The patience of the Brazilian government finally ran out after a weekend media blitz by Argentine President Javier Milei, during which he once again called his Brazilian counterpart Luiz Inácio Lula da Silva a “thief” and a “convict.” The result: a historic diplomatic sanction that has no recent precedent between the two South American giants.
A Diplomatic Sanction Without Recent Precedent
On August 4, 2026, Brazil’s Foreign Ministry (Itamaraty) summoned Argentine Ambassador in Brasília, Daniel Raimondi, to deliver a formal protest. The key outcome of the meeting was that Brazil will downgrade its diplomatic mission in Argentina to the level of chargé d’affaires for the first time in decades. As a result, the return of Ambassador Julio Bitelli to Buenos Aires has been postponed indefinitely.
“We have been very patient, we did not respond, but we believe that the repetition of offenses against the President makes this decision inevitable.”
Although the representation will be limited to commercial affairs, the gesture represents a severe cooling of bilateral relations within the Mercosur trade bloc. It remains unclear whether Argentina will retaliate by also ordering the return of its ambassador in Brasília.
The Trigger: Milei’s Statements
Lula’s anger intensified after Milei’s recent appearances on LN+, Radio Mitre, and the streaming show La Casa. There, the Argentine president repeated that he considers Lula a “thief” and a “convict,” arguing that the Brazilian’s conviction was annulled due to a “procedural error” in Brazil’s justice system. “I have horrible manners but I tell the truth,” Milei justified himself.
Support for Brazilian Opposition
Milei also stirred friction by attending the July 25, 2026 convention of the Liberal Party, which nominated Flavio Bolsonaro as its presidential candidate. The Argentine president expressed hope that “Brazil will also turn blue” ahead of the October elections, and complained that Lula did not congratulate him after his 2023 victory.
Argentina’s Stance and Future of Relations
Despite the magnitude of Brazil’s measure, the Argentine government has indicated it will not issue an official apology for Milei’s remarks. Official sources consulted by local media confirmed that “there will be no apology.” The expectation now is that, beyond the political rift, low-level commercial and diplomatic channels may still sustain the exchange between the two countries, which are key partners in Mercosur.
For context: Mercosur (Southern Common Market) is a South American trade bloc founded in 1991, including Argentina, Brazil, Paraguay, Uruguay, and Venezuela (currently suspended). The relationship between Argentina and Brazil has historically been one of the bloc’s pillars, making this diplomatic downgrade a significant event for regional integration.