DECISION REGARDING THE SUSPENSION OF PARAGUAY FROM MERCOSUR THROUGH APPLICATION OF THE USHUAIA PROTOCOL ON DEMOCRATIC COMMITMENT.

The President of the Republic of Argentina, the President of the Federal Republic of Brazil and the President of the Oriental Republic of Uruguay;

Considering that, in accordance with the Ushuaia Protocol on Democratic Commitment, the full application of democratic institutions is an essential condition for the development of the integration process,

Underlining that any rupture of the democratic order constitutes an inacceptable obstacle for the continuity of the integration process,

Reaffirming that the spirit of the aforementioned Protocol is the re-establishment of democratic institutions in the affected Party, without which the normal functioning of MERCOSUR and its organs is inhibited,

(Recognising) that in accordance with the founding treaties of MERCOSUR, suspension carries with it limitation of participation in MERCOSUR organs, as well as the loss of rights to vote and veto,

(Recognising) that such suspension does not diminish the commitment to the wellbeing and development of Paraguay, nor should it produce any harm to the Paraguayan people,

Considering the “Declaration of MERCOSUR States Parties and Associate States on the breakdown of democratic order in Paraguay” adopted on the 24th of June 2012.

RESOLVE:

1.- To suspend the Republic of Paraguay from the right to participate in the organs of MERCOSUR and from deliberations, under the terms of article 5 of the Ushuaia Protocol.

2.- For the duration of the suspension, paragraph iii) of article 40 of the Protocol of Ouro Preto will take effect with the incorporation of Argentina, Brazil and Uruguay as set out in paragraph ii) of said article.

3.- Suspension will cease when, in accordance with the provisions of article 7 of the Ushuaia Protocol, full re-establishment of democratic order in the affected party has been verified. The Foreign Ministers will maintain regular contact in this respect.

4.- To communicate the present decision to the MERCOSUR parliament.

5.- To guarantee the continuity of projects related to Paraguay under the MERCOSUR Structural Convergence Fund.

Mendoza, 29th of June 2012