
A two day Mercosur summit begins Monday in Montevideo with Foreign Affairs ministers meeting Monday and the presidents on Tuesday when the rotating chair will be passed from Uruguay to Argentina for the next six month.

United States Trade Representative Ron Kirk announced that the administration of President Barack Obama is intent in reaching a free trade agreement with South America and called for a greater opening of the Brazilian economy.

British ambassador in Chile Jon Benjamin met this week in Punta Arenas with a group of local students from municipal managed schools who were recently part of an exchange program with the Falkland Islands and underlined the close links between the two communities.

Surprise and perplexity has surfaced from the Falkland Islands following the announcement by President Jose Mujica that Falklands’ flagged vessels are barred from Uruguayan ports.

Uruguayan opposition called the government of President Jose Mujica “submissive” and “obsequious” with Argentina for having announced it was barring Falkland Islands flagged vessels from the port of Montevideo.

Argentina attempt to control capital flight through strict foreign exchange measures including the tax revenue office which gives its approval or denial to foreign money transactions have added another tool: sniffer dogs.

Spanish ambassador in Uruguay Aurora Diaz-Rato criticized Argentina following an incident with an Argentine Coast Guard unit which tried to intercept a Spanish flagged vessel when exiting Montevideo en route to the Falkland Islands.

As Spanish vessel with Falkland Islands fishing licence was harassed Saturday morning by the Argentine Coast Guard on leaving the port of Montevideo for the South Atlantic and had to reroute course in Uruguayan waters until reaching the high seas.

Uruguay considers that British control over the Falklands or Malvinas Islands constitutes a “colonial enclave”, which is “inadmissible”, and that is why Falklands’ flagged vessels are barred from entering Uruguayan ports, said on Friday Foreign Affairs minister Luis Almagro.

”The best way to defend workers is to look after the government” said Argentine Interior Minister Florencio Randazzo, the first official response to organized labour union boss Hugo Moyano speech on Thursday to a packed stadium of 80.000 roaring teamsters