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Weekly Report - 9 May 2006

URUGUAY-ARGENTINA: Edging closer to breaking point

Uruguay is either preparing to scale down its participation in Mercosur or not, depending on the day of the week. What President Tabaré Vázquez has done is approach his US peer, George W Bush, with a plea to expand bilateral trade. He has also initiated arbitration proceedings within Mercosur against Argentina matching the latter's filing of a suit with the World Court at The Hague. His Argentine peer, Néstor Kirchner, has now openly aligned himself with the protesters who blocked the bridges across the Uruguay river.

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