President Luiz Inácio Lula da Silva (PT) was in Asunción, Paraguay, this Tuesday (15) amid the renegotiation of the Itaipu Hydroelectric Power Plant agreement. The treaty completed 50 years last Sunday (13), and the revision of the terms is a priority on the bilateral agenda.
Today, each country keeps half of the energy generated, and Brazil acquires another 30% for the same amount. However, Paraguay wants more freedom to use the quota it is entitled to. He also complains that Brazil takes more advantage of the plant’s energy and buys the surplus from them at low prices.
In May, Paraguayan President Santiago Peña stated that the country intended to discuss not only the financial bases, but the entire document.
Peña wants to use the energy from the hydroelectric plant for the country’s development. Lula’s presence at the inauguration is a nod from the Brazilian president to the good relationship he has been building, despite being on opposite sides of politics.
The Paraguayan went so far as to say that he considers Lula one of the most important global leaders today and has been pointing out that he wants to make the most of this proximity.
In his inauguration speech, Peña mentioned that he is determined to transform the country into the integration center of South American nations. In line with the project of the Brazilian Chief Executive, who defends the strengthening of Mercosur. The economic bloc is one of the main points of interest for both countries.
Like Lula, Peña believes that the environmental requirements for the agreement with the European Union (EU) are very tough and that it is important to put an end to the negotiations that have lasted 20 years.
The Paraguayan centre-right leader also defends Lula’s peace plan for the war in Ukraine. Peña stated at the ceremony that he believes in dialogue and not in force to resolve the conflict.
Even so, there is an important difference. While Brazil recognizes Taiwan as an inalienable part of China, Paraguay is one of the few nations in the world that maintains diplomatic relations with the autonomous island.
Taiwan’s Vice President William Lai was even among those attending the inauguration ceremony.
See also: Mercosur is the answer, not the problem, says Paraguayan president-elect Santiago Peña to CNN
Source: CNN Brasil
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