There are great expectations ahead of Brazilian President Lula’s state visit to Germany. The companies want the planned South American free trade agreement to make rapid progress.
The German economy is calling for a quick conclusion of the free trade agreement between the South American economic community Mercosur and the EU.
Ingo Kramer, Chairman of the Latin American Initiative of German Business (LAI), said before the German-Brazilian Economic Forum planned for Monday in Berlin with Chancellor Olaf Scholz (SPD) and Brazilian President Luiz Inácio Lula da Silva: “Many companies hope that “Thanks to the meeting of the two heads of government and their economics ministers, the final negotiations on the EU-Mercosur agreement will soon come to a positive end. We need the agreement this year. Otherwise there is a risk that it will become a never-ending story.”
Conversations have been going on for years
The EU’s talks with Brazil, Argentina, Uruguay and Paraguay have been going on for years. However, a fundamental agreement from 2019 will not be implemented due to ongoing concerns – for example about rainforest protection.
Kramer receives support from the German Chamber of Commerce and Industry (DIHK). A quick conclusion of the agreement would send a clear signal in the interests of the German economy, as the head of foreign trade at the DIHK, Volker Treier, said.
“The agreement not only opens up additional market opportunities for German companies in an important economic area, but also offers new and major opportunities for supply chain diversification and raw material supply.”
Traffic light coalition is behind the trade agreement
The Green party conference recently called for renegotiations of the Mercosur agreement against the will of the federal executive board in order to put an end to the “intensive mining of raw materials in the global south for consumption in the global north”. The traffic light coalition, on the other hand, made it clear in the Bundestag a few days ago that it stood by the planned trade agreement.
According to the German Chamber of Commerce and Industry, German companies have been represented in Mercosur countries for more than 100 years with the support of German chambers abroad. According to the information, 12,500 companies export to Mercosur countries.