Venezuela to join Mercosur on July 31
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.
- Mercosur suspends Paraguay from trade bloc over Lugo ouster (alethonews.wordpress.com)
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