The protestors, who blocked the road on 29 May, argued that the government had reneged on an agreement to pay them compensation because they were unable to sell their harvest of cedrón (a lemon infusion). The government had promised US$312 per cultivated hectare. The problem was that the bottom fell out of the German market, to which much of the cedrón harvest is exported.
Shortly before the presidential elections in April, the government said it would carry out a verification of about 20% of the 2,615 cedrón farms and start disbursing the compensation eight days later. It then proceeded to change its mind, saying that disbursement would have to await a full census of cedrón farms. The roadblocks ensued.
Police say they first tried to persuade the protesters to unblock the road and then used water cannon and tear gas, but resorted to rubber bullets after being fired at by protesters.
President-elect Nicanor Duarte might suffer the repercussions of his predecessor's treatment of the cedrón planters. They issued a warning to Duarte saying that if they are not compensated before his inauguration on 15 August, the whole department of San Pedro will 'celebrate' the day by demonstrating on the streets.
The Mercosur trading bloc signed a framework trade agreement with India during the visit of Minister of State for Commerce and Industry Satyabrata Mookherjee to Asunción .
This should pave the way for a free-trade agreement (FTA) with India to be signed by the end of August. The list of goods to be accorded preferential treatment will be finalised this month.
The FTA should significantly increase bilateral trade from its current level of US$1.3bn to over US$3bn over the course of the next five years.
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