Paraguay said on Thursday that it is seeking a trade agreement with the United States, a deal which would not harm its existing agreements with the Common Market of the South (Mercosur), according to reports reaching Buenos Aires.

Vice President Luis Castiglioni said Mercosur members, especially the smaller ones, should have the freedom to sign deals with other nations, rejecting the idea that Paraguay signing trade deals outside Mercosur means breaking with the regional trading bloc.

Mercosur, Latin America's largest trading bloc, groups Brazil, Argentina, Paraguay and Uruguay with Chile and Bolivia as associate members.

Last Thursday, Uruguayan President Tabare Vazquez and U.S. President George. W. Bush discussed ways to boost bilateral trade in the absence of a new free trade agreement.

Source: Xinhua