This research seeks to analyze the process of suspending Paraguay from the Southern Common Market (MERCOSUR) agenda in 2012, the relationship of Democracy to South American countries and the impeachment of former Paraguayan President Fernando Lugo in 2012. From of the theoretical contributions on democracy, the research will show in what situation the Paraguayan democracy was established before and after the suspension of the bloc. Neoliberal Institutionalist theory and studies on Regionalism, will serve as tools for analyzing MERCOSUR as a regional institution that has rules that influence the behavior of member countries and we understand at what stage of regionalism the bloc's integration is. In addition, the Ushuaia 1 and 2 protocols will be possible. Decision-making bodies such as the Common Market Council (CMC), the Common Market Group (GMC) and the Mercosur Trade Commission (CCM) will be exercised. The Mercosur Parliament's Democracy Observatory (ODPM) will also be presented. The aim of this research is to understand the dynamics that occurred in the suspension process in Paraguay and to observe the strategic use of the Ushuaia protocol. It is argued that the bloc's member countries, Argentina, Brazil and Uruguay strategically used the protocol to suspend Paraguay and admit Venezuela to the bloc. In methodological matters, a research is carried out using the deductive method in which the concepts used to explain the Paraguayan case start from an overview until they are applied to the particular case. A bibliographic review and analysis of Mercosul protocols was carried out to understand the application of the Ushuaia 1 protocol. The results can confirm the argument about the strategic use of the Ushuaia 1 protocol.
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