
Paraguayan members from the Mercosur Parliament, Parlasur made a public statement to complain the ‘intimidating Brazilian military display’ with armoured vehicles and heavy equipment along the border particularly across from the Ciudad del Este which is ‘contrary to international agreements and the Mercosur spirit’.

The Mexican president underlined the strategic importance of Uruguay since it is the only Mercosur member that has a free trade agreement with Mexico, thus making it the ‘strategic partner’ of Mexico in Mercosur.

Uruguay received a huge political boost from Mexico (the same it was denied from its Mercosur partners under influence from Argentina) in its dispute with the recent G20 summit which through spokesperson French president Nicholas Sarkozy described Uruguay as a ‘fiscal haven’.

Uruguayan president Jose Mujica said that Mercosur “is not moving forward or backwards” but is certainly working much better than the European Union where old experienced nations “made a mess of it”. Nevertheless, Uruguay will not stay put “licking its wounds”, it will look for other trade links.

The seventh round of Mercosur/EU trade negotiations held in Montevideo ended with “progress in some areas at regulation and norms levels” and with the commitment of exchanging proposals in mid 2012, according to Joao Aguiar Machado head of the EU team.

Mercosur expectations must be lowered and made to prosper in energy integration, infrastructure and trade, said a Uruguayan leading economist adding that without sounding dramatic “we must follow our interests”.
Opposition leaders in Uruguay accused Argentina of “exerting pressure inside the G20 and the Organisation for Economic Co-operation and Development (OECD)” so the neighbouring country would be labelled a “tax haven,” the Montevideo media said.

Brazil posted a trade surplus of 2.355 billion dollars in October, beating forecasts for a third straight month, outpacing imports in the final days of the month following a recovery in global commodities prices.

Spanish media criticized harshly the latest Ibero-American summit in Paraguay last Saturday arguing that the non attendance of 11 of 22 leaders of the region can only be described as a failure of Madrid’s diplomacy and disrespect for the Spanish representatives.

The worsening of the world crisis is a factor that plays in favour of advancing negotiations for the European Union and Mercosur cooperation agreement and strategic association, said Socialist Euro Deputy Luis Yañez from Spain currently visiting Montevideo.