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Brazil resorts to underhand tactics to thwart Paraguay’s economic development

Brazil resorts to underhand tactics to thwart Paraguay’s economic development

Wednesday, May 15, 2013

By  Peter M. Tase

Brazilian President Dilma Rousseff praised or at least highlighted the outstanding voter turnout for Paraguay’s April 21 general elections. But she also reiterated that Paraguay’s re-entry into the MERCOSUR trading bloc remains impossible so long as Paraguay continues to regard Venezuela’s incorporation into MERCOSUR as an illegal and unprecedented act.  Paraguay refuses to endorse the integration of Venezuela, which remains controlled by the Bolivarian movement as a legacy of President Hugo Chavez, who died earlier this year.

Rousseff’s recent statements about Paraguay are part of Brazil’s interventionist strategy towards its landlocked southern neighbour. The South American giant is implementing a strategy to undermine the administration of the newly elected Paraguayan President Horacio Cartes by trying to impose conditions and actions that only Paraguay’s independent national congress ought to make.  The goal of Rousseff’s statements is to thwart Cartes’ plans to demand the end to the exploitation of hydroelectric energy produced by the Itaipú bi-national hydroelectric dam shared with Brazil, and negotiate for a better price for the electric energy produced there for Brazilian consumers.

Read the article: Brazil resorts to underhand tactics to thwart Paraguay’s economic development

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