The President of the Republic, Luiz Inácio Lula da Silva, met with the President of Paraguay, Santiago Peña, this Monday, July 8, in the Paraguayan capital, Asunción. The leaders discussed the relations between the two countries and among the other Mercosur members, as well as infrastructure projects, development of waterways, and river ports.

"Brazil's strategic relations with the countries of Mercosur are a very serious and authentic matter, which we give total priority. Together we have a much greater chance of making things happen. Brazil and Paraguay are truly brother countries,"

"Brazil's strategic relations with the countries of Mercosur are a very serious and authentic matter, which we give total priority. Together we have a much greater chance of making things happen. Brazil and Paraguay are truly brother countries," Lula emphasized.

Peña advocated for the expansion of integration among the Mercosur member countries and thanked Lula for his efforts to strengthen relations between Paraguay and Brazil. "I am very proud to be the president of Paraguay at the same time that Lula is the president of Brazil, a true privilege," he stated.

The Paraguayan leader highlighted Brazil's relevant role as a member of BRICS and at the forefront of the pro tempore presidency of the G20, whose Leaders' Summit will be held in Rio de Janeiro in November 2024. Peña also expressed interest in developing unified border centers, finalizing the annex C agreement of the Itaipu Treaty, increasing energy integration in the oil and gas sector, and the complementarity of productive chains.

Paraguay hosts the third largest Brazilian community abroad, with an estimated presence of over 254,000 Brazilians. Brazil is Paraguay's main trading partner. In 2023, bilateral trade totaled US$ 6.6 billion.

BLOCK – Before the meeting, in his speech at the 64th Summit of Heads of State of Mercosur and Associated States this Monday, Lula praised the importance of strengthening democracy on the continent and reinforced the strategic role of consolidating Mercosur in regional integration. The president also highlighted the importance of Mercosur countries being attentive and working to address social inequalities on the continent, without setbacks.

Mercosur was created 33 years ago through the Treaty of Asunción and, according to the Ouro Preto Protocol, the pro tempore presidency of the bloc is held by the Member States, in rotation and in alphabetical order, for six months. At the end of the summit, the President of Paraguay passed the presidency of the bloc to the President of Uruguay, Luis Lacalle Pou.

During Paraguay's Presidency, there were 14 ministerial meetings in various areas, focusing on education, health, justice, labor, culture, human rights, environment, tourism, social development, and indigenous populations. Among the measures taken was the creation of committees, one of the most important being the integrated control areas at the borders.

AGREEMENT – In January, Lula received Peña at the Itamaraty Palace. On that occasion, the leaders discussed the tariff for energy sold by the binational Itaipu hydroelectric plant, the construction of the bioceanic bridge connecting the two countries, on BR-267/MS – from Porto Murtinho, in Mato Grosso do Sul, to Carmelo Peralta, in Paraguay – and current issues in Latin America.

In May, Brazil reached a definitive agreement on the energy tariffs of Itaipu with Paraguay. The measure guarantees the maintenance of the tariff, without adjustments to the Brazilian consumer, as the government has prioritized investment in tariff moderation. The agreement between the two countries that operate the binational hydroelectric plant was defined at a tariff of US$ 19.28 until 2026. On the Brazilian side, the tariff is maintained at US$ 16.71, enabling the final sale price by the National Electric Energy Agency (Aneel) of R$ 205/MWh.

After this period, a value will be practiced that considers only the operational costs of the plant, between US$ 10 and US$ 12. Also after 2026, all energy used by Paraguay will need to be contracted, with an increase in the amount already in 2024, recovering revenues of up to US$ 60 million per year for Brazilian consumers.