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Brazil & Southern Cone - January 2019

Paraguay faces the Bolsonaro enigma

Brazil’s newly inaugurated president Jair Bolsonaro has signalled his intention to deepen ties with Paraguay. Bolsonaro, however, has also questioned the importance of the Southern Common Market (Mercosur) regional trading bloc, thus generating doubts about further commercial integration in the Southern Cone. Bilateral relations will have their litmus test when Paraguay and Brazil sit down to renegotiate the 50-year-old Itaipú treaty, which governs the shared hydroelectric dam on the Paraná River.

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