Bilateral Brazil-Argentina deal in the spotlight ahead of CELAC meeting

Brazilian President Luiz Inácio Lula da Silva’s first international trip since his inauguration has generated much excitement in Argentina, especially among political leaders. For his counterpart, Alberto Fernández, the visit is an opportunity to showcase Argentina as a regional leader, away from the noise of local politics, where he feels less at ease.

The heads of state see each other as allies, following years of tension during Jair Bolsonaro’s administration, which clashed with Mr. Fernández from day one as the latter visited Lula in jail and called for his freedom.

Lula’s victory at the ballots — followed by Mr. Bolsonaro’s fall from grace as his followers stormed and ransacked government buildings in Brasília — will be seen as vindication for Mr. Fernández, who bet on his center-left counterpart while he was down.

The Argentinian president also hopes Lula will have a friendlier approach towards his country in matters such as Mercosur trade liberalization, where the protectionist stance of Buenos Aires was in the minority during much of Mr. Bolsonaro’s tenure.

Looking to show mended fences, the sides are currently working on a wide-ranging bilateral agreement that includes topics such as energy, finance, defense, science and technology, and which the Fernández administration is hyping up as “unprecedented.” 

Argentina wants Brazil to finance the extension of a crucial gas pipeline currently under construction, which connects the massive gas fields in...