Fernando Lugo
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Paraguay suspended from Mercosur

30 June 2012 Last updated at 05:26 BST

The Mercosur trade bloc has suspended Paraguay over the impeachment of President Fernando Lugo on 22 June.

The presidents of Argentina, Brazil and Uruguay said Paraguay would remain outside the bloc until the next presidential election in April.

But at the end of a two-day summit in Argentina they decided not to impose sanctions on Paraguay.

They also announced that Venezuela would now become a full member of Mercosur.

From Buenos Aires, the BBC's Vladimir Hernandez reports.