
The Uruguayan ruling coalition presidential candidate Jose Mujica said Brazilian president Lula da Silva promised to help speed power inter-connection between the two neighbouring countries, in the framework of Mercosur, in spite of Argentina’s non supportive attitude. He also underlined Mercosur depends on Brazil’s willingness.

The Paraguayan Congress is not interested in considering the protocol for Venezuela’s incorporation to Mercosur said Senator Miguel Carrioza, president of the Upper house.

Argentina’s main trade unions confederation, CGT, and the chamber of small and medium enterprises, CAEM, energetically supported trade protection measures imposed by the government and which triggered complaints and irritation among Mercosur country members.

Mercosur is “lame and in misery”, said Uruguay’s ruling coalition presidential candidate Jose Mujica. As of last weekend Uruguay holds the six month rotating chair of the South American trade block which has as full members, Argentina, Brazil, Paraguay and Uruguay.

As was anticipated Mercosur released a strong condemnation of the Honduran de facto government and demanded the immediate reinstatement of constitutional president Manuel Zelaya.

Argentina and Brazil postponed the signing of a 1.8 billion US dollars swap agreement that was supposed to promote bilateral trade amid the global financial crisis. Reasons for the delay were not revealed but the event was rescheduled for August 3.

Speaking in the framework of Mercosur summit in Paraguay, the leaders of Argentina and Brazil suggested Friday that developing countries be allowed to lift patent rights so they can produce more vaccines to battle the A/H1N1 virus flu pandemic.

Mercosur will conclude this year with positive rates of economic activity in spite of the global crisis, although some members such as Paraguay might not be able to contain the downfall and will end in red numbers.

Uruguay criticized trade barriers imposed by Mercosur country members which, it said seriously threaten the integration process and represent a “severe reversal” for the original project.

Uruguay officially takes the pro-tempore chair of Mercosur from Paraguay on Friday during the main ceremony of the group’s presidential summit in the capital of Paraguay, Asuncion. Originally the meeting was to receive eight presidents but al last moment Ecuador and Venezuela turned back.