Three G20 counterparts from Latin America intent on cooperation

The heads of state and government of the world’s largest industrial and emerging economies, known as the “G20”, are soon to meet in Hamburg. Among them are the representatives of three Latin America nations: Argentina, Brazil and Mexico. In addition, Argentina is to assume the G20 presidency from Germany and thus bring the Summit to South America for a first time in 2018. This is a very positive sign.

The desire for free trade between Europe and Latin America, as indicated by Chancellor Merkel’s trip to Argentina and Mexico in early June, is currently palpable on both sides of the Atlantic. And indeed, progress towards cooperation is impressive: the conclusion of a free trade agreement between the EU and Mercosur, a long-term issue which to our chagrin had all but stagnated over a considerable period, is now not only seen as possible but is even being pencilled-in for late this year. The Chancellor emphasised this several times in recent weeks. This is a development that we could only have dreamed about one year ago. And the modernisation of the EU-Mexico Global Agreement is also making rapid progress.

But the pursuit of cooperation is not just apparent in an intercontinental context. Within Latin America, Argentina, Brazil and Mexico are also currently endeavouring to find new ways of intensifying mutual economic relations. More intraregional trade would not only stimulate domestic markets there, but also significantly increase the region’s market appeal for its global counterpart. But be these developments intercontinental or intraregional, as German companies we can only support and welcome them. Hence our appeal to Latin America and Europe to continue on their adopted path and to follow it to fruition.

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Andreas Renschler

LADW Chairman, Member of the Group Board of Management Volkswagen AG and CEO Volkswagen Truck & Bus.

Sunday Brief N°5

This Sunday Brief is also available as PDF with the column, voice and lead article.

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