South American countries have reacted to the ousting of Paraguay’s President Fernando Lugo by suspending the country’s membership from key trading groups. Mercosur, South America’s major trading bloc, and the Union of South American Nations have both suspended membership for Paraguay until new democratic elections are held. But this seemingly clear stance has been confused by admitting Venezuela, accused of human rights abuses and a lack of democracy.

SOUTH AMERICA’S Mercosur group – the Common Market of the south – has suspended Paraguay’s membership possibly hitting its economy and leading to further diplomatic isolation.

The ‘co...

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Dr. Joseph S. Tulchin
More than half Paraguay’s exports, worth some US$2.8 billion went to Mercosur members Brazil, Argentina and Uruguay in 2011. Almost double this amount was imported from these three countries
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