In 2020, the volume of trade between Hamburg and Latin America came to EUR 10 billion. Around 480 Hamburg-based companies do business with Brazil and 108 Hanseatic companies have branches there. Around 320 companies including Aurubis copper producer trade with Chile while a good 100 have branches in the country. The Hamburg-based Hapag-Lloyd shipping company, which took over the container business of Chilean shipping company CSAB (Compañía Sud Americana de Vapores) in 2014, and logistics companies such as Kühne & Nagel handle the flow of goods between Hamburg and Latin American hubs. Markets in Latin America hold huge potential for the Hamburg Metropolitan Region. The main exports are mechanical engineering products, petroleum products, chemicals, aircraft and vehicles..
New era of Hamburg's relations with Latin America
The Association for Latin America (LAV) is gearing up to host its 75th Latin America Day on November 6 and 7, 2024 in Hamburg under the auspices of Dr. Peter Tschentscher, Mayor of Hamburg and the Chamber of Commerce. LAV is celebrating constructive and changing German Latin American economic relations with a view to more intense ties in future. The Chile House in Hamburg, modelled on a passenger ship, symbolises new beginnings and trade relations with Latin America. Since the early 17th century, Ecuadorian and Costa Rican sugar, coffee and bananas have been traded, while raw materials such as copper from Chile and ores are transhipped via the Port of Hamburg. Meantime, Hamburg and Latin American countries have signed bilateral agreements on sustainability, climate protection and renewable energies.
EUR 10 billion in trade
Commitment to sustainability, climate protection
Both Hamburg and Latin American countries have vested interests in sustainability, climate protection and renewable energy. The City of Hamburg signed bilateral agreements with Chile, Argentina and Uruguay on importing hydrogen and setting up an international hydrogen economy when Peter Tschentscher, Mayor of Hamburg, visited the capital cities of Santiago, Buenos Aires and Montevideo in August 2022. Chile is aiming to become a leading exporter of green hydrogen by 2040. Argentina and Uruguay also hold potential for producing and exporting green hydrogen. Mexico and Hamburg have shared interests in renewable energy, hydrogen, IT and aviation. Hamburg has also been involved in various projects e.g., in São Paulo, to boost climate protection.
New era in relations with Latin America
"Despite the centuries-old connection, Hamburg and Latin America are rediscovering each other," said Matthias Kleinhempel, a spokesperson for HamburgAmbassadors, who is based in Buenos Aires. Geopolitics, supply chain security and resources such as lithium, agricultural products and especially green hydrogen are critically important. "Projects in these sectors are being initiated and promoted in Latin American countries," Kleinhempel noted. Argentina recently enacted legislation that provides legal incentives for large investments, including tax and exchange rate benefits, as well as inventory guarantees. Latin America’s dynamic startup scene poses an attractive opportunity for Hamburg. The start2 Group (formerly German Accelerator) has set up its Latin American headquarters in Buenos Aires to enhance the global image of German and Latin American startups. "There are many encouraging developments at present," Kleinhempel commented.
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