(VOVworld) – Brazilian President Dilma Rousseff has canceled a state-level visit to the US, which was scheduled for October. The decision has delivered a blow to US President Barack Obama’s effort to improve relations with one of the biggest economies in America.

The decision stemmed from accusations that the US National Security Agency (NSA) has been spying on the emails and messages between Brazilian President Dilma Rousseff and his subordinates. According to Brazil’s Globo TV channel, NSA even spied on activities of Brazil’s National Oil and Gas Group Petrobas to learn about oil reserves in the south Atlantic.

President Rousseff convened an emergency meeting with officials of the Ministries of Defense, Justice, Communications, and Foreign Affairs at Planalto Palace. The US ambassador was also summoned to explain the issue. The Brazilian government released a communiqué saying that illegal surveillance activities violate Brazil’s national sovereignty and hinder democratic cooperation among friendly nations. Brazilian Foreign Minister Luiz Alberto Figueiredo Machado said this scandal is an unacceptable violation. A special committee will be established to investigate the incident.

Brazil has not only signaled its objection to NSA’s activities but also embarked on measures to reduce US influence. President Rousseff has ordered a series of measures to be carried out to ensure Brazil’s independence in Internet networks. The government will launch a telecommunications satellite by 2016 and install an undersea optical cable system to connect with Europe and other south American countries to avoid US surveillance. President Rousseff is urging parliament to approve a bill which will force Facebook, Google, and other online service providers to store data created by Brazilians in servers within Brazilian territory. This plan will set a precedent for other countries to follow in order to minimize US monopoly in the Internet system.

The NSA scandal has affected US-Brazil relations in the context that the US visit by President Rousseff was expected to be extremely important. The two sides were scheduled to discuss jet fighter purchases and cooperation in oil, biotechnology, and trade. The US is Brazil’s biggest trading partner with two-way trade value reaching 59 billion USD in 2012. The US considers Brazil a key country in south America with its economic influence and role in multilateral forums.

US-Brazil relations were strengthened when President Rousseff came to power in 2011 but challenges have arisen. Although President Obama’s administration has pledged to investigate the surveillance accusations and cooperate with Brazil in network security, relations between the US and Brazil will not easily recover from this breach of trust.