When babies become commodities

According to team.recherche, the Argentinian public prosecutor's office is investigating 48 cases of surrogacy. The charge: human trafficking. The investigation was triggered by a baby intended for a German couple. The research provides insight into a multi-billion-dollar business.

By Lea Busch, Marie Blöcher, Annette Kammerer, NDR

In November 2023, the German couple Heike and Claude traveled to Buenos Aires to welcome their baby. Ruby* was born in Argentina to a surrogate mother. Heike and Claude were already in their late 50s at this time. They had previously arranged for the baby through an agency and paid almost 50,000 euros for the service.

Back in Germany, Ruby catches a cold. Heike takes the approximately six-week-old baby to the hospital because of breathing difficulties. The staff are puzzled: Ruby only has Argentinian documents. Heike's advanced age also seems to be noticed. Furthermore, she appears unsure of herself in handling the child. The hospital contacts the youth welfare office. They fear the child's welfare is at risk and take Ruby into care.

"New dimension"

German authorities also informed the Argentinian authorities. There, Ruby became "caso zero"—"case zero"—leading to extensive investigations into the surrogacy business. The accusation: human trafficking and exploitation of vulnerable women in 48 cases. This is according to research conducted by NDR for the ARD program "team.recherche."

According to the Argentine public prosecutor's office, a "criminal network" allegedly profited from the desire of foreign couples to have children. The network extends to clinics, notaries' offices, and agencies, explains Verónica Toller, head of the anti-trafficking committee at the Ministry of National Security.

"The activities and the networks," says Toller, "represent a new form" of human trafficking. Documents available to NDR also speak of a systematic practice in which economically disadvantaged women were allegedly recruited as surrogate mothers.

Banned in Germany

Surrogacy is illegal in Germany. However, commissioning a surrogate mother abroad is not a criminal offense for couples like Heike and Claude. There are no statistics on how many children are brought to Germany each year through surrogacy.

Market research institutes such as Global Markets Insights and Precendence Research estimate the global revenue from surrogacy for 2024 at the equivalent of almost €19 billion – and rising. There are no international agreements or regulations on surrogacy.

From legal to illegal

NDR's investigations reveal that commercial agencies repeatedly exploit existing loopholes in national laws or apparently even deliberately cross legal boundaries. For example, an agency operating in Greece told NDR reporters that they fly in surrogate mothers from abroad and only pay them after their return to their home countries – paid surrogacy is illegal in Greece.

The agency later explained upon inquiry that the money was merely a "compensation for expenses" and therefore legal. Meanwhile, the country has further tightened the regulations for surrogacy.

In Argentina, there is a legal loophole: surrogacy is neither explicitly permitted nor prohibited by law. However, since the Argentine constitution prohibits the sale of bodies, the public prosecutor's office classifies commercial surrogacy – that is, surrogacy for payment – ​​as unconstitutional.

The so-called case manager of the surrogacy agency that organized Ruby's birth speaks out in an interview with team.recherche . Carlos Leiva, originally from Argentina, boasts that he has "found" his home country as a market for surrogacy. He claims to have been in the business for 15 years and to have helped more than 400 families have children. "For them, I am God," he says in the interview.

Without contract

Carlos Leiva denies that he and the agencies associated with him in Argentina offered commercial surrogacy. He says there was no "commercial contract." Ruby's surrogate mother only signed a "medical consent form." 

According to the investigation, Ruby's surrogate mother still received money. Alejandra M. was offered $10,000 for the surrogacy, some of which was paid in cash. "I needed the money," the single mother explained. According to Carlos Leiva, however, this was not a fee, but rather "compensation for expenses." Leiva added, "Everything in life is commercial." He is under investigation in more than 20 cases.

Complex corporate structures

The agency where Leiva works as deputy managing director is part of a complex corporate network. MAHRTA LLC is based in Delaware, a US state also known for its shell companies. The agency reportedly generates more than four million US dollars in revenue.

The German couple Heike and Claude initially had contact with a different agency: GAIA. At a fertility fair in Germany, GAIA presented them with the so-called "Argentina Program." GAIA is based in Cyprus and referred Heike and Claude to MAHRTA LLC. GAIA did not respond to a request for comment.

Criticism due to lack of controls

Affected couples and activists criticize the lack of legal regulation of surrogacy and the absence of oversight of agencies. The ban in Germany does not deter couples from using surrogacy. "Surrogacy is a reality in Germany," says Tobias Devooght of the Association for the Promotion of the Legalization of Surrogacy in Germany.

A landmark ruling by the Federal Court of Justice simplifies, under certain conditions, the legal recognition of parents whose children were born abroad through surrogacy. However, there are no standards or rules – for example, for vetting so-called intended parents – for commercial surrogacy agencies.

“In Germany, we’re at a point where we’re still debating the yes or no, instead of the how,” says Tobias Devooght. Family law attorney Marko Oldenburger, who advises couples on surrogacy abroad, says there’s a lack of “courageous legal decisions.”

Law of 1990

The Embryo Protection Act, which prohibits surrogacy, was passed in 1990. Leni Breymaier, a former member of the Bundestag and the SPD's spokesperson on women's policy, says that much has become medically possible since then. However, she believes the ban in Germany is justified in order to protect surrogate mothers from exploitation and to safeguard the rights of children. "Money changes hands, and then a human child is handed over. That's human trafficking," Breymaier said in an interview.

The issue of surrogacy is not explicitly addressed in the current coalition agreement. When asked, the Federal Ministry for Family Affairs stated that it has also not yet reviewed the findings of a commission on surrogacy, which was established under the previous coalition government.

Where should Ruby live?

German courts are currently hearing a case to determine where Ruby will live. The responsible youth welfare office considers the German couple unsuitable to care for the child. Under German law, Alejandra M. is considered her legal mother. The proceedings have now lasted over a year and a half – an unusually long time, as the youth welfare office itself acknowledges upon inquiry.

Ruby has been living with a foster mother ever since. The investigation in Argentina is ongoing. Carlos Leiva has stated that he has already declared: "I did nothing wrong." He no longer offers surrogacy services in Argentina. Colombia, he says, is his next new market.