MercoPress. South Atlantic News Agency

Hot News from South America.

Mercosur summit

Mercosur presidents will be holding a mini summit in Lima, Peru to address the current situation seriously threatened by members unilateral economic and trade decisions. "The meeting was proposed by Uruguayan president Jorge Batlle, currently holding Mercosur's chair, and it was agreed to take advantage of their participation in the inauguration ceremony of Peruvian president Alejandro Toledo. "It's an extraordinary summit, far from all local pressure, and should help begin approaching current challenges", said a Uruguayan diplomatic source. Fearful of the adverse conditions and growing unemployment and stagnation, all Mercosur countries have adopted unilateral measures to promote exports or protect local industries and farmers. "The situation is very serious, and the next stage could be retaliatory measures, endangering the existence of the trade block", said the Uruguayan diplomatic source, adding that Lima seems appropriate "since presidents will be able to talk openly". Peruvian president Alejandro Toledo takes office July 28th., the country's independence anniversary, formally ending an extended political crisis that began when his predecessor Alberto Fujimori, currently exiled in Japan, attempted to force a third consecutive mandate.

Oil in northeast Brazil

Petrobras, the Brazilian government oil company officially announced this week the discovery of four oil deposits believed to hold an estimated 130 million barrels. One was drilled off shore and the other three in the northeast of the country. The richest of the wells is off shore, in twenty miles from the coast, in the border between the states of Sergipe and Alagos, and apparently has 80 million barrels reserves. Oil was found at a depth of 3.000 meters. The other three on shore are in the states of Spirtio Santo, to the north of Rio do Janeiro, where most known Brazilian deposits are located, Bahía and in Rio Grande do Norte.

Brazil renews air power

Brazil is planning to invest 700 million US dollars to boost its air power, including the manufacturing of fighter bombers in joint venture or association with foreign companies. Brazilian Air Force