Collor explained that he was concerned about what he called the “unfriendly” attitude of the government of Ecuador with regard to Brazil. He said there had been a change in the relationship.
In fact, there was a spike in unfriendliness in 2008 when president Rafael Correa of Ecuador called for international arbitration with respect to a $597 million debt with the Brazilian Development Bank (BNDES). At that time, Brazil recalled its ambassador.
Before that, Correa ordered the expulsion of the Brazilian construction company, Norberto Odebrecht, claiming that there were serious problems with a dam, the San Francisco, the company was building. Four company executives had their constitutional rights suspended by the government of Ecuador.
Cultural Agreement
Brazil and Paraguay, the two countries that jointly operate the world’s second biggest hydroelectric power plant, the Itaipu Binacional, have announced the signing of a new cultural agreement that will extend to 2013.
According to Brazil’s minister of Culture, Jucá Ferreira, it is a game changer worth 44 million reais (US$ 24.5 million). “This is a significant contribution to our partnership. It will mean an incremental expansion of our efforts to reduce regional disparities within Mercosur.”
He added that the Brazilian government has become more aware of the need to go beyond commercial and geopolitical relations in order to strengthen the economic block Mercosur, which consists of Argentina, Brazil, Paraguay and Uruguay, plus Venezuela.
Among the agreement priorities is a renovation project for the historical center of Asuncion, the capital of Paraguay.
But the main focus of the agreement, as with so much of Brazil-Paraguay relations, will be the area surrounding the Itaipu dam.
“This is Guarani territory that is shared by both countries. It will be benefited by a program that promotes citizenship,” said minister Jucá Ferreira, adding that Itaipu Binacional is a company that is interested in matters beyond electricity – ecology and cultural services are also part of the corporate mix, he said.