German trade policy in Eastern Europe, 1890–1990: preconditions for applying international trade leverage

Over the past century, Germany has repeatedly attempted to use trade as a tool of foreign policy vis-à-vis Imperial Russia, the Soviet Union, Poland, and Czechoslovakia. Against the background of continual German economic superiority, this article analyzes Germany's ability to apply trade leverage in terms of four other factors: the nature of the prevailing international trade regime, government views of trade leverage as a tool of statecraft, the degree of German state autonomy in setting trade policies, and the availability of an effective bureaucratic mechanism for controlling German imports and exports. The historical record demonstrates that beyond economic superiority, the application of trade leverage requires a permissive international trade regime, state acceptance of trade-based economic statecraft, an autonomous domestic regime, and a rigorous trade control bureaucracy. Surprisingly, this conjunction of factors, as they applied to Eastern Europe, occurred during both the Nazi period and the early years of the Federal Republic. The article closes by pointing out how two important factors—the politicized nature of the East-West trade regime and the Federal Republic's high degree of state autonomy in setting Eastern trade policy–are being eroded by political and economic change in Eastern Europe.