Germany and Brazil are set to deepen their cooperation as Chancellor Friedrich Merz (CDU) will receive Brazilian President Luiz Inácio Lula da Silva in Hannover on Sunday. Both leaders will inaugurate the Hannover Messe in the evening, widely regarded as the world's most important industrial trade fair. This will be followed by German-Brazilian government consultations on Monday, with economic relations between the two nations taking center stage.
With a population exceeding 200 million, Brazil stands as Germany's most significant trading partner in South America and ranks among the most crucial locations globally for German businesses. Trade volume between the two countries reached over 21 billion euros last year. Approximately 1,300 companies with German capital operate in Brazil, including major corporations such as Siemens, Bayer, Volkswagen, and BASF.
According to Berlin government sources, Brazil's resource wealth offers "great potential" for deepened economic relations. The country is estimated to possess the world's second-largest reserves of rare earth elements. In 2024 alone, Germany imported raw materials worth approximately three billion euros from Brazil.
Foreign policy will also feature prominently in the discussions. In a guest contribution for "Tagesspiegel" and "Handelsblatt," Lula emphasized his commitment to the "strategic partnership" with Germany to strengthen multilateralism. "I am convinced that multilateralism is without alternative. Only through it can we meet the demands of our peoples and all of humanity for peace, sustainability, and shared prosperity," he wrote.
Without directly naming US President Donald Trump, Lula criticized how "the law of the strongest prevails." He noted that military expenditures have reached record levels and tariff disputes are disrupting the global trade framework.
In this context, the Brazilian President highlighted the significance of the free trade agreement between the European Union and the Mercosur countries of South America, which provisionally enters into force on May 1. The German government anticipates that the agreement will lead to a substantial increase in trade volume.
Brazil served as the first partner country of the Hannover Messe in 1980 and now returns as the guest nation. The fair features 4,000 companies from mechanical engineering, electrical and digital industries, as well as the energy sector, presenting over 14,000 new products and solutions. This year's trade fair operates under the motto "Think Tech Forward," with a focus on technological advancement and the digital transformation of the economy.
Merz most recently met Lula in person on the sidelines of the G20 summit in Johannesburg in November. Shortly before that meeting, he had made disparaging remarks about the venue for the World Climate Conference in Belém, Brazil, saying everyone was "glad" to return home from "that place where we were." Lula responded with humor, suggesting that if Merz had visited a bar, dined, and danced there, he would have discovered its advantages over Berlin.
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