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That is one reason why they have long languished on Mercosur's agenda.
Brazil had once hoped to head a powerful block at the FTAA talks, centred on Mercosur.
Keen as they are on Mercosur, they are even more eager to expand the state's role in development, which is hard to reconcile with freer trade and uniform rules.The countries have dealt with their differences by constructing an "imperfect customs union".
Increases in EA and the ROW participation in Mercosur's import basket composition have a positive impact on Mercosur members' exports of machinery final products and parts and components, while North American participation in the import basket have a negative impact.
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2) Trade (TRAD-4) - Status of trade with Argentina, Brazil, Chile, and other countries in the region, including government positions on future opportunities, areas for expansion, and potential areas of conflict; the impact of MERCOSUR on Paraguay's trade and the Paraguayan government's assessment of its benefits, potential drawbacks, and future prospects.
The shift in Mr. Lugo's strategy came ahead of a meeting of Mercosur on Thursday in Argentina.
In theory, it negotiates on trade as a member of Mercosur.
Not so long ago, its leaders had a vision of regional integration based on the outspoken defence of democracy, respect for treaties and on linking Mercosur to the world through, for example, a free-trade pact with the EU.
The first is that it is part of Mercosur, the trade group based on Brazil and Argentina which now includes Hugo Chávez's socialist Venezuela.
In a long step toward such an alliance, South Africa agreed this month to begin talks on joining Mercosur, the six-country South American trading bloc anchored by Brazil.
Underlining concerns on the Mercosur side, Cristina Fernandez de Kirchner, the Argentine president, said that the negotiations would be difficult because of the "protectionist" leanings of some European nations.
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