Ecuador then proposed to the former Argentine President Nestor Kirchner as Secretary general of the Union of South American Nations (a South), but its name was vetoed by Uruguay. The Argentine Government reacted in defense of her husband and predecessor of President Fernandez and felt that Uruguay was mixing everything and received the veto as a grievance to all Argentines. Aspect to this existing and Uruguay still does not pass. It should not be forgotten, that Argentina and Uruguay, which are traditionally called River Plate brothers, by a common history, are facing each other and even resolved before the International Court of justice the Hague the lawsuit by the presence of a company of cellulose on the Eastern Bank of the Uruguay River border common of the two countries. A cut for more than two years by Argentine piqueteros bridge stands as an irritating obstacle for the Government of President Tabare Vazquez. And the position of Uruguay to reject the former Argentine President Nestor Kirchner as Secretary-General of the Union of South American Nations (UNASUR), proposed by Ecuador, is linked to that dispute. For its part, Argentina refuses to dredge channels of access to ports of both capitals, except those who favor el bonaerense. Relations between Brazil and Paraguay have also deteriorated and especially since the Paraguayan Fernando Lugo assumed power.
Former Bishop met as promised in his election campaign and has urged Brazil to review the Itaipu Treaty, which regulates the operations of the dam of the same name, whose property shared by both countries. Itaipu, the largest hydroelectric worldwide in operation, was built with Brazilian capitals on the border Parana River between 1974 and 1982, when it entered operations with an installed capacity of 14 megawatts. According to the Treaty, signed in 1973, Brazil and Paraguay are entitled each to 50 per cent of the electricity generated and unused energy must be sold to the other partner at a fixed price. 90 Percent of the Paraguayan demand is satisfied with 5 per cent of the production of Itaipu and the rest ends up in Brazil, which pays by She some 300 million dollars annually. According to Lugo, price should be reviewed and increase to about $ 2 billion, what Brazil does not accept and argues that only can be discussed from 2023, when the Treaty it shall expire. Last September, during the first official visit of Lugo to Brazil, both Governments agreed to create a technical working group to discuss the matter, but Lula made it clear that it will not transfer so that review of the Treaty, with which the conflict intensifies. In November, Asuncion expressed his discomfort at the presence of Brazilian soldiers who made military maneuvers just thirty meters from the common border.
The Paraguayan Foreign Ministry asked even explanations for what he called systematic and recurrent attitude of confrontation and military provocation by Brazil, which attributed the presence to an error of the soldiers. Amid this climate, at the semiannual Summit of Mercosur which will take place next week in the Brazilian resort of Costa Sauipe, Uruguay and Paraguay will revert to raise his old complaint about the economic asymmetries that exist in the Mercosur. According to two less developed partners, the economic abyss that separates them from Brazil and Argentina close access to the benefits of integration and may be aggravated even more, due to the severe global financial crisis.