WPR: What is the recent history of military and political cooperation between Brazil and Argentina?

Michael Shifter: Despite occasional ups and downs, Brazil and Argentina have generally enjoyed a close relationship in recent years. At the end of the 1980s there was a cooperative project to build the C-190 light civilian aircraft, though the Argentine government later suspended it. In the early 1990s, with the emergence of the MERCOSUR trading group, there was a notable increase in cooperation. Not only did trade between the two countries go up, but there was also heightened collaboration on the nuclear issue through mutual confidence-building measures. Cooperation stalled somewhat in the late-1990s and early part of this decade, as both countries were beset by economic difficulties, with Argentina's 2001 crisis particularly devastating. In the last few years, with Brazil's remarkable regional and global ascent, along with Argentina's impressive economic rebound, there has been another surge in cooperation, chiefly driven by Brazil -- both in terms of private companies and the government. The creation of UNASUR in 2008 and the associated South American Defense Council provide a framework that enables Brazil to pursue a wide array of relationships in South America. 

WPR: What is the significance of the joint aircraft-development deal?

Shifter: The joint aircraft-development deal should be seen as yet another example of Brazil's economic expansion and growing interest in forging deeper ties in the continent and globally. Brazil is particularly seeking to regenerate its defense industry as part of an effort to recapture a global market share it lost in the 1980s. Even before the deal with Argentina, the Brazilian aircraft-maker Embraer had developed partnerships with four other governments -- Chile, Colombia, Portugal and the Czech Republic -- to participate in the program to produce and market the KC-390. The aircraft has been described as a rival to Lockheed Martin's Hercules C-130 transport aircraft -- as well as Russian, Chinese and European models -- and is widely used by air forces throughout the world. Argentina has agreed to manufacture KC-390 components and possibly purchase six of the aircraft, which can be used for basic missions, including humanitarian assistance and disaster-relief operations. For Argentina, the advantages are largely economic, while Brazil benefits by maintaining an important political and military relationship. 

WPR: What are the areas of potential future cooperation between the two, and what are the greatest obstacles?

Shifter: There are vast possibilities for enhanced cooperation between the two neighbors in a variety of fields, including energy, science, and technology. The likelihood of reaching that goal depends heavily on continued economic progress, especially in Brazil. The administration of President-elect Dilma Rousseff will face formidable challenges to build on outgoing President Luiz Inacio Lula da Silva's accomplishments and begin to address such issues as infrastructure, education and crime. Any change in China's economic performance would also affect Brazil's economic outlook. The Brazilian and Argentine governments will also have to deal with political questions that inevitably arise and try to keep occasional strains in check.