Brazil’s Rousseff signs energy accords in Argentina

by Craig Janis

Brazil and Argentina will cooperate on the construction of two new hydroelectric dams and two nuclear reactors as part of expanded energy cooperation between the two countries. From Reuters:

“We will continue to work to strengthen Mercosur and consolidate the customs union … and we will keep on fighting protectionism by rich countries and policies that distort foreign trade, including exchange rates,” she said.

Brazilian President Dilma Rousseff signed energy cooperation agreements with her Argentine counterpart on Monday during her first official visit abroad since taking office.

South America’s two largest economies are growing briskly and their governments are working to ensure energy supply can keep pace with growing demand from industry and households and sustain long-term growth.

Rousseff and Argentine President Cristina Fernandez pledged to accelerate plans to build two hydroelectric dams on part of the Uruguay River that straddles their border. The Garabi and Panambi dams would have a capacity of 2,200 megawatts.

They also agreed to build two nuclear reactors for investigation purposes and exchange know-how on biofuels. Brazil is one of the world’s biggest ethanol producers and Argentina is a leading exporter of biodiesel made from soyoil.

“I’m sure the accords we’ve signed will prove fruitful,” Rousseff said in a speech at the presidential palace, vowing to boost bilateral ties and the Mercosur regional trade bloc.