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Agreement by Brazil, Paraguay, and Argentina

The construction of the dam was first contested by Argentina, but the negotiations and resolution of the dispute ended up setting the basis for Argentine–Brazilian integration later on. An important diplomatic settlement was reached with the signing of the Acordo Tripartite by Brazil, Paraguay and Argentina, on October 19, 1979. This agreement established the allowed river levels and how much they could change as a result of the various hydroelectrical undertakings in the watershed that was shared by the three countries.