The White House has confirmed Brazilian President Dilma Rousseff's visit to the United States in late October has been cancelled.
According to a statement released by White House Press Secretary Jay Carney, President Barack Obama spoke by telephone with his Brazilian counterpart Monday on the matter.
Obama said he understands and regrets the concerns disclosures of alleged U.S. intelligence activities have generated in Brazil.
The move comes after Brazil said it would opt out of US-centric Internet over Washington's widespread online spying.
Brazilian President Dilma Rousseff ordered a series of measures aimed at greater Brazilian online independence and security.
The US National Security Agency had intercepted her communications, hacked into the state-owned Petrobras oil company's network and spied on Brazilians, who entrusted their personal data to Facebook and Google.
Rousseff is so angered by the espionage that she was considering cancelling her trip to Washington next month where she's scheduled to be honoured with a state dinner.
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Though Brazil is not proposing to bar its citizens from US-based Web services, it wants their data to be stored locally as the nation wants greater control over Brazilians' Internet use to be protected from NSA snooping, the report said.
According to the report, Rousseff said she intends to push for international rules on privacy and security in hardware and software during the UN General Assembly meeting later this month.