
Mercosur agreed at the Mendoza summit to exchange information on ships and other “naval artefacts” involved in hydrocarbons activities with routes that include the Falklands/Malvinas Islands over which Argentina claims sovereignty.

President Federico Franco announced in a press conference that if Paraguay is suspended from Mercosur the country will feel free to look for other trade agreements and international relations.

Mercosur Secretary General Samuel Pinheiro Guimaraes resigned to his post in the midst of the Mendoza summit following a strong exchange with the group of Foreign Ministers, indicated reports from Buenos Aires.

Argentina, Brazil and Uruguay made official on Friday the temporary suspension of Paraguay from Mercosur, because of the ‘summary’ removal of President Fernando Lugo and at the same time announced Venezuela will be incorporated to the group on July 31 at a meeting in Rio do Janeiro.

Mercosur will not impose economic sanctions on Paraguay despite concerns over the ousting of the country's president, officials said on Thursday evening at the summit taking place in Mendoza, Argentina.

Besides the Mercosur summit, the Argentine city of Mendoza will also be hosting on Friday an emergency meeting from the Union of South American nations to discuss Paraguayan president Fernando Lugo’s swift removal and replacement by a government which has triggered strong resistance in the continent.

The removal of Fernando Lugo from the Paraguayan Executive office was legal, said Brazilian former president and Senator Fernando Collor, quoted by O’Globo. He insisted there was “no coup”.

Paraguay’s head of the Industrial Union Eduardo Felippo said that he’s supportive of the possibility that the country is excluded from Mercosur, adding that “the rest of the members are going to lose more money than us”

The new Paraguayan government claimed before the Organization of American States, OAS, that Brazil, Argentina and Uruguay are again involved in a “Triple Alliance” to have the country ousted from the inter-American organization as is happening with Mercosur and Unasur.

Ousted Paraguayan president Fernando Lugo announced on Tuesday that he will not be attending the coming Mercosur summit scheduled to take place this Thursday and Friday in Mendoza.