November 20, 2023 18:38 GMT
Brazil Puts Relations With Argentina "On Hold"
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Bloomberg reports that Brazilian President Luiz Inacio Lula da Silva has put relations with Argentina "on hold" until he has clarity about the intentions of the incoming administration of Javiar Milei.
- Lula said in a post on X following Milei's election: "Democracy is the voice of the people, and it must always be respected... I wish the new government good luck and success... Brazil will always be available to work together with our Argentine brothers."
- Brazilian government sources told Bloomberg that Milei's comments describing Lula as a “communist with whom he wouldn’t deal,” mean, "a traditional call to congratulate the president-elect is unlikely to happen," although the sources say Lula would consider attending Milei's December 10 inauguration, "if a gesture of reconciliation is made."
- Milei's election threatens to undermine the relationship between the key trading partners and disentangle multilateral groupings like the Mercosur customs union and BRICS, which Argentina was slated to join.
- The sources told Bloomberg that, "in the end, Brazil is betting that Milei will eventually tone down his rhetoric to maintain working relations," with Brazil, noting that Brazil has advocated on behalf of Argentina at the IMF.