
Mercosur representatives reached this week in Asuncion, Paraguay a political agreement which opens the way for the creation of a Supranational Justice Tribunal and “contained” proportional representation in the Mercosur parliament.

Venezuela agreed to comply with Mercosur intra-trade conditions so that its stalled incorporation request can be finally approved by the Brazilian Congress. Hopefully the issue will be finalized for when President Hugo Chavez makes a state visit to Brazil next May 26, according to Brazilian Foreign Secretary Celso Amorim quoted by the Sao Paulo press.

The congressional controversy in Brazil over the incorporation of Venezuela has moved to the business sector. A group of Brazilian businessmen have begun lobbying strongly for Venezuela’s full membership but the process has been stalled by Brazilian and Paraguayan law makers.

Mercosur is going through “one of its worst moments” and has several “pending critical issues” such as “free circulation of goods and people and mitigating asymmetries” said Walter Cancela head of Uruguay’s Economic Affairs, Integration and Mercosur Office.

The Mercosur Parliament is scheduled to meet next week in Asunción, Paraguay, in an attempt to awaken public opinion interest in the legislative body. Members from Argentina, Brazil, Paraguay, Uruguay and eventually Venezuela (in the process of incorporation) will meet at the Paraguayan Congress building.

If forecasts are confirmed the 70 million tons of the 2008/09 Argentine harvest would represent 2.9% of the world’s grain production when in previous crops it had reached 4.2%. Brazil in the meantime will have reached 5.5% of world production. Only a few years ago the difference was minimal with Brazil almost 4% and Argentina above 3%.

Argentina should appeal to “non tariff barriers” to protect itself from the global crisis said Hector Mendez, who this week takes over as head of the country’s largest federation of industries, Industrial Union of Argentina, after having elected to the post.

Argentina, Paraguay, Bolivia and Ecuador signed Monday in Asuncion an agreement for cooperation in security matters which not only involves “associating” for the procurement of equipment, but defence of sovereignty and territorial integrity and preannouncement of military exercises.

Mercosur sanitary experts met this week in Asuncion, Paraguay to address the mosquito transmitted dengue disease which is affecting all countries of the region (except Uruguay and Chile) with tens of thousand cases confirmed.

The Organization for Economic Cooperation and Development, (OECD) welcomed on Thursday the formal endorsement by Uruguay of its tax information exchange standards.