
Brazil has threatened with trade reprisals if Argentina does not lift new restrictions to imports of Brazilian manufactured toys. Trade tensions between the two Mercosur partners and largest economies of South America have soured lately because of what Brazil considers “protectionist” measures and attitudes from Argentina.

Mercosur officials together with representatives from Spain, Portugal and the European Community agreed Monday to provide greater emphasis to the technical meetings with the purpose of advancing towards an association agreement between the two blocks.

Brazil launched this week in Geneva a round of negotiations to further liberate trade between Mercosur, India and the Union of Nations from Austral Africa with the purpose of ratifying south-south cooperation, while global negotiations in the framework of the Doha Round remain stalled.

The Paraguayan Senate is also turning its back on Venezuela’s president Hugo Chavez Mercosur incorporation request. A leading Senator from the ruling coalition said that under current circumstances, and Chavez latest statements makes it “virtually impossible” to decide on the issue.

Jose “Pepe” Mujica, 74, from the ruling Broad Front coalition was confirmed Sunday as Uruguay’s next president having defeated in the run-off 51.9% to 44.1%, Conservative candidate and former president Luis Alberto Lacalle.

Mercosur countries are preparing a meeting with European representatives on the sidelines of the Ibero-American summit this weekend in Portugal to confirm their “interest” in reactivating trade negotiations with the EU, according to Spanish diplomatic sources.

Former Brazilian president and head of the Senate Jose Sarney said that the upper house has no interest “for the moment” in casting a vote on the Protocol papers for the incorporation of Venezuela as the fifth full member of Mercosur.

Spain wants to boost trade negotiations between the European Union and Mercosur when it takes over the pro tempore presidency of the block next January, according to Spanish diplomats quoted by Madrid’s main daily El Pais.

Mercosur senior partners are again clashing over trade. Brazilian government announced that it will run an exhaustive study of all the non-automatic import licenses that President Lula da Silva’s administration believes cause nothing but Argentine restrictions on Brazilian products.

Two presidents from Mercosur countries figure among the leaders with the highest approval ratings in the Americas while the other two are at the opposite end.