Germany's Merz, Brazil's Lula stress close European-Brazilian cooperation

Germany, Brazil Call for Strengthened Economic and Trade Ties at Hanover Fair

Highlights from the Hanover Industrial Fair Opening

HANOVER, April 19 (Reuters) - German Chancellor Friedrich Merz and Brazilian President Luiz Inacio Lula da Silva on Sunday called for closer ties between South America's largest economy and the European Union at the opening of the Hanover industrial fair.

EU-Mercosur Free Trade Agreement

Both welcomed the entry into force of the EU-Mercosur free trade agreement on May 1.

Commitment to Multilateral Order

"This shows that we are sticking to the multilateral order, that we want a rules-based economic system, and that we want this cooperation with as few tariffs as possible – ideally none at all," Merz said.

Brazil as a Strategic Partner

Lula described Brazil, this year's partner country at the world's largest industrial trade fair in Hanover, as a reliable and important partner, including in the supply of raw materials.

Brazil's Mineral Potential

Although only about 30% of Brazil's mineral potential has been mapped, the country already has the world's largest reserves of niobium, the second-largest reserves of graphite and rare earths, and the third-largest reserves of nickel, Lula said.

Economic and Social Development

"These raw materials must serve as a driver of economic and social development," he added, calling for greater technology transfer and more processing capacity to be established in Brazil.

Expanding Economic Cooperation

Lula said he wanted to discuss the full range of economic cooperation with Merz, including artificial intelligence, critical minerals and data centers.

Upcoming Government Consultations

German-Brazilian government consultations are due to take place on Monday.

(Reporting by Andreas Rinke in Hanover; Additional reporting and writing by Isabel Teles in Sao Paulo; Editing by Bill Berkrot)