Paraguay's opposition-controlled Congress rejected a constitutional reform that would have let President Fernando Lugo run for re-election. The reform drive, led by Lugo's supporters, proved controversial in a country where many people have painful memories of General Alfredo Stroessner's 35-year dictatorship.
The sale of power from landlocked Paraguay to Uruguay continues to be delayed because Argentina has come up with more demands before it allows transmission through its grid, according to Paraguayan officials.
Argentina is delaying the sale of Paraguayan power to the Uruguayan market (which must cross Argentine territory) for reasons ‘as least publicly’ unknown for both sides interested in the deal, according to the Uruguayan and Paraguayan press.
Mercosur plans to begin negotiations with associate members Bolivia and Ecuador to make them full members, said Brazilian Foreign Affairs minister Antonio Patriota during Wednesday’s presidential summit in Paraguay.
Foreign Affairs minister Hector Timerman in Asuncion for the Mercosur summit promised on Tuesday Argentina will put an end to fluvial obstacles to Paraguayan trade. Landlocked Paraguay trades with the rest of the world through the Parana River, most of which crosses Argentine territory.
Mercosur full member Paraguay’s economy expanded 4.6% in the first quarter of 2011 compared to a year ago boosted by agriculture in spite of a slowdown in cattle farming and construction, according to the country’s Central bank latest report.
In spite of bouts of Asian rust and the appearance of the ‘green stem syndrome’, GSS, Paraguay harvested a record 8.3 million tons of soy beans with a yield of 2.917 kilos per hectare and a 7.1% expansion of the area dedicated to the oilseed.
The apparent impasse in the European Union/Mercosur trade talks was addressed by the Paraguayan president Fernando Lugo at a meeting on Tuesday with Members of the European Parliament and the EU delegation to Mercosur negotiations.
Argentine President Cristina Fernandez de Kirchner following medical advice was absent on Saturday from Paraguay’ official celebrations for the Bicentenary of the country’s independence. She was represented by Foreign Affairs Minister Héctor Timerman.
Brazilian president Dilma Rousseff cancelled on medical advice Sunday’s trip to Asunción where she was scheduled to participate in the bicentennial celebrations of Paraguay’s independence.