Olaf Scholz on South American tour to strengthen ties

by time news

Published on :

Olaf Scholz begins this Saturday, January 28 a five-day tour of Latin America focused on the economy. Accompanied by a dozen business leaders, the German Chancellor goes first to Argentina, then to Chile, before ending with Brazil.

These three large Latin American countries represent a market of approximately 278 million inhabitants. They are therefore very attractive economically for Germany, which has lost the Russian market due to the war in Ukraine and which is seeking to reduce its heavy commercial dependence on China.

Especially since this region is very rich in essential raw materials, especially copper and lithium. The latter, called the new white gold, is necessary for the production of batteries for electric vehicles.

The German Chancellor’s tour should also make it possible to advance thefree trade agreement between the European Union and Mercosur, made up of Brazil, Argentina, Uruguay and Paraguay. Finalized in 2019, the agreement was never ratified due in particular to European concerns about the environmental policy of former Brazilian President Jair Bolsonaro.

But the return of Lula da Silva to Brazil reassures Brussels. The left-wing president, who presents himself as a defender of the environment, is committed to preserving the Amazon, the lungs of the planet.

You may also like

Leave a Comment