Brazilian Foreign minister Antonio Patriota strongly defended the decision to suspend Paraguay from Mercosur following the removal of Fernando Lugo from the presidency, as well as the incorporation of Venezuela as full member of the trade group.
Uruguayan former presidents Jorge Batlle and Luis Alberto Lacalle came in support of the current Paraguayan authorities and political process and claimed the only “coup” was that of Mercosur against Paraguay. They also questioned the removed president Fernando Lugo’s ‘pitiful reaction’ and statements.
The Brazilian government approved a 25% tariff increase on an additional list of 100 goods from outside Mercosur and at the same time announced the implementation of a monitoring scheme for those items’ prices in the domestic market to avoid unduly increases.
French Foreign Trade minister Nicole Bricq said that there are “great problems” in the current negotiations between the EU and Mercosur to reach an association agreement which also includes a free trade chapter.
By Eric Stadius, Research Associate at Council on Hemispheric Affairs and Peter Tase, Research Fellow at Council on Hemispheric Affairs.Two months after President Fernando Lugo’s impeachment, Paraguay has transitioned from reconciling its relatively benign political crisis to enhancing regional and international links politically and economically.
The European Commission remains “on hold” waiting for the evolution of events in Mercosur with the incorporation of Venezuela as full member and the suspension of Paraguay, before addressing a new round of association and trade negotiations.
The OAS, Organization of American States, cabinet chief and head of political affairs are expected in Paraguay to continue with the organization’s mandate of establishing an electoral committee and helping with the process of strengthening democracy in the country.
The Paraguayan Senate, at the heart of serious regional diplomatic dispute, voted by a solid majority against the incorporation of Venezuela as full member of Mercosur. Thirty one Senators rejected the Venezuelan Protocol of Adhesion, three supported it and eleven left the floor before the vote was taken.
Argentina’s trade surplus reached 1.014 billion dollars in July, which is 54% higher than the same month a year ago. Exports totalled 7.4 billion and imports 6.37bn according to the latest release from the official stats office, Indec.
“We must prepare for war to live in peace” said Paraguay’s Defence minister Maria Liz Garcia in reference to the new geopolitical situation following the suspension of Paraguay as a member of Mercosur and Unasur.