Germany's Merz, Brazil's Lula stress close European-Brazilian cooperation

HANOVER, April 19 (Reuters) - ‌German Chancellor Friedrich ​Merz ​and Brazilian President Luiz Inacio Lula da Silva on Sunday called for closer ties between ‌South America's largest economy and the European Union ⁠at the opening of the Hanover industrial fair.

Both welcomed the entry ‌into force of the ‌EU-Mercosur free trade agreement on May 1.

"This shows that we are sticking to the multilateral order, that we ​want a rules-based economic system, and that we want this cooperation with as few tariffs as possible – ⁠ideally none at all," Merz said.

Lula described Brazil, this year's partner country ​at the world's largest industrial trade fair in Hanover, as a reliable and important partner, ​including in the supply of raw ‌materials.

Although only about 30% of Brazil's mineral potential has been mapped, the country already ⁠has the world's largest reserves of niobium, the second-largest reserves of graphite and rare earths, and the third-largest reserves of ⁠nickel, Lula said.

"These raw materials must serve as a driver of ​economic and social development," he added, calling for greater technology transfer and more processing capacity to be established in Brazil.

Lula said ‌he wanted to discuss the full range of economic cooperation with Merz, including artificial intelligence, ‌critical minerals and data centers.

German-Brazilian government consultations are due ⁠to take place on ‌Monday.

(Reporting by Andreas ​Rinke in Hanover; Additional reporting and writing by Isabel Teles in Sao Paulo; Editing by Bill ‌Berkrot)

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