Scholz goes to Latin America for new business contacts
2023.01.28 03:09
Scholz goes to Latin America for new business contacts
By Ray Johnson
Budrigannews.com – On Saturday, the first leg of German Chancellor Olaf Scholz’s inaugural tour of South America will take him to Argentina. Scholz’s government wants to reduce Germany’s economic dependence on China and improve relations with democracies around the world.
Scholz, a Social Democrat, will take a three-day trip to Argentina, Chile, and Brazil, the region’s three largest economies, all of which are currently led by leftist leaders in the region’s new “pink tide.”
The war in Ukraine and the lessons learned from it will be high on the talks’ agenda, including Berlin’s increased awareness of the need to reduce economic reliance on authoritarian states. Following the deterioration of relations as a result of the Kremlin’s invasion, Germany’s gas dependence on Russia sparked an energy crisis.
Europe as a whole is rushing to reduce its reliance on China, particularly for vital South American minerals that are essential to the transition to a carbon-neutral economy.
A Friday statement made by a representative of the German government stated, “These three countries are all interesting partners for the diversification of our economic relations generally as well as our sourcing for commodities.”
The official stated that Germany simply needed to be more active and also more prepared to embrace sectors it had previously shied away from in order to compete with China, which has invested heavily in the region over the past decade.
“Take lithium mining, for instance. That is a difficult job, especially in terms of the environment and social standards. We probably avoided it in the past, but if we want to stand on our own two feet, we cannot afford that luxury.”
The world’s largest cache of the ultra-light battery metal is located in South America’s so-called “lithium triangle,” which is topped by Argentina and Chile.
Along with Deputy Economy Minister Franziska Brantner, the chancellor will be accompanied by a delegation of around a dozen business executives representing various industries.
Scholz will be joined by Development Minister Svenja Schulze on the final leg of his trip to Brazil because the election of Lula, who has promised to change Brazil’s climate policy, has sparked a new interest in collaborative projects.
Amazon deforestation (NASDAQ:) under far-right President Jair Bolsonaro, it reached its highest point in 15 years.
A free trade agreement between the European Union and the South American trade bloc Mercosur, which is also on Scholz’s agenda for his talks with leaders in the region, could be made possible by Lula’s new focus.
Brazil has previously been informed by EU ambassadors that the 2019-agreed-upon-in-principle free trade agreement with Mercosur will not be ratified until concrete steps are taken to stop the rapid destruction of the Amazon rainforest.
Following the Jan. 8 ransomware attack on government buildings by Bolsonaro supporters, Scholz’s visit is also a strong show of support for Lula. just one week after he took office.
In addition to visiting the memorials of victims of Argentina’s and Chile’s military dictatorships, the chancellor will address that.
