German ministers head to Brazil to promote free trade deal

German Economy Minister Robert Habeck plans to promote the free trade agreement between the European Union and the South American confederation Mercosur during his trip to Brazil, he said before he departed, reported dpa.

Now, with Brazilian President Luiz Inácio Lula da Silva in power, there are hopes that an agreement can be reached on the stalled agreement, Habeck said. "It is actually finally negotiated but still has questions from both sides," he noted on Saturday evening, before departing with Agriculture Minister Cem Özdemir.

The two key ministers are from the Greens, the second-largest party in Germany's governing coalition. They are travelling to the region to pursue the deal that the EU has long been negotiating with the countries in Mercosur: Brazil, Argentina, Paraguay and Uruguay.

Habeck called the agreement an opportunity for South America as well as for Europe and for Germany, if sustainability is made a binding part of it. "Part of the trip will be to find out if that is possible with Brazil and with the other countries in the Mercosur agreement."

If it goes ahead, the agreement would create one of the largest free trade areas in the world with more than 700 million people.

However, it was on hold under Brazil's previous right-wing president, Jair Bolsonaro, who refused to act on climate change.

"We want a powerful signal that Germany wants a partnership of equals," said Agriculture Minister Özdemir. He called Brazil and Colombia, the second destination of their trip, "ideal partners" as they set out to combine climate protection and prosperity.

Colombia is an associated country in Mercosur.

In Brazil, the planned meeting with the two ministers has attracted a lot of attention from the Brazilian business community.

"The interest of the private sector is huge," Lytha Spindola, director of industrial development for the Brazilian industry federation CNI, told dpa on Sunday.

Around 1,000 participants were planning to come to the German-Brazilian Business Days in the south-eastern city of Belo Horizonte, which are scheduled on Monday.

"Germany is a traditional, very important partner," said Spinola. Germany is Brazil's fourth largest trading partner, according to the CNI. Brazil is Germany's most important partner in South America.

Around 1,600 German companies are active in Latin America's largest economy, according to the CNI. The metropolis of São Paulo, with its millions of inhabitants, is the largest German industrial city outside of Germany.