Background: Brazil is the fourth largest democracy in the world, the fifth largest nation (by square miles), and the ninth or tenth largest economy in the world (depending on the measurement used). The region was explored, settled, and colonized by Portugal beginning in 1500. Brazil became independent in 1822 and has been through periods of autocratic, military, and democratic rule. The current constitution and democracy were established in 1988. President Luiz Inácio Lula da Silva, elected in 2003 and re-elected in 2006, will be in office until 2011.
American Ties: The United States and Brazil have enjoyed generally close relations for 200 years. At the height of the Cold War, a coup ousted a Brazilian government thought to be hostile to the United States. American involvement in the event is suspected but unproven. The two countries currently cooperate on trade issues, HIV/AIDS efforts, regional concerns, and the international peacekeeping operation in Haiti.
President Lula: President Luiz Inácio Lula da Silva, known as Lula, is a liberal reformer with a long history of campaigning for workers' rights. As president, he has been able to attract foreign investment and grow Brazil's economy. Lula seems as comfortable working with Venezuelan President Hugo Chazev as he does with U.S. President George W. Bush.
Common Interests: Presidents Bush and Lula recently signed an agreement to promote and increase the worldwide trade in ethanol. Brazil and the United States are the top global ethanol producers. The two countries have worked closely on efforts to control narcotics production and distribution across Latin America. Brazil and the United States cooperated in principle on the creation of a Free Trade Area of the Americas (FTAA) but negotiations faltered over the issue of agricultural subsidies. The FTAA idea appears dormant at the moment.
