German business wants breakthrough in South America agreement

Trade - German business wants breakthrough in South America agreement

German business is calling for the free trade agreement between the South American economic community Mercosur and the EU to be concluded quickly.

Ingo Kramer, Chairman of the Latin America Initiative of German Business (LAI), said ahead of the German-Brazilian Economic Forum planned for Monday in Berlin with Federal Chancellor Olaf Scholz (SPD) and Brazilian President Luiz Inácio Lula da Silva: "Many companies hope that the meeting between the two heads of government and their economic ministers will soon bring the final negotiations on the EU-Mercosur agreement to a positive conclusion. We need the agreement before the end of this year. Otherwise there is a risk that it will become a never-ending story."

Talks have been going on for years

The EU has been in talks with Brazil, Argentina, Uruguay and Paraguay for years. However, an agreement in principle from 2019 will not be implemented due to ongoing concerns - for example regarding rainforest protection.

Kramer is receiving support from the German Chamber of Industry and Commerce (DIHK). A swift conclusion of the agreement would send a clear signal to the German economy, as Volker Treier, Head of Foreign Trade at the DIHK, said.

"The agreement not only opens up additional market opportunities for German companies in an important economic area, but also offers new and great opportunities for supply chain diversification and raw material supply."

Ampel coalition backs the trade agreement

The Green Party conference recently called for renegotiations on the Mercosur agreement against the wishes of the Federal Executive Board in order to put an end to the "intensive extraction of raw materials in the global South for consumption in the global North". A few days ago in the Bundestag, on the other hand, the traffic light coalition made it clear that it stands by the planned trade agreement.

According to the German Chamber of Industry and Commerce, German companies have been represented in Mercosur countries for more than 100 years with the support of German chambers abroad. According to the data, 12,500 companies export to Mercosur countries.

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1. Olaf Scholz, the Federal Chancellor of Germany from the SPD party, is set to meet with Brazilian President Luiz Inácio Lula da Silva during the German-Brazilian Economic Forum in Berlin, which is scheduled for Monday.
2. Ingo Kramer, the chairman of the Latin America Initiative of German Business (LAI), emphasizes the importance of concluding the free trade agreement between the EU and Mercosur as soon as possible.
3. The EU-Mercosur agreement, which involves Brazil, Argentina, Uruguay, and Paraguay, has been under negotiation for several years, with an agreement in principle reached in 2019.
4. The German Chamber of Industry and Commerce (DIHK) supports Kramer's call for a quick conclusion of the EU-Mercosur agreement, as it would provide new market opportunities for German companies.
5. According to Volker Treier, Head of Foreign Trade at the DIHK, the agreement would also pave the way for supply chain diversification and raw material supply.
6. The Green Party recently advocated for renegotiations on the Mercosur agreement, but the traffic light coalition, comprising the SPD, the Greens, and the FDP, maintains its support for the planned trade agreement.
7. German companies have been active in Mercosur countries for over 100 years, with the assistance of German chambers abroad.
8. Current data shows that 12,500 companies export to Mercosur nations.

Source: www.stern.de