The new German government has just established itself, whilst landmark elections are still pending in Latin America. In the German economy, we look with anticipation to Latin America’s largest economies, those of Brazil and Mexico. Their new heads of state will have to maintain both countries on an accelerated course of growth, no easy task in these troubled times. For us it is evident that the countries of Latin America are more important allies than ever before.
Despite all the turbulence at home, Latin America has proven itself as Germany’s central partner in crucial matters. Global policy-making on issues such as the climate or energy could be dealt with more effectively together. Germany should use this opportunity to join forces. Since other players, especially those from Asia, must seek new alliances in view of the challenge being mounted against globalisation and free trade, Latin America’s geopolitical importance is continually growing. Despite the USA’s departure, the adherence to the Trans Pacific Partnership (TPP) in the form of the recently signed successor agreement, CPTPP, is just one indication of this, with Chile, Peru and Mexico being its Latin American signatories.
Politics and business in Germany would therefore be well advised to pursue the intensive dialogue with its Latin American partners established in recent years and to take advantage of the opportunities offered by these markets. Mutual understanding and shared political, economic and social values make Latin America an important ally. And that’s precisely what we need in times like these!
LADW Chairman and Member of the Group Board of Management of Volkswagen AG
Sunday Brief N°8
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