Decision after decision in Brazil’s energy policies over the last 10 years have turned out to be remarkably successful. The country’s macroeconomic and social policies were less than stellar until the introduction of the Plan Real in 1994, which set the stage for the largely healthy economic situation that exists in Brazil today. Along with other features of the Real Plan (to establish a stable currency, reduce inflation, and get control of the country’s fiscal situation), Brazil drastically lowered its import barriers but has since resisted efforts in trade negotiations to reduce them further. The Treaty of Asunción in 1991 establishing Mercosur was feted with great fanfare, but the trade provisions of the agreement have largely languished since then.
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