
Brazil has plans to counter the latest battery of trade restrictions which Argentina announced, if they turn out to the barriers for Brazilian exports, reported the influential Folha de Sao Paulo.

Ships from the Falkland Islands that are barred from ports in Argentina and other Mercosur trade bloc countries can re-flag as British ships at any time to avoid the ban, British Foreign Secretary William Hague told reporters in Rio de Janeiro on Thursday.

“In practical terms Venezuela if fully integrated to Mercosur” said Uruguayan Foreign Affairs minister Luis Almagro during a meeting this week with foreign correspondents.

Uruguayan Foreign Minister Luis Almagro said that the trade balance between Uruguay and Argentina is “definitely positive” although admitting some manufacturing sectors face difficulties because of the current Argentine obstructions to imports.

The Argentine government has began a round of consultations with the manufacturing sector to determine which capital goods from non Mercosur members can be listed for a higher common external tariff as was recently agreed by the trade block.

Bolivian president Evo Morales said the Malvinas Islands are Argentine and gave full support to his peer Cristina Fernandez siding with Mercosur in the dispute with the UK over the South Atlantic Islands sovereignty and the latest decision to bar all Falklands flagged vessels from regional ports.

Brazil's government is ready to respond to Argentine trade restrictions introduced this week but will evaluate the impact of the measures before making any retaliatory moves, trade officials said Friday.

While Argentina’s Mercosur trade partners have adopted a cautious attitude regarding the latest measures that make it more cumbersome and bureaucratic to sell to Argentina, the country’s manufacturers and importers have warned of the consequences and called for a more balanced approach to the issue.

Chile ratified this week that vessels flying the Malvinas flag will continue to be barred from Chilean ports and that the country’s position relative to the issue has not changed and denies the existence of a blockade. A brief statement from the Chilean Foreign Affairs ministry indirectly refers to the latest statement by UK Foreign Secretary William Hague.

In an official communiqué Uruguay ratified full support for Argentina’s Malvinas sovereignty claim and underlined that the barring of Malvinas’ flagged vessel from Uruguayan ports stands and “has not changed an iota”.