MercoPress. South Atlantic News Agency

Elected Paraguayan president confirms Mercosur membership

Elected president Fernando Lugo, who takes office on August 15, pledged to maintain Paraguay's membership in the Mercosur trade block, which includes Argentina, Brazil and Uruguay, and strengthen integration mechanisms. He also announced he would seek relations with Beijing, currently non existent.

Mercosur is an irritating issue in Paraguay because many businessmen had sought their country's exit from the group, complaining that Argentina and Brazil have bullied smaller partners, imposing unfair customs fees on Paraguayan fruit, vegetables and soy, among other goods. "We bet on Mercosur because we can't move ahead alone" Lugo told reporters, vowing, however, to negotiate changes to "strengthen integration mechanisms" and ensure a fairer deal for smaller member nations. "We must achieve a consensus among member countries to eliminate the asymmetries which hinder most Paraguay and Uruguay", he emphasized. Lugo also said that Paraguay would establish diplomatic relations with China for the first time in history in a bid to boost foreign investment and trade. "If other nations have trade and diplomatic relations with continental China, why should we stay behind?" said the former Catholic bishop. Paraguay has recognized Taiwan since 1958 and remains the only South American country to do so. Lugo did not say whether relations with Taiwan, which has supported the country financially, would be affected by his opening toward China â€" which the Paraguay Congress must still approve. The former bishop with the support of a rainbow of political and grass roots groups won last Sunday's election with 41% of the vote followed by incumbent candidate Blanca Ovelar with 31%. His victory also meant the end of the 61 year undisputed one party political control over landlocked Paraguay. Lugo promised to fight poverty and corruption.