The significance of the Indo-Pacific

Germany’s security and prosperity are closely tied to that of the Indo-Pacific. Almost 50 percent of global GDP and a little over two-thirds of global growth are generated in the Indo-Pacific. Some 40 percent of German companies’ trade outside of Europe is conducted with markets in the Indo-Pacific. A large share of raw materials and products that are essential for the functioning of the German economy – including semiconductors, permanent magnets and rare earths – are procured from this region.

However, geopolitical rivalry, disputed borders and simmering conflicts could also have a destabilising effect. Refugee flows, networks of international terrorists and organised crime pose additional risks.

Germany’s interests in the Indo-Pacific

As a nation that trades around the world, Germany has a significant interest in maintaining the stability, prosperity and freedom of countries of the Indo-Pacific. Germany is committed to strengthening international cooperation based on international law in the Indo-Pacific region, to ensure that it remains a place of inclusive cooperation. Germany therefore advocates for open shipping routes, open markets and free trade, a level playing field, digitalisation, connectivity and human rights.

To effectively pursue its interests in the Indo-Pacific region, Germany has adopted an approach of long-term political engagement. The Federal Government’s Policy guidelines for the Indo-Pacific of 2020 and the 2025 keynote address on German Indo-Pacific policy by Foreign Minister Wadephul outline Germany’s strategic foreign policy interests.

Germany is betting on close partnerships with countries in the region, for whom it itself is a reliable partner. A key element of these efforts is strengthening and diversifying its trade relations (e.g. through trade and raw materials partnerships). The Indo-Pacific is the driving force behind the global economy and serves as a hub for global trade activity. Any possible escalation of geopolitical tensions in the Indo-Pacific would have dramatic consequences on global security and prosperity and would also have a direct impact on Germany’s interests.

This is why Germany is strengthening its security and defence partnerships in the Indo-Pacific. Since 2021, Germany has been expanding its strategic engagement in the region; this includes regular Indo-Pacific Deployments of the Bundeswehr, participation in military exercises with regional partners and secondment of liaison officers to engage in multilateral cooperation, e.g. in the Enforcement Coordination Cell in Japan that monitors UN sanctions against North Korea.

The Indo-Pacific is home to around 60 percent of the global population and 22 of the world’s 37 megacities; it is also the source of more than half of all global carbon emissions. This makes Indo-Pacific countries key players in tackling global challenges such as the climate crisis. Developments in the Indo-Pacific will be a deciding factor in whether it is possible to achieve the Paris climate goals and curb climate change. Germany thus has an interest in cooperating with the countries of the Indo-Pacific in order to protect our planet, while also supporting these countries in mitigating the potentially deadly effects of climate change, such as rising sea levels.

EU Strategy for Cooperation in the Indo-Pacific

Germany works to promote rules-based free trade and the adoption of free trade agreements between the EU and the countries of the Indo-Pacific. Europe’s shared interests and values can best be asserted and upheld with the weight of a united Europe behind them. This is why the EU Strategy for Cooperation in the Indo-Pacific was published on 16 September 2021.

The guiding principles of the EU Strategy are effective, values-based multilateral cooperation; a level playing field for fair competition; sustainability goals, climate change mitigation and biodiversity; multilateral and regional cooperation; and support for human rights and democracy.

The EU Strategy sets out seven priority areas for action, which are primarily aligned with the European Union’s competences: sustainable and inclusive prosperity; green transition; ocean governance; digital governance and partnerships; connectivity with the EU initiative Global Gateway; security and defence; and human security.

Regional cooperation

The Asia-Europe Foundation (ASEF) is a forum for civil society cooperation between a total of 53 European and Asian countries. ASEF was founded in 1997 and is based in Singapore. It aims to promote dialogue and cooperation between both continents in various areas, including culture, education, business and politics. ASEF works closely with government organisations and NGOs and carries out many events, programmes and projects.

1997 also saw the establishment of the Indian Ocean Rim Association (IORA). IORA is the only international organisation spanning the entire Indian Ocean. The IORA Secretariat is located in Ebène, Mauritius. The regional organisation comprises 23 member states, all of which are countries bordering the Indian Ocean, and its declared aim is to promote regional cooperation and sustainable development in the Indian Ocean region. States not bordering the Indian Ocean can become dialogue partners. Germany has been a dialogue partner of IORA since 2015, and the EU has been a dialogue partner since 2023.