
Uruguay called for strict respect of the Mercosur and Unasur democratic clauses and said the best way out of the current political crisis in Paraguay was to hold presidential elections as soon as possible.

Brazil will wait for the Paraguayan situation caused by the removal of Fernando Lugo “to decant” before assessing the most appropriate measures to address the “rupture of democratic order” in the country, according to Planalto sources.

“There is no coup here,” assured the new president of Paraguay Federico Franco on Saturday, who acted confidently before the international press following the ousting of Fernando Lugo on Friday.

Argentina is withdrawing its ambassador to Paraguay because of the rapid impeachment of former Paraguayan President Fernando Lugo, the Foreign Ministry said in a statement.

Paraguayan vice-president Federico Franco, 49, was sworn-in on Friday afternoon as president following Fernando Lugo’s impeachment that had him removed in less than two days.

Ousted Paraguayan President Fernando Lugo addressed thousands of citizens outside the presidential palace and assured there had been a coup against democracy but also said he would respect the formality of the Senate’s decision and called on followers to march peacefully.

President Cristina Fernández assured on Friday night that “Argentina does not condone the coup in Paraguay” and anticipated that “appropriate measures” will be taken at next week’s Mercosur Summit, scheduled to take place in Mendoza.

Uruguay’s economic growth quickened in the first quarter, spurred by increased transport and communications. GDP expanded 4.2% from a year earlier and grew 1.9% from the fourth quarter of 2011, the central bank said on its website.

China has offered Mercosur to consider the possibility of negotiating a free trade agreement revealed Uruguay, when the South American block is going through one of its worst moments ever so distant from the integration process pledges of 1991.

Uruguay’s long standing dream of building a deep-water port in the east of the country could become a reality in coming days when China’s Prime Minister Wen Jiabao visits the country, according to the government financed newspaper La Republica.