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Mercosur suspension was rather beneficial for Paraguay, reveals President Franco

Tuesday, June 25th 2013 - 20:52 UTC
Full article 11 comments

Mercosur partners’ sanctions on Paraguay rather benefited than hindered the country, said President Federico Franco during a press conference in which he underlined the country had become more reliable and this was supported by a three fold increase in foreign investments. Read full article


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  • Stevie

    The suspension was so beneficial they now claim pro-tempore chair...


    Jun 25th, 2013 - 10:31 pm - Link - Report abuse 0
  • Chicureo

    Presidente Franco has played this game so well, making Argentina and Brazil look like jackasses. Mercosur will not die immediately, but instead a slow death and Paraguay will continue to use the benefits of being a member. Meanwhile they're building new trade alliances.

    Jun 26th, 2013 - 02:36 am - Link - Report abuse 0
  • Conqueror

    @1 Nothing wrong with that. It's a “test” that mercosur will probably fail. It would be a major admission that they were out of order. Article 20 of the Treaty of Asuncion is quite clear: “Approval of applications shall require the unanimous decision of the States Parties.” So the incorporation of Venezuela was illegitimate. There's also the small matter of paragraph 1 of Annex III. So if Paraguay doesn't get the chair, it looks like it will stay out. If it does get it, it's likely to rule Venezuela's incorporation to be illegitimate and insist that it returns to its previous status. Looks like mercosur, “led” by argieland, made a major miscalculation and will finish up with egg on its face.

    Jun 26th, 2013 - 09:15 am - Link - Report abuse 0
  • Stevie

    But conq, the decisions were all unanimous.

    Paraguay suspended - unanimous.
    Venezuela incorporated - unanimous.
    Bolivia incorporated - unanimous.

    Your post makes no sense...

    Jun 26th, 2013 - 09:59 am - Link - Report abuse 0
  • ChrisR

    @4 Stevie

    Oh dear, your sabbatical on the seas has not done you any good at all.

    The ONLY reason the Terrible Trio managed a unanimous vote was because they outlawed Paraguay FFS.

    I should go back to sea and ponder your position.

    Well done Paraguay and tell Mercosur to fuck off.

    Jun 26th, 2013 - 11:30 am - Link - Report abuse 0
  • reality check

    So they get suspended and foreign investment increases by 304%

    I take it the suspension was seen as a punitive measure by Mercosur.

    Would seem that there is such a thing as natural justice.

    Well done Paraguay, well done the investors.

    Jun 26th, 2013 - 01:44 pm - Link - Report abuse 0
  • Fred

    So what was containing investments on Paraguay was Lugo, not Mercosul. Why an investor would find it's good to build a plant in Paraguay without being possible to export to a couple of miles away huge market!? Lol.

    Jun 26th, 2013 - 02:15 pm - Link - Report abuse 0
  • reality check


    Paraguays safest bet seems to be through Brazil, a linked trade agreement with the EU for both would be the answer. In other words the EU should condition agreement with Brazil, with access to the sea for Paraguay. Brazil of course would be entitled to levy a tax on goods, capped by EU agreement.

    Such an arrangement would be beneficial to both countries.

    Jun 26th, 2013 - 03:01 pm - Link - Report abuse 0
  • Conqueror

    @4 Poor dummy. Go read the treaty. There are FOUR State Parties. Assuming, but only for the sake of discussion, that the suspension of Paraguay was legal, the incorporation of Venezuela was still illegitimate. There is no mechanism by which a State Party can be excluded from a decision on incorporation. Thus, until Paraguay decides, the incorporation of Bolivia is also illegitimate.

    Pity you don't understand the law. Perhaps when you grow up. How many years until you're 18?

    @8 Other way. To the Pacific. Agreement with Chile for maritime access. Explain, politely, to Bolivia that it will stay out of the way or Paraguay, Chile, the United States and the United Nations will not be happy. Let's remember UNCLOS. A convention that REQUIRES landlocked countries to have access to the sea.

    Jun 26th, 2013 - 03:51 pm - Link - Report abuse 0
  • reality check


    True, but it is also important to remember that some of these people do not honour what they sign, honour only suits them when it matters. Take the Argentinia, when did it ever honour anything?

    Chile and Brazil are exceptions to the rule, they see the bigger picture, they know they are or can be players on the international stage.

    Bolivia, think not. Argentina? historically to unreliable.

    Much easier to head East, tie access to overseas markets to trade agreements. Money talks, treaties walk.

    Bit of a pessimistic view, but does not mean that it is not right.

    Time to embrace those South America countries like Chile, Paraguay, Brazil, Columbia, who we want to be players and play by the rules that the rest of us accept.

    Congratulations Paraguay, faces with adversity you are winning!

    Now it's time for the EU to show support!

    Jun 26th, 2013 - 04:05 pm - Link - Report abuse 0
  • Conqueror

    @10 Sorry, but I don't agree. Head east to the very countries that stitched you up? Now let's take a look at Part X of UNCLOS. RIGHT OF ACCESS OF LAND-LOCKED STATES TO AND FROM THE SEA AND FREEDOM OF TRANSIT. I'm not sure of the means by which Bolivia could be “encouraged” to co-operate. But, once across Bolivia, one is in “friendly” Chile. With access to Peru. And from Peru into Colombia. And, of course, the Pacific Ocean. If I were Paraguay, it would be a long time before I trusted Brazil. Although I think we can agree that no-one should trust argieland. EVER!

    Jun 28th, 2013 - 12:28 pm - Link - Report abuse 0

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