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Venezuela formally joins Mercosur trading bloc

Press TV – July 31, 2012

Venezuela has become a full member of the Mercosur regional trading bloc following a six-year-long delay.

Venezuela’s President Hugo Chavez is now set to take part in a ceremony in Brasilia, which celebrates Caracas’ membership in the South American trade bloc.

The visit to Brasilia will be Chavez’s first official trip abroad in a year after his being diagnosed with cancer in June 2011 and his treatment process in Cuba.

Mercosur is an economic union and political agreement between Argentina, Brazil, Paraguay, and Uruguay founded in 1991. Its purpose is to promote free trade and the fluid movement of goods, people, and currency.

The bloc’s combined market encompasses more than 250 million people and accounts for more than three-quarters of the economic activity on the continent, or a combined GDP of USD 1.1 trillion.

Although the governments of Argentina, Brazil, Paraguay, and Uruguay had approved Venezuela’s admission into the bloc in 2006, the accession was delayed pending ratification by the Paraguayan congress.

This is while Paraguay has recently been suspended from the group over the controversial dismissal of President Fernando Lugo.

The lower house of the Paraguayan congress impeached Lugo on June 21. The senate opened his trial a day later and quickly reached a guilty verdict, ousting the president.

Mercosur’s leaders did not impose economic sanctions on Paraguay, but banned Paraguayan officials from participating in the bloc’s meetings.

Paraguay’s suspension created an opportunity for Venezuela to be incorporated into the bloc since the opposition in the Paraguayan congress was the only obstacle to Caracas’ membership.

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July 31, 2012 Posted by | Economics | , , , | Leave a comment

Venezuela to join Mercosur on July 31

Press TV – June 30, 2012

The South American trade bloc Mercosur has announced that Venezuela will become a full member of the group on July 31.

On Friday, at a summit meeting in Mendoza, a small city in western Argentina, Mercosur leaders also agreed to extend Paraguay’s suspension over the dismissal of President Fernando Lugo until constitutional order is restored, Reuters reported.

The lower house of the Paraguayan Congress impeached Lugo on June 21, and the Senate opened his trial on June 22 and quickly reached a guilty verdict, ousting Lugo.

Mercosur leaders did not impose economic sanctions on Paraguay but banned Paraguayan officials from participating in Mercosur meetings.

Paraguay’s suspension created an opportunity for Venezuela to be incorporated into the bloc since opposition in the Paraguayan Congress was the only obstruction after a six-year wait.

Although the governments of Argentina, Brazil, Paraguay, and Uruguay approved Venezuela’s admission into the bloc in 2006, its status remained in limbo as the agreement depended on ratification by the Paraguayan Congress.

“We’re calling on the entire region to recognize the need to expand our union so we can confront this crisis… caused by rich countries, but which will affect our economies regardless,” Argentine President Cristina Fernandez said at the summit.

“(We need to) develop the incredible potential that South America has in terms of food and agriculture, minerals, energy, and science and technology,” she added.

Mercosur is an economic union and political agreement between Argentina, Brazil, Paraguay, and Uruguay founded in 1991. Its purpose is to promote free trade and the fluid movement of goods, people, and currency.

The bloc’s combined market encompasses more than 250 million people and accounts for more than three-quarters of the economic activity on the continent, or a combined GDP of $1.1 trillion.

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June 29, 2012 Posted by | Economics | , , , , , , , | Leave a comment

Mercosur suspends Paraguay from trade bloc over Lugo ouster

Press TV – June 29, 2012

South American foreign ministers have suspended Paraguay from the regional trade bloc, Mercosur, over last week’s ouster of former President Fernando Lugo.

However, the bloc stopped short of imposing economic sanctions on Paraguay, which is one of the four founding members of the Mercosur bloc, along with Brazil, Argentina and Uruguay.

Paraguay was banned from this week’s summit held in Mendoza, Argenita, as the regional leaders considered the removal of the country’s first left-wing president as a parliamentary coup.

“Through a unanimous decision by Mercosur’s permanent and associate members, it has been decided– because of the events that occurred last Friday– to suspend Paraguay’s participation in this presidential summit,” Argentine Foreign Minister Hector Timerman said on Friday at a news conference.

Last week Paraguay’s Senate removed Lugo from office after a five-hour impeachment trial. He was accused of mishandling an armed clash over a land dispute in which seven police officers and ten landless farmers were killed on June 15.

Lugo was immediately replaced by his pro-US deputy, Federico Franco. The move has prompted harsh criticism inside the country and among its neighboring nations.

South American officials said that the suspension of Paraguay will stand until “democracy is fully restored” to the country.

Bolivian President Evo Morales voiced his concerns over what happened in Paraguay, saying that his country will not “recognize a dictatorship in paraguay.”

Several South American nations have recalled their ambassadors from Paraguay’s capital Asuncion, permanently or for consultation, in a bid to show their opposition to the dismissal of a democratically elected president.

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June 29, 2012 Posted by | Economics, Solidarity and Activism | , , , , , , | Leave a comment

China seeks free trade deal with Mercosur

Press TV – June 26, 2012

Chinese Premier Wen Jiabao says China is interested in sealing a free trade agreement with the South American regional trade bloc Mercosur.

“We share ample common interests and we have great potential,” Wen said in Buenos Aires on Monday, while standing next to Argentine President Cristina Fernandez de Kirchner in a videoconference that included the presidents of Brazil and Uruguay, AP reported.

In the videoconference, Brazilian President Dilma Rousseff said strengthening relations between Chian and Mercosur could become a “strategy to keep the crisis contagion from reaching our markets and provoking unwanted consequences in employment and income that would hurt economic growth.”

In a meeting with the Argentine president, the Chinese premier signed deals on nuclear energy and the export of Argentine agricultural products.

Fernandez called the expansion of ties between China and Mercosur “a historic opportunity to add value to our raw materials and create jobs.”

The Mercosur bloc also includes Paraguay, which does not have diplomatic relations with Beijing because it recognizes Taiwan, which China, Mercosur’s second-biggest trade partner, considers a renegade province.

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June 25, 2012 Posted by | Economics | , , , , | Leave a comment

Paraguay faces expulsion from Mercosur/Unasur, economic isolation

MercoPress | June 23, 2012

President Cristina Fernández assured on Friday night that “Argentina does not condone the coup in Paraguay” and anticipated that “appropriate measures” will be taken at next week’s Mercosur Summit, scheduled to take place in Mendoza.

The Argentine leader also said that Unasur expressed a unanimous voice regarding the impeachment process that removed President Fernando Lugo from office on Friday.

Brazilian president Dilma Rousseff also suggested that Paraguay could be expulsed from Mercosur and Unasur since the two organizations have clauses in support of democratic rules and governance.

Speaking at a press conference before addressing the UN Rio+20 summit Rousseff said there “are anticipated sanctions for those who do not comply with the principles that characterize democracy” but admitted Paraguay was going through “a complicated situation”.

When a country violates the democratic clause the sanction is “non participation in multilateral bodies; that is expulsion from Mercosur and Unasur”.

Ecuadorean president Rafael Correa anticipated that his government “will not recognize any other Paraguayan president but Fernando Lugo”, and independently of the decisions from Lugo and Unasur “Ecuador will not recognize the new president”, Federico Franco, named by Congress.

“We are not going to remain idle to the advance of these type of issues in our region because what happened in Paraguay is absolutely illegitimate” and recalled the democratic clause from Unasur which enables the regional block to act when against the rupture of democratic order in any member country.

“What has happened in Paraguay is a big farce disguised as legality but it is totally unacceptable that the decision to oust a president was taken in 24 hours ignoring his right to due process and defence”, added Correa.

Venezuelan Foreign minister Nicolas Maduro said in Asuncion that a meeting of Unasur heads of state will take place soon to decide on the Paraguayan case, which he described as “absolutely shameful”.

Maduro is in Paraguay as one of the Unasur Foreign ministers’ delegation sent to try and mediate in the political crisis.

Unasur ministers cautioned that if due process was not respected “this would mean the rupture of cooperation of Unasur, Mercosur and Celac with Paraguay” which involves among other things cutting of subsidized fuel, limiting communications and commercial dealings.

Unasur Secretary General Ali Rodriguez said in a release that country members “will assess how it can be possible to continue cooperation with Paraguay in the framework of South American integration”, if the impeachment process ignores due process and the right to defence.

“The foreign ministers mission reaffirms its total solidarity with the Paraguayan people and its support for constitutional president Fernando Lugo”, underlined Ali Rodrigues.

Venezuela’s Maduro said that “we came (to Paraguay) with the best of willingness and open minds to help but disappointingly we were not listened by those making the decision”.

“There is an evident breaking down of constitutional order” pointed out Maduro who added the delegation arrived in Asunción “to support Paraguayan democracy, the Paraguayan people and the constitutional president Fernando Lugo”.

Maduro claims lawmakers listened in “silence and with indifference” to the Unasur request for respect to due process in the impeachment of the head of state.

~

See also:

Argentina recalls ambassador

Brazilian embargo could impact 60% of Paraguay’s exports

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June 23, 2012 Posted by | Economics, Solidarity and Activism | , , , , , , , | Leave a comment

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