Brazilian President Dilma Rousseff will call off her state visit to Washington next month after President Barack Obama failed to smooth over relations shaken by allegations of espionage, two government officials said.
The decision to cancel came less than a day after Obama personally called his Brazilian counterpart, the officials said, asking not to be named because Rousseff hasn't publicly announced her decision. She said in a radio interview this morning the announcement would be made today.
The decision is the latest fallout from revelations about U.S. interception of Internet and telephone traffic that was expanded after the Sept. 11 terrorist attacks. Brazil has more to lose than the U.S. by canceling the trip, Gabrielle Trebat, a director at strategic advisory firm McLarty Associates in Washington, said.