Following a worrisome start, with some harsh exchanges between its members, Mercosur's 37th Summit finally wound up at Asunción del Paraguay with a series of significant agreements that represented an important step forward for the region's political and economic integration.

There were several "responsibles" for this successful outcome. Argentine President Cristina Fernández delivered a political speech that managed to revert the pessimistic climate of the previous days. The Summit then veered from a confrontation on trade matters to a strong and unified stand in defence of democratic institutions, as a result of the condemnation of the military coup in Honduras and the demand of reinstalling ousted Constitutional President Manuel Zelaya to his post at Tegucigalpa.

President Cristina also proposed a joint regional solution for facing the Influenza A epidemic now affecting 170 world countries. Her proposals received unanimous support, despite some objections from the foreign ministers of Colombia and Perú, who downplayed the importance of the Honduran coup, or a statement by Uruguayan President Tabaré Vázquez, who claimed that nicotinism was far more dangerous than influenza A.

Bolivian President Evo Morales agreed with his Argentine colleague and pointed out to the important, for the region, of some significant groups within the United States, especially in the military and defence industries, in a position to overpower President Barack Obama's well-meaning initiatives.

Evo Morales's performance was fully recognized by the Mercosur summit, considering that Bolivia is the regional country with the highest increase of its Gross Domestic Product (GDP, estimated at 4% this year, despite the world economic crisis.

Perú and Bolivia, on the other hand, reached a solution in their bilateral dispute, in connection to the Peruvian maritime claim against Chile before the International Court of Justice in The Hague. This claim became a diplomatic hurdle to Bolivia's negotiations with Chile to obtain access to the Pacific Ocean.

The Bolivian and Peruvian foreign ministers also approached the problems caused by the political asylum granted by President Alan García to Bolivian opposition members wanted by their country's courts.

Chilean President Michelle Bachelet also managed to solve some bilateral problems with Paraguay, regarding the supply of electricity from Paraguay through Argentine territory. The Government of President Cristina Fernández had already given its consent.

But undoubtedly the most important achievement resulting from the Summit was the agreement between Brazilian President Luiz Inácio Lula da Silva and his Paraguayan colleague Fernando Lugo for a new scheme for the exploitation of the bilateral hydroelectrical Itaipú dam. Although the agreement still requires Congressional approval in both countries, the prospects are better than any time before.

Once in effect, Paraguay will receive from Brazil US$360 million dollars annually, instead of the 120 million dollars it collects now. Brazil also pledged to build two bridges and a new navigation channel at Itaipú, on the Paraná river, as well as a railway connection that will link the Chilean port of Antofagasta de la Sierra with Paranaguá in Brazil. It was also agreed that Brazil accepts a revision of Paraguay's debt.

Progress was also reached on the issue of the Argentine-Brazilian trade, that has resulted in the last 72 months in a surplus for Brazil. Also on Paraguay's request that Brazil should import more of its products with added value.

The Mercosur member countries also agreed to use their own currencies, instead of the dollar, in their trade transactions, a goal that will have to be handled by their respective Central Banks. Argentina and Brazil are already enforcing it in their bilateral trade.

One pending problem is the representation system to be applied in the Mercosur Parliament (Parlasur). At present it is formed by 72 representatives from Brazil, 18 from each from the remaiig three full members (Argentina, Paraguay and Uruguay) and 18 from Venezuela, who have no right to vote.

The new system, postponed by Uruguay's request, assigned 37 members to Brazil, 26 to Argentina and 18 each to Uruguay and Paraguay. Venezuela will also have 18 representatives, once its application for full membership is approved.