Relationship dossier
Brazil
Paraguay
Relationship assessment
A durable partnership centered on Itaipu and regional integration, alongside recurring disputes over energy arrangements.
Brazil toward Paraguay
+45Brazil shares ownership of the Itaipu project with Paraguay and negotiated a 2009 agreement to increase payments to Paraguay for energy sold to Brazil. Brazil also works with Paraguay through regional economic integration, while Itaipu’s energy and financial terms have remained a source of bilateral negotiation.
Paraguay toward Brazil
+45Paraguay shares ownership of Itaipu with Brazil and negotiated the 2009 agreement that increased payments for energy sold to Brazil. Paraguay participates with Brazil in regional economic integration, while seeking favorable arrangements for Itaipu energy and finances.
Overall relationship
+45The relationship is anchored by the jointly operated Itaipu project and sustained regional economic cooperation. Negotiated adjustments to Itaipu’s financial terms show an ability to manage disputes through bilateral agreement, although energy arrangements remain a recurring source of friction.
How to read these scores
Scores are rough judgments, not objective measurements or current verification. Directional scores describe government policy and conduct, not public opinion. The overall score is an independent estimate, never an average.
- −100
- Extreme sustained hostility
- −50
- Substantially adversarial
- 0
- Mixed or neutral, supported by knowledge
- +50
- Substantially cooperative
- +100
- Exceptionally close sustained partnership
“Not assessed” means there is no recorded score. Pair existence makes no claim about diplomatic recognition or established relations.
Relationship context
Overview
Brazil and Paraguay have a durable cooperative relationship built around the binational Itaipu hydroelectric project and regional economic integration. The governments have negotiated over Itaipu’s energy and financial arrangements, including a 2009 agreement that increased payments to Paraguay for energy it sells to Brazil. Cooperation coexists with recurring disagreements over Itaipu terms and issues affecting the shared border.
Areas of tension
- Disagreements over Itaipu’s energy pricing, compensation, and financial arrangements.
Key developments
Brazil and Paraguay signed the treaty establishing the Itaipu hydroelectric project.
The governments reached an agreement to increase payments to Paraguay for energy sold to Brazil from Itaipu.
Major uncertainties
- The current implementation and scope of bilateral arrangements beyond Itaipu are unclear.
- The extent and effectiveness of ongoing border cooperation are uncertain.