Latin America: Germany's Indispensable Partner

Abstract

With the US turning to bully politics and tariffs, Latin America can become a more important partner than ever for Germany. As the Trump administration dismantles the soft-power structures the US had built over decades, Latin American countries have reason to seek cooperation with Europe. With smart policy, the new government in Berlin can leverage shared interests, economically as well as politically. Political divisions afflict Latin America's regional organisations. Where region-to-region accords do not materialise, Germany should seek cooperation with individual countries and "coalitions of the willing." After decades of EU-Mercosur negotiations, Germany needs to push for reluctant EU member states to sign the finalised agreement. The special fund for infrastructure investment gives Germany a chance to promote green energy cooperation with Latin America in win-win models for both sides. Germany has a comparative advantage when it combines industrial investment with skills and knowledge transfer. Drug trafficking erodes the rule of law in both Latin America and Europe. Responses should be smarter, not harder. This requires increased cooperation between European and Latin American partners, by building on promising initiatives such as strategic alliances between port cities. As Trump rages against US academic and cultural institutions, Germany's long-standing cultural and scientific exchange formats shine all the brighter. Investing in these will be a low-cost but key asset for a renewed social, political, and economic partnership.