MercoPress. South Atlantic News Agency

Paraguay expects to be back in Mercosur “sooner than later”: before April 2013

President Franco says Brazil and Argentina understand Paraguay has what they need

President Federio Franco said he trusted Paraguay would be fully re-incorporated to Mercosur before the general election scheduled for 21 April 2013. Paraguay is currently suspended from the trade block following the removal of Fernando Lugo as president, a decision voted almost unanimously by the country’s Senate but condemned by Mercosur and Unasur.

“This seems to be possible sooner than later, that Paraguay will be re-incorporated as full member as it should had always been; we must be recognized as a free, sovereign and independent country”, said Franco during a visit to the northeast of the country, who added “they know we have what they need”.

The Paraguayan president was seen to be replying to Brazilian Foreign Minister Antonio Patriota who last Friday in a press round held in Rio do Janeiro next to Uruguay’s Luis Almagro, said that the only condition for the re-integration of Paraguay to Mercosur, and Unasur, was that members from both block of countries “verified the full rule of democracy” in the country with no need to wait for the 2013 elections.

“On Friday Minister Patriota and Foreign minister Almagro seem to have understood that Paraguay is ever so necessary for the region”, said Franco. “They have understood we have the most valuable asset and what Mercosur most needs and that is power”, he added in clear reference to the hydroelectric dams of Itaipú and Yaciretá which Paraguay jointly shares and manages with Brazil and Argentina.

Franco ratified that Paraguay will not continue to sell to the neighbouring countries its abundant surplus of power which corresponds to its country’s 50/50 share and does not consume. Well over 80% of the power generated is absorbed by Brazil and Argentina, which includes a significant percentage of Paraguayan surpluses.

Mercosur suspended Paraguay on June 29 during a summit in which it also admitted Venezuela as full member, a move that had been blocked for years by the Paraguayan Senate. Mercosur and Unasur alleged that Paraguay had suffered “a democratic rupture” because of the political impeachment and thus the suspension.

However this week the Paraguayan Senate has in its agenda of affairs to consider the so called “Ushuaia Declaration” from Mercosur, which enables member countries to suspend or take additional measures when the democratic process in one of its members has been altered or is considered a ‘ruptured’.

Press reports from Asunción say that the Paraguayan Senate is preparing to repeal the formal adherence to the Ushuaia declaration because it infringes in the country’s sovereignty.