Chavez Diplomatic Coup Deepens Rift in Brazil-Led Trade Pact

Hugo Chavez’s back-door entry into the Mercosur trade bloc led by Argentina and Brazil casts doubt on the future of a pact that has fueled a tenfold boom in commerce between South America’s two biggest economies.

Chavez is attending today’s ceremony in Brasilia welcoming Venezuela as a full member of the world’s third-biggest free trade area after Paraguay was suspended last month over lawmakers’ ousting of President Fernando Lugo. Paraguay’s refusal to ratify Venezuela’s admission had held up since 2006 the country’s entry into the four-nation group, which also includes Uruguay.