Chancellor Merz and President Lula Forge Strategic Alliance Amid Geopolitical Friction

German Chancellor Friedrich Merz and Brazilian President Luiz Inácio Lula da Silva held the third German-Brazilian government consultations in Hanover on Monday, agreeing to deepen their strategic partnership across trade, raw materials, climate protection, artificial intelligence, and armaments. Both leaders signed a series of declarations of intent in those areas at Herrenhausen Palace, under the summit motto "Together for inclusive growth, employment, peace, and security." Merz said the partnership was "strong" and "dynamic," adding that its closeness was "more necessary than ever at a time when the world order is changing so fundamentally." The meeting coincided with the opening of the Hannover Messe industrial fair, where Brazil served as this year's partner country. Merz expressed his ambition to double bilateral trade volume with Brazil "in the next few years," and both sides agreed to resume negotiations on a double taxation agreement. Hannover Messe drew both leaders to the same stage as a symbol of the economic ambitions underpinning the consultations.

EU-Mercosur deal sets the stage for trade surge The centerpiece of the economic agenda was the imminent provisional entry into force of the EU-Mercosur free trade agreement on May 1, 2026, which both leaders welcomed as a foundation for expanded cooperation. Merz described it as a "common success of our partnership" and said the agreement demonstrated a shared commitment to a rules-based, multilateral economic order with "as few tariffs as possible — ideally none at all." Lula presented Brazil as a reliable supplier of critical raw materials, noting that although only about 30 (%) — share of Brazil's mineral potential that has been mapped of Brazil's mineral potential has been mapped, the country already holds the world's largest reserves of niobium, the second-largest reserves of graphite and rare earths, and the third-largest reserves of nickel. „These raw materials must serve as a driver of economic and social development.” — Luiz Inácio Lula da Silva via Reuters Lula called for greater technology transfer and more processing capacity to be established in Brazil itself, rather than exporting raw materials without added value. Both sides also agreed to cooperate more closely on ethanol as a fuel, with Merz highlighting Brazil's pioneering role in synthetic fuels and pledging to advocate within the EU for further relaxations of the so-called combustion engine ban. Germany also thanked Brazil for supporting its application for a non-permanent seat on the UN Security Council.

Lula attacks Trump over G20 exclusion and Iran war Lula used the Hanover platform to sharpen his criticism of United States President Donald Trump's foreign policy on two fronts. He condemned Trump's decision to exclude South Africa from the upcoming G20 summit in Florida, saying he had advised South African President Cyril Ramaphosa to attend regardless. „If you throw out South Africa today, Germany will be thrown out tomorrow, Brazil will be thrown out.” — Luiz Inácio Lula da Silva via Der Tagesspiegel Lula called on the German government to join him in pressing for South Africa's inclusion. Trump had announced he would not invite South Africa to the summit, to be held at his Trump National Doral Miami hotel, accusing the country of committing genocide against white farmers — a characterization that experts and South Africa's government have resolutely rejected. Lula had already, the day before the consultations, described the ongoing war involving the United States and Israel against Iran as "madness." Both Merz and Lula also jointly called for a reform of the United Nations, including permanent seats on the Security Council for both Germany and Brazil — a long-standing ambition for both countries that has repeatedly been blocked in past decades by the veto power of the five current permanent members.

Germany and Brazil have held government consultations as a structured diplomatic format for years, with Monday's meeting marking the third such round. The EU-Mercosur trade agreement was under negotiation for more than two decades before reaching a conclusion. The UN Security Council has had five permanent members — the United States, China, Russia, the United Kingdom, and France — since the body's founding after World War II, and all reform efforts have historically failed due to the veto power those members hold. Brazil has long positioned itself as a leading voice for the Global South and for multilateral reform.

Bratwurst diplomacy: Lula leaves Hanover with one regret The consultations ended on a lighter note when Lula expressed his one disappointment from the visit: he had not managed to eat a bratwurst from a street snack stand. Lula had revealed the wish before his departure in an interview with Der Spiegel, recalling that during a previous visit to Germany under former Chancellor Angela Merkel, he had bought a sausage from a street stand. Merz moved to fulfill the request, instructing the kitchen at Herrenhausen Palace to prepare "a selection of sausage specialties" before the festive lunch, including a beef currywurst, a coarse beef sausage, and a pork bratwurst, according to a government spokesperson. „The only thing I regret is that I didn't pass any street where there was a snack truck selling bratwursts or bratwurst in a truck.” — Luiz Inácio Lula da Silva via ZEIT ONLINE The 80-year-old Brazilian president addressed Merz directly at the joint press conference, saying: "Perhaps you will bring me a portion of bratwurst when you come to Brazil." The two leaders also caused brief confusion at the Hannover Messe when they split up during the traditional chancellor's tour of the fair shortly after their joint opening statement — a departure from protocol that trade fair officials described as unprecedented, though German government circles said both sides had mutually agreed to visit separate stands in order to cover more ground after a scheduling delay caused by the Brazilian delegation. Merz, for his part, described his hopes for the bilateral relationship with a local metaphor, recalling that the first Volkswagen plant outside Germany was built in Brazil. „As reliably as the Beetle rolled over the roads for decades, that is how reliably I wish for our partnership and our cooperation.” — Friedrich Merz via Handelsblatt