
Uruguay’s main opposition party performed much better than anticipated according to official results of last Sunday’s primary elections for the nomination of presidential candidates for October’s elections.

United States Senator Richard Lugar, the ranking Republican on the Foreign Relations Committee is urging the US to extend trade benefits to Uruguay, bypassing Mercosur, a move he says would also increase pressure on Brazil to deepen commercial ties.

Mercosur Foreign Affairs and Economy ministers will be meeting Tuesday in Asuncion, Paraguay in the framework of the Common Market Group to discuss trade barriers and try to unwind several issues.

Brazil has suggested delaying the coming Mercosur presidential summit scheduled for July 3 and 4 in Asunción, Paraguay when Uruguay should be taking the chair for the next six months.

Former Uruguayan president and the leading presidential hopeful of the main opposition party Luis Alberto Lacalle said that the Mercosur Parliament, Parlasur, lacks all meaning and purpose and proposed its dissolution, in an interview published Sunday in the Montevideo press.

Mercosur supports significant institutional deficits, lacks clear bearings, negotiations with the European Union are stalled and there is a devalued public opinion perception of the block, which is attempting to become a customs union.

The financial crisis should be the springboard for a “leap forward” in negotiations for the association agreement between the European Union and Mercosur, said Spain’s Secretary of State for Ibero-America currently on a tour of Mercosur country members.

Spain’s Secretary of State for Ibero-America Juan Pablo de Laigleisa begins Monday in Buenos Aires a visit to three Mercosur country members in preparation for when Madrid takes over the presidency of the European Union in the first half of 2010.

General Motors has no plans to cut jobs or production in any of its businesses in the Mercosur region said on Tuesday GM’s general manager in Argentina. Edgar Lourencon went further and anticipated that plans to launch a new model for the region at the end of the year are advancing as programmed, and that the bankruptcy filing and restructuring of GM in the US does not influence business as usual in Mercosur countries.

The powerful Argentine Industrial Union, UIA, has called on its Mercosur peers to impede Venezuela’s incorporation to Mercosur in reprisal for the nationalization spree launched by President Hugo Chavez.