
Paraguayan opposition and media strongly criticized Brazilian president Lula da Silva’s for not keeping his Itaipú dam-controversy promises and allegedly for conditioning further assistance to the approval by the Paraguayan congress of Venezuela’s incorporation to Mercosur.

The European Commission (EC) has proposed to reactivate its negotiations with Mercosur, stagnant since 2004, with the objective of reaching an association agreement. In its weekly meeting, the EU executive decided to re-establish discussions with Mercosur since it considers “that an eventual pact could generate economic benefits for both parts,” according to an EC communiqué.

Brazilian president Lula da Silva is expected in Montevideo, Uruguay Tuesday afternoon to hold talks with his counterpart Jose Mujica, following the Unasur extraordinary presidential summit in Buenos Aires.

President Hugo Chávez expects Venezuela will be fully incorporated to Mercosur before Brazilian president Lula da Silva steps down from office next January first. The two leaders met Wednesday in Brasilia and also agreed to strengthen Union of South American Nations (UNASUR).

Venezuela is an extremely important factor for the social and economic development of the region and Brazil will insist upon Paraguay on the need for the approval of Venezuela’s incorporation as full member of Mercosur, stressed Senator Romero Juca from the Brazilian ruling coalition.

Brazilian opposition presidential candidate Jose Serra—who leads in public opinion vote intention polls—reiterated his call for a more “flexible” Mercosur, effectively becoming a free trade area, because the current format limits Brazil’s sovereignty to sign agreements with other non member countries.

Brazil’s leading presidential candidate Jose Serra described Mercosur as a “farce” and a “barrier” for Brazil to sign trade agreements with other countries.

Egypt expects to complete free trade negotiations with the four Mercosur countries -- Brazil, Argentina, Uruguay and Paraguay -- in July, Egypt's trade minister revealed this week in Cairo.

Mercosur is waiting for “dialogue contributions” from the European Union to decide on negotiations for a political and commercial agreement with the EU. Brussels is expected to make its move at the end of April on time for a formal launching in May of the decade-long delayed but very much needed block to block talks.

Ford Motor said it will spend 250 million US dollars on its operations in Argentina, where it will start production of a new vehicle for the Mercosur market. President and Chief Executive Alan Mulally announced the plan Wednesday during a meeting in Buenos Aires with Argentina President Cristina Fernandez.