Brazil that since 1999 following the Russian financial crisis, had a spectacular comeback is now threatened by recession because of the constant depreciation of its currency and the US war drums.
Uruguayan former Economy Minister and international consultant, Alejandro Vegh Villegas suggested eliminating the Common External Tariff and turning Mercosur into a free trade area (instead of a customs union).
After several days preparations Mercosur and United States, 4+1 trade talks will officially begin this Monday in Washington. Foreign Affairs Ministers from Argentina, Brazil, Paraguay and Uruguay will be meeting with US Trade Representative Robert Zoellick to agree on a common agenda for the coming months
Uruguay that currently holds the Mercosur chair, will coordinate with other group members the intelligence, defence and financial information to be granted in support of the United States war on terrorism.