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    Mercosur suspends Paraguay, but without sanctions

    By LUIS ANDRES HENAO | Associated Press – Fri, Jun 29, 2012

    MENDOZA, Argentina (AP) — Argentina's President says the Mercosur trade bloc has suspended Paraguay from the trade bloc but will not slap economic sanctions against the South American country after the ousting its president. She also says Venezuela will become a full member of the grouping since July 31.

    Fernando Lugo was impeached by the Paraguayan Congress a week ago in a fast trial triggered by a land eviction that killed 17 people in clashes between police and landless peasants. Argentine President Cristina Fernandez told other heads of state on Friday that the "democratic order was broken" in Paraguay because Lugo was not allowed a proper defense.

    But Fernandez said the grouping does not believe "in economic sanctions because they never hurt governments. They always hurt the people."

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