International
Investment and technology, keys to the economic relationship between Argentina and Germany
The relationship between Argentina and Germany – a country to which President Javier Milei will make a working visit this weekend – is based on foreign investment, cooperation in natural resources and trade exchange, supported by bilateral agreements and joint projects to promote economic and technological development in both countries.
Milei is scheduled to travel tomorrow, Saturday, to Germany, where he will be awarded in Hamburg (north) the Hayek medal that the homonymous society awarded him due to his achievements as a “reformer”.
The next day, the Argentine president and the German Chancellor, Olaf Scholz, will hold a meeting in Berlin at the head of their respective delegations.
Germany has shown interest in cooperating with Argentina in the exploration and production of critical minerals such as lithium and copper, essential for the energy transition and the manufacture of batteries. This aligns with Germany’s efforts to diversify its sources of supply and reduce dependence on China.
In 2023, the stock of total Foreign Direct Investment (FDI) in Argentina ammounted to 128,855 million dollars (about 120,382.7 million euros), which represents 10.4% more than the previous year and 26.4% of the Gross Domestic Product (GDP), according to data from the Ministry of Foreign Affairs.
The upward trend of FDI continues in 2024, with various sectors such as lithium extraction, hydrocarbons and financial technology attracting a considerable amount of foreign investment.
Germany – an important investor in the automotive, technology and manufacturing industry – is in eighth place in FDI in Argentina, after the United States, Spain, Brazil, the Netherlands, Chile, China and Italy.
In 2023, German companies in Argentina made a significant investment in various sectors.
A survey by the Argentine-German Chamber of Industry and Commerce (AHK) and the consultancy EY Argentina revealed that 74% of German companies planned to invest more than one hundred million dollars (about 93.42 million euros) in the South American country. These investments were mainly used for fixed assets and the incorporation of technology.
Germany’s FDI stock in Argentina is mainly focused on the manufacturing (35%), mineral and oil extraction (22.3%), and retail and wholesale sectors (10.9%).
German companies such as Siemens, Volkswagen and Bayer have a strong presence in Argentina, promoting innovation and technology transfer in various industries.
Projects and cooperation in critical minerals are another key point of the economic relationship between the two countries, since Argentina is one of the main producers of lithium, essential for the manufacture of batteries, and that in 2022 exports of this element increased by 234%.
In February 2024, representatives of Germany and Argentina discussed cooperation in the supply chain of critical minerals, such as copper and lithium, with the aim of reducing dependence on China.
Regarding Argentine investment in Germany, which is less significant, companies from the South American country are beginning to explore opportunities in high-tech and renewable energy sectors.
In terms of cooperation and strategic alliances, both countries have signed bilateral agreements to encourage investment and facilitate trade. Argentina and Germany collaborate in infrastructure and technological development projects, taking advantage of the German experience in these fields.
Trade between Argentina and Germany includes Argentine exports of agricultural and mineral products, and imports of German machinery and industrial products. This exchange is fundamental for the Argentine economy and benefits both countries by diversifying their markets.
In 2022, total trade between Germany and Argentina exceeded $3.6 billion, with a growth of 8% compared to 2021.
In March 2024, Germany exported products worth 169 million euros (181 million dollars) to Argentina and imported goods for 104 million euros, resulting in a positive trade balance of 65.3 million euros (70 million dollars) for Germany.
Exports from Germany to Argentina include machinery, vehicles, chemicals and pharmaceuticals. The European nation is a key supplier of advanced technologies and industrial equipment necessary for various sectors of the Argentine economy.
Meanwhile, imports from Germany from Argentina focus on agricultural products and food, such as soybeans, wine and meat, as well as minerals.
The commercial relationship benefits from the complementarity between the economies, where Argentina provides raw materials and food, and Germany provides technology and manufactured products.
Both countries are working on closing a free trade agreement between the European Union (EU) and Mercosur, which could further enhance trade exchange and open up new business opportunities.
This agreement has been the subject of long negotiations and currently faces significant opposition from several EU member countries, especially France and Austria.
In contrast, countries such as Germany, Spain and Portugal are in favor of moving forward with the agreement, highlighting the economic benefits and the need to strengthen trade relations with Latin America.
International
Authorities capture CJNG financial chief in international airport operation
A man identified as the main financial operator of the powerful Jalisco New Generation Cartel (CJNG) was arrested Thursday at Mexico City’s international airport, authorities reported.
The individual, named by Mexican media as Óscar Antonio Álvarez, was apprehended during an operation involving the army, navy, National Guard, police, and the attorney general’s office, according to a joint statement.
Álvarez is considered the primary financial operator of a criminal group originating in Jalisco, and the capture took place at Benito Juárez Airport as he arrived on a flight from Barcelona, Spain.
Authorities stated that Álvarez faces charges of organized crime and money laundering, specifically for receiving and transferring illicit funds. His work with the CJNG reportedly included purchasing properties and managing businesses in the tequila and livestock sectors.
According to El Universal, Álvarez was directly under the command of Rubén Oseguera Cervantes, “El Mencho”, the cartel’s top leader, for whom the U.S. offers a $15 million reward.
The CJNG, which operates throughout Mexico and in various parts of the world, was designated earlier this year as a “foreign terrorist organization” by the U.S. government.
Álvarez was handed over to the federal public prosecutor to determine his legal situation, the report added.
International
Jair Bolsonaro sentenced for leading armed criminal plot after 2022 election loss
Former Brazilian President Jair Bolsonaro, 70, has been sentenced for leading an armed criminal organization that attempted to cling to power after losing the 2022 elections to President Luiz Inácio Lula da Silva.
The alleged coup plot, which reportedly included a plan to assassinate Lula, was not carried out due to lack of support from the military leadership.
By a four-to-one vote of the judges overseeing the case, seven co-defendants, including former ministers and military chiefs, were also convicted.
“A criminal armed organization was formed by the defendants, who must be sentenced based on the factual circumstances I consider proven,” said the final judge to cast a vote, Cristiano Zanin.
Bolsonaro, who has been under house arrest since August, did not attend the court hearings, citing health issues.
Reacting on X, Senator Flavio Bolsonaro, the former president’s son, said: “They call this a trial a process whose outcome everyone already knew before it began.”
One of the first international reactions came from the White House. Former U.S. President Donald Trump called the sentence “very surprising,” while Senator Marco Rubio, U.S. Secretary of State, stated that the United States will “respond accordingly” to the “unjust” ruling.
International
Poland invokes NATO Article 4 after russian drone incursion
The violation of Polish airspace by Russian drones on Wednesday triggered the most serious clash between Russia and NATO since the start of the war in Ukraine, prompting Poland to invoke Article 4 of the NATO Treaty, which calls for consultations among allies.
Polish Prime Minister Donald Tusk addressed Parliament on Wednesday, describing an unprecedented “aggression” in which at least 19 Russian drones breached Polish airspace, creating a situation that the Prime Minister described as “the closest to an open conflict since World War II.”
Speaking at the start of an extraordinary Council of Ministers session, Tusk stated that “this is the first time Russian drones have been shot down over the territory of a NATO member state, and that is why all our allies are taking the situation very seriously.”
Although he affirmed that “there is no reason to claim that we are in a state of war,” he labeled the incidents as “a large-scale provocation” and ordered the invocation of NATO’s Article 4 to call for consultations with allied nations.
Tusk also noted on X (formerly Twitter) that he had received “not only expressions of solidarity with Poland but, above all, concrete proposals to support the country’s air defense” during discussions with European leaders throughout the day.
The Polish leader specifically mentioned conversations with the leaders of the United Kingdom, Italy, Germany, and the Netherlands—Keir Starmer, Giorgia Meloni, Friedrich Merz, and Dick Schoof—along with French President Emmanuel Macron, Ukrainian President Volodymyr Zelensky, and NATO Secretary-General Jens Stoltenberg.
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