Federal government: Germany and Brazil are working on economic relations

Germany and Brazil want to deepen their economic relations.

Federal government: Germany and Brazil are working on economic relations

Germany and Brazil want to deepen their economic relations. Federal Economics Minister Robert Habeck (Greens) opens the German-Brazilian Business Days in Belo Horizonte today. In the afternoon (local time) he will fly on to Brasília, where political talks are scheduled, together with Agriculture Minister Cem Özdemir (Greens) as part of a multi-day trip.

During a visit to the company in Belo Horizonte on Sunday, Habeck praised the plans of the new Brazilian government of President Luiz Inácio Lula da Silva to protect the Amazon rainforest. The Greens politician said Lula's Brazilian government has set a target of ending deforestation by 2030. Habeck spoke of a hopeful sign. "In any case, I can get tears in my eyes that a government is turning things around like that."

Lula's inauguration as a boost

Former Brazilian President Jair Bolsonaro had advocated the exploitation of the Amazon region. Left-wing politician Lula, who was sworn in as President of Brazil for the third time on January 1, was not exactly considered an environmentalist in his previous terms (early 2003 - late 2010), but has now promised to prioritize environmental and climate protection. Lula's assumption of office should also give new impetus to EU negotiations on a free trade agreement with the South American confederation of states Mercosur. In this context, Habeck emphasized the importance of protecting the rainforest.

The economics minister called Brazil a "premium partner" for the German economy. He emphasized the economic opportunities in building a hydrogen economy. "Green" hydrogen, which is produced on the basis of renewable energies, plays a key role for the federal government in the climate-neutral restructuring of the economy. Due to the climatic conditions, Brazil is considered a good location for the cheap production of hydrogen.

Industry welcomes plans for free trade agreements

German industry had called for speed in the negotiations on the Mercosur agreement. The export country Germany lost world market share and competitiveness last year, which is why there is a great need for further free trade agreements, explained the Federation of German Industries. Environmental protection associations and consumer protection organizations, on the other hand, criticize the free trade agreement.

FDP parliamentary group leader Lukas Köhler told the German Press Agency that early ratification of the EU-Mercosur agreement will permanently strengthen economic relations between Europe and Brazil and other important countries in South America. "With this in mind, the FDP parliamentary group expects Economics Minister Habeck in Brazil to send clear signals to our South American partners in the direction of speedy ratification of the joint free trade agreement."