
Paraguay will not be sanctioned by the Organization of American States, said the country’s ambassador on Friday following an informal meeting behind closed doors of OAS Permanent Council.

Venezuelan president Hugo Chavez said he had talked with his peer from Brazil Dilma Rousseff who confirmed the invitation to an extraordinary meeting of Mercosur next July 31 in Rio do Janeiro.

The European Union - Mercosur trade negotiations calendar has been delayed and its full resumption is expected to take place in September or soon after, reports the EU press office in Montevideo.

Mercosur full members Argentina, Brazil and Uruguay are insisting with their decision to sanction the Paraguayan government following the impeachment and removal of former president Fernando Lugo

The Caribbean countries that depend economically from Venezuela have become a “cruel lobby”, strongly pressing to have Paraguay sanctioned by the Organization of American States claims that country’s representative.

The removal of Fernando Lugo as president of Paraguay interrupted European Union/Mercosur discussions, which could resume following the April 2013 presidential elections said on Wednesday the European Parliament mission visiting Asunción.

Mercosur Review Standing Tribunal admitted the demand presented by the government of President Federico Franco against the suspension of Paraguay and thus object the incorporation of Venenzuela as full member of the regional block

Venezuelan president Hugo Chavez announced the creation of a strategic fund geared to support public and private exports to Mercosur, following his confirmation that he will fly to Brazil for the formal incorporation of his country as a full member of the block that also includes Argentina, Brazil, Uruguay and suspended Paraguay.

The European lawmakers’ delegation said it was surprised with the drastic and quick determinations, with no right to defence or appeal, decided against Paraguay by Mercosur and Unasur, said Paraguayan Foreign Minister Jose Felix Fernandez Estigarribia, following a meeting in Asuncion with the visiting MEPs.

Former Brazilian president Fernando Enrique Cardoso said that his country is rapidly loosing influence in South America to Venezuela, following on remarks about the suspension of Paraguay from Mercosur.