Olaf Scholz has head to South America to reduce Germany’s economic dependence on China and strengthen relations with democracies worldwide
The Chancellor of Germany – Olaf Scholz has head to South America to reduce Germany’s economic dependence on China and strengthen relations with democracies worldwide.
This is the first leg of his inaugural tour of South America. During his 3-day tour, he would be visiting Argentina, Chile and Brazil, all currently led by leftist leaders in the region’s new “Pink Tide.”
High on the agenda for talks will be the war in Ukraine and the lessons drawn from it such as to reduce economic reliance on authoritarian states. Germany’s dependence on Russia for gas sparked an energy crisis after relations deteriorated over the Russian invasion of Ukraine.
Taking it to twitter, Scholz tweeted (translated to English), “Argentina, Chile and Brazil are stops on my first trip to Latin America. We are united by common values: democracy, the rule of law and international law. And also the commitment to climate protection. My interview with Latin American newspapers:” Original tweet in German:
Argentinien, Chile und Brasilien sind Stationen meiner ersten Lateinamerikareise. Uns verbinden gemeinsame Werte: Demokratie, Rechtsstaatlichkeit und Völkerrecht. Und auch der Einsatz für den Klimaschutz. Mein Interview mit lateinamerikanischen Zeitungen: https://t.co/nR1JHhtXei
— Bundeskanzler Olaf Scholz (@Bundeskanzler) January 28, 2023
Besides, Europe is keen on reducing dependence on China for critical minerals which is the key to the transition to a carbon neutral economy. South America is rich in minerals and this could be a good opportunity for Europe. Also, China is a good friend of Russia.
Regarding the competition posed by China which has invested heavily in the region over the last decade, Germany said it needs to be more active and also more prepared to embrace sectors it had hitherto shied away from.
For example, lithium mining is a challenging task, especially regarding the environment and social standards. Earlier, Germany had shied away from it, but it cannot afford the same if it wants to be self-reliant. Argentina and Chile sit atop South America’s so-called “lithium triangle” which holds the world’s largest trove of the ultra-light battery metal.
Scholz will be accompanied by a delegation of around a dozen business executives from various sectors, as well as Deputy Economy Minister – Franziska Brantner.
In Brazil, Scholz will be joined by Development Minister – Svenja Schulze given the new impetus for joint projects since the election of Luiz Inácio Lula da Silva as the new President of Brazil, who has promised an overhaul in Brazil’s climate policy. Lula’s new focus could help clear the way for a free trade agreement between the European Union (E.U.) and the South American trade bloc Mercosur, which is also on the agenda for Scholz’s talks with regional leaders.
Scholz’s visit is also a strong show of support to Lula after Bolsonaro supporters ransacked Government buildings in January 2023.
