Mexico and the EU take a major step forward

Trade between the EU and Mexico totals over 86 billion euros, with Germany accounting for about one-third of that figure. However, German exports to Mexico have come under pressure in recent years.

This is precisely where the modernized EU-Mexico Agreement comes in, which Mexican President Claudia Sheinbaum and EU Commission President Ursula von der Leyen are signing today in Mexico City.

This is not just an update. It is about creating new momentum through

- nearly complete tariff liberalization,
- the removal of further trade barriers,
- more international standards, and
- improved access to public procurement.

Mexico has long been a key investment location for German companies – the most important globally outside of Europe, after the U.S. and China. More than two thousand companies with German participation are active there, driving industrial value creation in key sectors such as automotive, mechanical engineering, chemicals, and electronics – with 335,000 jobs directly in the country.

The country is also gaining strategic importance for the realignment of global supply chains – as an industrial hub, a bridge to the North American market, and a partner for future technologies.

The new agreement can make a decisive contribution to making value chains more resilient and diversified and opening up new investment and cooperation opportunities for companies.

If, in the next step, the European Parliament’s Committee on International Trade (INTA) gives its approval and a positive vote is subsequently achieved in the European Parliament’s plenary session, the Interim Trade Agreement (iTA) can be implemented. This promises to trigger immediate economic effects.

After that, Europe must follow through and ratify the full modernized Mexico Agreement (MGA) in all EU member states so that it can enter into force.

Comprehensive information from the European Commission on the agreement: EU-Mexico

Diana Fountain Mexico City — © iStock | benedek

Together on the path to a stronger, more resilient industry

Doubling German-Brazilian trade volume in the coming years—this was the goal set by Federal Chancellor Friedrich Merz at the 42nd German-Brazilian Economic Meeting. Brazilian President Luiz Inácio Lula da Silva also sees great potential in bilateral economic relations, particularly in digitalization, renewable energy, sustainable mobility, security and defense, artificial intelligence, biotechnology, data security, and other areas. The EU-Mercosur trade agreement, which is set to provisionally enter into force on May 1, 2026, offers ideal conditions for intensifying cooperation.

This positive mood characterized the Economic Meeting on April 19 and 20 at HANNOVER MESSE, which was very well attended with over 700 participants. At the start of the conference, LADW Chairman Thomas Schmall, Member of the Volkswagen AG Group Board of Management and CEO of Volkswagen Group Components, stated:

Brazil is one of the most important investment locations for German industry abroad. With 244,000 employees, German companies generate nearly 70 billion euros there annually. This already makes the country the fourth-largest market outside of Europe.

The conditions for a closer partnership are better than they have been in a long time. Now is the moment to turn potential into shared growth. To do so, we need more business-friendly framework conditions.

On stage, everyone agreed: resilience comes from partnership. Brazil and Germany can jointly tap into new markets, diversify supply chains, and advocate for an open, rules-based economic order. The 43rd German-Brazilian Economic Meeting will take place in Londrina (Brazil) in 2027.

Thomas Schmall in the dialogue “Responding to global geopolitical challenges” with Federal Minister for Economic Affairs and Energy Katherina Reiche, Brazilian Minister for Economic Affairs Márcio Elias Rosa, and Ingo Plöger

Judith Wiese, Siemens, and Marco Santos, GFT Technologies, in the Panel Digitalization

Oliver Burkhard, TKMS, in the Panel Resilient Industries and Defense

Stefan Vilsmeier, Brainlab, and Marcio Santos, Bayer, in the Moderated Talk Healthcare and Sustainability

High-profile audience

Brazil and Germany are strengthening their ties

On the sidelines of HANNOVER MESSE, Germany and Brazil held their 3rd intergovernmental consultations in Hanover on April 20, 2026. Led by Federal Chancellor Friedrich Merz and President Luiz Inácio Lula da Silva, both sides reaffirmed their commitment to further expanding their strategic partnership. Attended by numerous ministers, the talks marked an important milestone for the further development of bilateral relations.

Specifically, Germany and Brazil agreed to intensify their cooperation in a wide range of future-oriented fields. These include, among others:

- economic cooperation and more resilient supply chains;
- digital transformation, artificial intelligence, and innovation;
- climate and environmental protection as well as sustainable development;
- research, technology, and space exploration;
- cooperation on critical raw materials;
- security and defense policy.

Link to the Joint Declaration

Joint Declaration 3rd German-Brazilian Interngovernmental Consultations

From the LADW’s perspective, two key insights can be drawn from the discussions:

First: Brazil is ready to significantly intensify its cooperation with Germany. German industry, in particular, is viewed as a strategic partner—for example, in the areas of industrial transformation, digitalization, and sustainable technologies.

Second: International competition for Brazil has noticeably increased. This is no longer just about access to raw materials, but increasingly also about technological cooperation, investments, and industrial value creation.

For the German economy, this means seizing existing opportunities more decisively and translating them into concrete projects more quickly. The goal must be to turn political declarations of intent into measurable cooperation.

Because in the end, it is not the announcement that counts—but the implementation.

President Lula and Federal Chancellor Merz

CEO Roundtable with President Lula and Chancellor Merz, as well as representatives of the privat sector of both countries

Broadening Horizons for Young Brazilian and German Agricultural Professionals

Geopolitical tensions. Climate risks. Ensuring energy and food security. Pressure on global agriculture is mounting—closer cooperation is therefore of strategic importance and urgently needed.

Max Müller, Co-Chair of the AI representing the German private sector and SVP of Global Public Affairs at Bayer AG, put the challenge bluntly: “We must produce more food on less land in a sustainable manner, and clearly, Brazil and Germany can lead by example.”

At the annual meeting and the extensive accompanying program of the German-Brazilian Initiative for Cooperation in Agribusiness and Innovation (AI) in April, leading representatives from politics, business, finance, and academia came together to discuss possible responses to these challenges.

Key outcomes:

- A Memorandum of Understanding (MoU) for a bilateral exchange program for young farmers, signed by ABAG and LADW, supported by the two ministries of agriculture, BMLEH and MAPA;
- Development of an agenda for a joint Brazilian-German biofuel corridor;
- Expert dialogue on sustainability regulations and carbon markets, as well as a joint commitment to expanding digital rural infrastructure and digital skills in the agricultural sector.

Another highlight of the program was the “Field Day.” Agricultural experts from Brazil and Germany visited Kartoffelaufbereitungs- und Handels GbR in Hohe Börde and saw for themselves what a biogas plant and German potato cultivation look like, from seed to supermarket.

Impressions from the “Field Day”

Photos: © Liesa Johannssen

Recap Annual Meeting

Recap Field Day

Signing Ceremony of the MoU

Martina Englhardt-Kopf, Parl. Staatssekretärin im BMLEH, Augusto Billi, Vizeminister im brasilianischen Ministerium für Landwirtschaft und Fischerei (MAPA), Max Müller (LADW) und Ingo Plöger (ABAG) ©Frank Nürnberger — Martina Englhardt-Kopf, Parliamentary State Secretary at the Federal Ministry of Agriculture (BMLEH), Augusto Billi, Vice Minister for Trade and International Relations at the Brazilian Ministry of Agriculture and Fisheries (MAPA), Max Müller (LADW) and Ingo Plöger (ABAG) © Frank Nürnberger

Cooperation with Latin America is top priority for German industry

Thomas Schmall, Member of the Group Board of Management of Volkswagen AG and CEO of Volkswagen Group Components, was elected yesterday as the successor to Gunnar Kilian as Chairman of the Latin American Committee of German Business (LADW). Schmall, who has worked in the region for many years, said on the occasion of his election:

“Latin America is and remains a key market for German business. German companies generate almost €200 billion in sales there every year. We are at a geopolitical turning point that also offers new opportunities for both regions – Latin America and Europe. Global and regional supply chains, investments, and partnerships are being reorganized worldwide. Germany and Europe should not leave this region to their competitors. A strong local presence and sustained investment are essential for us to remain a strategic partner and key player in Latin America.
The EU-Mercosur Agreement opens up new opportunities for Europe’s engagement in Latin America – now it is all about ratification and implementation. Politics and business must work together to translate the agreement into investment, value creation, and growth on both sides of the Atlantic.”

On Thursday, the following committee members were elected as Vice-Chairs of LADW:

- Ulrich Dietz, Chairman of the Administrative Board of GFT Technologies SE,
- Michael Heinz (until April 30, 2026) / Dr. Mary Kurian (from May 1, 2026), Member of the Board of Executive Directors of BASF SE,
- Tim Oliver Holt, Member of the Executive Board of Siemens Energy AG,
- Rodrigo Santos, Member of the Board of Management of Bayer AG, and
- Judith Wiese, Chief People and Sustainability Officer (CPSO) and Member of the Managing Board of Siemens AG.

The LADW sees the strong footprint of German companies in Latin America as a clear competitive advantage for the further expansion of relations. With around 740,000 employees, they already generate around €200 billion in sales per year in the region. By comparison, the figure is €412 billion in China, €59 billion in India, and €37 billion in Africa.

Farewell to Gunnar Kilian as LADW Chairman

Pressemitteilung DE

Press release EN

Nota de Prensa ES

Comunicado a Imprensa PT

Becoming more sovereign – together with Latin America?

The EU is striving for strategic sovereignty: this means economic resilience, environmental sustainability and digital independence. However, in a world of multipolar power relations, unstable supply chains and global transformation processes, this can only be achieved through strong, reliable partnerships. Latin America can play a central role in this.

But how can this partnership contribute to the economic, ecological and digital sovereignty of both regions? This question was discussed at the LADW Focus Event today at this year’s Day of Industry (TDI), one of the largest economic policy conferences in Europe: Brazil’s Foreign Minister, H.E. Ambassador Mauro Vieira, as keynote speaker, Colombia’s Ambassador to Berlin, H.E. Ambassador Yadir Salazar Mejía, Stefan Rouenhoff, Parliamentary State Secretary at the Federal Ministry of Economics, Dominik Asam, Member of the Executive Board and CFO of SAP SE, Stefan Oelrich, Member of the Executive Board and CEO Pharmaceuticals of Bayer AG, and ntv business journalist Isabelle Körner.

Latin America can make indispensable contributions to Europe’s economic resilience, climate protection and technological sovereignty. However, the EU and Germany must act quickly and decisively in order not to miss the boat. Because competition for the region is fierce. The specific fields of action are:

- Ratify the EU-Mercosur Agreement swiftly: The agreement is key to fair trade, sustainable growth and Europe’s geopolitical independence. Any delay opens up space for other players – above all China.
- Diversify supply chains: Latin America offers alternatives in the areas of energy, industrial and critical raw materials. Europe should use these to reduce dependencies.
- Strengthen innovation and scientific cooperation: The region has great potential, especially in digitalization, AI and sustainable technologies. The well-connected Latin American diaspora in Germany can build bridges here.
- Leverage cultural proximity & strong presence of German companies in the region: Shared values facilitate the expansion of economic cooperation – this should be promoted in a targeted manner.
- Setting the political course now: Turn upcoming events into milestones in cooperation: EU-CELAC summit in Colombia in November 2025, COP30 also in Brazil in November 2025 and Hannover Messe 2026 with Brazil as a partner country, etc.

Conclusion: We have the opportunity to expand our partnership with Latin America for the future – for growth, sustainability and global stability. What counts now: Decide. Act. Network.

Brazil's Foreign Minister, H.E. Ambassador Mauro Vieira

LADW Focus Event at TDI — LADW Managing Director Rafael Haddad, Stefan Oelrich, H.E. Ambassador Yadir Salazar Mejía and Parliamentary Secretary of State Stefan Rouenhoff

Experience innovation instead of just talking about it

This week in Salvador, the 41st German-Brazilian Economic Meeting showed how the spirit of innovation can be experienced live – at the SENAI CIMATEC science and research location, with over 600 participants from both countries.

The key message? Sustainable technologies offer enormous potential for joint projects that combine growth and climate protection. But this requires a clear roadmap: Reduction of bureaucratic hurdles, intensified exchange between the players in both countries and reliable, predictable investment conditions for companies.

This was emphasized by Michael Heinz, Deputy Chairman of the LADW and Member of the Board of Executive Directors of BASF SE, at the opening of the conference, which attracted many high-ranking guests such as Rui Costa, Minister and Head of the Brazilian Presidential Office, Gitta Connemann, Parliamentary State Secretary in the Federal Ministry of Economics and Martina Englhardt-Kopf, Parliamentary State Secretary in the Federal Ministry of Agriculture.

How can we achieve this?

- The ratification of the EU-Mercosur Agreement is and remains the linchpin for taking cooperation to the next level.
- Brazilian and German engineering skills can be used together to develop sustainable and highly innovative products. This should be promoted more strongly.
- A modern double taxation agreement should be negotiated as a genuine catalyst for more investment, growth and trust.
- The continuous and structured political dialog should be ambitiously designed, including with German-Brazilian Intergovernmental Consultations scheduled as soon as possible.
- Hannover Messe 2026, with Brazil as a partner country, comes at exactly the right time to showcase Brazil’s innovative strength and cooperation potential at the world’s most important industrial trade fair.

The countdown is on: In 10 months, the next German-Brazilian Economic Meeting will take place as part of the Hannover Messe. Dr. Jochen Köckler, CEO of Deutsche Messe and member of the LADW, has already extended a warm invitation to participate.

Now is the time to set the course for a strong, sustainable and cooperative future.

The greatest potential for cooperation with Latin America still lies ahead of us

“When the world is in turmoil, we stand by our partners. German companies will continue to invest, train and develop technology – with and in Latin America. The existing economic relations are strong and ready to be expanded,” emphasized LADW Chairman Gunnar Kilian at a LADW reception in Berlin attended by high-ranking guests.

Prior to this, the members of LADW – leading German companies with a strong presence in the region – had exchanged views on current economic and geopolitical developments. The clear conclusion: German companies remain committed to Latin America – more than ever.

Latin America is already the third most important economic region for German industry outside Europe, after the United States and China. And there is great potential for more engagement. From green energy and raw materials, to talent and technology, to reliable partnerships.

But for that to happen, Europe must also take action – pragmatically, strategically and with commitment. It needs attractive, long-term economic policy offers that meet the challenges and opportunities of Latin America, and the ratification of EU agreements such as those with Mercosur and Mexico.

“We at LADW are convinced that the greatest potential for our cooperation still lies ahead,” said Kilian.

Impressions

Gunnar Kilian, Botschafterin Yadir Salazar-Mejía und Rafael Haddad

Carsten Hasbach Dr Ursina Krumpholz Dr Jochen Köckler

Carsten Hasbach, Botschafterin Iris Joseline Pujol Rodriguez und Tim Holt

Strack, Botschafterin Salazar-Mejía, Holt, Hasbach

Dr. Jochen Köckler, Botschafter Francisco Quiroga und Botschafter Fernando Brun

Michael Heinz Botschafterin Juana Martínez González

EU-Mercosur agreement finally concluded

The negotiations for the trade agreement between Europe and the South American Mercosur states have lasted 25 years. At times the talks were considered to have failed, then new hope sprouted up again.

At the Mercosur summit in Montevideo on December 6, the President of the European Commission Ursula von der Leyen, together with the Presidents of Brazil, Argentina, Uruguay and Paraguay, finally announced the agreement on a treaty text. This is a milestone for both regions and sends out a signal for free trade, open markets and international cooperation.

For German and European companies, the agreement is a game changer in relations with Latin America and for the global market, because it is not just about trade. It creates:

- More resilience for both economic regions.
- More opportunities for diversified and secure supply chains.
- More prosperity and jobs for people.
- More quality and safety for the products.
- More environmental and social protection.

But there is still an important stage to come: after the political conclusion is before the ratification process. In the EU, legal scrubbing and translations are being prepared as the next steps so that the agreement can be signed by the EU Council and approved by the EU Parliament. This will be followed by a complex ratification process in the member states, which will not be without controversy.

However, with the political agreement in Montevideo, the EU and Mercosur have already proven that even widely divergent interests can be brought to a common denominator with a willingness to compromise and determination. This new spirit of partnership must now also be used to ensure that the agreement can enter into force as soon as possible.

Press release

Text of the agreement

Key facts about the agreement

Cooperation with Brazil more dynamic than ever

More than 400 participants and 30 high-ranking speakers from both countries came together at the 40th German-Brazilian Economic Meeting (DBWT) at the Autostadt in Wolfsburg at the end of September with one goal in mind: To generate more cooperation between Brazil and Germany and jointly seize opportunities for new projects. From sustainable and innovative technologies, green and digital transformation to mobility and talent. There is no shortage of opportunities. Now it’s up to the players in politics and business.

On the occasion of the DBWT, BDI President Siegfried Russwurm and Gunnar Kilian, Chairman of the Latin America Committee of German Business (LADW) and Member of the Group Board of Management of Volkswagen AG, spoke about important topics in the cooperation.

Siegfried Russwurm:

“Germany and Europe must become more attractive partners for Brazil again. The fifth largest country in the world with more than 210 million inhabitants is playing an increasingly important role on the geopolitical stage and is being heavily courted by other countries. Europe has a lot to offer, especially when it comes to decarbonization solutions and future technologies such as artificial intelligence and quantum technologies.”

“We must not lose any more time on the EU-Mercosur agreement. The aim must be to successfully conclude the negotiations by the end of the year. This would allow us to bind Brazil and the entire region more closely to Europe and send an important signal of resolve to our global competitors China and the USA. Tariffs would be abolished on 91% of all traded goods, resulting in annual savings of four billion euros for European industry exports.”

“Germany and Brazil have many opportunities to drive forward the green transformation together and thus make an essential contribution to decarbonization. Few countries in the world have such a clean energy mix as Brazil: the share of renewable energies in electricity generation is over 93% in Brazil and over 56% in Germany. We can also strengthen our cooperation by working together on green hydrogen.”

Gunnar Kilian:

“A targeted expansion of economic relations with Brazil is crucial for Germany as a business location in the current phase.”

“With its dynamic growth market, Latin America’s largest economy offers the potential for a sustainable strengthening of German industry. The country is already one of the largest investment locations for German companies outside of Europe, laying the foundations for further economic involvement. This can be further developed if the appropriate course is now set in politics and business.”

“A decisive step in this direction could be an agreement to avoid double taxation of companies. Germany and Brazil should resume negotiations on this and overcome technical hurdles. Tax relief for companies would facilitate long-term investment decisions and promote the further diversification of our economies.”

More about the DBWT24: German-Brazilian Economic Meeting

Kilian_Habeck_Russwurm — Gunnar Kilian, LADW Chairman and Member of the VW Group Board of Management, Federal Minister of Economics Dr. Robert Habeck and BDI President Prof. Dr.-Ing. Siegfried Russwurm © Christian Kruppa/BDI

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Impressions from the “Field Day”

Impressions