09.01.2026 - "The German industry is pleased and relieved: The agreement between the EU and Mercosur will now be signed. It will bring trade facilitation with great potential to the currently crisis-stricken German industry. It creates a common market of 700 million people and thus the largest free trade zone in the world. And, much more importantly, it creates a solid basis for a long-term strategic collaboration with the Mercosur states and thereby indirectly with the entire Latin American region. The unstoppable commitment of our entrepreneurs in supporting the federal government and the EU Commission to conclude the Mercosur agreement over the past years, and with friends across the Atlantic, has paid off.

It's not just customs duties that will be abolished in the future, which simplifies trade: For German companies, it is now even more appealing to invest in the region. Brazil, due to its size, is already an economic partner with immense potential. Argentina's economy is increasingly recovering under President Milei's liberal agenda. Uruguay and Paraguay are small but very export-strong countries. The next step must now be to additionally pursue agreements to avoid double taxation between the countries.

Another task on the new foundation is the extraction of the rich mineral resources of Latin America, including rare earths, through joint investments of our two economic spheres. Mining and processing stages on site in the Latin American states with our expertise in mechanical and plant engineering through joint ventures medium-term must reduce European dependency on this area from China. Unlike the Chinese model of raw material extraction and processing completely in its own country, German and European investments in this sector increase value creation there and ensure resource supply security here for us alike.

The agreement comes at a time when the world economy continues to fragment and Latin America at least economically becomes the "disputed territory" between the USA, China, and Russia. The agreement sends an important signal to our friends from the region: Free trade instead of customs barriers and cooperation instead of power politics!"