HANOVER, Germany — German Chancellor Friedrich Merz and Brazilian President Luiz Inácio Lula da Silva pledged to deepen political and economic ties between their countries in response to the increasingly unstable global order.
The leaders and members of their governments on Monday signed off on a series of agreements to increase cooperation on everything from defense to rare earths and renewable energy. Merz also said Germany aimed to double its trade volume with Brazil in the next years.
Without mentioning U.S. President Donald Trump by name, Merz suggested that deepening ties with Brazil was part of a larger German strategy of pursuing closer economic relations with so-called “middle powers” around the world in an effort to reduce dependence on the U.S. and China.
“The close ties between our two countries are more necessary than ever at a time when the world order is undergoing such fundamental changes,” Merz said on Monday alongside the Brazilian leader. “We share an interest in an international order in which we can rely on agreements and treaties, and in which we are capable of working together to tackle even global problems.”
Merz’s pledge for increased cooperation with Brazil comes as Germany’s struggling, export-oriented economy faces further headwinds amid the fallout of the U.S.-Israel war with Iran.
“The repercussions will not stop at America’s doorstep,” Merz said of the war in the Middle East. “All of this is currently jeopardizing economic development around the world and could lead to further political destabilization far beyond the Middle East.”
Lula said Brazil and Germany would work together to establish more independence in a technology sector dominated by U.S. firms.
“We are interested in developing digital infrastructure such as data centers, high-performance computers, and semiconductors,” said Lula. “We no longer want to be dependent on foreign companies that enrich themselves at the expense of our citizens’ data—without any guarantees regarding privacy and security.”
Among the 13 agreements struck between Berlin and Brasília during consultations held Monday are declarations of intent on cooperation in defense procurement, quantum computing, and critical and strategic minerals.
Merz, earlier on Monday, vowed to significantly expand the current trade volume between Germany and Brazil, which amounted to €20 billion in 2024.
“Given the size of these two economies, that is far too little,” he said of the trade volume. “We want to significantly increase it, and I wholeheartedly endorse the ambitious goal of doubling this trade volume in the coming years.”
Merz also praised the provisional implementation the EU’s trade deal with the South American countries of Mercosur by the European Commission, which takes effect from the beginning of May.
Hans von der Burchard contributed reporting from Hanover.
Germany turns to Brazil as US ties fray
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