paraguay and Brazil were the first partners in MERCOSUR, mercado comum do sul, which encourages free trade and the efficient movement of goods and products throughout most countries in south américa.

Brazil recognizes paraguay as a country with great economic potential, progressively strengthening ties with this nation with projects such as the friendship bridge built in 1965 in the border of Brazil and Paraguay and the Itaipu Dam, finished in 1984, located 15km away from this bridge.