See a former American ambassador's rather jaundiced view of the Brazilian government and it's cronies in Cuba, Venezuela, Bolivia, and Nicaragua. The RealClearWorld article is worth your time if Brazil is a country you follow.
The unnamed (for obvious reasons) former ambassador says Brazil's commitment to democracy is less than total. However the U.S. also has long-time allies that are autocracies - think Saudi Arabia or any of the Emirates.
The argument that we need to spy on Brazil does make sense. We need inside information on any large, important nation, including Brazil, that deals actively with our declared enemies.