
Paraguay and Uruguay are committed to the consolidation of Mercosur, in spite of the ongoing trade differences among its members, said Uruguayan president Tabaré Vazquez.

Former Brazilian president Jose Sarney and currently head of the federal Senate, reiterated his opposition to Venezuela’s incorporation to Mercosur because of differences over interpretations of democratic governance with the regime of President Hugo Chavez.

With only two months for the Mercosur presidential summit there have been no advances in vital issues such as trade barriers and the Customs Code, reported Oscar Rodríguez Campuzano, Paraguay’s Deputy minister for International Economic Relations.

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.