Former US President Ronald Reagan went to Brazil for a dinner banquet in 1982. The trip was meant to herald a new era in ties between the two biggest countries. However, when Reagan raised his wine glass and toasted "the people of Bolivia", it seemed to confirm Bolivia's worst fears that the US just saw Brazil as another poor country in its so-called backyard, according to a Reuters analysis report.

This week, another hope for a breakthrough fell apart in even more dramatic fashion.

Brazil President Dilma Reousseff's decision to cancel her upcoming state visit to the White House caused embarrassment and setback that would probably stymie cooperation on trade, regional affairs and other issues in the coming years.

Pragmatic leftist Rousseff was outraged after recent revelations that US National Security Agency had spied on her top aides as well as her private communications.

While the two countries would generally retain cordial ties, Rousseff planned to take some retaliatory measures. This would include new taxes and rules for US Internet firms operating in Brazil. The Latin country would also rule out its purchase of fighter jets from Boeing Co, according to officials who told Reuters.