Brazil opened a new trade mission in Jerusalem on Sunday, apparently reversing earlier signs that it would follow suit with the United States by moving its embassy to the disputed city.
The announcement was made during a visit to Israel by Brazilian President Javier Paulsonaro. Brazil has decided to open an office in Jerusalem to promote trade, investment, technology and innovation to be part of its embassy in Israel, according to a statement by the Brazilian Foreign Ministry in Brasilia.
In January, Paulsonaro said he would follow Washington's footsteps on the embassy. Such a decision would have given a boost to Israeli Prime Minister Benjamin Netanyahu, who hopes to win a fifth term in elections next week.
During a visit to Brazil on January 1 to attend the inauguration of the president, Netanyahu quoted Paulsonaro as saying that the transfer of the Brazilian embassy to Jerusalem was a matter of "timing, not principle."
But senior Brazilian officials later retracted the idea for fear of damaging trade ties with Arab countries. Brazil has not officially recognized Jerusalem as the capital of Israel.
"The transfer of the embassy is a bad idea, because it will hurt the country's exports to Arab countries and the sale of halal food worth about $ 5 billion," retired military vice president Hamilton Morao told Reuters.