Unasur ratified on Tuesday Paraguay’s suspension from the block at a meeting of the so called High Level Group in Lima, Peru which assessed the situation of the landlocked country.
Paraguayan president Federico Franco called for moderation and time from members of Congress when they begin considering Venezuela’s request to become a full member of Mercosur, since the issue needs of “a good in depth analysis and no hasty decision”.
Mercosur farmers in Brazil and Argentina are forecast to plant more soybeans for harvesting this season in response to higher prices, at the expense of wheat and corn sowing, according to Oil World. Paraguay and Uruguay Agriculture ministries have also anticipated an increase in the soybeans planted areas.
Paraguay is sounding the recently created Pacific Block made up of Colombia, Peru, Chile and Mexico with the possibility of considering applying to join it, revealed the country’s Foreign affairs minister Jose Fernandez Estigarribia.
Meat producers in Brazil's Mato Grosso do Sul state are lobbying the government to approve soy imports from neighbouring Bolivia after drought shrank supplies in the world's second grower, a state official and analysts.
Brazil reminded Paraguay it can use the power it needs from the giant Itaipu hydro but there is a contract which regulates how to manage the surplus. A day earlier president Federico Franco said that Paraguay would not “yield” any more electricity to Brazil.
The Paraguayan government had decided to appeal before the International Court of Justice in The Hague the suspension imposed on Paraguay by the governments of Argentina, Brazil and Uruguay as a sanction for the removal of Fernando Lugo as president of the country, last June 22.
The special Unasur commission that is monitoring and following political events in Paraguay since the removal of Fernando Lugo as president and his replacement by Federico Franco, is expected to make a first presentation next Thursday said Peruvian Foreign affairs minister Rafael Roncagliolo.
Brazilian Armed Forces began this week a major deployment along the borders of Uruguay, Argentina, Paraguay and Bolivia involving 9.000 troops from the three services with the purpose of testing border security against smugglers mainly of arms and drugs and organized crime, said the Ministry of Defence.
Brazil is the only country that in the last ten years has benefited from Mercosur with an intra-zone trade surplus of 36.8 billion dollars while the other three full members, Argentina, Uruguay and Paraguay have accumulated huge deficits in the same period, according to Argentine economist Orlando Ferreres a regular columnist from La Nacion with graduate studies in Harvard.