
Strong lobbying from business interests in Brazil and Venezuela apparently will have tipped the balance and open the way for the Brazilian Congress to include Venezuela in South America’s largest trade block, Mercosur when it takes a vote on Thursday.

Brazilian Central Bank president Henrique Meirelles said the country is considering the gradual elimination of the US dollar in trade with China, Russia and India, which together with Brazil make up the BRIC group.

Ecuador ratified this week support to Mercosur democratic commitment or “democratic clause” which automatically throws out any country member which violates such a commitment.

The president of the Brazilian Senate Jose Sarney reiterated Tuesday he does not support the incorporation of Venezuela to the South American trade block Mercosur, since “decisions from the government of that country represent a crumbling and deviation of democracy”.

It wasn’t an issue during the electoral campaign trail and hardly mentioned in political rallies but Mercosur is high in the agenda of whoever wins next Sunday’s presidential election in Uruguay.

Venezuelan president Hugo Chavez has infuriated Paraguayan congress arguing that with the excuse of Bolivia’s “rearmament” they are conspiring to oust President Fernando Lugo, statements that could further delay Venezuela’s Mercosur incorporation process.

Uruguay has no plans to abandon or become an associate member of Mercosur, but rather continue along the line established by President Tabare Vazquez which is doubling efforts “for a better Mercosur” said Foreign Affairs minister Pedro Vaz during a meeting with foreign correspondents in Montevideo.

One of Venezuela’s main opposition leaders has been invited to address Brazilian Senate committees which are currently considering the long debated controversial incorporation of Venezuela to Mercosur.

Mercosur and the European Union signed this week an extension of an agreement for the financing of an agriculture and livestock health cooperation project according to the UE delegation office in Montevideo.

The Brazilian Senate Foreign Relations committee suspended on Thursday for thirty days the consideration of Venezuela’s Mercosur incorporation protocol, following on rapporteur Senator Tasso Jereissati veto recommendation because of the “authoritarian” character of President Hugo Chavez regime.