BrazilParaguay

Brazil and Paraguay are neighboring South American countries with a long shared border along the Paraná and Iguazú river basins. The border region hosts major energy facilities, transport routes, and diverse communities, and both nations participate in Mercosur, the regional trade bloc.

Historically, relations were shaped by the War of the Triple Alliance (1864–1870), in which Brazil fought Paraguay, with lasting effects on Paraguay. Paraguay joined Mercosur in 1991, strengthening economic ties with Brazil and other member states.

The Itaipu Dam on the Paraná River is central to bilateral energy cooperation. Completed in the 1980s, it is among the world's largest hydroelectric plants. Paraguay relies heavily on Itaipu for electricity, while Brazil also uses its output under a sharing agreement.

Trade is dominated by agricultural commodities, processed goods, and energy products. Brazil is Paraguay's main trading partner, and bilateral commerce aligns with Mercosur rules. Cross-border infrastructure, including the Friendship Bridge between Foz do Iguaçu and Ciudad del Este, supports daily movement of people and goods.

Official languages reflect each country’s diversity: Paraguay uses Spanish and Guarani, with Guarani having official status; Brazil uses Portuguese. The Brazil–Paraguay relationship continues to be defined by energy cooperation, trade, regional diplomacy, and shared environmental considerations of the Paraná basin.