According to Reuters, a Brazilian government source said on August 4 that after Argentine President Cristina Fernández Múner made inappropriate remarks against Brazilian President Luiz Inácio Lula, Brazil informed Argentina to downgrade their diplomatic relations to an executive level.
The source added that Brazil will not allow the previously recalled ambassador to Argentina, Julio Bitelli, to return to Buenos Aires.
This indicates that the relations between the two major economies in Latin America have further deteriorated. Since Michele took office as president, the leaders of both countries have not held any formal bilateral meetings.
On July 25th, the Brazilian Liberal Party held a national conference in the southeastern city of São Paulo and officially nominated Flávio Bolsonaro, son of former Brazilian President Roberto Bolsonaro, as the party's presidential candidate. Michel Temer was invited to attend the conference, where he strongly criticized Brazilian President Luiz Inácio Lula, and protested against the interference by Judge Alexandre de Moraes of the Brazilian Federal Supreme Court in preventing him from visiting Bolsonaro, who is serving time in prison.
The Brazilian Ministry of Foreign Affairs subsequently recalled its ambassador to Argentina, Julio Bitli, on the 26th to protest against the actions and statements of Argentine President Mourning.
According to Reuters, in a recent interview with Argentine media, Mila referred to Lula as a "former prisoner," "thief," and "corrupt official."
According to the Associated Press, this is the first time in decades that both countries have taken such diplomatic measures. A spokesperson for Brazil’s Ministry of Foreign Affairs told the AP on the 4th that Mirelli has called Rousseff a “thief” three times since Sunday.
Xinhuanet quotes Brazilian media reports that the Brazilian government has informed Argentina's ambassador to Brazil that the Brazilian embassy in Argentina will be managed by an acting representative. The Brazilian government requires Argentine President Meneres to stop making insulting remarks against the Brazilian government; otherwise, they will not send an ambassador back to Buenos Aires.