Foreign Direct Investment – Georgia Political Review https://georgiapoliticalreview.com Fri, 25 Apr 2025 19:37:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 Europe’s Role in Shaping Georgia’s Evolving Global Identity https://georgiapoliticalreview.com/europes-role-in-shaping-georgias-evolving-global-identity/?utm_source=rss&utm_medium=rss&utm_campaign=europes-role-in-shaping-georgias-evolving-global-identity Fri, 25 Apr 2025 19:00:00 +0000 https://georgiapoliticalreview.com/?p=11727 By: Nandita Suri

The Port of Savannah. (Photo/Georgia Ports)

Although widely recognized in the U.S. for its peaches and southern charm, Georgia has a different reputation internationally: its location and attributes have caused it to quickly become a magnet for foreign direct investment and a hub for European companies. With economic and political tensions currently rising between the U.S. and E.U., subnational diplomacy, which is defined as international engagement on a local or regional level, and economic cooperation between American and European partners, are more important than ever to ensure the long-term success of the transatlantic relationship. It’s this type of European involvement in the state of Georgia that is reshaping the economy, increasing innovation, and elevating the state’s globalization.

Georgia’s strategic location makes it an ideal spot for overseas companies’ investment. Atlanta is home to multiple headquarters of Fortune 500 companies, as well as the Hartsfield-Jackson International Airport, one of the world’s busiest airports, providing easy access to almost 80% of America’s largest metro cities within a 2-hour flight. As a result, more than 70 countries have official consular and trade representatives in the state, who are responsible for representing their respective national interests to the entire Southeast. Additionally, Georgia’s coastal location is an attractive prospect for many European countries, as it houses two ports. The Port of Savannah is both the largest container terminal in America and the fastest-growing port in the country, functioning as a vital hub for international trade and logistics. The Port of Brunswick is the country’s number one port for new auto imports. European companies in key industries such as supply chain, logistics, and technology, including Vanderlande Industries, Stellantis/Groupe PSA and Hapag-Lloyd, have all chosen Georgia as their U.S. headquarters for these reasons.

Over the past few decades, these companies, particularly German ones, have significantly contributed to Georgia’s economy. Germany is Georgia’s top European trading partner, and has consistently been in the top five international trading partners of the state. For example, Porsche Cars North America (PCNA), a German car brand, established its U.S. headquarters in Atlanta in 1998. More recently, it opened its renowned Porsche Experience Center Atlanta in 2015, a facility that offers multiple drive, track, and simulator experiences. PCNA invested an initial $150 million and expanded their facilities in 2023, contributing an additional $50 million. In 2018, Mercedes-Benz USA, the North American subsidiary of German automotive company Mercedes-Benz, opened its corporate headquarters in Sandy Springs, a suburb a few miles out of Atlanta. The company invested upwards of $74 million and built a facility that could employ up to 1,000 people. Motor vehicles have consistently ranked in the top five traded products between Georgia and international partners, further facilitated by the Port of Brunswick. Other German companies, such as ThyssenKrupp and Siemens, have opened regional or North American headquarters in Georgia. 

To further strengthen these international partnerships with Germany and Poland, Georgia governor Brian Kemp announced an overseas economic development trip, which took place in January 2025. Governor Kemp and representatives from the Georgia Department of Economic Development met with German companies already operating in Georgia, as well as companies with expansion plans, in order to reinforce relationships while participating in diplomacy and partnerships. In Poland, Georgia officials met with Polish business leaders to explore opportunities in the defense industry. Coupled with the news that a Czech aerospace and defense company established North American headquarters in Roswell in February 2025, and Lockheed Martin’s Marietta site, this initiative reflects an effort to support the defense industry in the state. Strong economic relations with Europe aid job creation and stimulate the local economy, simultaneously allowing the state to attract more foreign companies looking to expand to the U.S. In addition, creating enduring relationships with eastern and central Europe allows Georgia access to new emerging markets and stay at the forefront of innovation in science, technology and defense.

The first months of 2025 have presented a number of particularly difficult challenges for the U.S.-E.U. partnership. Strengthening and reinforcing economic partnerships with foreign countries at the local level not only supports the country’s diplomatic ties, but acts as a stabilizing force for transatlantic relationships in an economically and politically uncertain time. While subnational economic relationships cannot replace formal diplomacy, they serve as an opportunity for states to expand their reach and forge cross-cultural partnerships. International investments, like the German and Polish examples discussed above, create thousands of jobs in Georgia each year and bring in millions of dollars in funding. This positions the state to leverage its strategic advantages in diplomacy, geography, and infrastructure, something that has become more important than ever in the modern global landscape.

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