Julia Monar, representing Germany at the International Court of Justice, said judges lacked the jurisdiction to rule on the case and dismissed Nicaragua's accusations as "inaccurate and distorted."
Nicaragua has dragged Germany before the ICJ in The Hague, arguing that its backing of Israel, notably in terms of arms exports, contravenes the 1948 UN Genocide Convention.
Opening four days of hearings, Monar told ICJ judges that "the conditions on which this court's jurisdiction is based are not met in this case."
"For the first time in the history of this court, it is being asked to adjudicate a case that is twice removed from a classic bilateral dispute," Monar told the court, which rules on legal arguments between countries.
"Neither Nicaragua nor Germany is a party to the conflict that forms the real subject matter of this case, the Israeli-Palestinian conflict," noted Monar.
This meant that the court should declare itself incompetent to rule on the case, argued Monar.
The case dates back to 2024, following the start of Israel's offensive in Gaza. Nicaragua urged ICJ judges to impose emergency measures to force Berlin to halt all aid to Israel, in particular military equipment.
The court threw out Nicaragua's request in April of that year, saying "the circumstances, as they now present themselves" did not justify emergency orders.
The case is nevertheless ongoing and Germany is now seeking to have it removed, either by persuading judges they do not have the power to rule in the case or that Nicaragua's argument does not stack up.
Berlin has filed so-called "preliminary objections to the jurisdiction of the Court and to the admissibility of certain claims" presented by Nicaragua, according to an ICJ statement.
'Inaccurate and distorted'
Addressing that "admissibility", Monar said: "Nicaragua's factual statements are not only inapposite at this stage of the proceedings, but also create an inaccurate and distorted picture."
"All German exports of military technology and equipment to Israel -- as to any country -- are subject to strict licensing requirements which exceed international requirements," she said.
Monar noted Germany's "unwavering support for the existence and security of the State of Israel" but also said it was one of the world's largest bilateral donors to the Palestinian Territories.
Germany seeks a "lasting peace" in Gaza, a goal Monar said was shared by Nicaragua.
"However, Germany has serious doubts that the case brought to your court by Nicaragua would in any way bring us any closer to this shared goal," she said.
"By way of consequence, Germany respectfully requests the court reject Nicaragua's claims," concluded Monar.
During hearings at the court in April 2024, Nicaragua said Germany was "pathetic" to provide aid to Gaza while also simultaneously furnishing Israel with weapons.
Nicaragua's ambassador to the Netherlands, Carlos Jose Arguello Gomez, told the court at that time: "Germany seems not to be able to differentiate between self-defence and genocide."
The court will hold four days of hearings at the Peace Palace where the court sits, with Nicaragua responding on Tuesday.
It takes on average six months for the court to hand down a ruling in such cases.
The court could either side with Germany and throw out the case completely or rule against Berlin, meaning the case would then be considered "on the merits" in more detail.
This procedure is separate from a high-profile case also before the ICJ, in which South Africa has accused Israel of perpetrating genocide in Gaza, which Israel denies.
The ICJ's rulings are binding but it has no power to enforce them.
For example, it has ordered Russia to stop its invasion of Ukraine, a demand that has fallen on deaf ears in the Kremlin.
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