Doing Business In Germany: A Country Commercial ... - Export.gov

procurement is formally non-discriminatory and compliant with the GATT Agreement on
Government Procurement and the European Community's procurement directives. That
said, it is a major challenge to compete head-to-head with major German or other EU
suppliers who have established long-term ties with purchasing entities.
EU Regulations
The EU public procurement market, including EU institutions and Member States, totals
around EUR 1,600 billion. This market is regulated by two Directives:
• Directive 2004/18 on Coordination of procedures for the award of public works,
services and supplies contracts, and
• Directive 2004/17 on Coordination of procedures of entities operating in the Utilities
sector, which covers the following sectors: water, energy, transport and postal services.
Remedies directives cover legal means for companies who face discriminatory public
procurement practices. These directives are implemented in the national procurement
legislation of the 27 EU Member States.
The US and the EU are signatories of the World Trade Organization’s (WTO)
Government Procurement Agreement (GPA), which grants access to most public
supplies and some services and works contracts published by national procuring
authorities of the countries that are parties to the Agreement. In practice, this means that
U.S.-based companies are eligible to bid on supplies contracts from European public
contracting authorities above the agreed thresholds.
For more information, please visit the U.S. Commercial Service at the U.S. Mission to
the European Union website dedicated to EU public procurement. This site also has a
database of all European public procurement tenders that are open to U.S.-based firms
by virtue of the Government Procurement Agreement. Access is free of charge.
http://export.gov/europeanunion/grantstendersandfinancing/cseutendersdatabase/index.
asp
Distribution and Sales Channels Return to top
Distribution channels are varied and similar to the United States. There are certain
restrictions, however, concerning multi-level networking systems, i.e., so-called snowball
or pyramid distribution systems. More information: www.wettbewerbszentrale.de/
Selling Factors/Techniques Return to top
Success in the German market, as elsewhere around the world, requires long-term
commitment to market development and sales backup, especially if U.S. companies are
to overcome the geographic handicap with respect to European competitors. Germans
at times perceive U.S. suppliers as tending to process a U.S. domestic order before
taking care of an export sale, or being quick to bypass a local distributor to deal directly
with its customer. Some German entrepreneurs with selective experience with U.S.
companies are skeptical about their long-term commitment and after-sales support. U.S.
firms entering Germany today are generally aware of the factors that make for a
successful export relationship and are ready to establish a credible support network.
However, U.S. firms should be ready to address any lingering doubts from prospective
German clients/partners.