By Gram Slattery and Lisandra Paraguassu
WASHINGTON/BRASILIA, July 30 (Reuters) - The Brazilian government has for weeks withheld the formal diplomatic approval needed for the next U.S. ambassador to take up his post, angering U.S. officials and deepening a rift between the Western Hemisphere's two largest democracies.
The dispute could leave Washington without an ambassador in Brasilia ahead of the nation's pivotal October election, adding to bilateral tensions that have already affected trade flows
and resulted in accusations of interference in domestic affairs.
Daniel Perez, a Florida state representative and close ally of Secretary of State Marco Rubio, was nominated by U.S. President Donald Trump on June 1. The nomination occurred before the U.S. sought Brazil's approval, a common diplomatic step known as "agrément," said four people familiar with the matter.
Officials in Brasilia viewed that omission as a disrespectful breach of protocol, according to two officials who requested anonymity to describe private diplomatic conversations.
Perez's nomination is now awaiting a full Senate vote after passing through committee last week, though he will not be able to take up the post until Brazil grants its approval.
In recent days, some Trump officials have grown increasingly exasperated about what they interpret as Brazil's slow-walking, according to two of the sources. One of the people added, without elaborating, that the administration may take punitive actions against Brazil as soon as the end of the week if the matter is not resolved soon.
The administration of President Luiz Inacio Lula da Silva, a leftist, has long had a tense relationship with Rubio's State Department due to what it sees as efforts to influence Latin American politics in favor of conservatives.
The Trump administration conversely has accused the Brazilian government of at times censoring conservatives or tilting the scales against them in judicial proceedings.
Asked about Brazil's delay in granting agrément for Perez, a State Department spokesperson said:
"President Trump has the right to determine who represents the American people and interests around the world. President Trump is assembling an America First diplomatic A-team across his administration, subject to the advice and consent of the Senate. We reject any effort by foreign countries to interfere in our domestic processes."
Brazil is currently investigating Perez in keeping with standard procedure, two Brazilian officials said. One of them added that agrément will probably not be granted before Brazil's election on October 4.
"We are not saying we won't give the agrément, but there is no deadline," one of the officials said. "It is up to the host country to decide when the appropriate time is."
Brazil's foreign ministry said in a statement that it would not comment on the matter "as the process is covered by the principle of confidentiality established in the Vienna Convention."
An email sent to Perez's Florida House office was not returned.
TENSE RELATIONS, FRAUGHT ELECTION
National sovereignty has become a key rallying cry for President Lula, as he seeks his fourth non-consecutive term in October's election. His main opponent is Senator Flavio Bolsonaro, the son of former President Jair Bolsonaro, who has sought to portray Trump as a key ally.
In June, the State Department designated two Brazilian organized crime groups as terrorist organizations, despite opposition from the Brazilian government.
Washington imposed a 25% tariff this month on several Brazilian products, citing what it described as unfair trade practices. Last week, it announced an additional 12.5% levy linked to concerns over forced labor.
Days later, two Brazilian officials told Reuters that Brazil denied visa requests for two Trump administration officials who planned to travel to the country to cast doubt on the integrity of its electoral system.
Polls show Lula with a slim but steady lead over Flavio Bolsonaro.
At his committee hearing this month, Perez told senators that Brazil's October election would be an early priority if he is confirmed, saying that the U.S. should support conditions for free and fair elections while strengthening trade and security cooperation with Brasilia.
"We do have a trade surplus with Brazil," Perez said, "but nevertheless, there are some industries that have a significant gap," referencing energy and agriculture.
(Reporting by Gram Slattery and Lisandra Paraguassu; Writing by Brendan O'Boyle, editing by Manuela Andreoni and Sanjeev Miglani)
