
Paraguay troops begun pouring into two Northern provinces Monday evening where a state of exception was declared to try and combat an outbreak of guerrilla attacks that has killed members of the police forces, kidnapped for ransom and robbed local banks.

A proposal to allow Paraguayans living abroad to vote in national elections at home won overwhelmingly, 90%, in a Sunday referendum, but turnout was minimum, just 10% of the electoral role.

Brazil questioned the Venezuelan government guarantees for freedom of expression and Judiciary branch independence although at the same time saying it was a “good friend” of the government of President Hugo Chavez.

An estimated 5.000 workers will be left redundant for two months and losses could easily reach 300 million dollars because of the outbreak of foot and mouth disease in Paraguay that has banned exports, revealed Wednesday Luis Pettengill, president of the country’s Meat Chamber.

Paraguay sanitary authorities confirmed an outbreak of foot and mouth disease which means the immediate suspension of all beef exports for at least two months and the sanitary rifle for 800 head of cattle.

The Paraguayan delegation before Mercosur Parliament, Parlasur, accused Argentina of “systematically and permanently ignoring the Asuncion Treaty” (the founding charter of Mercosur).

Standard & Poor's ratings services upgraded Mercosur member Paraguay's credit status a notch after the country reached an agreement with neighboring Brazil to take more revenue from the shared Itaipú hydroelectric complex, the world’s largest operational dam.

“Argentina wants to charge 49 dollars per KW of power transferred from Paraguay to Uruguay, which is five times what it charges Brazil” claims Paraguayan Vice President Federico Franco who described the pretension as “inadmissible and preposterous”.

Paraguay’s vote in support of Venezuela’s full integration to Mercosur seems more distant than ever as was confirmed by the country’s Senate Foreign Relations committee to Brazilian ambassador Eduardo Dos Santos.

Over a billion dollars have poured to the Paraguayan private sector, mostly under the ‘maquila’ system in the last three years according to a report from the Ministry of Industry and Commerce.