On 29 June 2012, a Mercosur Summit formalised Paraguay's political (although not economic) suspension from Mercosur. Paraguay cannot participate, vote or veto any measures of the bloc until it is re-admitted. We expect the suspension to continue until the next presidential elections in April 2013.

The UK has carefully followed the situation in Paraguay and continues to keep it under close review. We are taking account of ongoing work and discussions in the Organisation of American States (OAS) and the European Union to ensure Paraguay respects its international commitments to human rights and to uphold democracy and the rule of law. We welcome the recent decision by the OAS to send a mission to observe the next general elections on 21 April 2013.

We are committed to strengthening our relationship with Paraguay. We plan to re-open an embassy in Asuncion in mid 2013. This new embassy will further strengthen British diplomatic engagement in the Latin American region. It will help to unlock commercial opportunities for British companies in this significant market. And it will allow us to work closely with Paraguay on regional issues such as counter-narcotics and organised crime. We will also be looking at ways of supporting democracy, the rule of law and human rights in Paraguay.