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Republic of Paraguay

Brazil and Paraguay established diplomatic relations in 1844 with the appointment of José Antonio Pimenta Bueno as the chargé d'affaires of the Brazilian diplomatic mission to the government of Paraguay. Between 1864 and 1870, Paraguay and the Triple Alliance – made up of Brazil, Argentina and Uruguay – fought each other in the  biggest armed conflict between countries in South America. In 2020, the 150th anniversary of the end of the Paraguayan War will be commemorated, and Paraguay is now Brazil's fundamental partner in the region.

Building a mutually beneficial and balanced relationship with Paraguay is essential to the achievement of the objectives of promoting the political, economic and physical integration of the continent. The bilateral rapprochement is a priority for Brazil and contributes to the democratic stability and economic and social development of the region. Brazil and Paraguay are also first partners in MERCOSUR: both are full members and founders of the bloc and work together in the ongoing efforts to realign the bloc to the original purposes of the Treaty of Asunción (democracy and human rights), with an emphasis on boosting the internal market of the bloc and strengthening the external negotiating agenda.

Paraguay is a country with great potential for growth and for intensifying economic relations with Brazil. The size of its territory is approximately 400 thousand km² with a population of 7 million inhabitants. Brazil and Paraguay share a border of 1,339 kilometers – the fourth largest border extension within Brazilian limits. According to the International Monetary Fund data, Paraguay grew 4.4% in 2018, a level above the regional average. Paraguay's foreign trade is highly integrated and complementary to that of neighboring countries, especially Brazil. Brazil is traditionally Paraguay's main trading partner. In 2018, it absorbed more than 30% of total Paraguayan exports (considering Itaipu energy not consumed by Paraguay and purchased by Brazil) and supplied approximately 22.5% of its imports.

The rapprochement between Brazil and Paraguay was accentuated with the construction of the Friendship (Amizade) bridge, over the Paraná River, inaugurated in 1965. This bridge connected Paraguay, by road, to the Atlantic Ocean, and provided access to one more competitive option to sell its production, an important factor to a Mediterranean country. Another significant milestone was the construction of the Itaipu hydroelectric plant, officially opened in 1984. Itaipu Binacional is the largest generator of clean and renewable energy on the planet and accounts for approximately 15% of the energy consumed in Brazil and 86.4% of Paraguayan consumption.

Currently, Brazil and Paraguay seek to improve their common infrastructure, with the financing, through Itaipu Binacional, of the Second Bridge over the Paraná River, between Foz do Iguaçu (PR) and Presidente Franco, and the Bridge over the Paraguay River, between Porto Murtinho (MS) and Carmelo Peralta. Both bridges will allow for greater integration between their economies and will boost foreign trade in South America.

Brazil and Paraguay have as a common priority the fight against transnational organized crime. Aware that criminal organizations cross borders, both Governments maintain close cooperation in the areas of security and intelligence, having achieved positive results in seizing weapons, arresting criminals and combating smuggling and drug trafficking.

Between 2002 and 2018, bilateral trade flow increased from $ 942 million to $ 4 billion, which corresponds to an increase of more than 300%. In the same period, Brazilian exports to Paraguay grew from $ 559 million in 2002 to $ 2.9 billion in 2018. Investment flows between Brazil and Paraguay have increased in recent decades, and there has been growing interest from Brazilian companies in producing in Paraguay. Brazil is already the second country with the largest stock of Foreign Direct Investment (FDI) in Paraguay, with a total of $ 970 million in 2018.

The social and human ties that unite Brazil and Paraguay create bridges of dialogue and exchange of experience in different areas. The large Brazilian community living in the neighboring country, estimated at 330 thousand people, constitutes the second largest community of nationals abroad.

 

Chronology of Bilateral Relations

2019 – The Minister of Foreign Affairs of Paraguay, Antonio Rivas Palacios, visits Brazil (September 9)

2019The President of the Republic of Paraguay, Mario Abdo Benítez, visits Brazil (March 12) [Joint declaration]

2018 – The President of the Republic of Paraguay, Mario Abdo Benítez, visits Brazil (Foz do Iguaçu, December 21) [Joint Declaration on Physical Integration]

2018 – The Minister of Foreign Affairs of the Republic of Paraguay, Luis Alberto Castiglioni , visits Brazil (Brasília, September 11)

2018The President of the Republic, Michel Temer, visits Paraguay on the occasion of the inauguration ceremony of President-elect Mario Abdo Benítez (Asunción, August 15) [Act signed]

2018The President-elect of the Republic of Paraguay, Mario Abdo Benítez visits Brazil (Brasilia, June 11)

2018 – The President of the Republic of Paraguay, Mario Abdo Benítez, visits Brazil (March 12)

2017 – Signing of the Agreement between the Federative Republic of Brazil and the Republic of Paraguay on Boundary Border Locations (November 23)

2017State visit to Brazil by the President of the Republic of Paraguay, Horacio Cartes (August 21)

2017Minister Aloysio Nunes Ferreira makes an official visit to Asunción (March 27)

2016The President of the Republic, Michel Temer, makes an official visit to Asunción (October 3)

2016Paraguay's Minister of Foreign Affairs, Ambassador Eladio Loizaga, makes an official visit to Brazil, when he holds a working meeting with the Minister of Foreign Affairs, José Serra. Ambassador Eladio Loizaga is the first Foreign Affairs Minister to be received in Brasilia by Minister José Serra (June 8)

2016Minister Mauro Vieira and Minister of Defense, Aldo Rebelo, visit Asunción, on the occasion of the 1st meeting of the 2 + 2 Mechanism for Consultation and Strategic Evaluation between the Ministries of Defense and Foreign Affairs of Brazil and Paraguay (April 4)

2015President Dilma Roussef visits Asunción on the occasion of the 49th MERCOSUR Summit (December 20 and 21)

2015Minister Mauro Vieira, accompanied by the Minister of Development, Industry and Foreign Trade, Armando Monteiro, visit Asunción, to participate in the MERCOSUR ministerial meeting (September 21 and 22)

2015The Minister of Foreign Affairs of Paraguay, Eladio Loizaga, visits Brasília (July 15)

2015Minister Mauro Vieira visits Asunción (March 13)

2015 – President Horacio Cartes attends the inauguration ceremonies of President Dilma Rousseff (January 1)

2014Foreign Minister Luiz Alberto Figueiredo Machado visits Asunción (January 16)

2013Opening ceremony of the Villa Hayes Substation Transmission Line, attended by President Dilma Rousseff and President Horacio Cartes (October 29)

2013State visit of President Horacio Cartes to Brazil (September 30)

2013Presidents Horacio Cartes, Nicolás Maduro and Dilma Rousseff meet on the margins of the UNASUR summit, in Paramaribo (August 30)

2013President Dilma Rousseff attends the inauguration ceremonies of President Horacio Cartes (August 15)

2011President Dilma Rousseff visits Paraguay (June 29)

2011A special high-level mission, headed by Senator José Sarney, and also integrated by the Minister of Foreign Affairs and other authorities of the Brazilian state, visit Asunción on the occasion of the bicentenial celebrations of Paraguay's independence (May 14)

2011The Minister of Foreign Affairs of Paraguay, Jorge Lara Castro, visits Brazil (May 3)

2011Minister Antonio de Aguiar Patriota visits Paraguay (January 17)

2011 – President Lugo attends the inauguration ceremonies of President Dilma Rousseff (January 1)

2010 – Bilateral meeting between presidents Lula and Lugo on the sidelines of the MERCOSUR Summit, in Foz do Iguaçu (December 16)

2010 – President Lula makes a working visit to Villa Hayes, on the outskirts of Asunción (July 30)

2010 – President Fernando Lugo makes a working visit to Ponta Porã, MS (May 3)

2009 – President Lula makes a working visit to Asunción, following the MERCOSUR Summit held in that city (July 25)

2009 – State visit of President Fernando Lugo to Brazil (May 7 and 8)

2009 – 1st Ministerial Dialogue Meeting on Itaipu, with the participation of the Ministers of Foreign Affairs, Finance and Energy of the two countries (January 26)

2008 – Bilateral meeting between Presidents Lula and Lugo on the sidelines of the MERCOSUR Summit, in Sauipe (December 17)

2008 – President Lugo visits Brasilia (September 17)

2008 – President Lula attends the inauguration ceremonies of President Fernando Lugo (August 15)

2008 – Presidential candidate Fernando Lugo visits Brasília to meet President Lula (April 2)

2007 – Brazilian donation of R $ 20 million to the Fund to Support the Paraguayan Economy, according to Law 11,444 / 07 (December 3)

2007 – Signing of the Declaration of Intent on Technical Cooperation for the Preparation of the Basic Design of the Transmission Line between the Itaipu-Right Bank Substation and the Limpio Substation, in the city of Asunción, with 500 KV voltage. Publication of Provisional Measure 380, which established the Unified Taxation Regime (June 28)

2007 – Official visit of President Lula to Asunción. At the time, 11 bilateral instruments were signed. Noteworthy is the Framework Agreement on Cooperation in Defense Matters, allowed for the overhauling of Paraguayan armored vehicles by the Brazilian Army and for Paraguayan military personnel to participate in the Brazilian contingent at MINUSTAH (May 20-21)

2007 – Signing of a memorandum of understanding to eliminate the US inflation correction factor over the contracts signed between Eletrobras and ANDE with Itaipu Binacional (January 19)

2006 – Signing of the Bilateral Agreement for Sustainable Development and Integrated Management of the Apa River Basin and a joint statement to regularize the situation of nationals, on the occasion of  the visit of the The Minister of Foreign Affairs of Paraguay, Rubén Ramírez, to Brazil (September 11)

2005 – Decision to increase the amount paid by Brazil to Paraguay for the transfer of energy from Itaipu. Agreement signed for the construction of a second international bridge over the Paraná River (December 8)

2005 – The Brazilian Air Force, donaes six T-25 Universal aircraft, made in Brazil, to the Paraguayan Air Force (December 4)

2004 – President Nicanor Duarte Frutos visits Brazil (October 6)

2004 – President Nicanor Duarte Frutos makes a working visit to Brasília (August 26)

2004 – President Lula and President Duarte Frutos meet in São Paulo (June 14)

2003 – President Duarte Frutos makes a working visit to Brasília (October 14)

2003 – President Lula visits Asunción to attend the inauguration of President Nicanor Duarte Frutos (August 14-15)

2003 – President-elect Nicanor Duarte Frutos visits Brazil (May)

2001 – Official visit of President Fernando Henrique Cardoso to Asunción (June 21-22)

2000 – Official visit of Paraguayan President Luis Ángel González Macchi to Brasília (February 9 to 13)

1999 – Official visit of the Paraguayan president, Raúl Cubas Grau, to Brasília (February 11)

1999 – Political asylum is granted to Raúl Cubas Grau, after his resignation as President of the Republic of Paraguay

1998 – President Fernando Henrique Cardoso visits Asunción to attend the inauguration of Paraguayan President Raúl Cubas Grau (August 15)

1998 – Official visit of the elected Paraguayan president, Raúl Cubas Grau, to Brasília (May 29)

1996 – Official visit by President Fernando Henrique Cardoso to Asunción (June 26)

1991 – Signing of the Asuncion Treaty, between Brazil, Argentina, Paraguay and Uruguay, for the creation of MERCOSUR

1984 – Formal inauguration of the Itaipu hydroelectric plant

1980 – President Figueiredo visits Paraguay, when he returns documents, historical pieces from Paraguay and personal objects of Solano López that were deposited in Brazil

1979 – Signing of the Tripartite Agreement on Technical-Operative Coordination for the Hydroelectric Utilization of Itaipu and Corpus by Brazil, Argentina and Paraguay

1977 – Tripartite talks begin between Argentina, Brazil and Paraguay regarding the Paraná River energy utilization

1975 – President Geisel visits Asunción. Signing of the Friendship and Cooperation Treaty between Brazil and Paraguay

1973 – Signing of the Brazil-Paraguay Treaty  concerning the hydroelectric utilization of the water resources of the Parana River for the Construction of the Itaipu Hydroelectric Power Plant (Treaty of Itaipu), on the occasion of the visit of the Paraguayan president, Alfredo Stroessner. Approval of Itaipu Binacional's Bylaws

1969 – Signing of the Treaty of the La Plata Basin, by Brazil, Argentina, Bolivia, Paraguay and Uruguay in Brasília.

1966 – Signing, in Foz do Iguaçu, of the Ata das Cataratas, starting point of the so-called “waterfall diplomacy” in the Prata basin.

1965 – Inauguration of the Friendship Bridge between Brazil and Paraguay

1943 – The President of Paraguay, Higinio Morínigo visits Brazil

1941 – Getúlio Vargas visits Paraguay (first official visit by a Brazilian head of state to Paraguay)

1933 – Proclamation, by decree, of Brazil's complete neutrality in the Chaco war (May 23)

1930 – The new government of Getúlio Vargas is recognized by Paraguay

1928 – First clash between Bolivia and Paraguay over the Chaco region; Brazil remains neutral (December 5)

1928 – President-elect of Paraguay, José Guggiari, visits Brazil (July 10)

1927 – Signing of the Complementary Treaty of Limits between Brazil and Paraguay

1889 – Recognition of the Republic of Brazil by Paraguay

1883 – New Friendship, Trade and Navigation Treaty signed between Brazil and Paraguay, replacing the 1872 Peace Treaty

1881 – Denunciation of the 1872 Treaty by Paraguay

1877 – Signing of the Montevideo Protocol, between Argentina, Brazil and Uruguay, which gives collective guarantee to Paraguay's independence, sovereignty and territorial integrity

1876 – Signing of the Peace Treaty between Argentina and Paraguay. Withdrawal of the last Brazilian troops in Paraguay

1872 – Signing of the definitive treaty of Perpetual Peace and Friendship between Brazil and Paraguay

1870 – Signing of a preliminary peace protocol between the Triple Alliance and the Provisional Government of Paraguay (June 20)

1870 – Formal declaration of the end of the Paraguayan war, after the death of Solano López, by the empire (April 4)

1865 – Signing of the Triple Alliance Treaty against the Paraguayan government of Solano López by Argentina, Brazil and Uruguay (May 1)

1864 – Declaration of war by Paraguay against the Brazilian empire. Beginning of the war of Paraguay (or war of the Triple Alliance)

1858 – Confirmation, in a bilateral convention, of the "true intelligence and practice" of the treaty signed in 1856 between Brazil and Paraguay, on a mission by José Maria da Silva Paranhos to Asunción

1856 – Signing, in Rio de Janeiro, of the Treaty of Friendship, Trade and Navigation between Brazil and Paraguay

1854 – Ban on the passage of foreign ships on the Paraguay River by Carlos Antonio López and expulsion of the Brazilian business manager in Asunción. Dispatch of Brazilian naval force to Paraguay, in retaliation

1850 – Signing of the Alliance Treaty between Brazil and Paraguay, as a result of negotiations conducted in Asunción by Pedro de Alcântara Bellegarde (Belegarde mission)

1844 – Formal recognition of Paraguayan independence by the Brazilian empire. Signing, in Asunción, of the Treaty of Alliance, Trade and Limits between the two countries (not ratified by Brazil)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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