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Republic of Paraguay

Paraguay is an essential partner of Brazil in South America. The construction of a mutually beneficial and balanced relationship is paramount to achieving the goals of promoting political, economic, geographic, and socio-cultural integration of the continent. Bilateral rapprochement with Paraguay, as well as regional integration, is a priority for Brazil, as it contributes to achieving objectives of peace, cooperation and economic and social development. Brazil and Paraguay are also partners in MERCOSUR from the very beginning: both are full members and founders of the bloc.

Paraguay is a country with great potential for growth and intensification of economic relations with Brazil. Its territorial extension is about 400 million km2 and its population is estimated to be 6.5 million. Brazil and Paraguay share 1,339 kilometers of border – the fourth largest border extension among Brazilian border limits. According to the World Bank, Paraguay's economic growth was the world's third largest in 2013: 14.1%. Paraguay’s foreign trade is highly integrated with and complementary to that of neighboring countries, especially Brazil. Brazil is traditionally the main market for Paraguayan export products and is among Paraguay's leading suppliers.

The rapprochement between Brazil and Paraguay was reinforced with the building of the Friendship Bridge, over the Paraná River, inaugurated in 1965. The bridge allowed Paraguay to connect by highway to the Atlantic Ocean, and thus obtaining an additional competitive option for its production flow. An even more significant landmark was the building of the Itaipu hydroelectric power plant, officially inaugurated in 1984. Itaipu Binational is, to this day, the world's largest hydroelectric plant in power generation; it is responsible for about 17% of the energy consumed in Brazil and 72% of the Paraguayan consumption. In 2013, Brazil and Paraguay inaugurated a transmission line to carry energy from Itaipu to the Asuncion region. This project, brought about through the MERCOSUR Structural Convergence Fund (FOCEM), and made possible by large non-refundable Brazilian contributions, represents the beginning of a new stage in Paraguay's development and in the process of productive integration between Brazil and Paraguay. The transmission system will propel Paraguay’s industrialization, generating employment and income, and will concretely contribute to the well-being of the Paraguayan population.

The bilateral trade flow increased from US$ 942 million in 2002 to US$ 4 billion in 2013, which corresponds to an increase of more than 300%. In the same time period, Brazilian exports to Paraguay grew from US$ 559 million in 2002 to US$ 2.9 billion in 2012. Investment flows between Brazil and Paraguay have expanded in the last decades; Brazilian companies are increasingly interested in producing in Paraguay. Brazil is already the country with the second-highest stock of Foreign Direct Investments (FDI) in Paraguay, having reached US$ 809 million in 2012.

Social and human bonds that unite Brazil and Paraguay create bridges for dialogue and exchange of experience in different areas. The large Brazilian community living in the neighboring country, estimated between 120 and 150 thousand people, is the third largest community of Brazilian nationals abroad. From 2009, the Regularization Program for Brazilian Migrants living in Paraguay has benefited more than 15 thousand Brazilians.

Chronology of Bilateral Relations

1844 – Formal recognition of the Paraguayan independence by the Brazilian Empire.  Signature, in Asuncion, of a Treaty of Alliance, Trade and Limits between the two countries (not ratified by Brazil)

1850 – Signature of a Treaty of Alliance between Brazil and Paraguay, as a result of negotiations conducted in Asuncion by Pedro de Alcântara Bellegarde (Bellegarde Mission)

1854 – Prohibition of the passage of foreign ships through the Paraguay River by Carlos Antonio López and expulsion of the Brazilian Chargé d'Affaires in Asuncion. Dispatch of Brazilian naval force to Paraguay, in retaliation

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

1858 – Confirmation, by Bilateral Agreement , on the occasion of a mission to Asuncion by José Maria da Silva Paranhos, of the “true intelligence and practice” of the Treaty signed in 1856

1864 – Paraguayan declaration of war against the Brazilian Empire. Beginning of the Paraguay War (or War of the Triple Alliance)

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

1870 – Formal declaration by the Brazilian Empire (April 4th) of the end of the Paraguayan War, following the death of Solano López. Signature of a preliminary Peace Protocol between the Triple Alliance and the provisional government of Paraguay (June, 20th)

1872 –Signature of the definitive Treaty of Peace and Perpetual Friendship between Brazil and Paraguay

1876 – Conclusion of the Peace Treaty between Argentina and Paraguay. Withdrawal of the last Brazilian troops from Paraguay

1877 – Signature of the Montevideo Protocol between Argentina, Brazil and Uruguay, ensuring collective commitment to the independence, sovereignty, and territorial integrity of Paraguay

1881 – Denunciation by Paraguay of the 1872 Treaty

1883 – Signature of a New Friendship, Trade and Navigation Treaty between Brazil and Paraguay, which replaces the 1872 Peace Treaty

1889 – Recognition by Paraguay of the Republic of Brazil

1927 – Signature of the complementary Treaty of Limits between Brazil and Paraguay

1928 – Visit to Brazil by the president-elect of Paraguay, José Guggiari (July 10th). First clash between Bolivia and Paraguay over the Chaco Region; Brazil remains neutral (December 5th)

1930 – Recognition by Paraguay of the new government of Getúlio Vargas

1933 – Proclamation, by Decree, of the complete neutrality of Brazil in the Chaco War (May 23rd)

1941 – Visit of Getúlio Vargas to Paraguay (first official visit of a Brazilian Head of State to Paraguay)

1943 – Visit of the President of Paraguay, Higinio Morínigo, to Brazil

1965 – Inauguration of the Friendship Bridge between Brazil and Paraguay

1966 – Signature, in Foz do Iguaçu, of the Acta de las Cataratas, starting point at the Plata Basin of what came to be known as “Waterfalls diplomacy”

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

1973 – Signature of the Treaty concerning the Use of the Paraná River for Energy Production between Brazil and Paraguay for the building of the Itaipu Hydroelectric Power Plant (Itaipu Treaty), on the occasion of a visit by the Paraguayan president, Alfredo Stroessner. Approval of the Itaipu Binational Statute

1975 – Visit of President Geisel to Asuncion.   Signature of the Treaty of Friendship and Cooperation between Brazil and Paraguay

1977 – Launching of tripartite conversations between Argentina, Brazil and Paraguay on the use of the Paraná River for energy production

1979 – Signature by Brazil, Argentina and Paraguay of the Tripartite Agreement on techno-operative coordination for the Use of Itaipu and Corpus for energy production

1980 – Visit to Paraguay of President Figueiredo, who returns documents, Paraguayan historical pieces and personal objects of Solano López previously kept in Brazil

1984 – Formal inauguration of the Itaipu Hydroelectric Plant

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

1996 – Official visit of President Fernando Henrique Cardoso to Asuncion (June 26th)

1998 – Official visit of the Paraguayan President-elect Raúl Cubas Grau to Brasília (May 29th)

1998 – Visit of President Fernando Henrique Cardoso to Asuncion for the inauguration of President Raul Cubas (August 15th)

1998 – Official visit of President Raúl Cubas Grau to Brasília (February 11th)

1999 – Granting of political asylum to Raúl Cubas Grau, after his resignation from the Presidency of the Republic of Paraguay

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

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

2003 – Visit of President-elect Nicanor Duarte Frutos to Brazil (May)

2003 – Visit of President Lula to Asuncion, for the inauguration of President Nicanor Duarte Frutos (August 14h-15th)

2003 –  Working visit of President Duarte Frutos to Brasília (October 14th)

2004 – Meeting between President Lula and President Duarte Frutos in São Paulo (June 14th)

2003 –  Working visit of President Nicanor Duarte Frutos to Brasília (August 26th)

2004 – Visit to Brazil of President Nicanor Duarte Frutos (October 6th)

2005 – Donation to the Paraguayan Air Force (December 4th), by the Brazilian Air Force, of six T-25 Universal aircrafts, made in Brazil

2005 – Decision to increase the value paid by Brazil to Paraguay for the transfer of energy from Itaipu. Signature of an agreement on the building of a second international bridge over the Paraná River (December 8th)

2006 – Signature, during a visit of the Paraguayan Foreign Minister, Rubén Ramírez, to Brazil (September 11th), of a Bilateral Agreement for the Sustainable Development and Integrated Management of the Apa River Basin and of a joint communiqué to regularize  the situation of Brazilian nationals

2007 –  Signature of a Memorandum of Understanding for the suppression of the US inflation correction factor on contracts signed by Eletrobras and ANDE with Itaipu Binational (January 19th)

2007 – Official visit of President Lula to Asuncion. Signature of 11 bilateral instruments, among which the Framework Agreement on Cooperation in Defense, which allowed for the upgrading of Paraguayan armored vehicles by the Brazilian Army and the participation of Paraguayan military in the MINUSTAH Brazilian contingent (May 20th-21st)

2007 –  Signature of the Declaration of Intentions on Technical Cooperation for the Elaboration of a Basic Project of the Transmission Line between Itaipu-Right Margin Substation and Limpio Substation, in the City of Asuncion, with 500 KV voltage. Publication of the Provisional Measure 380, which instituted the Unified Taxation Regime (June 28th)

2007 – Brazilian donation of R$ 20 million to the Support Fund for the Paraguayan Economy, in accordance with Law 11.444/07 (December 3rd)

2008 – Visit of then presidential candidate Fernando Lugo to Brasília, for a meeting with President Lula (April 2nd)

2008 – Participation of President Lula in the inauguration ceremony of President Fernando Lugo (August 15th)

2008 – Visit of President Lugo to Brasília (September 17th)

2008 – Bilateral meeting between Presidents Lula and Lugo in the margins of the Sauipe MERCOSUR Summit (December 17th)

2009 – Holding of the First Ministerial Meeting of Dialogue on Itaipu, with the participation of the Ministers of Foreign Affairs, Finance and Energy of both countries (January 26th)

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

2009 – Working visit of President Lula to Asuncion, following the MERCOSUR Summit held in that city (July 25th)

2010 –  Working visit of President Fernando Lugo to Ponta Porã/MS (May 3rd)

2010 – Working visit of President Lula to Villa Hayes, on the outskirts of Asuncion (July 30th)

2010 – Bilateral meeting between Presidents Lula and Lugo in the margins of the Foz do Iguaçu MERCOSUR Summit (December 16th)

2011 – Participation of President Lugo at the inauguration ceremony of President Dilma Rousseff (January 1st)

2011Visit of Minister Antonio de Aguiar Patriota to Paraguay (January 17)

2011Visit of the Minister of Foreign Affairs of Paraguay, Jorge Lara Castro, to Brazil (May 3)

2013Participation of President Dilma Rousseff in the inauguration ceremony of President Horacio Cartes (August 15th)

2013Meeting between presidents Horacio Cartes, Nicolás Maduro and Dilma Rousseff in the margins of the Paramaribo UNASUL Summit (August 30th)

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

2013Inauguration ceremony of the Transmission Line of Villa Hayes Substation, with the presence of President Dilma Rousseff and President Horacio Cartes (October 29th)

2014 – Visit of Minister Luiz Alberto Figueiredo Machado to Asuncion (January 16)

2015 – Participation of President Horacio Cartes in the inauguration ceremony of President Dilma Rousseff (January 1)

2015Visit of Minister Mauro Vieira to Asuncion (March 13)

2015Visit of the Foreign Minister of Paraguay, Eladio Loizaga, to Brasilia (July 15)

2015The Minister of Foreign Affairs, Ambassador Mauro Vieira, accompanied by the Minister of Development, Industry and Foreign Trade, Armando Monteiro, visits Asuncion to attend the MERCOSUR ministerial meeting (September 21-22)

2015 – Visit of President Dilma Roussef to Asuncion on the occasion of the 49th Summit of MERCOSUR (December 21st)

2016Visit of Minister Mauro Vieira and Minister of Defense, Aldo Rebelo , to Asuncion on the occasion of the First Meeting of the 2+2 Consultation Mechanism and Strategic Assessment between the Ministries of Defense and Foreign Affairs of Brazil and Paraguay (April 4)

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

2016 – Official visit of the President of the Republic, Michel Temer, to Asuncion (October 3)

2017Minister Aloysio Nunes Ferreira pays an official visit to Asuncion (March 27)

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

2017Agreement on the Binding Bordering Vicinities between the Federative Republic of Brazil and the Republic of Paraguay [Portuguese]

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