Explaining Brazil

Amid a global context of eroding multilateralism and rising US trade wars, Mercosur and the European Union are trying to create a shared market for more than 700 million people. 
The proposed free trade zone for goods and services encompasses 27 European countries, plus Brazil, Argentina, Paraguay and Uruguay on the other side of the Atlantic, with Bolivia in the process of joining as well. Combined, the economies involved in the deal make up for approximately 20% of global GDP.
The deal was finally signed on January 17, after more than 26 years of back-and-forth negotiations. 
But yet again, European farming countries are doing whatever they can to stall its implementation. On January 21, European lawmakers backed a resolution to seek an opinion from the EU’s Court of Justice on whether the free-trade deal complies with existing EU treaties.
That could stall the deal by up to two years — although the agreement’s backers, such as Germany, are trying to go ahead and implement it on a provisional basis until the court says its piece. 

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Lula did not recognize Maduro’s 2024 election win, but his first two terms in office in the 2000s saw him make South American integration a top priority of Brazil’s foreign policy, and maintain close ties with the Hugo Chavez government of the time.

Venezuela held the world’s largest oil reserves. It was a country with limited development in other sectors, highly dependent on imports, and eager to challenge a US-led world order. Brazil, meanwhile, had industrial goods, construction companies looking to expand abroad, and ambitions to lead the political rise of the Global South. The partnership had the potential to be highly fruitful.

Since then, however, much has changed in both countries, and ambitious regional integration projects have stalled. Now the United States is once again pulling Venezuela back into its sphere of influence, and away from China and Russia — and Brazil appears to have little room to maneuver.

To understand Brazil-Venezuela relations in the 21st century — including the economic and political choices made by each country — our guests are:

Diplomat Rômulo Neves, telling us what he witnessed firsthand in Brazil-Venezuela diplomatic relations while serving at the Brazilian Embassy in Caracas in 2007, during Chávez’s government. He is currently Minister-Counselor at the Brazilian Embassy in Rwanda, and author of the book “Political Culture and Elements for Analyzing Venezuelan Politics,” published in Portuguese by Funag. 

Our Latin America Editor, Ignacio Portes, discusses what has changed in those bilateral relations during Maduro's government. 
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In Latin America, 2026 quite literally got off to an explosive start.
Just before sunrise on January 2, the city of Caracas was violently awoken by the sound of bombs, as US forces launched a sudden, high-intensity strike on the Venezuelan capital. Within hours, President Nicolás Maduro and his wife, Cilia Flores, were in American custody — flown out of the country and headed to New York to face criminal charges.
The Venezuelan government has provided no official death count from the strikes, but they are believed to be in the dozens — at least 40, per some accounts.
Even by Washington’s standards, this was extraordinary. But it aligns neatly with Washington’s new worldview.
In its latest National Security Strategy, the US no longer frames Latin America as a partner. Instead, the US describes it as a buffer — a region expected to stop migrants, narcotics and Chinese influence before they reach US shores.

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In any democratic republic, it’s normal for the executive, legislative, and judicial branches to clash. That’s a sign of mutual oversight. It’s also normal for politicians to make concessions to their adversaries. That’s a sign of democracy.
But the sequence of recent events in Brazilian politics has turned into a sweeping narrative about what happens when these dynamics of checks and balances slide into sheer revanchism and bargaining over the rule of law.
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In a country with 27 state governments, more than 5,000 city halls, and around 12 million people working in the public sector, calls to reform — or improve — Brazil’s civil service never really seem to go away.
We talked to Brazil's special secretary for state transformation — and asked him to compare the reform proposals coming from the lower house with the Lula administration's approach. 
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