Information about the partnership
Brazil offers German SMEs great potential for cooperation within the Brazilian economy, particularly in core sectors such as agriculture, food production, mining, automotive engineering and mechanical engineering. Due to its high potential for hydro, wind, solar and biomass power, renewable energy is an important industry of the future (Brazil already generates around 88% of its electricity from renewable sources and aims to increase this further). The Partnering in Business with Germany programme specifically promotes business development between German and Brazilian SMEs.
Focus areas and potential for cooperation with Brazil
Brazil is Latin America’s largest economy, with over 200 million inhabitants, extensive resources and a diverse industry. The country has a versatile economic structure, a large domestic market and rich mineral resources.
Brazil is part of the Mercosur bloc (along with Argentina, Bolivia, Paraguay and Uruguay). The free trade agreement between the EU and Mercosur, which is currently nearing completion, would facilitate the export of German products such as automobiles, machinery and chemical products by reducing customs duties. It would also make it easier for German companies to provide services and secure access to critical raw materials.
Brazil’s economic development is being supported by reforms such as reindustrialisation and tax reform. The comprehensive change to the Brazilian tax system, which has been in force since 2025, aims to simplify tax payments, abolish several consumption taxes and introduce a sales tax instead. The reforms also aim to reduce bureaucracy and create incentives for climate-friendly reindustrialisation.
Business in Brazil – Opportunities for German Companies
Brazil is a significant growth market, driven primarily by private consumption and investment activities. Its industrial base includes mining, construction, food production, metallurgy, petroleum and biofuels, and chemicals. São Paulo is one of the largest industrial locations in Latin America and has traditionally been particularly attractive to German companies in Brazil, as well as for investments in the automotive, mechanical engineering and chemical industries. Around 1,500 German companies are already operating in Brazil, contributing up to 10% of its GDP. Brazil’s energy sector is developing into an important driver of economic growth, mainly due to strong momentum in the renewable energy sector. Renewable energy already accounts for 88% of the electricity mix (2024). Hydropower continues to dominate, while wind and solar energy are growing rapidly. The production of climate-friendly hydrogen is gaining in importance.
Since 2024, the Brazilian government has been pursuing the goal of attracting new industrial companies by promoting powershoring, in order to attract energy-intensive industries. At the same time, it is focusing on providing affordable, climate-friendly energy and supporting sustainable reindustrialisation to integrate Brazil more closely into global value chains. This will allow Brazil to become a market for climate-friendly, competitive products.
Brazil is Germany’s second most important trading partner in Latin America after Mexico, with a trade volume of over EUR 22 billion (2024). Meanwhile, Germany is Brazil’s largest trading partner in Europe and its third most important supplier worldwide. The most important German exports are chemical products, machinery, motor vehicles and parts, and electrical engineering products. Brazil is one of the world’s largest agricultural producers, and Germany mainly imports coffee, soybean meal, raw materials, chemicals and machinery from Brazil. Brazil’s sustainable reindustrialisation creates additional opportunities for German companies to diversify their markets and supply chains, and strengthen existing partnerships.
Industry Focus and Participant Profiles
Partnering in Business with Germany is open to executives from all industries. The first delegation will focus on energy efficiency and sustainable industrial solutions. A pilot group of Brazilian entrepreneurs is set to travel to Germany in early 2026.
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