkeit.

Wyeth. Es tut sich was, wenn wir was tun.

In Deutschland leiden Millionen von Menschen aller Altersgruppen an verschiedenen FormendesRheumas.Biotechnologieermöglichtesuns,innovativeProduktezupro- duzieren, die bei hoher Verträglichkeit Schmerzen lindern, Entzündungen hemmen und das Fortschreiten der Erkrankung aufhalten können. Durch die neuen biotechnologischen Behandlungsansätze geben wir Rheuma-Patienten so die Chance, dauerhaft in Bewegung zu bleiben und „ein zweites Leben“ trotz Rheumas zu genießen. www.wyeth.de cover story Medtronic

he company Medtronic has been active on Determining the Right Treatment the German market since the late 1960s Tand has had a subsidiary here since 1970. The DX monitoring device helps doctors Today, a total of 750 employees work at the determine whether a patient’s spells of fainting, company’s headquarters in Meerbusch, at the dizziness, palpitations and seizures have a car- development and production facility in Deggen- diovascular cause. These bouts, known as syn- dorf and in sales functions all over the country. cope, could also have neurological causes, which Medtronic has a long history of actively pursuing would call for a completely different treatment. the application technological innovations to By receiving patient’s data directly from the the medical-technology industry. A recent exam- episodes of fainting, doctors can make a much ple for the use of the state-of-the-art technology more precise diagnosis. The Reveal XT monitors in a life-improving device are the Reveal patients for atrial fibrillations, which are rapid, implantable cardiac monitors. This USB-stick- irregular and unsynchronized contractions of the sized device allows patients with an increased muscle fibers of the upper part of the heart. risk of syncope or arrhythmias (abnormal heart Atrial fibrillation is the most common cardiac rhythms) to be diagnosed and monitored around arrhythmia. Treatment of AF is difficult as the clock by cardiologists via the Medtronic episodes often show no symptoms and therefore CareLink network, which allows Internet-based go unnoticed by patients. Yet the risks are well remote monitoring of patients. known – AF can lead to a two- to seven-times higher risk of stroke, an increased risk of heart failure and sudden cardiac death due to ineffi- A Simple Step cient pumping in the heart. Here as well, the long-term monitoring of patients allows doctors Monitoring devices have been around for a to choose the best-suited treatment. Follow-up long time, but none have ever offered the monitoring lets doctors control the progress of advantages of Reveal: they are inserted under- the treatment chosen – online. neath the skin of the patient and allow continuous monitoring for three years, giving cardiologists detailed data about a patient’s heart CONTACT rhythm. Patients lead their normal lives and Andreas Bohne therefore the heart activity recorded indicates Head of PR and Communications real-life, relevant information. Medtronic GmbH W www.medtronic.de

Leading Medical-Technology Companies Sales in billion euros (2007)

Johnson & Johnson (USA) 15.8

General Electric (USA) 12.4

Siemens (D) 9.9

Medtronic (USA) 9.0

Baxter (USA) 8.2

Covidien (USA)1 7.3

Philips (NL) 6.5

Boston Scientific (USA) 5.7

Becton Dickinson (USA) 4.7

Stryker (USA) 4.4

3M Healthcare (USA) 2.9

1) Formerly Tyco Healthcare

Source: company data

October 2008 commerce germany 17 special report Hamburg

On Sept. 8, AmCham Germany members and guests attended a very special “Summer Night Dinner“ with guest of honor and speaker Dr. Adam S. Posen, Deputy Director of the Peterson Institute of International Economics in Washington, D.C. Surrounded by the exquisite decor of the Süllberg Hotel in Hamburg, those attending heard Dr. Posen highlight the role of the U.S. economy in the race to the White House following the Democratic and Republican conventions.

We sincerely thank Deutsche Bank for its generous support of the event.

Düsseldorf

Nearly 120 guests participated in the North Rhine-Westphalia Chapter’s annual AmCham Germany barbecue on Sept. 5. The Golf Club Grafenberg at the Düsseldorf horse racetrack served as the location for this year’s festivities. Although the weather did not fully cooperate, it didn’t dampen enthusiasm for the enjoyable evening of “networking for the future.“

We kindly thank radprax international Vorsorgeinstitut and H.J. Heinz GmbH for their thoughtful support of the event. Frankfurt

German-American friendship was the focal point of AmCham Germany’s Frankfurt celebration of Independence Day on July 4 at the Radisson SAS Hotel Frank- furt. Following a flag ceremony with the USAF Ramstein Base Honor Guard, guests were welcomed by James M. Morris, Politi- cal and Economic Section Chief at the U.S. Consulate General in Frankfurt. Members’ children at the event delighted in the bal- loon-maker and juggler on stilts, and everyone savored the day’s gorgeous weather and generous buffet and barbecue held on the hotel’s terrace.

We kindly thank our sponsors for their thoughtful sponsorship of the event: Coca-Cola, Korn/Ferry International GmbH, Procter & Gamble, Radisson SAS Hotel Frankfurt, TRW Automotive, Tyco Electronics.

Hanover

Festooned in red, white and blue, the Panorama Restaurant at the Convention Center in Hanover proved the perfect setting for AmCham Germany to celebrate Independence Day in Hanover on July 4. Christiane Gräfin Matuschka, Mercuri Urval GmbH, and Lower-Saxony Committee Co-Chairs Dr. Rob Smith and Dr. Sven M. Prüser teamed up to welcome the numerous guests attending the evening event.

We sincerely thank TRW Automotive and Deutsche Messe AG for their kind sponsorship of the event. Innovative Technologies from Tyco Electronics

Tyco Electronics is a leading global aerospace and defense to telecom- provider of engineered electronic munications, computers and consumer components, network solutions and electronics. wireless systems, with customers in With over 8,000 engineers and 150 countries. worldwide manufacturing, sales and We design, manufacture and market customer service capabilities, Tyco products for customers in industries Electronics' commitment is our from automotive, appliances and customers' advantage.

Tyco Electronics AMP GmbH AMPèrestr. 12–14 • 64625 Bensheim • Phone +49-6251-133-0 • Fax +49-6251-133-1600 www.tycoelectronics.com executive member spotlight

Romaco Romaco: Seven Innovative headquarters, Karlsruhe Brands United Under One Roof

With seven brands and four sites in Germany, Switzerland and Italy, the internationally positioned Romaco Group is the leading supplier of processing and packaging technologies. Following its motto of “excellence through innovation,” this machine- and plant-engineering specialist develops solutions for the pharmaceutical, cosmetic and food industries. Since 2001, Romaco has been wholly owned by the NYSE-listed U.S. group Robbins & Myers, Inc., based in Dayton, Ohio.

Romaco’s leading technology lines as well as the design of individual Romaco Noack Blister Line for packaging and processing machines. “We focus on providing our customers with tailored engineering solutions that integrate More than 50,000 Romaco machines are cur- different machine components and modules into rently in use in over 130 countries around the new line designs,” says Thomas Luken, President world, and 550 employees look after and supply of the Romaco Group, in explaining the strategic more than 100 global markets. Company head- direction of the company. “By leveraging our quarters in Karlsruhe, Germany, also serve as the unique range of brands, we drive the develop- technology center for the Noack, Siebler and ment of new types of production processes for- Bosspak product lines. Together with the Maco- ward, which strengthens our customers’ compet- far, Promatic and Unipac product lines at the itive positions.” The Romaco Group can draw technology center in Bologna, Italy, they repre- from the combined expertise and interdisci- sent Romaco’s packaging business. The process- plinary research work of its three product tech- ing sector is handled by the FrymaKoruma brand nology centers as well as its ProTec process tech- FrymaKoruma Dinex for based in Rheinfelden, Switzerland, and Neuen- nology center in Neuenburg. aseptic processing of ointments burg, Germany. Patented complete pharmaceutical Integrated brand variety solutions facturing and handling pharmaceutical strip tablets known as StripTabsTM. This form of appli- Core elements in its packaging lines are The Noack T4 blister packaging line, which cation is new to the pharmaceutical industry and Romaco’s innovative solutions in the fields of links the Noack 930 blister machine with Pro- is used, among other applications, for hormone blister packaging, customized packaging and matic’s continuous-motion PC 4000 cartoner, therapy and pain relief. “In order to remain inter- counting and filling systems. Romaco also offers exemplifies the company’s innovative pharma- nationally competitive, opportunities in growth aseptic filling plants and lines for liquids and ceutical line. Unique to this line is the company’s markets must be exploited effectively,” powders as well as tube-filling machines for dif- recently developed direct transfer system, which emphasizes Luken. Tailor-made designs based on ferent pharmaceutical and passes the blister packs to high-quality standard modules are a trademark cosmetic applications. A the cartoner for secondary of the Romaco Group, which applies the poten- comprehensive series of packaging. The controlled tial of its products across many branches of intermittent and continu- transfer station is suitable industry. ous-motion cartoning ma- for both lengthwise and chines supplements this range of product offer- crosswise blister configurations. Equipped with CONTACT ings. Romaco’s diversified product portfolio in the patented QuickFeed system, a fully replace- Egbert Heid the processing sector includes mills for wet able feeding unit, this makes it quicker and eas- Group Marketing Manager grinding and vacuum-processing machines for ier to change from one product (tablet) to Romaco Group manufacturing liquid and semisolid forms. another. T +49 7631 7067-0 As a full-line provider, Romaco’s business Romaco also demonstrates its innovative E [email protected] activities include offering complete production strengths in its fully automated plant for manu- W www.romaco.com

October 2008 commerce germany 21 event report

Berlin, May 8. AmCham Germany members enjoyed an introduction to Berlitz Language Schools’ new “BusinessSeminare“ concept at a Business After Hours Event. A networking reception followed the seminar. Pictured here are (from left): Thorsten Winz and Achim Donsbach, Berlitz BusinessSeminare, Noemi

Stuttgart, July 14. The state of Baden-Württemberg and AmCham Germany joined together to award retired German Ambassador to the United States Wolfgang Ischinger the “Silver Award“ for his years of active involvement in promoting German-American friendship. Baden-Württemberg Minister President Günther Oettinger delivered the keynote address at the event and is pictured (in the photo left) with Prof. Dr. Hans Thümmel, long-time member and former AmCham Germany board member, who was also recognized for his many years of service with an Honorary Castellanos de Küter, Berlin-Brandenburg AmCham Germany Membership. Pictured here are (from left): Norbert Quinkert, AmCham BAH Chair, Ulrike Günther, Berlitz Busi- Germany Executive Vice President, Oettinger, Ischinger, John C. Kornblum, former U.S. Ambas- nessSeminare, and Carl Graf von Hohenthal, sador to Germany, and Fred B. Irwin, Berlin-Brandenburg Regional Committee Chair. AmCham Germany President.

Hamburg, June 10. HafenCity Hamburg hosted an inspiring Business After Hours event Financial Times Germany, interviewed Ostmeier tion of German Industries (BDI) at Tempelhof at its Kesselhaus. At the event, HafenCity CEO on the topic of German perceptions of private Airport. Pictured in front of one of the history- Jürgen Bruns-Berentelg outlined his com- equity. Pictured here are (from left): Ostmeier, making planes from yesteryear are (from left): pany’s success in a talk subtitled “Quicker than Thomas Cusack, BPE Fund Investors GmbH, had been thought – better than had Jodi Gentilozzi, Northern Germany Regional been hoped.“ Pictured here are (from left): Committee Chair, David Zeller, Lingo, and Warlimont.

Düsseldorf, June 19. President and CEO of Messe Düsseldorf Werner Dornscheidt was the featured guest speaker at a midday luncheon held at the trade center’s Guest Club.

Georg Paschwitz, Mergers & Acquisitions AG, Dr. Hans Christoph von Rohr, Board Member of the Economic Council of the CDU, Bruns-Berentelg, Iris von Kameke, HafenCity Halvorsen, Jürgen R. Thumann, BDI. Hamburg, and Rufus Steinkrauss, Rufus Steinkrauss Executive Recruitment. Leipzig, June 26. Members of AmCham Germany gathered at the Marriott Hotel Leipzig Hamburg, June 17. Dr. Hanns Ostmeier, to bid farewell to Consul General Mark D. Vice-Chairman of the German Private Equity Scheland of the U.S. Consulate General in and Venture Capital Association e.V., took cen- Members of the press, including Center.tv, Leipzig. Among those attending the reception ter stage at an Business Dinner held in coopera- and the 55 guests attending the event heard in Scheland’s honor was Doris Benner, Saxony tion with the American Club of Hamburg e.V. Dornscheidt discuss globalization in the trade- Regional Committee Chair, shown on the left Guido Warlimont, Companies Editor of the fair industry. Pictured here are (from left): in the photo along with Scheland. Dr. Alexander Schröder-Frerkes, Bird & Bird, Dornscheidt, and Georg Paschwitz, Deutsche Mergers & Acquisitions AG.

Berlin, June 23. AmCham Germany joined others in honoring Colonel ret. Gail Halvorsen, the original “Candy Bomber“ from the Berlin Airlift 60 years ago, at the “Day of German

Photo credit: Heiner Schäfer Industry – Germany 2020“ held by the Federa-

22 commerce germany October 2008 Berlin, June 26. AmCham Germany hosted a (from left): Thomas Paul, Paul Consult, and “Meet the Chamber“ event featuring Dr. Hein- Wiedenmann. rich Kreft, Senior Foreign Policy Adviser from the CDU/CSU parliamentary group, who spoke Düsseldorf, Aug. 19. Around 50 guests about new global challenges for Germany. attended this luncheon event and heard Dr. Andreas Martin of radprax give his insights into modern medical services. In his presentation, Martin discussed ethics and business issues in the medical services industry. Pictured here are (from left): Dr. Alexander Berlin, July 9. Dr. Franz Josef Jung, German Federal Minister of Defense, was the keynote speaker at a President’s Event at the Ritz-Carlton Hotel in Berlin. Jung spoke to around 100 AmCham Germany members and Guests were welcomed by Carl Graf von guests about the security interests of Germany Hohenthal, Berlin-Brandenburg Regional and a joint global security policy. Pictured here Committee Chair, and Dr. Dierk Müller, are (from left): Carl Graf von Hohenthal, AmCham Germany General Manager, who Berlin-Brandenburg Regional Committee Chair, provided an overview of the organization. Dr. Lutz Raettig, Morgan Stanley, Uwe Pictured at the podium here is Kreft. Langer, Accenture, Major General ret. Dieter Schröder-Frerkes, Bird & Bird, Martin, Brand, Accenture, Jung, Boris von Chle- Werner Kanthak, North Rhine-Westphalia Munich, July 1. The golden arches franchise bowksi, Accenture, Fred B. Irwin, AmCham Representative. was in the spotlight at a Business After Hours Germany President. event at McDonald’s Deutschland Inc. Mainz, Aug. 26. Rhineland-Palatinate Frankfurt, Aug. 6. The “OpernTurm“ served Minister President Kurt Beck was the keynote as a unique setting for a summer Business speaker at a President’s Dinner held at the After Hours event: Dr. Markus Wieden- Hyatt Regency in Mainz. Guests heard the now mann of Tishman Speyer and his team provided guests with a guided tour of the company’s high-rise building construction site in downtown Frankfurt. Pictured here are

Joachim Kellner, Member of the Board of McDonald’s Deutschland Inc., discussed McDon- ald’s global concept in Germany. Pictured here are (from left): Burkhard Linke, Bavaria former chair of the German Social Democratic Representative, Kellner, Ray Kroc, Founder of Party discuss the social market economy McDonald’s (statue), and Andreas Würten- as an location advantage. Pictured here is berger, Bavaria Regional Committee Co-Chair. Beck at the podium.

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October 2008 commerce germany 23 6.6 BILLION PEOPLE NEVER SLEEP. group Inc.

Dreams. Realities.

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Dialogue with Bavarian Minister President Beckstein

Bavarian Minister President Dr. Günther Beckstein was the honored guest at an AmCham Germany top-level meeting in Munich on July 11. At the meeting, AmCham Germany President Fred B. Irwin welcomed participants, who presented key points on several important business issues that affect a wide range of industries, including infrastructure investments in broadband, privatization and immigration. Pictured here are (from left to right): Dr. Jörg Allgäuer, John C. Kornblum, Dr. Dierk Müller, Matthias Borst, Dr. Alwin Mahler, Rolf Maihöfer, Dr. Thomas Werner, Julia Pollok, Felix Hierstetter, Beckstein, Sven Alexander Kado, Wolfgang Kneilmann, Marc-David Fritsch, Irwin, Joachim Kellner, Bernd Breinbauer, Christian von Sydow and Burkhard Linke.

Insights into the German Economy from Top Economist

mCham Germany hosted a top-level meeting with a keynote address Afrom Commerzbank Chief Economist Dr. Jörg Krämer on July 29. Participants at the Round Table Business Lunch in Frankfurt heard Dr. Krämer address the question, “Germany: Will it succeed with a soft landing despite inflation and the U.S. real estate crisis?“ Dr. Krämer’s insights on the effects of the subprime crisis sparked strong interest among the guests attending. In the photo on the left (from left): Christian Rumpf, Franklin Templeton Investment Services GmbH, Dr. Andreas Gran, GÖRG, and Thomas Emmerich, SAS Institut GmbH. In the photo on the right are (from left): Dr. Michael Weller, Clifford Chance, and Krämer.

AMCHAM GERMANY IN THE PRESS

“Danger of Protectionism“ Brandenburg Gate in Berlin – a Q&A with Fred B. Irwin, AmCham Germany Criticizes In interview with the Thüringer All- location where it had already stood AmCham Germany President German SWF Hurdles gemeine, Dr. Dierk Müller, AmCham more than 70 years ago. […] From “Like before a Wedding” Plans by the German government to Germany General Manager, talked the Rhine District in Neuss, U.S. The Europeans have reacted very raise the bar for sovereign wealth about how the business world sees Ambassador William R. Timken had euphorically to Barack Obama. funds (SWFs) investing in German Obama and McCain. […] invited […] Dr. Alexander Schröder- Did the Americans show the same companies have come under fire Which candidate would German Frerkes, AmCham Germany Co-Chair reaction? Everybody is hoping for from AmCham Germany. […] industry prefer? People are con- of the North Rhine-Westphalia a fresh start after eight years with The nonprofit organization AmCham cerned about how Obama and Regional Committee. George W. Bush, whose policies Germany, with the self-proclaimed Clinton recently voted in Congress (Translated from the original German article did not go down well with many of goal to “further the competitiveness over the issue of supporting free in the Rheinische Post on July 7, 2008.) my countrymen and women. For of Germany as an investment trade and investments. They did not many Americans, the situation with location,“ said in a statement the always vote in favor of the economy. Banks under Fire Barack Obama is like the last few planned regulations “present a McCain has been very straight- […] Two banks are facing heavy days before a wedding: Everything certain risk to the investment forward and unswerving about this. criticism after aiding U.S. citizens to is wonderful, and when you see climate,“ adding: “Sovereign wealth But Obama is pragmatic enough to evade taxes. […] “The government your bride- or bridegroom-to-be, funds should by no means be seen implement sensible policies in office. is trying to flex its muscles,“ said your heart just opens up.“ as a threat. In order to ensure open (Translated from the original German article Fred B. Irwin, AmCham Germany (Translated from the original German article conditions favorable to investment, by Matthias B. Krause in the Thüringer President, “That is why it is taking by Alexander Dahl in the Hannoversche it is important to dispel doubts Allgemeine on June 5, 2008.) Allgemeine on July 25, 2008.) action against banks that aid in tax about sovereign wealth funds as evasion. Without the financial crisis, early as possible,“ said the business Rhine District Congratulates this wouldn’t be on the agenda.” group. Timken on New Embassy (Translated from the original German article (Excerpt from the article by Barbara Ottawa It was a historic moment: The open- by Eske Hicken in the Frankfurter Rundschau on the Web site ipe.com on Aug. 8, 2008.) ing of the American embassy at the on July 7, 2008.)

October 2008 commerce germany 25 chamber news

The Transatlantic Marketplace: Challenges and Opportunities Beyond 2008

Second Annual Transatlantic Business Conference

ollowing the successful inaugural event in range of issues affecting German-American busi- Conference panel and workshop topics will 2007, AmCham Germany, the Federation of ness ties as well as fuel discussions and provide include: FGerman Industries (BDI) and the F.A.Z.-Insti- strategic inspiration. tut will hold the second conference on Nov. 6 Energy and climate – toward a common and 7, 2008, in Frankfurt am Main. The event Bernd Knobloch, Member of the Board of transatlantic strategy takes place just two days after the U.S. presiden- Management at Commerzbank AG, will open the Transparency and lack of transparency tial elections and will serve as an outstanding conference the evening of Nov. 6 at the Com- in international tax law – hot topics in the forum that underscores the long-range impor- merzbank Tower. An open discussion will follow tax treatment of private companies tance of transatlantic relations as well as high- that explores the topic “Climate change in Conflicts in the judiciary cultures: light the necessity for varied approaches to transatlantic relations? Outlook and perspectives punitive damages, PCPA, Exxon Florio – issues and continuous enhancement. following the U.S. presidential election.“ and is there no end? William R. Timken, Jr., U.S. Ambassador to Acquisitions of companies in the United The conference is supported by well-known Germany, will launch conference events the next States co-organizers and partners and will act as an day at the Marriott Hotel Frankfurt with his open platform featuring compelling topics and opening address. Other conference speakers will The annual fall event promises to be a high- prominent speakers from both sides of the include Dr.Thomas Enders, CEO of Airbus, and exposure gathering for the target group of deci- Atlantic. The keynote speeches, panel discussions Dr. Bernd Pfaffenbach, Undersecretary in the sion makers and leading representatives from and practice-focused workshops will address a German Economics and Technology Ministry. the worlds of business and politics.

Contact Matthias Riegel for further details: T +49 69 929104-51; E [email protected] Visit www.transatlantic-marketplace.com for more information.

amcham asks ... FRANKFURT MARRIOTT HOTEL IN BRIEF What aspect of transatlantic of the future. We must prepare the Set in Europe’s energetic banking capital, the Frankfurt Marriott Hotel located across relations works best? rising generation – a flexible and the Frankfurt trade fair, makes an impressive appearance as the tallest hotel on the con- tinent. The hotel's spacious guest rooms blend thoughtful touches with conveniences The exchange of innovative generation – to fill the such as broadband Internet access. Executive floors offer elegant accommodations and a st international stu- jobs of the 21 century. In particu- lounge with amazing views of the city 43 floors below. For fitness and relaxation, the dents/trainees. The lar, we must continue to expand hotel has a newly renovated, fully equipped health club and a wellness area where United States still our educational programs and, in guests can unwind with a massage or spa treatment. The hotel also boasts four delec- ranks on top as the general, our school system. Educa- table international restaurants, 15 modern conference rooms, a 24-hour business center preferred country for tion and flexible vocational training and the city's largest ballroom, which accommodates up to 1,000 people. working abroad – are vital to help workers face the Frankfurt Marriott Hotel, Hamburger Allee 2, 60486 Frankfurt/Main T +49 69 7955-2500, F +49 69 7955-2260, Andrea and this dynamic is challenges of globalization. Ludy E [email protected], W www.frankfurt-marriott.com continuing. Encour- aging our employees to work in What was the last book you foreign countries to collect experi- read? New York cheesecake. What is your favorite place in ence in business and cultural issues “Sakrileg” (“The Da Vinci the United States and in Germany? is critical to our hotel business. Code”) by Dan Brown. Who, living or dead, do you New York City, a powerful and admire most? impressive city, and Berlin, the most Where is change needed? What is your favorite German or Nelson Mandela, a man with innovative city in Germany, where In both countries, we must American food or dish? vision, ambition and passion who you can fulfill your dreams with less invest in our youth – the workforce I would die for a nice piece of fought for his deepest conviction. money.

26 commerce germany October 2008 People on the Move AMCHAM GERMANY BRIEFINGS & LECTURES THROUGH DECEMBER 2008 MANAGING MORE Han Steutel has been appointed the new General Manager of Bristol- BUSINESS AS USUAL ... Myers Squibb GmbH & Co. KGaA Deutschland as well as European Vice ... is not that easy these days. New laws, new reg- President. His predecessor Anders Tullgren will take on the new role of ulations, new structures: business life is constantly Vice President of Market Access for the region EMEA (Europe, the Middle changing. So you can keep pace with changes relevant to you, we offer events that are always up East, Africa). to date. With knowledgeable speakers and experts. From the business world, for the business world. FLYING HIGHER Amit Ray is the new Manager of Corporate Client Sales and Business Travel for Germany and UPCOMING BRIEFINGS: Austria at American Airlines based in Frankfurt am Main. Previously, Ray served as Key Account Product Liability in the USA and Beyond Manager at American Airlines in Corporate Sales for nearly five years. – Global Strategies for Success Presenter: Smith & Partners EXPANDING ROLE Date: Oct. 28, 2008 Location: Stuttgart The pharmaceutical company Wyeth Deutschland has a new head: Timm Volmer took the helm as General Manager in August. He replaces Second Annual Transatlantic Economic Andreas Krebs, who became President of Europe, the Middle East, Africa Conference (EMEA) and Canada for Wyeth in June. Volmer has served the company as Presenter: AmCham Germany, F.A.Z.-Institut and BDI Director of Communications and Healthcare Policies since 2004. Date: Nov. 6-7, 2008 Location: Frankfurt HEADING TO BERLIN Pfizer Pharma GmbH is transferring its headquarters from Karlsruhe to Berlin this fall. The new Automotive Conference Presenter: AmCham Germany, JP IIC location on Potsdamer Platz places the 150-year-old company in the midst of the federal capital’s and Unternehmerhaus AG growing health-related industry. Dr. Andreas Penk heads German operations for the pharma- Date: Dec. 3, 2008 ceutical company. Location: Düsseldorf

JOINING THE BOARD CONTACT: Dr. Ulrich Schröder has taken office as CEO of KfW Bankengruppe effec- Matthias Riegel, tive Sept. 1. He succeeded Wolfgang Kroh, who took over from Ingrid Manager, Business Promotion Matthäus-Maier as the Speaker of the Board of Managing Directors in T +49 69 929104-51 F +49 69 929104-11 April 2008 when she retired. Schröder previously served as Chairman E [email protected] of the Managing Board of NRW.BANK, Düsseldorf and Münster. W www.amcham.de (Event Center / Briefings & Lectures)

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October 2008 commerce germany 27 policy issues

Committees Team up on Trade and Technology On June 25, the Government Relations Committee and the customers, reform of the public procurement law, design protec- Telecommunications, Internet, and Media Committee jointly met tion, electronic business transactions and licensing of online with the Parliamentary State Secretary at the Federal Ministry content. Pictured above (from left) are: Jan Richard Vaerst, Julia of Economics and Technology, Dagmar Wöhrl, MdB, in Berlin to Pollok, Dr. Caroline King, Nora Braun, Thomas Börner, Dr. Gregor discuss key trade and technology issues. Committee members Schmid, Dr. Andreas Peya, Julia Lutter, Dr. Andreas Grünwald, focused on Germany as a place to do business from the perspec- Dr. Ingrid Herzog, Reiner Steilen, Carl Graf von Hohenthal, Wöhrl, tive of U.S. investors, covering a range of crucial topics including Niko Härting, Hans-Peter Teufers, Dr. Nikolaus Lindner, Sandra regulation in the field of communication services for business Heuser, Mike Cosse, Sibylle Gabler and Dr. Christoph Enaux.

U.S. Companies and German Subsidiaries: Get Ready for IFRS!

or U.S.-listed companies, major The process is complex and changes in financial reporting involves a number of individuals Figure 1 IFRS conversion will create an impact in: Fare on the way, and these will within the organization as well as have significant implications for pre- external advisors. Figure 2 shows Accounting and reporting policies parers and users of financial state- some of the significant activities Accounting processes (internal and outsourced) ments. On Aug. 27, 2008, the SEC involved in the conversion process. IT systems Internal controls (including internal audit) introduced a “road map“ which, if The success of an IFRS conversion Legal obligations and compensation agreements implemented, will lead to the manda- clearly lies in developing adequate Treasury operations and reporting Tax compliance tory adoption of International Finan- planning and maintaining strong Investor and analyst communications cial Reporting Standards (IFRS) by Douglas Nelson controls over the process. U.S. filers starting in 2014, with ear- German subsidiaries will need to lier adoption allowed. become familiar with the IFRS rules Companies are advised to begin the conver- quickly and start analyzing their IFRS CONTACT INFO sion to IFRS as quickly as possible, since the conversion requirements regarding personnel, Douglas Nelson process requires extensive planning and will systems, training and outside consulting, to Independent Financial Reporting Consultant have a significant impact not only on accounting name only a few areas. It is highly recom- T +49 6103 731497 and reporting policies but in a number of other mended that they begin this process as soon as E [email protected] areas as well (see Figure 1). possible. W www.douglasnelson.de

Figure 2 Sample time line of significant IFRS conversion activities starting in 2009

2009 2010 2011 2012 2013 Analyze accounting and Implement systems changes Determine final adoption Prepare dual reporting Transition to IFRS-only reporting differences be- Develop required changes alternatives under IFRS 1 under IFRS and US GAAP reporting tween US GAAP and IFRS to internal controls Perform IFRS “dry runs” Prepare quarterly reporting Convert all systems Determine impact on finan- Develop and distribute for 2011 under IFRS Communicate with cial reporting and business instructions for subsidiaries Evaluate results and Communicate with investors and analysts Develop IFRS accounting Provide IFRS training to make necessary changes investors and analysts Revise policies for any policies other functions (tax, treas- or corrections to policy Revise policies for any changed IFRS standards Design IFRS reporting ury, cost accounting, and/or systems changed IFRS standards Perform IFRS update packages investor relations) and to Prepare opening balance Perform IFRS update training Determine system subsidiary personnel sheet for 2012 training requirements Apply IFRS for selected sub- Continue IFRS training for Determine impact on local sidiary statutory financial all personnel tax and statutory reporting statements Complete implementation Develop and implement of statutory IFRS reporting IFRS training for accounting Transition date: Reporting date: and finance personnel Jan. 1, 2012 Dec. 31, 2013

To adopt IFRS in 2013, the time to start is now!

For the extended version of this text, please visit www.amcham.de/publications/commerce-germany

28 commerce germany October 2008 Germany Passes Amendment Allowing Scrutiny of Sovereign Wealth Fund Investments

The German government approved an amendment to the Foreign Trade and Payments Act (Außenwirtschaftsgesetz) in August allowing it to review and eventually veto bids for investments in German companies by foreign government-owned investment vehicles known as sovereign wealth funds (SWFs).

he amendment is intended to protect public security and infrastructure but Volker Sach, could possibly threaten investment con- Co-Chairman of the AmCham Germany Financial Services Committee ditions in Germany by potentially sealing T ‘In the current financial crisis, sovereign wealth off the flow of capital from wealthy nations with budgetary surpluses. SWFs recently attracted funds have, with their investments, assisted in stabilizing public attention with multibillion injections of international investment banks.’ capital into several major U.S. banks, thereby eas- ing subprime-related balance-sheet pressures. The German government is concerned that SWFs could exercise significant operational and, above the development of voluntary best practices and Global Standards Should Be Adopted all, political influence through such investments. supports the work of the International Monetary Fund (IMF) and the Organization for Economic The EU Commission has proposed voluntary SWFs Provide Needed Relief Cooperation and Development (OECD). The Trea- commitments from SWFs to the adherence of cer- sury urged, “SWF investment decisions should be tain transparency and management standards. “Over the past decades, SWFs have proven to based solely on commercial grounds, rather than “Rather than striking down a new path, Germany be reliable, unproblematic investors.They have so used to advance, directly or indirectly, the geopo- should adopt national measures that comply with far acquired only minority stakes in major corpo- litical goals of the controlling government.” The international statutes and are reasonable and rations and have exercised no significant influ- different approaches to SWFs may present nondiscriminatory,” says Sach. “Since SWFs oper- ence on the companies’ operative business, let another hurdle for the transatlantic partnership ate on a global scale, solutions on how to deal alone government policies,” stresses Volker Sach, as the United States falls into the category of with them must be multilateral as well.” Co-Chairman of the AmCham Germany Financial countries outside the EU and EFTA. Services Committee. “In the current financial cri- Foreign Investors Could Detour Germany sis, SWFs have assisted in stabilizing international investment banks and may continue to While the desire to protect public security provide urgently needed relief.” and infrastructure is legitimate, the govern- The German government maintains that its ment’s plans could be very damaging for the amendment will allow better monitoring of the German investment climate if investors from cer- financial activities of less transparent SWFs in tain nations were automatically subject to key German industries. It applies, however, only scrutiny and saw their freedom of action to investments originating in states outside the restricted by drawn-out processing times. “Plan- EU or the European Free Trade Association ning and legal certainty are key preconditions (EFTA). The major investments that saved U.S. of investments. Unnecessarily limiting market banks originated from Singapore and Abu Dhabi. freedoms and the international movement of Such investments could be scrutinized when the capital could cause foreign investors to detour foreign stake amounts to 25 percent or more in Germany,” warns Sach. a German company. The investment could then be limited or completely banned within three CONTACT months if the “strategic infrastructure” or public Volker Sach security is deemed to be jeopardized. Managing Director, F.A.Z.-Institut T +49 69 7591-2206 U.S. Treasury Approach Differs E [email protected] W www.faz-institut.de The United States takes a less stringent approach to SWFs: The U.S. Department of Trea- For more information, please contact sury released a statement in March encouraging Eva Funhoff, [email protected]

October 2008 commerce germany 29 member know-how A New Opportunity for U.S. Companies Case shows costs for preparing multiple prospectuses can be significantly reduced.

hen the U.S. pump manufacturer Col- In the past, the subscription of shares by Euro- effort in preparation and fax Corporation went public through pean employees of non-EU issuers has often been approval of the disclosure an initial public offering (IPO) in the impossible. The European Prospectus Directive documents can minimize Dr. Philipp Semmer W MBA, Rechtsanwalt United States in May 2008, it simultaneously pre- does not allow issuers outside of the European costs by around 60 per- pared and filed a European prospectus in Ger- Economic Area to publicly offer securities using a cent to 80 percent. many. Until then, U.S. companies had considered prospectus that has not been approved by a The synergy potential the legal procedures related to simultaneously European regulator. Consequently, U.S. compa- in preparing multiple preparing U.S. and European versions of a nies who want to complete public offerings in prospectuses has not yet prospectus financially and technically prohibitive. one or more European jurisdictions must prepare been fully exploited. In It was very important to Colfax an additional prospectus. The sig- particular, issuers wishing that all of its employees were able nificant costs typically associated to list their shares on a to participate in the IPO. Colfax ‘The approach is an with this additional prospectus U.S. stock exchange but Sina R. Hekmat had reserved about 18.7 million efficient solution for requirement have consistently also reserve shares for shares for its employees and cer- deterred multijurisdictional public their employees in Europe, Partner tain business partners through a cross-border securities offerings. “The multiple disclosure as well as issuers wishing HOGAN & HARTSON RAUE LLP worldwide friends and family pro- offerings’ obligations were the main reason to tap the U.S. and Euro- Potsdamer Platz 1 gram, which allows preferred allo- why until now U.S. public compa- pean retail markets to 10785 Berlin T +49 30 726115-0 cation of shares to certain affili- nies have excluded employees of raise capital and maintain E [email protected] ates designated by the issuer. To permit the their European subsidiaries from participating in a diversified shareholder W www.hhlaw.com employees of Colfax’s European subsidiaries, friends and family programs,“ explains Sina Hek- base should seriously con- including the around 1,000 employees at its Ger- mat, U.S. Partner of Hogan & Hartson, LLP, who sider a dual-track approach. While this is not nec- man subsidiary Allweiler AG, to also subscribe for advised Colfax in connection with the offering. essary or appropriate in every IPO, the approach shares, a dual American-European stock offering “The coordinated dual prospectus publication does show that a dual public offering in the was conducted for the first time since the Euro- is an efficient solution for cross-border securities United States and Europe can be efficiently con- pean Prospectus Directive was implemented into offerings,“ adds Dr. Philipp Semmer, German ducted under the current securities disclosure German law in 2005. Counsel for Hogan & Hartson, LLP.A coordinated laws in the United States and Europe.

smb topics Creating Success and a New Brand with T-shirts

n 2001, the Internet was slipping out of Utrecht, London and Boston as well as in the company’s T-shirt Designer. These cus- fashion and many New Economy compa- production facilities in Poland, Germany and tomers might design shirts for a bachelor nies were disappearing as quickly as they the United States. Every day, the company party or personalized gifts or even with their Eike Sievert I PR Manager and were appearing. But in the midst of this, a prints and ships thousands of T-shirts and football team’s logo. “Any team member can Company Spokesperson student at Leipzig Graduate School of Man- other apparel. create a couple of clever Spreadshirt Karl-Heine-Str. 97 agement proved he had good intuition: Spreadshirt works in the designs and slogans and 04229 Leipzig Lukasz Gadowski came up with an idea to field of personal branding by They’re not mass offer them in a free Spread- T +49 341 94016-224 produced, but E [email protected] make it possible for everyone to print, buy or allowing its customers “to shirt shop. The shop can be W www.spreadshirt.com sell apparel with their own designs or say- bring their ideas onto mass customized integrated into the team’s ings over the Internet. His company would apparel, create their own Web page where others can provide the storage, printing, payment pro- brand and also earn money,“ says Andreas access their products,“ explains Milles. cessing, customer service and shipping of Milles, Head of the Communications Depart- “Whether a profit is made or not is decided the shirts. ment. “Customers actively participate in cre- by the self-imposed commission.” These In 2002 and despite having no seed cap- ating the products – they’re not mass pro- small customers and shirt designers form ital or bank support, Gadowski and duced, but mass customized.“ Spreadshirt the “long tail“ of Spreadshirt’s business. Matthias Spieß founded Spreadshirt serves two customer groups: Retailers who Prominent partners such as Samsung, Nis- together. Today, nearly 300 employees now offer their designs in a free online shop and san, CNN and Holiday Inn Express, who work for Spreadshirt at the headquarters in earn a commission on every purchase and maintain stores with Spreadshirt, also feed Leipzig and in branches in Berlin, Paris, customers who design and buy a shirt with the company’s success.

30 commerce germany October 2008 on capitol hill Transatlantic Trade Issues Overshadowed by Congressional Concern for Domestic Economy

By Ritchie T. Thomas

n their speeches accepting their parties’ However, the party recognizes that any such uni- respective presidential nominations, neither lateral action by the United States would make it Democratic Senator Barak Obama nor Repub- virtually impossible for the country to negotiate Ilican Senator John McCain saw fit to mention future free-trade agreements, and the platform international trade. Although economic issues adopted at the Democratic Party convention have displaced hot-button international topics speaks only of pursuing a multilateral approach like the conflicts in Iraq and Afghanistan as the to improving NAFTA. United States and the EU in the past, and, leading concerns of the American voting public, depending on its final form, this legislation may the debate has principally focused on related cause new friction. Of particular concern to busi- issues such as energy costs and tax policies. Finding Common Ground ness interests is the question of whether the final in Trade Issues version will contain a prohibition on U.S. government contracts with companies, such as major Candidates with Contrasting In the area of North Atlantic trade relations, EU oil companies, which do business in Iran’s Approaches neither candidate, nor for that matter, no con- energy sector. gressional leader seems to have a pressing The administration continues to have hopes The candidates do, of course, differ in their agenda. Some in Congress are suggesting the of adding a completed Doha Round agreement approach to international trade policy and objec- possibility of efforts to negotiate more sectoral to its legacy. It is difficult, however, to find any- tives. Senator McCain seems to have essentially agreements between the United States and the one on the Hill who is optimistic that this will the same trade agenda as President George W. EU, such as financial and intellectual property happen. Bush, including encouraging multilateral, “gold standard” agreements. This approach

CONTACT In the area of North Atlantic trade relations, neither candidate, nor for Ritchie T. Thomas Squire, Sanders & Dempsey L.L.P. that matter, no congressional leader seems to have a pressing agenda 1201 Pennsylvania Ave., NW Washington, DC 20004 T +1 202 6266686 regional and bilateral agreements to reduce would potentially allow policy makers to circum- E [email protected] trade barriers, protecting intellectual property vent such sticking points as agriculture, which and opposing trade-distorting government have prevented movement toward a broader subsidies. free-trade agreement between the United States Some nervousness has been expressed and the EU. Similarly, the possibility of an abroad about the trade agenda of a President expanded services agreement with Japan is Obama because his position on many trade being discussed on the Hill. issues has not been well defined in his service in the Senate. It seems unlikely, however, that it Transformation, Marketing & would break significantly with past U.S. policy. Congress Considering Sanctions Communication Consultants Senator Obama supports inclusion of labor-rights and environmental-protection provisions in the The only trade action affecting U.S.-EU trade United States’ trade agreements, which would be relations likely to be passed in what remains of a departure from the current administration’s the current session of Congress is an Iran sanc- More of the same does not help. stand, but consistent with the Clinton adminis- tions amendment to a Defense Department bill, tration’s policy. In the contest for the Democratic which would raise prospects of imposing sanc- nomination, the candidates sometimes men- tions on companies doing business with Iran, Phone +49 (0)6123 601206 [email protected] tioned that modifying the North American Free including non-U.S. companies. Iran sanctions change-champions.com Trade Agreement (NAFTA) would be an objective. have been a point of contention between the

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