Paraguay makes peace with Brazil after the Paraguayan War

Background. The conflict concluded with the death of President Francisco Solano López in 1870. The war resulted in significant demographic losses for Paraguay, with estimates suggesting half the population perished. Following the cessation of fighting, the new Paraguayan government sought to normalize relations with Brazil, which had occupied the country for six years.

Treaty Terms. The peace was formalized by the Loizaga-Cotegipe Treaty, signed on 9 January 1872. Key provisions included the granting of freedom of navigation on the Paraguay River to Brazil. The treaty also addressed territorial concessions, reflecting the power dynamics following the war's conclusion.

Postwar Context. Brazil faced a financial deficit between 1870 and 1880 due to the war costs. The occupation of Paraguayan territory by the Brazilian army continued for six years after 1870, influencing the political and economic landscape during the transition to peace.