Brazil–Paraguay relations

Brazil and Paraguay have a long history of diplomatic and economic relations, dating back to the 19th century when Brazil recognized Paraguay's independence from Spain in 1844. In the late 19th and early 20th centuries, Brazil and Paraguay engaged in several border disputes, which were resolved with the signing of the Treaty of Peace, Friendship, Commerce and Navigation in 1932. The treaty established the boundary between the two countries, and provided for free navigation of the Paraguay River by Brazilian vessels.

In the mid-20th century, Brazil and Paraguay strengthened their economic ties with the construction of the Itaipu hydroelectric dam on the Paraná River, which forms the border between the two countries. The project, which was completed in 1984, is one of the largest hydroelectric power plants in the world and supplies electricity to both Brazil and Paraguay. In the 1960s and 1970s, Brazil supported the dictatorship of General Alfredo Stroessner in Paraguay, which was criticized for its human rights abuses. However, in the 1980s, Brazil began to support the democratic movement in Paraguay and played a key role in the country's transition to democracy in 1989. In the 1990s, Brazil and Paraguay signed several agreements aimed at promoting economic cooperation and regional integration. The two countries are founding members of the Southern Common Market (Mercosur), a regional trade bloc established in 1991 that also includes Argentina and Uruguay.[1]

Overall, Brazil and Paraguay have maintained a mostly positive relationship throughout their history, with occasional tensions over border disputes and political differences.

Brazil–Paraguay relations have improved greatly after Brazilian President Lula's decision in 2009 to triple its payments to Paraguay for energy from a massive hydro-electric dam on their border, ending a long-running dispute. Under the accord, Brazil will pay Paraguay $360m a year for energy from the jointly-operated Itaipu plant. Brazilian President Luiz Inácio Lula da Silva called it a "historic agreement" and the deal slated as a political victory for Paraguayan President Fernando Lugo. But deep-rooted problems remain in the relationship between the two countries, foremost of which are the unfavorable terms of the 1973 Itaipú Treaty under which Paraguay must sell hydro energy to Brazil as a derisory price and the presence of 300,000 Brazilian mainly soybean farmers in Paraguay, who pay minimal tax and have produced an exodus of small farmers from rural areas.

Brazil is home to 43,731 Paraguayan citizens.[2] Most Paraguayan Brazilians live in the state of São Paulo.[3] In addition, Paraguay is home to hundreds of thousands of Brazilian immigrants, or Brasiguayos, whose presence has caused tension in border regions.[4]

In June 2012 Paraguay's senate voted 39–44 to dismiss president Fernando Lugo from office. The events have been criticized by leaders of many Latin American nations including Argentina and Venezuela.[5] As a result, Paraguay was suspended from the South American Trade Bloc, which included Argentina, Brazil, Uruguay, and the then-recent addition of Venezuela.[6] However, Paraguay reintegrated into the trade block after the suspension.[7]

Brazil–Paraguay relations are good. Paraguay’s president since 2018, Mario Abdo Benítez, had a close relationship with right-winger Brazilian President (2019-2022), Jair Bolsonaro.[8] In February 2019, Brazilian President Jair Bolsonaro praised the late military strongman of Paraguay, Alfredo Stroessner, calling him "a man of vision." Bolsonaro made the comments during a ceremony at the Itaipu hydroelectric dam on the countries' shared border. At his side was Paraguayan President Mario Abdo Benitez.[9]

• Foreign relations of Brazil
• Foreign relations of Paraguay

• Sandro Dutra e Silva. "Brazil-Paraguay Relations during the Stroessner Regime (1954-1989) (2006)
• Danilo Marcondes de Souza Neto. "Brazil-Paraguay Relations: The View from Brasília (2013)
• R. Andrew Nickson. The Making of the Paraguayan Nation: A History of the River Plate Republics' Southern Cone Annexation (1995)
• Paulo Wrobel. "Brazil-Paraguay Relations: From Dictatorship to Democracy (1996)
• Thomas L. Whigham. "The Struggle for the Paraguayan Chaco, 1880-1928: A Study of a Small War (2002)