
Brazil’s strongest manufacturing organization (and lobby) is considering the possibility that the country “ceases to be tolerant” towards Argentine trade restrictions and consider the possibility of withdrawing from Mercosur.

Spain’s Foreign Affairs minister Miguel Angel Moratinos is confident that the European Union will reach a trade understanding or road map with Mercosur during the first half of this year, since Spain holds the EU rotating presidency.

Paraguay’s Vice-president Federico Franco said he was contrary to Venezuela’s incorporation to Mercosur as long as Hugo Chavez is president accusing him of having “imperial attitudes” towards the land-locked country.

MercoPress wishes all subscribers and readers a very prosperous New Year, hoping 2010 will definitively help to lift the world out of global recession.

The incorporation of Venezuela to Mercosur will help dilute the Brazil-Argentina hegemony and will be beneficial for small countries said Paraguay’s Foreign Affairs minister Héctor Lacognata on Wednesday chatting with foreign correspondents.

The Brazilian government is not putting pressure on the Paraguayan Congress to vote the full incorporation of Venezuela to Mercosur. Paraguay is the only remaining full member which still has to vote for Venezuela to join the South American trade block, following last week’s Brazilian senate divided approval.

President Hugo Chavez said he was hopeful the Paraguayan congress would vote for Venezuela to join Mercosur since Paraguay is one of the countires to “most benefit” from such an incorporation.

Paraguayan Congress will remain blocking Venezuela's entry into Mercosur trade bloc as long as President Hugo Chávez continues intervening in foreign affairs, stated the head of the Senate, Miguel Carrizosa, just a day after Brazilian lawmakers approved the incorporation. However his successor in the job affirms the opposite.

Following this week’s Brazilian Senate vote to for the incorporation of Venezuela as a Mercosur full member, only Paraguay’s support is pending, but the Paraguayan Senate is divided on the issue. More over President Fernando Lugo had to withdraw the initiative last August when he was informed the divided coalition that took him to office could not garner the sufficient votes to ensure support.

Bringing to close a year-long internal debate over the role of Venezuela in South American political and economic affairs, Brazil's Senate, by a vote of 35 to 27, voted Tuesday to approve the entrance of the country's northern neighbor into the Mercosur trade bloc.