German economy in harmony with Brazil

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Actually, the German-Brazilian economy days are an annual Ritual, in which all stress how they are United. But this time, a noticeable nervousness was in the air. Alexander Busch from Natal.

Trade desired: container vessel of the shipping company Alianca (Oetker group) in the Brazilian port of Manaus

“Rarely have there been so many tensions in the relationship between the States as is currently the case,” said Ingo Plöger, President of the Latin America Business Council (CEAL), at 37. German-Brazilian business days in Natal, the North-easternmost city of Brazil. “That makes the cooperation more difficult.” Because on the one hand, Germany and Brazil are in the process of economically, to cooperate more closely than ever before. Politically, however, the differences have increased.

Since the inauguration of President Jair Bolsonaro, in January of this year, Brazil experienced a shift to the right. In the case of issues such as the environment, minorities, rain forest, climate or human rights, the country now stands for a policy that condones, in Germany only a minority. And not only there: Bolsonaro harvests because of the burning Amazon rain forest, fierce criticism from across the EU.

But at the same time Brazil has become more important for Germany’s Foreign and economic policy. Because the EU and the Confederation of States of Mercosur (Argentina, Brazil, Paraguay and Uruguay) have agreed, after 20 years of negotiations, an agreement on a free trade zone. In addition, the Brazilian government rolls up its economy. The country opens privatized for trade and investment and companies.

No trade at the expense of the environment

The representatives of the governments and the economy in Natal were clearly trying to harmony. Again and again they pleaded that they should talk to each other and not on top of each other. And they stressed that the expansion of trade and investment should not go at the expense of the Social or the environmental.

Slash-and-burn in the Amazon: a point of contention between Brazil and Germany

Many of those present were concerned that the ratification of the hard-earned agreement between EU and Mercosur could drag on because of the growing resistance in Europe for a long time. “We must do everything to ensure that the agreement is implemented,” demanded Dieter Kempf from the Federation of German industries (BDI). Georg Witschel, the German Ambassador in Brasilia, warned that the EU-Mercosur agreement on the game. Roberto Jaguaribe, the Brazilian Ambassador in Berlin, urged especially the Brazilians, to miss again an opportunity.

German industry representatives do not want to lose in Brazil to the port. The investment of German companies have shrunk in the past few years. Germany as a foreign investor-on the nine. The United States and China have beaten Germany. In view of the reforms in Brazil, Andreas Renschler, Chairman of the Latin America Committee of the German economy, proposes to extend the strategic partnership between Brazil and Germany, the issues of digitalisation and sustainability.

Close relationships: the Volkswagen plant in Sao Bernardo do Campo in Brazil

The positive is that Brazil wants to open negotiations on a double taxation agreement, which in Germany about 15 years ago has terminated. Since then, companies have to pay taxes twice. “For small and medium-sized enterprises that would be an important step to invest in Brazil,” said Thomas Bareiß, Parliamentary under-Secretary of state in the Ministry of economy.

Brazil’s Vice-President is sober

Facilitates the participants were analyzed, as Vice-President of the Hamilton Mourão, the relationship between Brazil and Germany is a balanced and sober. The General of the Reserve sees Brazil in a more severe crisis, and wants to increase the low productivity of the country through reforms and market opening. He explained that it is Brazil’s responsibility to protect the Amazon, applauded the present. Such sounds had not been heard from Brasilia recently.

Back in the political reality of Brazil, the appearance of Eduardo Bolsonaro then led. He is the third son of the President, would call “03” and the like to the Ambassador in Washington, appoint – what is encountering fierce resistance. Bolsonaro is a member of Parliament and resigned formally as Chairman of the Committee on foreign relations, and national defense. Ultimately, however, it was primarily an appearance in his own case, to advertise for the Post in Washington.

Eduardo Bolsonaro stated that his ultimate goal is a free trade agreement with the USA was. He had but, nevertheless, great respect for German car manufacturers and steel producers. Justification: “The best guns will now change Germany.”

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The free trade agreement endangers the environment