Germany supports the trade agreement with Mercosur, which will facilitate access for German industrial products to the South American market, while there are concerns that European farmers could be disadvantaged by it.

Germany, an economy focused on industrial exports, shows interest in concluding a trade agreement with Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay, and Bolivia. This agreement will allow German industrial products to penetrate the South American market more easily, while agricultural products from this region will benefit from easier access to the EU market, which could affect European farmers, especially in France. Despite France's strong opposition, the agreement has been approved by the EU by qualified majority and is set to be signed by the President of the European Commission, Ursula von der Leyen, in Paraguay. German Chancellor Friedrich Merz considers the agreement an important step in European trade policy, while Vice Chancellor Lars Klingbeil emphasizes the importance of partnerships in the context of global trade policy. The agreement will bring significant savings for German companies, with an estimated reduction in customs duties of about four billion euros annually, particularly benefiting the automotive and chemical industries, which face fierce competition.