Finance
Germany's Merz, Brazil's Lula Stress Close European-Brazilian Cooperation
Published by Global Banking & Finance Review®
Posted on April 19, 2026
2 min readLast updated: April 19, 2026
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German Chancellor Friedrich Merz and Brazilian President Luiz Inácio Lula da Silva, speaking April 19 in Hanover, underscored the importance of deepening EU–Brazil economic ties, welcoming the provisional entry into force of the EU‑Mercosur free trade pact on May 1.
Germany, Brazil Call for Strengthened Economic and Trade Ties at Hanover Fair
Highlights from the Hanover Industrial Fair Opening
HANOVER, April 19 (Reuters) - German Chancellor Friedrich Merz and Brazilian President Luiz Inacio Lula da Silva on Sunday called for closer ties between South America's largest economy and the European Union at the opening of the Hanover industrial fair.
EU-Mercosur Free Trade Agreement
Both welcomed the entry into force of the EU-Mercosur free trade agreement on May 1.
Commitment to Multilateral Order
"This shows that we are sticking to the multilateral order, that we want a rules-based economic system, and that we want this cooperation with as few tariffs as possible – ideally none at all," Merz said.
Brazil as a Strategic Partner
Lula described Brazil, this year's partner country at the world's largest industrial trade fair in Hanover, as a reliable and important partner, including in the supply of raw materials.
Brazil's Mineral Potential
Although only about 30% of Brazil's mineral potential has been mapped, the country already has the world's largest reserves of niobium, the second-largest reserves of graphite and rare earths, and the third-largest reserves of nickel, Lula said.
Economic and Social Development
"These raw materials must serve as a driver of economic and social development," he added, calling for greater technology transfer and more processing capacity to be established in Brazil.
Expanding Economic Cooperation
Lula said he wanted to discuss the full range of economic cooperation with Merz, including artificial intelligence, critical minerals and data centers.
Upcoming Government Consultations
German-Brazilian government consultations are due to take place on Monday.
(Reporting by Andreas Rinke in Hanover; Additional reporting and writing by Isabel Teles in Sao Paulo; Editing by Bill Berkrot)
Key Takeaways
- •The EU‑Mercosur Interim Trade Agreement will provisionally enter into force starting May 1, 2026, signaling a commitment to rules‑based multilateral trade and potentially generating significant economic gains across both regions (mfa.gov.lv).
- •Brazil, as this year’s partner country at the Hanover fair, highlighted its vast, under‑mapped mineral wealth—including world‑leading niobium reserves and major graphite, rare‑earth, and nickel reserves—and called for enhanced technology transfer and domestic processing capacity (discoveryalert.com.au).
- •The provisional application of the agreement comes after Mercosur countries completed ratification, including Brazil’s approval by Congress in early March 2026, paving the way for closer EU–Brazil industrial and digital collaboration on AI, critical minerals, and data centers (apnews.com).
References
Frequently Asked Questions about Germany's Merz, Brazil's Lula stress close European-Brazilian cooperation
1What agreement was welcomed by Germany and Brazil at the Hanover fair?
Both countries welcomed the entry into force of the EU-Mercosur free trade agreement on May 1.
2Why is Brazil considered a key partner for Europe?
Brazil is viewed as a reliable partner due to its rich reserves of minerals, including being the largest global source of niobium and having significant graphite and rare earth resources.
3What areas of cooperation did President Lula propose?
Lula proposed greater technology transfer, boosting processing capacity in Brazil, and discussions on artificial intelligence, critical minerals, and data centers.
4When are German-Brazilian government consultations scheduled?
Consultations are due to take place on Monday following the Hanover industrial fair.
5How much of Brazil’s mineral potential has been mapped?
Only about 30% of Brazil's mineral potential has been mapped, according to President Lula.
