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Weekly Report - 2 June 2011 (WR-11-22)

TRACKING TRENDS

BRAZIL-URUGUAY | Regional Integration. Brazil's President Dilma Rousseff embarked on her first official visit to Uruguay on 30 May. Rousseff met her Uruguayan counterpart José Mujica and signed agreements to construct various bilateral infrastructure projects. These include the construction of a second bridge over the Yaguarón River that separates Rio Grande do Sul (RS) from Uruguay; the extension of southern Brazil's railway system to Santana do Livramento (RS) on the border with Uruguay; and more importantly, the construction of a 500 MW energy transmission line from Brazil to Uruguay.
Rousseff, who has expressed that one of her administration's main goals is to promote greater integration within the Southern Common Market (Mercosur), explained that Brazil's relations with Uruguay were "strategic" and that the two countries should look to establish a "synergy" in their commercial relations. However, Rousseff's pledges to continue promoting "physical" integration with its Mercosur partners fell short of meeting Mujica's calls for establishing a fully integrated energy system in the region.

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