
An international controversy has surfaced between President Hugo Chavez and Paraguayan senators as to who really tried to bribe whom regarding failed attempts to have Venezuela incorporated to Mercosur.

President Dilma Rousseff continues to enjoy high popularity as Brazilian consumers sound very optimistic about the future of their country and trust they can hold on to their jobs despite the recent economic slowdown.

Uruguay’s annual consumer-price inflation dropped in July to 0.27% the lowest in 58 years, accumulating 7.48% in the last twelve months (down from 8% in June), and 4.41% in the first seven months of 2012.

President Hugo Chavez said that the incorporation of Venezuela to Mercosur was “exemplary” because it never yielded to “blackmail” from the Paraguayan extreme right and revealed that he met with Paraguayan Senator Lino Oviedo, considered the mastermind behind those attempts.

Paraguay urged the Organization of American States, OAS, on Wednesday to say whether it will be taking measures or not against the country following the removal of Fernando Lugo from the presidency, a political incident that has reverberated in the whole continent.

The ‘new’ Mercosur with Venezuela as a full member reinforces the regional block as a forum of ‘political understanding’ and no longer as an integration process ruled by international law.

The Paraguayan government declared “illegal” and “null and void” the inclusion of Venezuela as a full member of Mercosur which was agreed on Tuesday during the extraordinary meeting held in Brasilia with the absence of Paraguay.

Brazilian president DIlma Rousseff said that with the incorporation of Venezuela, Mercosur has become a global power in food and energy and becomes the fifth world economy with a GDP of 3.3tn dollars.

The US government said that Venezuela as any other country has the “sovereign right” to join regional organizations such as Mercosur. The statement from the US State Department comes on the day that Mercosur officially incorporated Venezuela as full member of the block.

After attending the Mercosur extraordinary meeting in Brasilia, President Cristina Fernández and her Venezuelan counterpart, Hugo Chávez, signed a cooperation agreement to develop a strategic energy plan between state oil companies YPF and PDVSA.