German Chancellor Friedrich Merz and Brazilian President Luiz Inácio Lula da Silva met at the Hanover industrial fair to advocate for a deeper economic partnership between the European Union and South America’s largest economy. The meeting centered on the landmark entry into force of the EU-Mercosur free trade agreement on May 1, 2026.
Chancellor Merz emphasized that the agreement reinforces a rules-based global economic order and expressed a desire to eliminate trade barriers and tariffs between the two regions. President Lula, representing Brazil as the fair’s partner nation, highlighted his country’s role as a vital provider of critical raw materials. He noted that Brazil holds massive reserves of graphite, rare earths, nickel, and niobium, much of which remains untapped.
Beyond trade in minerals, Lula called for increased technology transfer and the development of processing industries within Brazil. The two leaders also planned to discuss collaboration in emerging sectors, including artificial intelligence and data infrastructure, with formal government consultations scheduled to continue in the coming days.