Argentina, Chile and Brazil: why Scholz travels to South America

Status: 01/28/2023 08:46 a.m

Another member of the government is traveling to South America – and Chancellor Scholz himself. Why is the region so important for the federal government at the moment?

By Evi Seibert, ARD Capital Studio

“Multipolar” is a word that government politicians in Berlin are using a lot these days. In plain language it means: The world is currently being reorganized – and Germany is looking for new partners in order to position itself more broadly. That’s why Olaf Scholz is embarking on a four-day trip to South America this weekend.

Important raw material suppliers

First destination is Argentina. In Buenos Aires, Scholz meets President Alberto Fernandez, who is struggling with extreme inflation and high poverty in his country. But Argentina also has enormous mineral resources, including lithium. The raw material is important, for example, for the production of batteries for smartphones or batteries for electric cars.

A large part of the world’s lithium supply is located in this region of South America. However, dismantling is difficult – and could be much more environmentally friendly. Germany hopes to provide Argentina with technical support in modernizing mining. Certainly not entirely without the ulterior motive of being better supplied with the raw materials themselves.

The raw material supply chain also plays a major role in the next stop on the Chancellor’s trip. In Chile, however, it is also about remembering a tragic chapter in our common history: the Colonia Dignidad. During Augusto Pinochet’s military dictatorship in Chile from 1973 to 1990, numerous people were raped, tortured and killed in the sectarian settlement.

The settlement was founded in 1961 by the German Paul Schäfer, a former Wehrmacht corporal who had fled Germany. Scholz will talk to the new, young President of Chile, Gabriel Boric, and visit the Museum of Remembrance and Human Rights with him.

Reform and profit?

Brazil is the last stop on the journey. For Germany, the country is the most important trading partner in the region. Under the new President Lula da Silva, Brazil wants to reindustrialize. Germany also wants to restructure its economy in order to become the first climate-neutral industrialized country. So the offer to Brazil could be: Why not reform and benefit together?

Environmental considerations play a prominent role in Brazil. The ecosystem in the Amazon region is of global importance. The federal government wants to support President Lula in repairing the damage caused by his predecessor Jair Bolsonaro when clearing the rainforest.

Swipe at China

In Brazil, the Chancellor is receiving support from his own government team: Development Minister Svenja Schulze is also in the region and is meeting the Chancellor in the capital, Brasilia. She has already announced a 100-day program for Brazil – and 35 million euros for the Amazon fund. Funds that were frozen during the reign of ex-President Bolsonaro.

The federal government is optimistic about the chancellor’s trip to South America. The doors are open everywhere in Germany. Germany is a desirable partner: fair, ecological and efficient. These attributes can also be understood as a small dig at China, which is considered less fair and ecological, but is also looking for new partners in the region and is already heavily involved.

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