The foreign policy of Lula and the relations with Paraguay: the renegotiation of Itaipu Treaty

Abstract

The rise of President Lula in 2003 placed South America as the top priority of Brazilian foreign policy. Affirmative policies showed Brazil’s intention to deepen integration and expand its regional presence. However, with the rise of progressive and leftist governments in South America emerged some political, commercial and energy contentious involving Brazil and its neighbors between 2003 and 2010. In this sense, this paper analyzes the episode of Paraguay’s claim for the revision of the Treaty of Itaipu from the election of Fernando Lugo in 2008. This event represented a moment of tension between both countries generating great impact on Brazilian and Paraguayan public opinion. Brazil has acted as “paymaster” to reduce regional disparities but sought to consolidate its integration project, viewed in UNASUR, with the projection of its exports and companies in South America.