Germany's Scholz Kicks off South America Trip

On Saturday, Germany's Chancellor Olaf Scholz left Europe for South America, where he will visit the three largest economies in the region.

Scholz is due in Argentina later on Saturday, where he will meet Argentine President Alberto Fernandez in Buenos Aires.

On Sunday, he will stop in Chile before embarking on a two-day visit to Brazil.

The chancellor will meet with left-wing Brazilian President Luiz Inacio Lula da Silva, better known as Lula, who was sworn in on Jan. 1.

Lula's administration is dealing with the fallout from a failed rebellion in the capital, Brasília, as supporters of former far-right President Jair Bolsonaro storm the presidential palace, Congress and the Supreme Court.

One aim of Scholz's visit is to forge stronger German trade relations with South American countries, with a German business delegation accompanying the chancellor.

More than 1,000 German companies are currently operating in Brazil alone, most notably Mercedes-Benz, Volkswagen, and ThyssenKrupp.

Peter Adrian, President of the German Chambers of Industry and Commerce (DIHK), urged ratification of the EU-Mercosur trade agreement. Mercosur countries include Brazil, Argentina, Uruguay, and Paraguay.

Brazil's Lula recently pledged to finalize the deal, which will create the world's largest free trade area. The German government hopes to reinvigorate the certification process during Scholz's trip.

German energy needs will also be a focus of the trip. Germany was forced to diversify its energy sources due to the Russian war on Ukraine, as Berlin decided to get rid of Russian gas.

South America is rich in minerals such as iron, steel, and copper, along with lithium, which is an integral part in the manufacture of environmentally friendly electric vehicles.