German Chancellor Friedrich Merz and Brazilian President Luiz Inácio Lula da Silva have agreed to expand their countries’ strategic partnership, as they met in Hanover for talks and a visit to the world’s leading industrial trade fair.
Following government consultations in the northern German city, Merz said the two sides would expand cooperation in sectors including the economy, science and technology as well as defence and the arms industry.
“The close ties between our two countries are more necessary than ever at a time when the world order is undergoing such fundamental change,” the German leader said during a joint press conference following the meeting.
“We want to strengthen our mutual benefits, and we want to be a network of strong, like-minded partners.”
Cooperation is to focus on three areas, namely strengthening both economies through trade, boosting economic resilience and diversification through a cooperation on critical raw materials and joint commitment to a rules-based international order, including through efforts to reform the United Nations, according to Merz.
Both sides have also agreed to step up defence and arms cooperation in order to safeguard peace and freedom, the German leader said, adding that they also discussed the situation in the Middle East.
Lula is interested in four further Tamandaré-class frigates from Thyssenkrupp Marine Systems. Four such frigates are currently under construction in Brazil.
“Today we are making progress in our efforts to acquire four further units,” said Lula. There are also ongoing talks regarding armoured vehicles, air defence and drones, he added.
Merz vows to double trade volume
Earlier, Merz had pledged to double the two countries’ trade volume “over the coming years,” while visiting the world’s leading industrial trade show in Hanover alongside Lula.
Merz said the volume of trade between the two countries stood at more than €20 billion ($23.5 billion) in 2024 – a level which he described as “definitely too little.”
Brazil is this year’s guest country at the annual fair.
The EU trade deal with four South American countries in the Mercosur bloc — including Brazil — is set to be provisionally applied from May 1 and will be used to boost trade, the chancellor said.
“Both sides of the Atlantic will benefit from the removal of tariffs and the dismantling of further trade barriers,” Merz said.
At the fair, Lula called for cooperation between Europe and Latin America to be made “ever more productive, ever more effective and ever better.”
Striking a similar note as Merz, he highlighted the importance of a world order based on rules and international institutions.
“The world cannot be governed by lies,” he said. “The world cannot be governed in such a way that someone believes they are more important than others and makes decisions that they impose on the world as if there were no democracy.”
Leaders tour trade fair separately
More than 3,000 exhibitors, including SAP, Microsoft and Siemens, are showing their latest innovations at the Hanover trade show until Friday. The event attracted around 127,000 visitors last year.
Merz and Lula toured the trade grounds on Monday, though organizers of the fair were left baffled when the two leaders went their separate ways following a brief opening statement.
“We’ve never seen anything like this before,” trade fair officials said, but government sources told dpa afterwards that the separate visits to different exhibition stands at the trade show had been “due to a delay on the part of the Brazilian delegation.”
Speculation was initially rife that something might be amiss, after a diplomatic spat caused by Merz in November when making disparaging comments about Belém, the Brazilian city that hosted last year’s UN climate talks.
Following his return to Berlin, Merz said that he had asked the journalists accompanying him during his visit to Belém whether any of them wanted to stay longer, claiming that “no one raised their hand.”
Lula and Merz appeared to be able to smooth things over when they met at the G20 summit later that month, with Merz writing on X afterwards that “next time in Belém, I’ll explore more – from dance steps to local food and the rainforest.”
Lula got a chance to sample local German cuisine in Hanover, with Merz having arranged for him to be served a variety of bratwurst at the city’s Herrenhausen Palace where the talks were held, according to a government spokesman.
However, Lula expressed disappointment at their joint press conference afterwards, saying he had been looking forward to sampling bratwurst from a street vendor but hadn’t seen any.
Germany holds government consultations with particularly close partners such as France, Poland and Italy or key countries such as Brazil or India. Germany is Brazil’s fourth-largest trading partner.
Brazil’s President Lula da Silva speaks during a joint press conference with German Chancellor Friedrich Merz after the German-Brazilian intergovernmental consultations meeting at the Herrenhausen Palace in Hanover. Michael Kappeler/dpa