
Former Chilean president Ricardo Lagos called for a closer dialogue between Latinamerica and Washington while de-mystifying the alleged negative influence of Venezuelan president Hugo Chavez in the region. He also admitted he expected “much more from Mercosur”.

Argentina and Brazil presidents are scheduled to address trade disputes, Mercosur and other coming foreign policy issues when they meet Wednesday in Brasilia for their agreed regular contacts.

Uruguay will definitively abandon Mercosur if Luis Alberto Lacalle is elected president in the run off on November 29th. Lacalle also forecasted that Mercosur as a customs union has not much time left, “it’s a dying organization”.

The Brazilian Senate agreed to postpone a full house vote on the admission of Venezuela to Mercosur given the “strained climate” generated by President Hugo Chavez who alerted his people of a “possible” war with Colombia.

Venezuela’s Hugo Chavez alert calling on the Army and the people to prepare for “a possible war” with Colombia shell-shocked the Brazilian Senate that this week is scheduled to vote on Venezuela’s full incorporation to Mercosur.

The European Union and Mercosur closed on Friday a three-day round of talks unable to re-launch the stalled trade negotiations, although both sides were quick to point out to the “advances” of the last five years.

In related news the Brazilian Senate postponed for a week a full house vote on the incorporation of Venezuela to Mercosur which is pending since March 2007 when the administration of President Lula da Silva sent the request.

Brazil’s all powerful Sao Paulo Federation of Industries, FIESP, said it is willing to yield positions so a free trade agreement can be reached with the European Union but also suggested Brazil should leave Mercosur aside.

The Brazilian opposition announced it will attempt to delay as much as possible the Senate vote on the incorporation of Venezuela to Mercosur which is scheduled to take place Wednesday following the approval by the Foreign Affaire committee last week.

Brazil's Senate foreign relations committee approved on Thursday in a divided vote Venezuela's request to join Mercosur despite concerns over President Hugo Chavez's authoritarian style of government. The vote comes when President Lula da Silva flies to Caracas to sign huge contracts for Brazilian corporations.