Brazilian businessman Rubens Barbosa, head of the foreign trade council of the Sao Paolo Federation of businessmen said on Sunday that in the last six months, the Argentine presidency of the bloc implemented measures that practically killed the Mercosur.
“Argentina will be responsible for the end of Mercosur,” he predicted.
Mercosur high representative Samuel Pinheiro Guimaraes resigned because of “political reasons”, following the presentation of a report warning on the future of the regional block in the framework of the international crisis.
Mercosur rejected an Argentine proposal to raise imports tariffs on all goods from outer zone to protect local industries, but accepted Brazil’s initiative to raise tariffs unilaterally on 200 goods, up from 100 agreed last December.
Brazil could soon run out of soybeans to export this year after farmers’ frontloaded their shipments more than normal to cash in on high international prices and a favourable exchange rate.
Unasur, Union of South American nations on Friday suspended Paraguay from the group following the ouster of the country's former president, Fernando Lugo. The decision was adopted at an extraordinary meeting in Mendoza, Argentina where earlier in the day Mercosur members adopted a similar measure.
President Federico Franco announced in a press conference that if Paraguay is suspended from Mercosur the country will feel free to look for other trade agreements and international relations.
Mercosur Secretary General Samuel Pinheiro Guimaraes resigned to his post in the midst of the Mendoza summit following a strong exchange with the group of Foreign Ministers, indicated reports from Buenos Aires.
The removal of Fernando Lugo from the Paraguayan Executive office was legal, said Brazilian former president and Senator Fernando Collor, quoted by O’Globo. He insisted there was “no coup”.
Brazilian president Dilma Rousseff has unveiled a 115-billion-Reais (55 billion dollars) loan program aimed at reinforcing agriculture's role as a lever of Brazilian economic growth.
Brazil's government has taken measures so that economic growth reaches at least 2.5% in 2012, said Finance Minister Guido Mantega following the announcement of new economic stimulus measures that are expected to accelerate the economy in the second half of the year.