Paraguay's Economics of Necessity

After electing a new president in what international observers deemed open and fair elections, Paraguay is allowed to rejoin the Mercosur customs union, but the benefits of membership are increasingly unclear. Paraguay's new government has no choice but to remain in the trade bloc, but Asuncion will focus on building its relationship with Brazil while cementing economic relationships outside Mercosur. Paraguay's geography, however, remains a profound and defining constraint on the country's options.