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Political Risk / Venezuela

Chávez's Policies Hurt Mercosur Bid

September 2009 | Political Risk Analysis

Venezuelan President Hugo Chávez's increasingly authoritarian stance continues to weaken Venezuela's case for Mercosur entry in the eyes of Brazilian and Paraguayan lawmakers. As the domestic economic situation deteriorates, we see potential for Chávez to intensify his attacks on the opposition, and, in turn, expect to see regional dissatisfaction mount, which will further undermine Venezuela's Mercosur bid and weaken regional diplomatic and trade ties.

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