Three South American nations unilaterally recognized a Palestinian state in the 1967 borders, provoking "regret and disappointment" from Israel and concern from the United States about the future of international peace negotiations. Argentina, Brazil, and Uruguay joined Costa Rica, Cuba, Nicaragua, and Venezuela in recognizing an independent Palestinian state, by either declaration or conducting an agreement with an independent Palestinian identity.

In particular, the action risks rewarding Palestinian terror groups for their recalcitrance in entering negotiations and undermining the potential of negotiations to provide a lasting peace. Israel has long equated a Palestinian state with a negotiated agreement recognizing its security needs.

The action also contravenes the Oslo Agreement between Israel and the Palestinians, which forbids the Palestinians from conducting foreign relations as an independent entity.

The move also follows Brazil's stated effort to pursue an independent course in its foreign policy, by defending Iran and agreeing to negotiate with terrorist groups rejected by Israel and the United States. Despite American statements that the move was "severely misguided" and "regrettable," the Brazilian foreign ministry declared that the recognition is "in line with Brazil's historic willingness to contribute to peace between Israel and Palestine."