
A member from the European parliament, Jean Pierre Audy who headed a mission to Brazil last week said he was confident that next year the long standing negotiations for a free trade and cooperation agreement between the European Union and Mercosur could be concluded.

Argentina's clash with Uruguay over the Botnia/UPM pulp mill has led to furious retaliations from Buenos Aires severely limiting trade and not allowing Argentine exporters to make use of the port of Montevideo for transshipment.

Uruguay President José “Pepe” Mujica questioned Argentina’s recent decision to stop freight transfers at ports belonging to Mercosur countries Buenos Aires has no maritime agreements with. Mujica blasted an “insular” position that “shatters” regional integration.

Foreign minister Eladio Loizaga revealed that the Paraguayan congress must first approve Venezuela's protocol of incorporation to Mercosur before the country can attend the coming bloc's summit scheduled for next 17 December in Caracas.

Mercosur will be holding a special meeting of foreign ministers next 15 November in Caracas to consolidate Mercosur presentation before the European Union, according to a release from the Argentine Foreign ministry.

Paraguayan president Horacio Cartes and his peer from Brazil Dilma Rousseff inaugurated on Tuesday a 500KW power plant and line from the Itaipú hydroelectric dam to the city of Asunción which should help end endemic blackouts and supply a new industrial park.

Argentina has made public its first retaliation against Uruguay over the Botnia/UPM pulp mill controversy and has banned Argentine exports from being trucked to Montevideo for shipment overseas. The resolution was published Tuesday in the Official Gazette and invokes maritime transport agreements in the framework of Mercosur.

Paraguay has named veteran diplomat Enrique Jara as new ambassador in Venezuela, giving a further step towards the full normalization of relations that had been interrupted since July 2012 when the two countries expelled their respective accredited staff.

Brazilian president Dilma Rousseff will inaugurate on Tuesday in Paraguay next to his peer Horacio Cartes a high voltage transmission line from the world's largest operational hydroelectric dam Itaipú to metropolitan Asuncion, capital of the landlocked country and which was financed with Mercosur funds.

The Paraguayan foreign affairs ministry will represent Mercosur next December when the exchange of proposals with the European Union for a long pending free trade agreement, announced Uruguayan president Jose Mujica on Friday following private talks with his visiting peer from Paraguay, Horacio Cartes.