Hanover, Germany, April 20, 2026 (Lusa) - Germany and Brazil intend to double their bilateral trade volume in the coming years, German Chancellor, Friedrich Merz, announced on Monday, emphasising the importance of cooperation on digital transformation and the Fourth Industrial Revolution.
“In our increasingly complex world, Brazil is a key partner with whom we wish to deepen existing relations and establish new partnerships,” said Merz at the opening of the 42nd Germany-Brazil Economic Meeting organised by the Federation of German Industries at the Hannover Messe (the world’s largest and most significant industrial trade fair), where Brazil is the guest nation.
The chancellor said that this meeting coincided with significant geopolitical and geo-economic challenges, and that there were also “opportunities and advances”, most notably the free trade agreement between the European Union (EU) and Mercosur, which will provisionally enter into force on 1 May.
"This agreement is a particularly good and encouraging example," said Merz, who emphasised that Germany shares with Brazil "a fundamental interest in a political order in which we can rely on agreements, on contracts, we can work together to solve global problems, and in which conflicts are resolved solely by peaceful means".
He said that Germany and Brazil, as the largest economies in Europe and Latin America respectively, represent over 300 million consumers, adding that the two countries had great joint economic potential.
The chancellor further said that bilateral trade volume had exceeded €20 billion in 2024, even without the free trade agreement with Mercosur.
“But (...) given the size of these two economies, this is clearly insufficient,” he said, adding that he aimed “to strengthen this volume through the free trade agreement, to increase it significantly” and to aspire to “double this volume in the coming years”.
Merz pointed out that economic relations between the two countries dated back to 1837, when Alfred Krupp (a German industrialist known as "The Cannon King" who became a pioneer in large-scale steel production and arms manufacturing) had received an order from Brazil for two coin-minting cylinders.
Currently, around 1,300 German-owned companies, including Siemens, Bayer, Volkswagen, BASF and Mercedes-Benz, operate in Brazil and generate 10% of the country’s industrial value added.
Additionally, Merz said that Brazil remained an important sales market for Germany, particularly for machinery, chemicals, and vehicles, while Germany served as a key market for Brazilian raw materials and agricultural products.
Looking ahead, the chancellor identified three primary areas for cooperation: digital transformation and Industry 4.0, rare earths and raw materials, and renewable energies.
He further highlighted the appeal of the Brazilian market for German firms involved in automation, digitalisation, and smart manufacturing, saying that Brazil was estimated to possess the world's second-largest reserves of rare earths and raw materials.
"Germany is willing to support Brazil with technological expertise to expand these relations," he said.
He also highlighted Brazil’s significant pioneering role in renewable energy, specifically pointing to synthetic fuels that allow for the continued use of combustion engines as an essential contribution to climate protection.
The president of Brazil, Lula da Silva, during the final day of his visit to Germany, highlighted Brazil’s strong economic performance, saying that GDP (Gross Domestic Product) growth had averaged over 3% during the previous three years despite a global context of multiple crises.
Lula da Silva has been in Europe since Friday on a tour that began in Spain and ends on Monday in Portugal, where he will be received by the president of Portugal, António José Seguro.
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