Identifier
Created
Classification
Origin
09ASUNCION97
2009-02-12 21:50:00
CONFIDENTIAL
Embassy Asuncion
Cable title:  

LUGO BACKS VENEZUELA'S ENTRY INTO MERCOSUR

Tags:  PREL ECON PGOV PA 
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VZCZCXYZ0000
OO RUEHWEB

DE RUEHAC #0097 0432150
ZNY CCCCC ZZH
O 122150Z FEB 09
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7605
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0391
C O N F I D E N T I A L ASUNCION 000097 

SIPDIS

STATE FOR WHA/BSC MDASCHBACH

E.O. 12958: DECL: 02/13/2029
TAGS: PREL ECON PGOV PA
SUBJECT: LUGO BACKS VENEZUELA'S ENTRY INTO MERCOSUR

REF: ASUNCION 721

Classified By: A/DCM Joan P. Shaker for reasons 1.4 (b) and (d).

C O N F I D E N T I A L ASUNCION 000097

SIPDIS

STATE FOR WHA/BSC MDASCHBACH

E.O. 12958: DECL: 02/13/2029
TAGS: PREL ECON PGOV PA
SUBJECT: LUGO BACKS VENEZUELA'S ENTRY INTO MERCOSUR

REF: ASUNCION 721

Classified By: A/DCM Joan P. Shaker for reasons 1.4 (b) and (d).


1. (U) Paraguay's Vice Foreign Minister for Economic Affairs,
Oscar Rodriguez Campuzano, said February 7 that President
Fernando Lugo will prioritize Venezuela's entry into MERCOSUR
during his tenure as president pro tempore, which began
December 16. (NOTE: Paraguay and Brazil must approve
Venezuela's application for full membership in MERCOSUR. END
NOTE.) Rodriguez Campuzano said Paraguay would emphasize
making MERCOSUR citizens protagonists in "integration
policy." Paraguayan Parlasur delegates opined that
Venezuela's admission would serve as an "economic
counterweight" to Brazil.


2. (C) COMMENT: While Lugo may support Venezuela's entry into
MERCOSUR, this pronouncement is not the end of the issue. The
Lugo administration holds little influence over the divided
Paraguayan Congress, in which no political party has a
majority. Lugo's unsuccessful effort to call a special Senate
session January 22 to fill a Supreme Court vacancy served as
a wake-up call for Lugo to improve relations with Congress.
Additionally, there appear to be strong "anti-bodies" in
Paraguay against increased Venezuelan influence and activity.
For example, months after the actual events, the press
continues to actively criticize two Venezuelan attempts to
gain a foothold in Paraguay: Lugo's August signing of several
treaties with Venezuela (reftel) and Venezuela's donation of
USD 1 million to respond to droughts in Paraguay's Chaco
region. Several senators have told Acting DCM that they
strongly oppose Venezuela's efforts to join MERCOSUR and
predict the issue will be a heated political battle in
Congress. That said, if Brazil approves Venezuela's
application, there will be increased pressure on Paraguay to
follow suit. END COMMENT.

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AYALDE