US-Canada tariff row an opportunity for Germany, say trade groups

German trade associations believe the tariff dispute between the US and Canada presents opportunities for Germany and Europe.

"If access to the US market becomes more difficult for Canadian companies, their interest in alternative markets is likely to grow," Volker Treier, head of foreign trade at the DIHK, told dpa on Wednesday. "Europe can benefit from this."

Treier noted that, through the CETA trade agreement, the EU already has a foundation on which to further improve economic relations with Canada. 

"Since the agreement provisionally came into force in 2017, trade in goods between the EU and Canada has grown by 76%, yet the potential is far from being fully realized."

Dirk Jandura, president of the German Export Association (BGA), also sees opportunities for increased trade with Canada. "We are, in fact, already seeing the first clear signs that Canada is focusing its exports more strongly on markets outside the US," he said.

According to Statistics Canada, Canadian exports to countries outside the US rose for the third month running in July, reaching a record high of 25.6 billion Canadian dollars (around $18.6 billion).

In its tariff dispute with Canada, the US has announced import bans on certain products from its neighbour. 

Executive orders issued by President Donald Trump mean certain dairy products, alcoholic beverages and motorbikes will no longer be permitted to be imported into the US from September 29.

Canadian retaliatory tariffs on US imports came into force early on Tuesday. The measures affect products in the steel and aluminium sectors, household appliances, agricultural equipment, pulp and paper, and electronics.