The Mercosur summit will be an opportunity to solve asymmetry problems and social inequalities in the region, said Paraguay’ Foreign Affairs minister Jorge Lara Castro. The South American customs union is meeting this week in Asuncion for the first of two annual summits when the rotating chair will be passed on to Uruguay. Read full article
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Disclaimer & comment rulesParaguay is concerned about efforts from the Argentine government to replace the Mercosur “democratic clause” (1998 Ushuaia Protocol), with the Guyana “Unasur Treaty additional protocol” that would “seriously impair” Paraguayan sovereignty.
Jun 28th, 2011 - 09:55 pm - Link - Report abuse 0Article 4 of the treaty states, “in case of rupture or threat of rupture of democratic order” in a Unasur member country, the following sanctions are enforceable: “partial or total closure of borders including suspension or limitation of trade, air and sea traffic, communications, provision of energy, services and supplies”.
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This ‘Democratic Clause’ MUST be removed/replaced in order to allow Venezuela to become a Mercosur member.
But removal/replacement of it by the ‘Unasur Treaty additional protocol’ removes the sovereign right of Paraguay to (especially) manage its energy resources.
The Democratic Clause means that, when Venezuela joins Mercosur, *all members must* partially or totally close borders with Venezuela, suspend or limit trade, air and sea traffic, communication, energy provision, services and supplies. This could be good - it could cause Venezuela to change governance, join the trading world and leave the ‘basket-case’ group.
Of course, the usual South American political ‘fudge’ will happen,
but Mercosur has a primary duty to, and responsibility for, its present members.
The Mercosur Minnows joined the Group for protection, not to be sold down the river by the fraternal interests of the anti-democratic revolutionary (communist) Left.
An interesting post, as usual. I was speaking with a South American diplomat (I shall not name him) about Mercosur and its' effectiveness. I think the idea that it is a lot of show but crippled by internal struggles is a common theme. If Venezuela becomes a member it will be a tool for Chavez to use for more attention and assumed power.
Jun 29th, 2011 - 01:38 pm - Link - Report abuse 0I wonder of Chile's approach, to appear to be a member whilst busy trading freely all over the world, is a more realistic approach. Mercosur seems endlessly mired in internal power struggles.
Elaine,
Jun 29th, 2011 - 07:12 pm - Link - Report abuse 0'I wonder of Chile's approach, to appear to be a member whilst busy trading freely all over the world, is a more realistic approach'
It is realistic but it creates one hell of a lot of unpicking if the trading bloc subsequently acts as an entity.
Re. my comment at #1, I have re-read the article above and it is ambiguous; my comments may not hold good - it depends on the actual words of the Democratic Clause and the mandatory actions placed on members to 'non-democratic behaviours' by other members.
There is a lot of wiggle-room and much scope for international lawyers to make even more money.
If you think that Mercosur is 'mired', what about Parlasur!?
Nobody knows anything about it, but it is the supra-national Parliament of the Mercosur nations - you know, like the European Parliament, but 'virtual' ;)
It is realistic but it creates one hell of a lot of unpicking if the trading bloc subsequently acts as an entity.
Jun 29th, 2011 - 07:57 pm - Link - Report abuse 0Do you think that is likely? I guess one could have said the same of the EU many decades ago. A lot of suspicion and old rivalries to overcome for the benefit of trade.
I kind of like the idea of a 'virtual' parliament. Could we send in viruses to attack if we don't like their activities? : )
Could someone please list the worthy achievments of Mercosur??
Jun 30th, 2011 - 11:06 am - Link - Report abuse 0Elaine,
Jun 30th, 2011 - 12:41 pm - Link - Report abuse 0I was quoting the new president of Peru.
”Likely' ?
Probably not, given the track record of constant failure to move rhetoric to action, and the blocking tactics of Argentina.
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