Brazil and Paraguay Resume Itaipu Treaty Talks After Intelligence Dispute

Brazil and Paraguay have agreed to resume negotiations on the Itaipu Treaty, paused earlier due to an intelligence operation dispute. The talks will focus on reviewing 'Annex C,' which determines financial conditions for electricity commercialization. Paraguay confirmed the issue resolved after receiving a report from Brazil.

Brazil and Paraguay have announced their decision to continue discussions regarding the review of 'Annex C' of the Itaipu hydroelectric power plant treaty, with meetings set to occur in December. This joint decision marks the rekindling of a conversation crucial for both nations.

The key focus of these negotiations is 'Annex C,' which lays out the financial agreements required for the distribution and commercialization of electricity produced by the hydroelectric plant. While Itaipu is a shared venture, its output is disproportionately utilized by Brazil, as Paraguay sells much of its excess power back to Brazilian customers.

Earlier negotiations were stalled after Paraguay suspended talks in April, citing concerns over an unauthorized intelligence operation conducted by Brazil. Brazil admitted the operation, initially authorized under President Jair Bolsonaro's administration, subsequently providing Paraguay with a detailed report. With official assurances and a bilateral meeting between diplomatic heads, Paraguay has since declared the issue resolved.

(With inputs from agencies.)