Uruguay Hoping It Will Reach Deal with Brazil on Itaipu at Mercosur’s Summit

Lugo meets Lula Mercosur's presidential summit this week in Paraguay will convene eight South American leaders, announced Paraguayan Foreign Affairs minister Hector Lacognata during a press conference Saturday in Asuncion.

Besides the four presidents from the full members, Brazil, Argentina, Uruguay and host Paraguay, four other leaders from Bolivia, Ecuador, Chile and Venezuela will be participating, said Lacognata.

"We have the confirmation from Evo Morales (Bolivia); Michelle Bachelet (Chile), Rafael Correa, (Ecuador) and Hugo Chavez (Venezuela)".

Two presidents who will not be participating are Alan Garcí­a from Peru and Alvaro Uribe from Colombia.

However the Foreign Affairs minister from Mexico, Patricia Espinosa and representatives from multilateral organizations will be arriving for the summit.

On Thursday 23, the summit begins with the meeting of Foreign Affairs ministers, which can be anticipated will address the Honduras political crisis.

On Friday the presidents will meet to address the pre-arranged agenda and sign a declaration, said Lacognata.

At the coming ceremony the rotating six months chair will be officially handed by Paraguay to Uruguay for the rest of the year.

Normally Mercosur summits take place at the end of the six months or at the latest in the first week of the seventh month. However on this occasion the event was delayed according to diplomatic sources because of other international engagements, particularly on the side of Brazilian president Luiz Inácio Lula da Silva.

The delay has also been useful to give some more time to the Paraguay-Brazil controversy about power prices and surplus energy generated at the bi-national hydroelectric complex of Itaipu, the largest in the Americas.

Paraguay has been demanding better prices for its surplus power which by contract (from the seventies when the dam was built) must be sold to the other partner (in this case Brazil).

The administration of President Fernando Lugo has been demanding improved prices for power or to freely dispose of the surplus to be traded in the regional spot market.

Brazil is reluctant to accept these conditions and insists both sides must abide by the contract which can only be reviewed in the future.

Former bishop Lugo was elected by a catch-all coalition based on promises to obtain a better deal from Brazil to invest in social development. So far he has been unable to honor his promises.

Presidents Lula and Lugo are scheduled to hold a bi-lateral meeting to address the issue following the Mercosur summit.

Mercopress

Tags:

Ads

You May Also Like

Brazil Ventures into Space with a Little Help from Russia, China and France

In 2006 Marcos Pontes, a Lieutenant Colonel in the Brazilian Air Force, became the ...

Oil and Wall Street Make Brazil Market Bearish

Latin American markets had a mixed session, due to discount-buying in Argentina and bullishness ...

The Little One

The main beneficiaries of the new minimum wage increase will be the 12 million ...

Brazil’s Vote-Buying Scandal Still Impacting Stocks

Latin American stocks were mixed to higher on the day, with Brazilian stocks posting ...

Close to 90% of Brazil’s Ethanol Is Being Used Domestically

With the beginning of this year’s Brazilian sugarcane harvest in March, price adjustments for ...

Japan Might Import 6 Billion Liters of Ethanol a Year from Brazil

Petrobras, Brazil’s state-run oil giant, reports it is studying the possibility of exporting sugarcane-based ...

Brazil and IBSA: An Alliance with Shaky Present and Uncertain Future

The New International Economic Order (NIEO), a formal set of proposals put forth by ...

Investigation on Central Bank Chief Drags Market Down in Brazil

Brazilian and Latin American receipts spent another day in the red, partly on regional ...

Brazilian Police 13 Times More Likely to Be Killed than a Common Citizen

The president of the Rio de Janeiro Association of Military Police, Mequisedec Nascimento, plans ...

US Inflation Once Again Brings Down Brazilian Stocks

Brazilian stocks retreated, extending recent losses, on continued worries about rising U.S. inflation and ...