
Uruguayan former presidents Jorge Batlle and Luis Alberto Lacalle came in support of the current Paraguayan authorities and political process and claimed the only “coup” was that of Mercosur against Paraguay. They also questioned the removed president Fernando Lugo’s ‘pitiful reaction’ and statements.

The Brazilian government approved a 25% tariff increase on an additional list of 100 goods from outside Mercosur and at the same time announced the implementation of a monitoring scheme for those items’ prices in the domestic market to avoid unduly increases.

The president of the European Commission Jose Durao Barroso said on Tuesday that the EU 27 members still want to reach a free trade agreement with Mercosur, but warned that the “protectionist stances” from some of its members makes it difficult.

French Foreign Trade minister Nicole Bricq said that there are “great problems” in the current negotiations between the EU and Mercosur to reach an association agreement which also includes a free trade chapter.

Former president Tabare Vazquez is the most popular politician in Uruguay with 65% support followed by the current head of state Jose Mujica with 50% and Vice-president Danilo Astori, 48%, according to an opinion poll from Equipos Mori and published over the weekend in the Montevideo media.

Two out of three Argentines reject the proposal of reforming the constitution opening the way for a third consecutive mandate for President Cristina Kirchner, according to pollster Poliarquía Consultores and published on Sunday in Buenos Aires daily La Nacion.

By Eric Stadius, Research Associate at Council on Hemispheric Affairs and Peter Tase, Research Fellow at Council on Hemispheric Affairs.Two months after President Fernando Lugo’s impeachment, Paraguay has transitioned from reconciling its relatively benign political crisis to enhancing regional and international links politically and economically.

The European Commission remains “on hold” waiting for the evolution of events in Mercosur with the incorporation of Venezuela as full member and the suspension of Paraguay, before addressing a new round of association and trade negotiations.

Following similar complaints against Argentina by the European Union, United States and Japan, Mexico has launched its first dispute against Argentina at the World Trade Organization, the WTO announced on Monday.

The Paraguayan Senate, at the heart of serious regional diplomatic dispute, voted by a solid majority against the incorporation of Venezuela as full member of Mercosur. Thirty one Senators rejected the Venezuelan Protocol of Adhesion, three supported it and eleven left the floor before the vote was taken.