Diplomacy - President Lula in Berlin: Is the free trade agreement coming?
After an eight-year break, the governments of Germany and Brazil are meeting again for the first time for comprehensive consultations on their cooperation. Under the leadership of Federal Chancellor Olaf Scholz and President Luiz Inácio Lula da Silva, they will discuss economic cooperation, energy and climate protection as well as foreign and security policy in the Berlin Chancellery today.
The most exciting question: Can the years of negotiations on a free trade agreement between the South American economic community Mercosur and the European Union finally be brought to a conclusion?
Free trade zone with over 700 million inhabitants
The agreement would create one of the world's largest free trade zones with more than 700 million inhabitants. The EU has been in talks with the four Mercosur states of Brazil, Argentina, Uruguay and Paraguay for well over 20 years. However, an agreement in principle from 2019 has not been implemented due to ongoing concerns - for example regarding rainforest protection.
The German economy is calling for a quick conclusion. However, the Green Party conference recently called for renegotiations 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". The governing coalition of SPD, Greens and FDP, on the other hand, made it clear in the Bundestag a few days ago that it would stand by the planned trade agreement.
Numerous agreements planned
The meeting will be attended by several ministers on both sides, nine on the German side. Numerous agreements are to be signed, including on biodiversity and marine protection, the reforestation of rainforests, digitalization and the extraction of mineral resources.
Brazil holds G20 presidency
Brazil took over the chairmanship of the G20 round of leading economic powers on December 1 and will host next year's summit in Rio de Janeiro. However, it is also represented in the Brics group with China, Russia and India, which is seen by many as a rival to the G7 of Western industrialized countries.
In terms of security policy, there are clear differences between Germany and Brazil, including on the Gaza and Ukraine wars. While Germany only advocates ceasefires between Israel and the Islamist Hamas in order to allow humanitarian aid, Brazil is calling for an immediate and permanent ceasefire. In the Russian war of aggression against Ukraine, Brazil has long advocated peace negotiations, while Germany leaves the decision to Ukraine.
Consultation pause due to Bolsonaro
The German government regularly arranges intergovernmental consultations with countries with which it has a particularly close partnership or which are of particularly great strategic importance to Germany. The German and Brazilian cabinets met for the first time in Brasília in 2015 to broaden their relations.
However, under the right-wing populist President Jair Bolsonaro, who earned himself the nickname "Tropical Trump", the consultations were put on ice for years. The idea was revived following Lula's return to the Brazilian presidency. In January, Lula and Scholz agreed to resume the consultations during the latter's inaugural visit to Brasilia.
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- Despite the pause in consultations during Jair Bolsonaro's presidency, the Federal Government of Germany and the Government of Brazil are now meeting for comprehensive discussions, led by Chancellor Olaf Scholz and President Luiz Inácio Lula da Silva.
- The focus of these discussions includes economic cooperation, energy and climate protection, as well as foreign and security policy.
- One of the most significant issues on the table is the potential conclusion of the long-negotiated free trade agreement between the Mercosur economic community and the European Union.
- The EU has been in negotiations with Mercosur members Brazil, Argentina, Uruguay, and Paraguay for over 20 years, aiming to create a free trade zone with over 700 million inhabitants.
- Germany's economy is pressing for a swift agreement, but the Green Party recently advocated for renegotiations to address concerns about raw material extraction in the global South.
- The governing coalition in Germany, however, has reaffirmed its support for the planned free trade agreement.
- Numerous agreements will be signed at this meeting, covering topics such as biodiversity, marine protection, digitalization, rainforest reforestation, and mineral resource extraction.
- Brazil currently holds the presidency of the G20 round of leading economic powers, which will host the next summit in Rio de Janeiro in 2023.
- Despite largely conflicting views on security policy issues like the conflict in Gaza and Ukraine's war with Russia, the German and Brazilian governments have decided to resume their intergovernmental consultations.
- The resumed consultations were prompted by the return of Luiz Inácio Lula da Silva to the Brazilian presidency and a renewed focus on strengthening Germany's strategic partnerships in South America.
Source: www.stern.de
