Germany and Brazil intend to double the volume of trade between the two nations in the coming years. German Chancellor Friedrich Merz expressed this goal today, specifically advocating for increased cooperation in digital transformation and the fourth industrial revolution.
Merz stated at the 42nd Brazil-Germany Economic Days in Hanover that Brazil is a key partner in an increasingly complex world. He emphasized that Germany seeks to deepen existing relationships and establish new partnerships with the South American nation.
The Chancellor noted that this meeting takes place amidst various geopolitical and geoeconomic challenges. He highlighted positive developments, such as the EU-Mercosur free trade agreement, which is scheduled to provisionally enter into force on May 1st.
Merz characterized this agreement as an encouraging example of international cooperation. He stressed that Germany and Brazil share a fundamental interest in a political order based on trust, contract adherence, and peaceful conflict resolution.
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As the largest economies in Europe and Latin America, the two countries represent over 300 million consumers. Merz noted that despite bilateral trade exceeding 20 billion euros in 2024, the volume is insufficient given their economic size.
He expressed his clear ambition to significantly increase this volume through the new free trade agreement, aiming to double current trade figures in the coming years. He underscored the deep historical ties between the two nations since 1837.
Today, approximately 1,300 German-capital companies operate in Brazil, including Siemens, Bayer, and Volkswagen. These firms generate 10% of Brazil’s industrial value-added, while Germany serves as a crucial market for Brazilian raw materials and agricultural products.
For the future, the Chancellor identified three key cooperation areas: digital transformation and Industry 4.0; rare metals and raw materials; and renewable energy. He offered German technological support to help Brazil expand its mining and industrial output.
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Merz also pointed to Brazil’s pioneering role in renewable energy, including synthetic fuels. He noted that these innovations allow for the continued use of combustion engines, which serves as a vital contribution to global climate protection.
During the event, Brazilian President Lula da Silva highlighted Brazil’s strong economic performance. He noted that the country has maintained GDP growth of over 3% on average over the last three years, despite the context of multiple global crises.
President Lula has been in Europe since Friday for a diplomatic trip. After beginning in Spain, his tour concludes today in Portugal, where he is scheduled to be received by the President of the Republic, António José Seguro.
