Getúlio Vargas Constitution that was supposed to be transitional pending new elections, Vargas assumed legislative as well as executive powers. Also, under the 1937 Constitution Vargas should have remained President for only six more years (until November 1943), but instead stayed in office until 1945. For all intents and purposes, Vargas ruled for eight years under what amounted to martial law. Vargas employed ambiguous policies towards Axis and Allied orbits. At first, Brazil seemed to be entering the Axis orbit — even before the 1937 declaration of the Estado Novo. Between 1933 and 1938, Germany became the main market for Brazilian cotton,
Vargas Era grievances with ruling regime in the Northeast and Rio Grande do Sul, Getúlio Vargas chose João Pessoa of the Northeast state of Paraíba as his vice-presidential candidate in 1930. With the understanding that the dominance of the landowners in the rural areas was to continue under Liberal Alliance government, the Northeastern oligarchies were thus integrated into the Vargas alliance in a subordinate status via a new political party, the Social Democratic Party (PSD). As a candidate in 1930, Vargas utilized populist rhetoric to promote middle class concerns, thus opposing the primacy (but not the legitimacy) of the paulista coffee oligarchy