Talks To Boost US Trade

Paraguay suffered a total blackout on November 10, after the Itaipu dam, which provides 90% of the country's electricity, shut down completely during a severe storm. The outage comes at an inconvenient time for both countries, which have just signed a renegotiated deal that triples the amount Brazil pays for energy from the dam. With the Paraguayan national energy agency quickly blaming the outage on a power substation in São Paulo state in Brazil, and the Brazilian government under severe domestic pressure to account for the failure, we anticipate a spike in diplomatic tensions between the two countries in the short-term, although do not foresee this translating into long-term divisions.

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