The Uruguayan government said that it accepted the incorporation of Venezuela as full member of Mercosur as part of a “negotiation” in which it demanded no economic sanctions on Paraguay and that is why “the last word has not been said” on the issue.
The formal incorporation of Venezuela to Mercosur next July will benefit mainly Brazil and Argentina since they could considerably increase their exports to the oil-rich country at the expense of the local production sector weakened by the economic policies from the administration of President Hugo Chavez, according to analysts.
The Uruguayan government revealed on Monday its disagreement with the way Venezuela’s incorporation to Mercosur was decided last Friday at the summit held in Mendoza, Argentina, and said “it was not the last word” since the process must be reviewed from a juridical point of view.
President Cristina Fernández took to her Twitter account to say that “the fundamental goal in the unity of the region must be to make sure that the global crisis has the less kind of possible impact in the development of our nations.”
The Paraguayan government named a special committee of military, police and diplomatic officials to help avoid possible incidents of violence when the fact-finding delegation from the Organization of American States, arrives in Asuncion.
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.
Paraguay’s government blasted Mercosur decision of incorporating Venezuela as a full member of the bloc before finishing the legislative procedure to do so and did not discard the possibility of having the Paraguayan people “decide whether to remain or not in Mercosur”.
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.
Mercosur agreed at the Mendoza summit to exchange information on ships and other “naval artefacts” involved in hydrocarbons activities with routes that include the Falklands/Malvinas Islands over which Argentina claims sovereignty.