Dutch Brazil, known as New Holland, was a colony of the Dutch Republic in the northeastern portion of modern-day Brazil, controlled from 1630 to 1654 during Dutch colonization of the Americas.
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From 1630 onward, the Dutch Republic conquered almost half of Brazil's settled European area at the time, with its capital in Recife.
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Habsburg family had ruled the Low Countries from 1482; the area became part of the Spanish Empire under the Spanish Habsburgs in 1556; however, in 1568 the Eighty Years' War broke out, and the Dutch Brazil established the Republic of the Seven United Netherlands in 1581.
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In 1609 the Habsburgs and the Dutch Republic signed the Twelve Years' Truce, during which the Dutch Republic was allowed to trade with Portuguese settlements in Brazil .
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Portugal's small geographic size and small population meant that it needed "foreign participation in the colonization and commerce of its empire", and the Dutch Brazil had played such a role, which was mutually beneficial.
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Matias de Albuquerque, the Portuguese governor of Pernambuco, led a strong Portuguese resistance which hindered the Dutch Brazil from developing their forts on the lands which they had captured.
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Still in control of Antonio Vaz and Recife, the Dutch Brazil later gained a foothold at Cabo de Santo Agostinho.
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In 1641 the Dutch Brazil captured the captaincy of Maranhao, meaning that Dutch Brazil control now extended across the entire coastline between the Amazon and Sao Francisco rivers.
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Dutch Brazil invited naturalists Georg Marcgrave and Willem Piso to Brazil.
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Dutch Brazil allowed former Jews who had been forced to convert to Christianity to return to their former faith.
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Furthermore, the Catholic majority in Dutch Brazil was allowed to practice their faith freely, at a time in history in which there was extreme religious conflicts such as the Thirty Years' War between Catholics and Protestants.
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The colony of Dutch Brazil had a difficult time of attracting Dutch colonists to immigrate and colonize Brazil, as the main attraction of the colony was the extreme riches one could reap from starting a sugar plantation, as it was one of the few major market exporters of sugar to Europe at the time.
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The Dutch Brazil settlers were divided into two separate groups, the first of which was known as dienaren .
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The sugar industry in Pernambuco never fully recovered from the Dutch Brazil occupation, being surpassed by sugar production in Bahia.
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Meanwhile, the British, French, and Dutch Caribbean had become a major competitor to Brazilian sugar due to rising sugar prices in the 1630s and 1640s.
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The Portuguese colony of Dutch Brazil did not recover economically until the discovery of gold in southern Dutch Brazil during the 18th century.
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Dutch period in Brazil was "a historical parenthesis with few lasting traces" in the social sphere.
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