I am really very happy to be here –

all the more so since I actually intended to come to Brazil in early March and had to postpone my visit because of the war in Iran.

I was planning back then to start with sincere congratulations to Lucas Pinheiro Braathen. It's a few months now, of course, since he won the gold in the Olympic giant slalom. And these days everyone’s talking about the football World Cup – not the easiest subject for us Germans at the moment.

But I’m still impressed with his achievement: the first South American to stand on the top step of that podium at the Winter Olympics. He shows that it’s always possible to accomplish something unexpected.

Ladies and gentlemen, another outstanding achievement early this year was the conclusion of the EU-Mercosur agreement.

Quite a few observers also found that unexpected. The obstacles had been high, and the negotiations had taken 25 years.

But in the end, we were united by a shared will to succeed; the signatures were made, and the agreement stands.

We acted as global circumstances could tolerate no further delay. Most recently, the Iran war and the closure of the Strait of Hormuz demonstrated painfully how vital free trade is to the businesses of our regions. And the problem remains unresolved.

When container ships and tankers are suddenly stuck for weeks on end, when long-established global processes grind to a halt from one day to the next, it becomes – in globalised industrialised countries like Germany and Brazil – a real stress test for business planning.

That’s not to mention the simultaneous challenge of volatile tariffs for major export markets and the growing pressure on international trade rules.

What we are facing together is not an easy situation.

So I’m not exaggerating when I say that our agreement is a historic milestone for our two regions –

because, together, we form one of the largest free trade areas in the world, with a market of more than 700 million consumers;

because we, the states of the EU and Mercosur, have set a strategic marker, in difficult times, in favour of open, rules-based and mutually beneficial trade;

and because it demonstrates that we will stand together as democracies committed to the rule of law and unite our societies that are built on the same values.
Ladies and gentlemen, in 2026, we celebrate 75 years of diplomatic relations between our two countries – relations which are also reflected in a strong economic bond.

At a bilateral trade volume of around EUR 21 billion in goods in 2025, Brazil is Germany’s most important trading partner in South America by far. German companies export goods worth almost EUR 13 billion to Brazil every year.

That’s why I’m accompanied on this trip by a sizeable business delegation – from important sectors of German industry, such as energy, commodities and defence.

At the same time, Germany is also Brazil’s most important trading partner in Europe. There are more than a thousand German-Brazilian companies in this country, contributing significantly to Brazil’s GDP and generating thousands of jobs.

German companies are investing in mechanical engineering, the automobile industry, the chemical and electronics sectors – and, increasingly, in forward-looking sectors like hydrogen and renewables.

In its turn, Brazil is not just an important supplier of critical raw materials but also has one of the cleanest electricity mixes in the world, with huge potential for wind, solar and biomass energy. So your country is an important partner for us when it comes to green hydrogen too.

Ladies and gentlemen, the total volume of trade between the European Union and Mercosur is currently EUR 111 billion a year – with Germany accounting for some 25% of the trade in goods.

The EU-Mercosur agreement now enables our companies to further diversify their trade flows, increase investment in both directions and thereby also accelerate innovation. It lowers tariffs, reduces obstacles to investment and provides legal and planning certainty for businesses on both sides.

Not for nothing were Germany and Brazil among the strongest advocates for the agreement.

Let me take this opportunity to express my sincere thanks for the strong leadership Brazil has shown. Thank you for making the speed of your ratification emulate Lucas Pinheiro Braathen.

I personally argued within the EU for the agreement to be provisionally brought into force on 1 May this year, because I am convinced that we need to quickly exploit those mutual benefits now and so silence any remaining doubts.

I say to you, leaders of business, representatives of associations, make use of this agreement. Let’s use it together to further expand our economic ties and reinforce the industrial foundations of our economies – from critical raw materials and green energy to high-tech sectors.

I now look forward to hearing from you about what expectations you have and how you are already harnessing the benefits of the agreement. And of course, I want to hear how you think it can be still be improved in future.

Thank you.