German industry calls for resumption of political relations with Brazil

RIO DE JANEIRO, BRAZIL –  German industry is calling on the new government in Berlin to seek a fresh start in political relations with Brazil to enable bilateral cooperation with any government to be elected in October in Latin America’s largest economy.

The message from the Commission of German Business for Latin America (LADW), chaired by Volkswagen board member Gunnar Kilian, follows the freezing of political relations under the government of Jair Bolsonaro (PL) at levels not seen in decades.

During Angela Merkel’s last term in office, German industry had pushed for Germany to resume dialogue with the Brazilian government – without success. The German industry had high sales even during the Covid 19 pandemic in Brazil, sources said.

According to industry, the lack of political dialogue may have economic repercussions if conditions are not improved, such as attracting more investment.

Brazil is Germany’s most important trading partner in South America, and Germany ranks fourth among Brazil’s largest trading partners. Given the strategic partnership between these countries, they need to develop close economic cooperation further.

However, the first edition of the high-level bilateral consultation mechanism, where the two governments regularly discuss vital issues, occurred in 2015, when Angela Merkel came to Brasilia with seven ministers.

The next meeting was held in Germany in 2017, but Merkel’s government put the brakes on the initiative. First, she claimed that Michel Temer’s government at the time was in transition. Then Bolsonaro came along, and the cooling of relations solidified.

The new coalition government in Berlin, made up of Social Democrats, Greens, and Liberals, took office in December 2021 and signaled that it wanted to intensify relations with Latin America. However, it has not taken a clear position on Brazil.

This may also be because the government had to focus soon after on the threats and Vladimir Putin’s attack on Ukraine, which brought the war to Europe’s doorstep.

In a document titled “Meeting Global Challenges Together with Latin America,” the Latin America Commission of German Business is calling for action. Bilateral relations, it says, are good enough to withstand and overcome political disagreements.

He said that joint solutions, such as in the protection of the rainforest, can be found in intensive political dialogue. “As a country rich in raw materials, Brazil has a key role in overcoming global challenges, for example in climate protection, energy supply or as an agricultural producer,” is the verdict of the German business community.

The industry also advocates that the process of Brazil’s accession to the Organization for Economic Cooperation and Development (OECD) be fully supported by Berlin.

In the view of German industry, the new German government should position itself before the Brazilian elections in October so that a fresh start in political relations with a new Brazilian government is possible. And that bilateral cooperation should be restructured and expanded to include invitations to government consultations.

He believes that the action plan of the strategic partnership with Brazil, which has been in place since 2008, should be modernized and expanded to include new challenges such as digitalization, Industry 4.0, cybersecurity, artificial intelligence, and intelligent electrification.

He also advocates that the new government in Berlin promote and expand relations with important Brazilian states with a high German economic presence, such as São Paulo and Bahia.

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