UPDATE 1-Brazil's Rousseff wants Mercosur trade protection


* Fast-growing Mercosur economies hit by cheap imports * Brazil's Rousseff calls for "rebalancing" of trade * Uruguay receives Brazil's tariff proposal cautiously (Adds name to byline, Uruguay reaction paragraphs 7-8) By Guido Nejamkis and Daniela Desantis LUQUE, Paraguay, June 29 (Reuters) - Brazilian President Dilma Rousseff said on Wednesday South America's Mercosur trade bloc should protect local industry by raising trade barriers against cheap imports from outside the region. ...

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