
Argentina has stopped the import of high-class luxury cars and redoubled efforts to convince companies with no assembly plants in Mercosur to reduce imports and reach export agreements with Argentine auto parts industry.

The Paraguayan political system is willing to consider the incorporation of Venezuela to Mercosur as a full member if there is a “significant gesture or compensation” from the government of President Hugo Chavez, according to congressional sources in Asunción.

The European Union Trade Commissioner Karel De Gucht will travel next week to Paraguay and Uruguay to reinforce bilateral relations and to advance on the ongoing EU/Mercosur negotiations to reach an overall trade and cooperation agreement.

Colombia’s request to formally join Mercosur will be addressed during the group’s next summit to be held in Paraguay June 24th, revealed Paraguayan Foreign Affairs minister Hector Lacognata.

Uruguayan President Jose Mujica is visiting Venezuela and today held talks with President Hugo Chavez at the Miraflores presidential Palace.

United States Secretary of State Hillary Clinton has praised the “important” role Spain plays in Latin America and said the nation is a “great defender” of human rights in the region.

The Bolivian government has increased its military budget by more than 120% during the last decade, increasing 64% during President Evo Morales five years in office, according to a report compiled by Bolivian journalist, Ruy D’Alencar Delgado, published in El Deber newspaper.

Brazilian president Lula de Silva strongly defended Mercosur calling for a quick approval of Venezuela’s incorporation as full member, and proposed other associate members such Bolivia, Chile, Colombia, Ecuador and Chile should follow the same path since ‘we share the same political, economic and cultural affinities’.

Paraguayan senators reiterated that given certain conditions and political agreements they are prepared to vote for Venezuela’s incorporation to Mercosur as full member.

Ecuador, Paraguay and Peru are expected to recognize the state of Palestine with its borders prior to 1967, following the recent announcements from Brazil, Argentina, Uruguay and last week Bolivia, according to Palestine sources.