Israel signed Tuesday in Uruguay a free trade agreement with Mercosur, the first ever the South American trade group subscribes with a country outside Latinamerica. Israel's Deputy Minister and Minister of Industry, Trade and Commerce Eliahu Yishai traveled to Montevideo for the event.
With a letter - the contents of which were broadcast on Cuban TV - Fidel Castro, 81, implied that he would be stepping down as leader and would not put obstacles in the path of a younger leader.
A former Education Minister was leading a close race for the presidential nomination of Paraguay's ruling Colorado Party, opening the chance for a third sitting woman president in South America.
The presidents of Bolivia, Brazil and Chile met here Sunday to clinch a deal for South America's first east-west highway, linking Brazil's Atlantic coast to Chile's Pacific coast via Bolivia.
Brazil and Argentina have successfully launched a rocket into space in the first joint space mission by the two South American countries. The liftoff had been delayed four times because of weather conditions, reported Andreia Araujo from the Brazilian Space Agency.
The European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said on Sunday that the Botnia pulp mill in Uruguay which recently begun production and is at the heart of an acrimonious dispute with Argentina complies reasonably with environmental requisites.
The recent surge in military expenditure particularly Chile and Venezuela has led to fears that South America might be involved in an arms race. However most experts feel that in spite of existing regional differences what is going on is a modernization process of the Armed Forces arsenals which are rapidly becoming obsolete.
A second pulp mill is to break ground next January 16 in Uruguay, following an agreement reached between the Spanish corporation ENCE and the Uruguayan government, revealed the country's Deputy Housing and Environment minister Jaime Igorra.
Mercosur presidential summit which begins Tuesday does not have much to show besides an unfinished agenda, pending proposals and a list of issues that if openly debated can prove explosive for an already anemic trade group.
Uruguay's last military dictator, former General Gregorio Alvarez, was charged Monday with the forced disappearance of political prisoners. Human rights activists who have long campaigned for his prosecution cheered on the news and the country's trade union confederation called for a march in support of democracy in downtown Montevideo.