President Luiz Inácio Lula da Silva of Brazil traveled to Asunción, Paraguay, to attend the inauguration of the newly elected president, Santiago Peña, set for the next day.
Lula described Peña as a promising young leader, emphasizing the importance of strengthening Brazil-Paraguay relations. Previously, Peña had met with Lula in Brasília twice this year.
Lula highlighted Brazil’s investments in Paraguay and the necessity for increased bilateral relations.
He believes in not only Brazil’s economic growth but also in creating opportunities for neighboring countries.
Recounting the transmission line from Foz do Iguaçu to Asunción.
He emphasized its role in addressing the power shortage in Paraguay and its importance for economic collaboration.
Regarding the Itaipu dam, an energy powerhouse, Peña, on a visit to Brazil, had discussed its potential as a significant employment generator.
As the debt related to the dam’s construction is settled, the treaty governing the dam’s operations is under revision.
While producing energy shared equally between the nations, the dam finds Paraguay using only about 15% of its share.
Paraguay aims to have more control over its surplus energy, potentially selling it to other countries.
Itaipu Binacional remains a global leader in clean energy. In 2022, it supplied a significant portion of both Brazil’s and Paraguay’s energy needs.
Trade and other mutual commitments are vital facets of Brazil-Paraguay relations. Brazil is Paraguay’s main trading partner and also the largest foreign investor.
Recent collaborations include bridge constructions across Rio Paraná and Rio Paraguay, improving transportation links.
Finally, cooperation against illicit activities remains strong.
The two countries actively collaborate on military, defense, intelligence sharing, and law enforcement.
This cooperation has led to significant actions, including arresting fugitives sought by Brazilian authorities.