Address by Minister Mauro Vieira at the panel "Becoming More Sovereign - Together with Latin America" - Day of German Industry 2025

It is a great pleasure to join you today on this panel "Becoming More Sovereign - Together with Latin America", as part of this year`s Day of the German
Industry. Germany has long played a decisive role in Brazil`s industrial development. Since the 1950s, German industry has been a benchmark for Brazil particularly in three fundamental areas: quality, innovation, and large-scale production. Latin America was the main destination of German investment in the Global South between the 1950s and the 1980s. Since the 1990s, however, new players both European and non-European have expanded their reach in our region.

In today`s context of weakened multilateralism and rising global challenges, a renewed partnership between Brazil and Germany is more essential than ever. Latin America and Brazil in particular offers natural advantages that align closely with the current needs of German industry. From abundant renewable energy sources and critical raw materials to a growing skilled workforce and stable democratic institutions, our region provides key assets to support Germany and Europe in maintaining industrial competitiveness and strategic resilience.

A recent turning point in this context was the conclusion of negotiations for the EU-Mercosur Free Trade Agreement, announced last December. Germany
played a central role in moving this process forward and remains essential in addressing remaining concerns within the European Union. We count on the continued support of Chancellor Friedrich Merz`s government, and of the German industrial community, to ensure the agreement is finally approved. The agreement will foster a new cycle of large-scale production and industrial renewal across both regions. It will facilitate the import of high-quality German
machinery and equipment into Brazil while opening new markets for our exports. We also hope to see progress soon on the Mercosur-EFTA agreement, which will broaden trade opportunities and reinforce the strategic connection between Europe and South America. Where trade grows, investment follows.

And today, we all face a common challenge: responding to the global climate emergency through a fair and inclusive energy transition. This is one of the key priorities of Brazil`s presidency of COP30. Brazil is currently implementing a new strategy for productive development: "Nova Indústria Brasil." This initiative focuses on digital and green transformation and reaffirms our belief in investments as a vector of productive transformation not just capital flows. Brazil is indeed deeply committed to a long-term strategy of sustainable and decarbonized industrial development. With over 80% of our electricity coming from renewable sources, we already boast one of the cleanest energy matrices in the world. We are rapidly expanding our capacity in solar, wind, and green hydrogen solidifying our global leadership in the energy transition. We warmly welcome German partnership and investment to accelerate this transformation. We see strategic opportunities for collaboration in green industry, low-carbon agriculture, the bioeconomy, renewables, and hydrogen precisely the areas prioritized during  President Lula`s visit to Berlin in December 2023.

Ladies and Gentlemen,

We are standing at a crossroads. We have the unique opportunity to launch a new cycle of shared growth between Brazil, Latin America, and German industry one grounded in innovation, job creation, and social inclusion. In today`s uncertain world, where international cooperation is under pressure, we cannot afford to miss this moment. Just last week, the 41st German-Brazilian Economic Meeting in Salvador confirmed our joint commitment to strengthening trade and investment ties and to defending a fair, transparent, and rules-based multilateral trading system. This is a time for Germany to look again at Latin America and recognize the unique advantages our region offers for a sustainable and mutually beneficial partnership. Let me highlight some of them: First, Latin America is a region of peace, where interstate conflict is rare and historical rivalries have been replaced by cooperation and integration.

Brazil and many of our neighbors have consolidated stable regulatory frameworks, essential for long-term investment and development. Brazil´s renewable energy potential is unmatched, from biofuels and biomass to hydropower, wind, and hydrogen. We possess critical mineral reserves, including the world`s second-largest of rare earths. This presents a unique opportunity to invest in value chains that reduce dependency and build strategic autonomy for Europe. We have a growing, skilled, and youthful workforce, increasingly sought after for its qualifications. Our democracies are maturing, with the rule of law enjoying unprecedented social support. And most importantly, Brazil and Germany share core values a commitment to environmental sustainability, labor rights, human rights, and democracy as foundations for prosperity.

Ladies and Gentlement,

We live in a multipolar world, in which a strong and independent Europe is a vital pillar of global stability. The partnership between Brazil and Germany
is essential for building a more balanced international order one that supports diversification, reduces strategic dependencies, and promotes shared
growth through resilient supply and value chains. To ensure this transformation works for all, foreign direct investment (FDI) must align more closely with
national development priorities. As a strong supporter of the multilateral trading system, Brazil is deeply concerned about current trends in global trade particularly the proliferation of restrictive measures that go beyond World Trade Organization (WTO) commitments. These measures risk contracting global trade in 2025. We are especially concerned about increasing restrictions on exports of critical emerging technologies such as advanced semiconductors which risk disrupting global value chains and widening the digital divide between developed and developing countries.

Similarly, unilateral trade measures related to environmental and climate goals must be consistent with multilateral trade rules and the international climate regime. Otherwise, they risk being seen as protectionist rather than green. For Brazil, a rules-based international trading system, centered on the WTO, remains the best collective response to promote fair, inclusive, and sustainable trade. Historically, developing countries have been integrated into global value chains through low-tech, low-value-added segments. Reversing this pattern requires targeted efforts and structural change. Fortunately, strategic opportunities are emerging in areas such as the energy transition and digital transformation. Brazil is actively seeking partners to co-invest in innovation and value creation.

International collaboration and diversified partnerships must be encouraged. Turning back to an era of fragmented trade, high protectionism, and shortened supply chains would be a step backward contrary to the very logic of the system we built. Let us seize this moment and this opportunity. Let us build a renewed partnership between Germany, Brazil, and Latin America based on shared values, mutual interests, and a vision of sustainable and inclusive development.

Thank you very much