Berlin – Brazil is slated to be the partner country at the Hannover Messe industrial technology fair in April 2026, a move signaling the increasing importance of the South American nation as a key market for Germany’s electrical and digital industries. The announcement reflects a growing trade relationship, with German exports of electrical goods to Brazil reaching €1.8 billion in the last year, according to the German Electrical and Electronic Manufacturers’ Association (ZVEI).
Dr. Nikolas Keßels, head of Global Affairs & Konjunktur at ZVEI, stated that Brazil is “increasingly gaining in importance as a sales market for the German electrical and digital industries.” He highlighted strong demand for automation products, alongside energy technology and electromedical devices. The Brazilian market for electrical goods has grown at an average rate of 2.8 percent annually since the turn of the millennium, currently totaling €88 billion, making it the largest within the Mercosur economic area, which has a combined market volume of €100 billion.
Despite the growing trade volume, direct investment by the German electrical and digital industries in Brazil remains relatively limited, accounting for less than one percent of all foreign direct investment in the country – €386 million out of a total of €47.3 billion. This suggests potential for further expansion, particularly if trade barriers are reduced.
A key factor driving optimism is the potential ratification of the Mercosur-European Union trade agreement. Dr. Keßels emphasized that the agreement would create “the world’s largest free trade zone” and send “a strong signal for Europe’s role as an open economic region.” He urged swift ratification and implementation, noting that the agreement is currently under review by the European Court of Justice. The combined economic output of the Mercosur countries – Argentina, Bolivia, Brazil, Paraguay, and Uruguay – reached nearly €2.8 trillion in 2025, roughly equivalent to France’s gross domestic product. The reduction of tariffs, some of which are currently in the double digits, is expected to significantly boost trade.
The broader industrial landscape in Brazil is also showing signs of dynamism, with exports reaching €2.73 billion. The country is emerging as a central industrial market in South America, benefiting from industrial programs, abundant raw materials, and the potential of the Mercosur agreement. However, competition within the Brazilian market is also increasing, according to industry reports.
Dr. Keßels, who assumed his role at ZVEI in October 2025, has previously focused on transatlantic and global economic policy, and his research has centered on US financial market regulation in the context of the 2008 global financial crisis. He has observed a shift in global economic dynamics, with China consolidating its position in international value chains and the United States grappling with internal economic imbalances.
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